BayWa r.e. and the commercial bank NORD/LB (Norddeutsche Landesbank) have successfully completed the financing of a solar park in Alhendín, close to Granada (Andalusia, Spain) for a total figure of €32.5 million. NORD/LB is a trusted financial partner of BayWa r.e., with whom it has been working with for several years. The financial institution was also recently selected by the company to finance a 53 MWp solar park in the Italian region of Lazio.
The Alhendín solar farm is currently under construction and is scheduled for completion at the end of June this year. Once connected to the grid by the end of 2023, it will generate 96.8 GWh of renewable energy each year, equivalent to the electricity consumption of approximately 24,700 Spanish households.
The plant is part of two long-term PPAs signed by BayWa r.e. and VELUX Group, which includes the construction of another solar park in the Seville region, also in Andalusia. Both facilities will enable the world-leading roof window manufacturer to power 100% of its European operations with renewable energy by 2024.
Approximately 10% of the Alhendín solar farm will consist of an innovative 5.1 MWp Agri-PV installation, a solar application that combines energy generation and agriculture on the same land, which makes the PPA signed with VELUX the first European Agri-PV corporate PPA.
Alhendín is also a pioneering project for solar plant symbiosis as it is integrating solar energy production with the natural environment and the local community to achieve a mutual benefit. The development of the park will include a comprehensive plan, as well as a suite of community and environmental measures that will enhance the biodiversity of the area and encourage the participation of the local community.
To ensure environmental stewardship and community development, BayWa r.e. has partnered with Universidad Autónoma de Madrid and Universidad de Córdoba. They are currently working on the assessment of the area and there are some first findings and proposed actions that will be implemented in the area over time. For example, increasing tree and bush covers as well as covering the fence with natural vegetation which could enhance biodiversity around the project.
Heiko Ludwig, Global Head of Structured Finance at NORD/LB, said: "We are very pleased to support BayWa r.e., one of our long-standing clients in this innovative and outstanding project. For us this is another great opportunity to strengthen our cooperation with BayWa r.e. through financing a photovoltaic project, this time in Spain, and to demonstrate that we are a reliable partner thanks to our experience in financing renewable projects worldwide."
Rafael Esteban, Managing Director of BayWa r.e. Projects España S.L.U., commented: "NORD/LB has been one of our strongest partners for years. We have therefore decided to rely on them for the financing of one of our most ambitious projects, not only in Spain, but also in Europe. The Alhendín solar park, with all its innovative and pioneering aspects, is yet another example that Spain has a lot to contribute to the global renewable energy market. That is why BayWa r.e. is unwavering in its commitment to continue contributing to the energy transition in Spain, and this agreement is essential to make further progress towards this goal."
Copyright photo: BayWa AG