Statkraft and BayWa r.e. have announced plans for the “swift construction” of a large-scale solar photovoltaic (PV) plant in Spain after concluding a power purchase agreement PPA for the project.
The BayWa r.e. project will have a capacity of over 170 MWp and will be one of the first solar projects of this size in Europe to be realised without subsidies. BayWa r.e. has signed a 15-year PPA for the project with Statkraft, marking the Norwegian company’s entry into the Spanish market as a provider of PPAs.
BayWa r.e. has already started preliminary work on the project, known as the Don Rodrigo solar plant, and expects to commission it at the end of the year. It will cover an area of around 265 ha and will be located south of Seville.
“Building one of the first subsidy-free solar projects of this size in Europe is a ground-breaking milestone; both for us as an international renewable energy company and also for the future of the European PV market,” said Benedikt Ortmann, Managing Director of BayWa r.e. Solar Projects GmbH. “The fact that we can implement such a project without state funding is largely thanks to the continual improvement of system design and building costs.”
Matthias Taft, Board Member of BayWa AG with responsibility for the energy business added: “We are entering a new phase of energy generation: for the first time, renewable energy plants are able to generate cleaner power at the same or even lower price as conventional power plants. This also demonstrates the significant potential of new financing models in ever-changing market conditions.”