Over the last years the PPA market in Spain has been growing steadily, as renewables are regaining centre stage in the Iberian electricity market thanks to the significant reduction in the investment costs of grid-connected PV and wind projects.
With no government support, PPAs have become a key element for developers to maximize the debt leverage of merchant projects and to mitigate the risk associated with the volatility of electricity spot market prices. Certain Spanish banks are offering project finance debt to pure merchant projects, but the terms improve in the event of signing a PPA with a credit-worthy counterparty. Thus, projects with PPAs can obtain better financing terms and are therefore able to increase the equity IRR.
Our services fall into four broad groups: