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Enel Green Power buys eleven photovoltaic projects from Arena Power, totalling 519 MW, to help decarbonise the industrial community of Huelva

3/9/2021

- Press Release - Enel Green Power -

Enel Green Power España (EGPE) has acquired a photovoltaic portfolio of 519 MW from the Spanish developer Arena Power. The portfolio includes eleven projects being developed in the province of Huelva. Construction is expected to begin in 2022 and operations in 2024. (EGPE has also recently begun work on its first solar park in San Antonio, in the city of Huelva, with 30 MW of capacity and investment of 18 million euros, creating 100 jobs during the construction period.)

The eleven projects forming this cluster are on six sites in the province of Huelva: Palma del Condado, Gibraleón, Trigueros, San Juan del Puerto, Beas and Niebla. All of them will evacuate the power generated, and have a capacity to supply electricity to around 305,000 homes by a single transmission line which will be connected to the Palos substation. This substation is located in the Huelva Industrial Park, one of the largest energy-consuming industrial centres in Spain.

This substation will meet the energy requirements of the chemical, oil and metallurgical centre in Huelva, which hosts 18 companies and 19 large industrial facilities. The combination of the highest levels of solar radiation in continental Europe and the large local consumption make this cluster one of the most attractive portfolios in Spain. EGPE will thus be helping to decarbonise part of the energy consumption of this cluster, avoiding the emission into the atmosphere of around 515.134,66 tonnes of CO2.

The eleven solar farms bought by Enel Green Power represent an investment of around 350 million, including the acquisition price of the projects and their construction and start-up. They will generate 1,250 jobs during their construction phase and 26 during their subsequent operation and maintenance.

Moreover, the renewable power will be operational and ready to eventually feed the green hydrogen production project presented by EGPE to the Ministry of Ecological Transition and Demographic Challenge.

EGPE had a total installed capacity of renewables of 7,800 MW and a project portfolio of 41,800 MW in Spain at the close of 2020. The installed capacity includes 4,745 MW of hydraulic power; 2,422 MW of wind power; 609 MW of solar power; and 3 MW of other renewable sources. It is one of the leaders in the energy transition process in Spain. 2021-2023 strategic plan includes the development through EGPE of 3,900 MW of new renewable capacity in Spain (3,000 photovoltaic and 900 wind), with associated investment of 3.3 billion euros.

Rafael González, Head of Iberia Power Generation notes: "This deal is a firm step forward in our development of the strategic plan for 2021-2023, and a demonstration of Enel Green Power's commitment to the decarbonisation of the Spanish economy. Constructing these renewable farms close to areas of great power consumption is the most effective way of making industrial activity sustainable in Huelva. We are also executing these projects by Creating Shared Value to benefit local communities, as we have been doing in other renewable sites in recent years."

In December 2020, Enel Green Power started up four photovoltaic plants in Andalusia, in the provinces of Seville and Malaga, with 186 MW of capacity. This puts Enel Green Power’s total operational renewable capacity in Andalusia at the close of last year at 1,611.29 MW (1,020.41 MW hydroelectric, 333.92 MW wind, 256.5 MW photovoltaic and 0.46 MW biomass). EGPE is also constructing 80 photovoltaic megawatts in the Sol de Casaquemada projects in Sanlúcar la Mayor (province of Seville) and San Antonio in the city of Huelva. Finally, the necessary procedures for the construction of 6 more photovoltaic farms are at the point of completion. Their construction will begin soon in Malaga and Seville, contributing a further 251.5 megawatts of clean energy. In total, Enel Green Power's renewable subsidiary has a total of 517.5 megawatts of capacity, either under construction, at an advanced stage of prior administrative processing or recently started-up in the community, representing a firm path towards decarbonisation.

This deal is also the first transaction by Arena Power, which is currently working on a 1 GW pipeline in Spain. Arena Power was created in 2019 with the goal of becoming an Independent Power Producer (IPP) in Spanish renewable energy markets and in hydrogen storage. Arena Power received advice during the deal from ATA Renewables (Technical), Ramón & Cajal (Legal), CMS (Regulatory), Garrido (Tax) and Voltiq (Financial). Following the acquisition, Arena Power will continue EGPE's development process until all the projects achieve the status of ready for construction.