In July 2024, a portfolio of renewable energy assets totaling 158.1 MW was acquired, focusing on leveraging market dynamics in Spain and Portugal to capitalize on hybrid energy solutions.

Target Information

In July 2024, we successfully acquired a portfolio of renewable energy assets aimed at meeting the expected increase in power demand across Europe. This diverse program comprises seven assets boasting a total capacity of 158.1 MW. The portfolio includes: 3.7 MW operational solar photovoltaic (PV) in Spain; 6 MW operational onshore wind in Sweden; 20 MW solar PV under construction in Portugal; 10.3 MW solar PV under construction in Spain; 19.8 MW ready-to-build (RTB) onshore wind in Spain; and 98.3 MW RTB solar PV in Spain distributed across two sites. The leverage on these assets is projected to be approximately 50% loan-to-value (LTV).

Industry Overview

Spain and Portugal, which host over 95% of this renewable energy program, present an exceptionally attractive investment climate for renewable energies. The ongoing phase-out of coal and nuclear power in Spain, combined with increasing drought risks, is significantly diminishing its baseload energy capacity. Additionally, Spain's energy structure is heavily dependent on gas-fired power generation, exposing it to global liquefied natural gas (LNG) supply fluctuations and resulting in heightened sensitivity to gas market volatility.

The energy markets in Spain and Portugal are further constrained due to limited interconnections with the broader European grid. Any disruption to their baseload energy supply can lead to immediate spikes in energy pric