German energy company innogy has taken final investment decision (FID) for the construction of a 50MW Alarcos solar project in Spain.
innogy stated that this project will be operated without any subsidies from the government. Construction and the commissioning of the PV project, both are expected to take place this year.
The solar farm will be located in the south of the city of Ciudad Real in the Autonomous Community Castilla-La Mancha. As per the company’s plans, last pending approvals could be received in the coming months and the construction of the project is expected to begin in the month of April.
Once fully commissioned, the solar plant will generate enough clean electricity to power nearly 25,000 Spanish homes.
Innogy Renewables chief operating officer Hans Bünting said: “We are showing by means of the Alarcos project that new renewable energy sources are possible without the aid of subsidies. We are relying on long-term power purchase agreement contracts for this project.
“This is not only possible in sunny Spain, but also in many other markets solar energy is competitive. Decreasing prices for the equipment will continue to spur on this development.”
innogy estimates that the project takes about €40m of investment in total. It was initially being developed by Spanish company Synergia Energy Solutions, from whom innogy acquired the 100% shares last year. Financial details about the transaction were not disclosed.
innogy solar head Thorsten Blanke said: “Thanks to very good solar radiation levels and high demand for renewable energy, the Iberian Peninsula is one of Europe’s most emerging markets for solar energy. That’s why I am delighted that we are now able to implement a large-scale PV project in this region. And this is only the beginning.
“We want to build up a substantial solar portfolio and have already secured several other growth opportunities on the Iberian Peninsula.”
The German energy company had recently reached the final investment decision for the construction of its first onshore wind farm in the US, the 242MW Scioto Ridge wind farm.
This wind farm will be located in Hardin and Logan Counties, Ohio. Siemens Gamesa will supply 72 of its turbines for this project, whose total investment is estimated to be $300m.