Ireland-based solar independent power producer (IPP) Power Capital Renewable Energy has secured up to €240m equity financing facility to support 1.2GW of solar projects.
A consortium of lenders comprising Eiffel Investment Group, Belgian insurance company Ethias and the European Investment Bank has offered the financing.
Power Capital will receive an initial tranche of €100m, to build the solar assets that benefit from Power Purchase Agreements (PPAs) with Microsoft and another undisclosed company.
The company will receive additional €100m in a second tranche to build more assets, and up to €40m to support its international expansion.
The IPP intends to use the financing facility to start-up the 1.2GW of solar projects by 2025.
Irish Minister for the Environment, Climate and Communications Eamon Ryan said: “This new European support for 1.2GW of solar power investment across Ireland is a vote of confidence for Irish renewables.
“It will enable solar electricity to replace fossil fuel usage to power Ireland on sunny days and contribute to our target of up to 5GW of solar energy by 2025.”
The European Investment Bank said that the investment will strengthen domestic renewable power generation and reduces carbon emissions and support energy transition.
Ethias said that the move is in line with its strategy to shift its portfolio into less carbon intensive sectors, while obtaining geographic diversification in Belgium.
In 2020, Power Capital was acquired by private equity company Omnes Capital, and was repositioned to become an IPP, and is now looking to expand globally.
Omnes managing partner Michael Pollan said: “This partnership will allow Power Capital to accelerate its transformation into Ireland’s leading solar IPP at a time when the country is signaling an increasing need for renewable energy.”
Akereos Capital served as sole bookrunner, structurer and exclusive debt advisor, and as exclusive financial advisor to Power Capital on the PPA with Microsoft.
Arthur Cox and Philip Lee legal advisors to Power Capital, and Eversheds Sutherland advised Eiffel Investment Group, on this transaction.
Power Capital Renewable Energy co-CEO and founder Justin Brown said: “It is fantastic to attract a club of such significant investors into the Irish solar sector.
“We have already commenced construction and expect 230MW to be completed by late this year across counties Cork, Wexford, Louth and Meath.
“Having the support from Eiffel Investment Group, EIB and Ethias will allow us to rapidly expand our construction roll out over the next years.”
