GE complex secures power deal and finance

SPAIN: The 300MW Goya wind power development in the northeast province of Zaragoza has closed a 12-year power purchase agreement (PPA) with Franco-Belgian utility Engie.

GE is set to supply its 3MW-platform turbines to the 300MW complex

The site, which will use turbines from GE's 3MW platform, has also agreed a €170 million finance agreement, led by banks BBVA, CaixaBank and Santander. The European Investment Bank has also supported the complex. 

The deals were confirmed by the project’s original developer, Forestalia.

In January 2018, Forestalia sold a 51% controlling stake of the complex to French venture capital firm Mirova-Eurofideme 3, an affiliate of Banque Populaire Caisse d'Épargne.

A further 15% is owned by Engie. Forestalia retains 9%. GE is also a partner through subsidiary GE Energy Finance, which holds the remaining 25%.

Through a framework deal in August 2017, GE signed to supply 1.2GW of the 1.5GW of wind power rights allocated to Forestalia in Spain’s three renewables power auctions 2016-2017.

For the Goya complex, GE will supply a mix of GE 3.4-130 and GE 3.8-130 turbines.

Building completion is planned for late 2019. The complex comprises nine projects in and around the Fuendetodos area of Zaragoza.

They are: Agrovento (9MW), Cañacoloma (21MW), El Saso (18MW), Sierra de Luna (18MW), and Las Majas I, II, III, IV and V (234MW).

The wind complex will be the largest to effectively operate without subsidy in Spain.

The 300MW capacity was allocated in the January 2016 power auction after offering a 100% discount on a state investment subsidy.

That means output will be paid at the pool price only, averaging at around €60/MWh in 2017.

The only support for the complex is a floor on production earnings, set at €28/MWh, though there are no sector indications of prices falling that low in the foreseeable future.