8 March 2021

Endesa buys eleven photovoltaic projects from Arena Power - 519 MW

Voltiq acted as mandated sell side adviser to Arena Power

Endesa buys eleven photovoltaic projects from Arena Power - 519 MW

Through its subsidiary Enel Green Power España, the electricity company is investing 350 million euros in the acquisition and construction of the plants in six municipalities in the province of Huelva. The facilities will provide jobs for 1,250 people during the construction phase and generate 26 fixed operation and maintenance jobs once they are up and running.

Through its renewable energy development subsidiary Enel Green Power España (EGPE), Endesa has acquired a photovoltaic portfolio of 519 MW from the Spanish developer Arena Power. The portfolio includes eleven projects being developed in the province of Huelva. Construction is expected to begin in 2022 and operations in 2024.

The eleven projects will evacuate the power generated to the Palos substation. This substation is located in the Huelva Industrial Park, one of the largest energy-consuming industrial centres in Spain. This substation will meet the energy requirements of the chemical, oil and metallurgical centre in Huelva, which hosts 18 companies and 19 large industrial facilities. The combination of the highest levels of solar radiation in continental Europe and the large local consumption make this cluster one of the most attractive portfolios in Spain. Working with EGPE, Endesa will thus be helping to decarbonise part of the energy consumption of this cluster, avoiding the emission into the atmosphere of around 515.134,66 tonnes of CO2.

Moreover, the renewable power will be operational and ready to eventually feed the green hydrogen production project presented by Endesa to the Ministry of Ecological Transition and Demographic Challenge.

Rafael González, General Manager of Generation at Endesa, notes: "This deal is a firm step forward in our development of the strategic plan for 2021-2023, and a demonstration of Endesa's commitment to the decarbonisation of the Spanish economy. Constructing these renewable farms close to areas of great power consumption is the most effective way of making industrial activity sustainable in Huelva. We are also executing these projects by Creating Shared Value to benefit local communities, as we have been doing in other renewable sites in recent years."

This deal is also the first transaction by Arena Power, which is currently working on a 1 GW pipeline in Spain. Arena Power was created in 2019 with the goal of becoming an Independent Power Producer (IPP) in Spanish renewable energy markets and in hydrogen storage. Arena Power received advice during the deal from ATA Renewables (Technical), Ramón & Cajal (Legal), CMS (Regulatory), Garrido (Tax) and Voltiq (Financial). Following the acquisition, Arena Power will continue EGPE's development process until all the projects achieve the status of ready for construction.


(This is an abbreviated version of the press release issued by Endesa, please find the full version here)

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