Forestalia closes an agreement with Mirova, GE and Engie to build the first subsidy free 300MW wind farm in Spain

Forestalia closes an agreement with Mirova, GE and Engie to build the first subsidy free 300MW wind farm in Spain

Forestalia, Mirova, GE and ENGIE have signed an agreement to buildthe first 300 megawatts (MW) wind farm free of premiums and public subsidies in Spain. This 9 wind farms cluster, “the Goya Project“, to be built in the province of Zaragoza, was awarded to Forestalia in the first Spanish renewable generation auction of 2016.Itwill cover electricity consumption of the equivalent of Zaragoza’s population.This landmark project is one of Spain’s most important investment in renewable energy in recent years, represents a major step towards the construction of a 1,500 MW cluster on this very site, and it is supported by the EIB and by the Investment Plan for Europe

Equity financing

The equity financing of Goya Project, approximating EUR 140 million, is shared between MirovaEurofideme 3 (51%), a fund managed by Mirova, GE Energy Financial Services (25%), ENGIE (15%) andForestalia (9%). Eponyme Partners advised Forestalia in the equity fundraising process,Cuatrecasas, for the equity, Allen &Overy, for the Mandated Lead Arrangers, and King & Wood Mallesons, advice for the EIB.

Project Financing

A non recourse project financing of 170 million euros has been structured and fully underwritten by BBVA, CaixaBank y Santander, as Mandated Lead Arrangers (MLAs) and Bookrunners. The European Investment Bank, has taken part in this transaction assuming a EUR 50 million direct participation and granting funding to some of the MLAs under the framework of the Investment Plan for Europe. The three MLAs added three additional financing lines providing the project with VAT facility, LoC guarantee line and interest rate hedging. Forestalia has been advised on the debt side by Agere Energy & Infrastructure Partners. Allen &Overy acted as legal advisor for the Mandated Lead Arrangers and King & Wood Mallesons for EIB. It is worth mentioning that this Loan has been certified as a Green Loan in compliance with the Green Loan Principles by a third party independent expert, Spanish technical advisor Altermia.

The Power Purchase Agreement (PPA)

This EUR 310 million investmenthas been facilitated by the signature of a 12-year PPA, the first of its kind within the Spanish renewable market. Through this PPA, ENGIE will guarantee the purchase of a large part of the electricity generated by the future wind complex. As the first PPA signed for wind farms under construction, this agreement marks a new milestone in the Spanish energy market.


ENGIE, as a member of a joint venture with Acciona and Copsa, will be the company responsible for carrying out the construction of the 9 wind farms, and GE will carry out the installation of the wind turbines. The civil works will begin this same semester, with the aim of having the facilities come into operation within the deadline set by the auction, March 2020.

The GE3.4-130 and GE 3.8-130 wind turbines, as well as the blades, will be manufactured by GE Renewable Energy in itsEuropean sites: its Engineering Center of Excellence in Barcelona, its manufacturing plant in Salzbergen, Germany; and the manufacturing of blades will be carried out at its LM Wind Power plants.

The wind complex covers an area of ​​about 24 km² free of environmental protection figures in the regions of Campo de Belchite, Daroca and Cariñena.

About Forestalia

Forestalia is a business group entirely dedicated to the promotion of renewable energy projects (wind, photovoltaic and biomass). Its current portfolio includes 3.6 gigawatts (GW), of which c. 2 GW were awarded by the Ministry of Energy throughthe three renewable energy auctions organized in 2016 and 2017.

Forestalia, which operates in Spain, France and Italy, has been ahead of the new paradigm of the generation of renewable electricity, in an efficient, open and competitive market, towards a carbon-free economy. The company, set up in Aragon, advocates for creating value and opportunities for sustainable socioeconomic development, with a positive and supportive return, especially in the territories where the projects are located.The Forestalia-developed project will also create employment: 700 temporary jobs during the construction phase and 50 permanent jobs when it enters into service.


About MirovaEurofideme 3

MirovaEurofideme 3 is a sustainable infrastructure fund, managed by Mirova, a Natixis Investment Managers subsidiary dedicated to responsible investment, offers engaged management solutions that are aimed at combining value creation with sustainable development.


About GE in Spain

GE is the industrial digital company, leader on a global scale, which is transforming the industry with machines managed by software and connected, interactive and predictive solutions. GE is present in Spain and Portugal for more than 60 years and has a professional staff of more than 4,000 people in 50 locations.

GE is a diversified company, which offers technology and solutions for energy generation, healthcare industry and transport. Each invention in GE promotes innovation and its application in all industrial sectors. GE provides the best results to its clients in diverse industrial sectors through professionals, services, technologies and scalability.


About Engie in Spain

As a world leader in energy transition in 70 countries, ENGIE is capable of designing, operating and maintaining facilities, including the supply of energy required at each stage.In Spain, ENGIE employs more than 2,000 people and produces around 1.5 electricity TWh in Spain through two combined gas cycles(2,000 MW) and renewable energies (86 MW – mini hydraulic and photovoltaic) and commercializes about 6 TWh for large electricity and gas consumers in Spain.

In addition, ENGIE offers the volunteer market maker service to MIBGAS (Iberian gas market) during the first half of 2018.With its participation in Goya project, ENGIE significantly increases its energy presence within the Spanish energy market and its commitment to renewable energy as an essential part of its business model.