13 November 2023

Soltec and Triodos Bank sign a unique financing agreement for 5.6 MW in Spain combining senior debt with local investment

Modelo Ecovoltaica de Soltec
  • The financing is structured as project finance with an amount of 3.6 million euros, to which 550,000 euros from local communities will be added
  • This is a pioneering agreement in Spain, as it is the first project finance in the country that combines senior debt with investment from local communities
  • The 5.6 MWp photovoltaic solar plant will have an annual production of 11,358 MWp and will be designed under the concept of ‘ecovoltaic’

Soltec, a vertically integrated company dedicated to photovoltaic projects with solar trackers, has closed a new financing agreement with Triodos Bank, a European reference in ethical and sustainable banking, for the construction and operation of a photovoltaic installation located in Totana (Murcia).

This is a unique and pioneering agreement in Spain that links senior debt structured through project finance with investment from local communities in the same project through a crowdfunding platform for the construction of the Totana IV photovoltaic solar plant. Additionally, a range of investment options is established for local communities, ranging from 500 euros to 150,000 euros.

The construction process of the 5.6 MWp photovoltaic solar plant will have an annual production of 11,358 MWp and will be designed under the concept of ‘ecovoltaic,’ complying with all the necessary standards to be considered a sustainable photovoltaic plant, with a strong commitment to environmental preservation and local returns, including the use of bifacial modules that maximize the absorption of sunlight and ultimately improve energy performance.

Under the ‘ecovoltaic’ concept, Soltec encompasses a series of criteria that a photovoltaic plant must meet to ensure it generates the greatest possible positive impact. This concept covers the areas that a plant interacts with during its lifespan: socio-economic excellence, circular economy, biodiversity, and greenhouse gas emissions. In this regard, ecovoltaic plants represent an opportunity for growth and development for municipalities and their communities.

The facilities will sell the generated energy directly to the electricity market, except for the 12 years when it will be under the auction economic regime, receiving a fixed price of 54€/MWh that will vary by 5% depending on the market price.

In the words of Miguel Ángel Amores, Renewable Energies and Environmental Technologies Manager at Triodos Bank Spain, “the signing of this transaction is another step in our commitment to offer innovative, flexible, and inclusive financial solutions to all citizens through crowdfunding. Supporting this type of operation reinforces our mission to transition to a model with more accessible, participatory, and clean energy for everyone.”

Raúl Morales, CEO of Soltec, states that “this collaboration is a great opportunity to continue working and enhancing the strength of our business model, which was born with the purpose of creating a clean, sustainable and fair world based on the efficient production of photovoltaic energy. In addition, for us it is fundamental to give neighbors and citizens the opportunity to be part of our projects, being the crowdfunding platform an effective and accessible formula for everyone.”

The legal and technical advisors for the operation were the ONTIER law firm and the technical consultancy of OCA Global.


Soltec Assets: Recurrence and Stability

The agreement has been closed by Soltec through Soltec Assets, a division of the company dedicated to asset management. Through this division, Soltec expects to obtain additional revenue flow from the sale of energy, providing recurrence, strength, and stability to the company. Soltec Assets is expected to have a portfolio close to 1 GW by 2025.

During the first half of the year, the division generated revenues of 5 million euros and an EBITDA of 4 million euros. Currently, the company already has 230 MW in operation: 112.5 MW in Brazil (Pedranópolis), 112.5 MW in Brazil (Araxá), and 4.5 MW in Spain (La Asomada).

Furthermore, the company has three projects in advanced construction stages in Spain: La Isla (4.5 MW), Los Valientes I and II (14.9 MW), and Totana IV (5.5 MW). Additionally, Soltec has recently signed a new PPA for the development of 5 projects in Spain, totaling 29.4 MW, with an investment-grade company.


Financing the transition to a sustainable economy

Triodos Bank’s commitment to renewables has been present since the establishment of the entity and is key to driving the transition to a carbon-free, fair, and sustainable energy system.

Through the financing of energy projects exclusively from renewable sources, the ethical bank demonstrates the essential role of the financial sector in the transformation to an energy system that exclusively supplies the grid with renewable sources and diverse technology. Until 2022, Triodos Bank co-financed 611 projects in the renewable energy sector, with a total generation capacity of 9,100 MW, equivalent to the electricity needs of 7.4 million households.