In July 2024, we acquired a programme of renewable energy assets focused on supporting the anticipated increase in demand for power on the European continent.

The programme consists of seven assets with a total capacity of 158.1MW:

3.7MW operational solar PV in Spain;

6MW operational onshore wind in Sweden;

20MW solar PV under construction in Portugal;

10.3MW solar PV under construction in Spain;

19.8MW RTB onshore wind in Spain; and

98.3MW RTB solar PV in Spain across two sites

The leverage in the programme is expected to be approximately 50% LTV.

Spain and Portugal, where over 95% of this programme is located, offer a particularly attractive investment opportunity. The rapid phase-out of coal and nuclear in Spain, coupled with the increasing risk of droughts, is reducing its baseload energy capacity rapidly. Additionally, Spain’s energy mix remains heavily reliant on gas-fired power plants, making the market more dependent on global LNG supply and therefore their energy markets are more sensitive to fluctuations in the gas markets.

Furthermore, Spain and Portugal are constrained markets due to their limited interconnection with the rest of Europe and any disruption in its baseload supply results immediately in a sharp increase in energy prices. These dynamics create a unique market dislocation, opening up arbitrage opportunities for hybridised assets that combine different energy sources and battery storage systems. Spain is progressing rapidly in approving a capacity market, which further enhances the attractiveness of investing in hybrid assets.

Once our portfolio is fully operational on the power generation side, we intend to begin hybridising these assets. This next value creation phase will consist of adding co-located Lithium-Ion BESS, to serve the nascent capacity market, to capture the intraday market volatility and decrease the risk of curtailment.