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Investor finances first tranche of 177MW subsidy-free Portugal PV

Dynavolt Renewable Energy Europe has reached financial close on a PPA-backed 28.8MW PV project in Portugal, marking the first subsidy-free solar project financing in the country. 

The circa EUR 21m project reached financial close last week with a 10-year debt facility provided by Banco BPI.

Dynavolt, a subsidiary of Chinese battery manufacturing group Dynavolt Renewable Energy Technology, acquired the Evora-located project from early-stage developer Hyperion, which has retained a 10% stake.

The tenor of the debt matches the length of the PPA agreed with Axpo Iberia.

The energy price agreed was not disclosed, but is “well-below” the EUR 56/MWhr wholesale price of energy in Spain as of the end of 2017, according to one source close to the transaction.

Debt pricing was also undisclosed, but is in line with current market conditions. French IPP Neoen refinanced its 24MW Portuguese solar portfolio late last year with debt priced at 250bps-350bps plus Euribor, for example.

Construction on the Evora project is expected to start by the end of Q1 2018, with commissioning to follow by H1 2019. Panels for the project are being provided by CSUN.

Dynavolt was advised on the transaction by Caiado Guerreiro (legal) and Enertis (technical).

Vieira de Almeida (legal) advised BPI, Uria Menendez (legal) advised Axpo, and CSA (legal) advised Hyperion.

The financing is the first from a framework agreement Dynavolt has with Portuguese developer Hyperion to back 177MW of subsidy-free solar in the country.

It is expected to kick-off financing for a further two projects out of the portfolio this year, with the remaining half of the portfolio to follow in 2019.

Dynavolt Renewable Energy Europe typically acquires late-stage development solar PV projects, financing their construction before then selling on to institutional investors early on in their operational life.

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