Green energy for Andalusia

BayernLB finances a 150-MW solar park project in Spain for Blue Elephant Energy AG

For its customer BEE – the Hamburg-based solar and wind park operator Blue Elephant Energy AG – BayernLB is financing the construction and operation of a solar farm portfolio located in the province of Granada, in Andalusia, Spain. The BEE project consists of the three solar parks “Fotosfera”, “Kissoro” and “Sunplex”, each 50-megawatt strong, and one electrical substation, “Venalta”. The plants are scheduled to be connected to the grid in the second quarter of 2022. Once completed, they will produce an estimated 315 gigawatt-hours of clean electricity per year, enough solar energy to cover more than 95,000 households’ worth of annual consumption while cutting annual CO2 emissions by around 96,000 tonnes.

In order to get the green energy on the open market, BEE has signed a 10-year power purchase agreement with EnBW Energie Baden-Württemberg AG (EnBW). Purchase power agreements, or PPAs, have become a key instrument in the energy transition as they make it possible to realise renewable projects that are not government-subsidised. For BEE, this is the first subsidy-free solar project in Spain. BayernLB is providing the long-term financing.

Karin Schramm, Senior Director of Project Finance at BayernLB, explained the importance of the deal as follows: “In order for the energy transition to succeed, it is not enough to concentrate on the domestic market alone. And that’s why we’re especially excited about realising another international renewable energy project with our longstanding partner BEE. The future belongs to climate-friendly energy sources – and we want to do our part in getting there.”

Blue Elephant Energy AG acquires and operates solar and wind parks in eight countries, mostly in Western Europe. Founded in 2016, BEE has amassed a renewable energy portfolio of 1,107 MW, part of which is currently under construction. As at the end of 2020, BEE has staved off 956,419 tonnes of CO2 and provided 711,028 households with clean energy. In the meantime, the company has secured 1,091 MW of solar park capacity through co-development agreements with a number of developers. Over EUR 1.2 billion of equity and profit participation certificates provided by BEE’s shareholders and Mittelstand insurance companies has been invested since BEE’s founding.

EnBW Energie Baden-Württemberg AG is one of the largest utilities companies in Germany and Europe, supplying around 5.5 million customers with electricity, gas and water as well as energy solutions and energy industry services. EnBW is looking to increase the renewable energy share of its generation portfolio to 50% by 2025 and plans to be climate-neutral by 2035. Its trading division helps customers place their plants on the market, thereby playing an active role in the market integration of renewable energy sources.