Spanish solar energy company Solarpack on June 29 said that it has closed a 10-year power purchase agreement (PPA) with energy giant Shell.
The agreement would take effect in June 2024 with power supplied by a 54 MW solar plant in Murcia, southeastern Spain, Solarpack said.
Spanish bank BBVA agreed to finance the project with EUR 38 million (USD 41.3m). Energy supplier and trader Shell Energy Europe Limited, part of UK oil-and-gas group Shell Plc, committed to off-take 105 GWh every year under the agreement.
“This operation further reinforces our presence in Spain, one of the biggest solar energy markets in Europe, and is in line with our strategic plan to achieve 5 GW of installed capacity by 2026,” Ivan Nieto, Solarpack’s Sales Director said in a statement.
Spain is a “key growth market” for the company, which has a 14 GW portfolio, the statement indicated.
Solarpack is fully owned by Swedish investment firm EQT AB.
Before this, Shell has acquired 12 solar projects in Spain with a total capacity of 1.1 GW from renewables developer Isemaren, its head of renewables generation Thomas Brostrom said at the end of May.