ERG to acquire 149 MWp solar power plant in Spain from IBV Solar Parks

ERG to acquire 149 MWp solar power plant in Spain from IBV Solar Parks

(IN BRIEF) ERG, via its subsidiary ERG Spain HoldCo SLU, has signed an agreement to acquire a 100% stake in Garnacha Solar SL from IBV Solar Parks, BV, a company of the German group ib vogt GmbH. The solar power plant, located in the region of Castilla and León in north-western Spain, has an installed capacity of 149 MWp and is expected to reach commercial operation by the end of 2023. Equipped with bifacial panels and a tracker system, the plant will have a load factor of around 22% and an estimated total annual production of 280 GWh, avoiding 136 kt of CO2 emissions annually. 70% of the electricity generated will be covered by a 12-year pay-as-produced Power Purchase Agreement (PPA) with a leading corporate counterpart. The enterprise value of the transaction is €170 million, with an equity value of €80.5 million. The transaction is expected to close by Q3 2023.

(PRESS RELEASE) GENOA, 6-MAY-2023 — /EuropaWire/ — ERG, through its subsidiary ERG Spain HoldCo SLU, has signed an agreement with IBV Solar Parks, BV, a company of the German group ib vogt GmbH, a leading global utility-scale solar development platform. This agreement is for the acquisition, directly or through a subsidiary, of a 100% stake in Garnacha Solar SL, which is the owner of a solar power plant located in the region of Castilla and León, in north-western Spain.

The plant will have an installed capacity of 149 MWp and is currently in an advanced phase of construction. It is expected to reach commercial operation by the end of 2023.

The Garnacha solar power plant, equipped with latest-generation bifacial panels and tracker system, will have a load factor of around 22% and an estimated total annual production of around 280 GWh, corresponding to 136 kt of CO2 emissions avoided every year. Seventy percent of the electricity generated by the plant will benefit from a 12-year pay-as-produced Power Purchase Agreement (PPA) with a leading corporate counterpart.

The value of the transaction in terms of enterprise value is 170 million euros, with an equity value of 80.5 million euros. The transaction is expected to close by the third quarter of 2023.

Paolo Merli, Chief Executive Officer of ERG commented: “The acquisition of the Garnacha solar power plant, the largest in terms of capacity in the Group’s renewable portfolio, consolidate our presence in Spain where we will reach 266 MWp of installed capacity by the end of the year, with over 1 GW of under development solar pipeline. Through this transaction, ERG achieves an important positioning in the country, with possible future industrial synergies, as part of the geographical and technological diversification process envisaged in the 2022-2026 Business Plan”.

ERG was assisted in the transaction by Rothschild & Co as M&A and Financial Advisor, Garrigues as Legal Advisor, Quintas as Technical Advisor, and Ernst & Young as Tax & Accounting Advisor.

This Press Release, issued on 5 May 2023, is available to the public at Borsa Italiana S.p.A., on the authorised storage mechanism eMarket Storage (www.emarketstorage.com), and on the Company website (www.erg.eu) in the Media/Press Releases section.

Media Contacts:

Anna Cavallarin
Head of External Communication
tel. + 39 010 2401804
mobile + 39 3393985139
email: acavallarin@erg.eu

Matteo Bagnara
Head of Investor Relations
tel. + 39 010 2401423
e-mail:ir@erg.eu
www.erg.eu- @ergnow

SOURCE: ERG