Encavis has sealed a deal to buy a 300 MW solar photovoltaic (PV) power plant in Spain.

The Germany-based independent power producer (IPP) has acquired the 300 MW Talayuela solar farm, which is being built by Encavis’ UK partner SOlarcentury without subsidy support.

The deal marks another step in Encavis’ growth strategy, the firm said, and also signals the firm’s first foray into the growing market for private power purchase agreements.

The total investment including the project-related debt capital amounts to roughly €225 million. Solarcentury will bear 20 per cent of the investment and be in charge of commercial and technical management of the park. The plant is scheduled to be connected to the power grid at the end of the first quarter of 2020.

Encavis said it expects the photovoltaic plant to generate revenues of around €25 million per annum as of the first full year of operation.

Frans van den Heuvel, CEO of Solarcentury said: “This is one of the largest and most powerful solar projects in Europe and is made all the more innovative by being built without subsidy. The acquisition pays testament to the quality of our combined skills and to the strong and productive relationship we have with Encavis.”