Andbank places 100 million in Everwood Capital’s first solar parks
50 megawatts in Zaragoza and another 40 in Murcia mark the debut of Everwood Capital’s new project for the photovoltaic business in the Iberian Peninsula. The private equity management firm expects to develop up to 900 megawatts with this technology (premium-free) over the next three years, the equivalent electricity production capacity to the output of a conventional nuclear power plant.
To do so, the firm has Andbank as its financial partner. The Andorran entity (its clients) has contributed the bulk of the initial 90 million corresponding to the first deal of the investment vehicle, to which it hopes to add another 200 million from institutional investors. This is the fourth fund set up by Everwood Capital, which has already had clients from the bank in its previous projects.
The development of this market is gaining such a cruising speed that the firm has already identified a project volume equivalent to 2,000 megawatts. Developing these parks without subsidies has an approximate cost per megawatt of around 800,000 euros, and banks are starting to be willing to finance their start-up without even requiring the existence of agreements with end customers (PPAs).
Unlike the three previous funds set up by Everwood Capital, which bought regulated assets developed in the pre-crisis era of the photovoltaic sector in Spain, the new vehicle will build new parks within the new context of market-based generation and sale without subsidies. As a financial product, the management firm expects to offer investors an annual return via dividend of 6%.
Last October, the firm brought forward the incorporation of Nemesio Fernández-Cuesta (ex Repsol and Isolux) as senior advisor to the project, considered «one of the leading energy experts in Spain», under whose mandate as Secretary of State for Energy the liberalisation of the electricity sector took place, which eventually led to the creation of the electricity market in its current form.
Everwood Capital aims to position itself as a leading player in the process of transforming the energy mix, based on the premise that by 2030 there are expected to be around 40,000 megawatts of new (non-fossil) generation. This window of opportunity means that this sector is considered an alternative investment product, with liquidity windows, ideal for large assets.