The portfolio includes five solar thermal projects, with each having a capacity of 50MW. These plants include Palma del Río I and II in Córdoba, Majadas in Cáceres, and Alvarado and Orellana in Badajoz.

The projects were developed and commissioned between 2009 and 2012. Alvarado plant was commissioned in 2009, followed by Majadas and Palma del Río I in 2010. In 2011 Palma del Río II was commissioned and finally in 2012 Orellana was commissioned. It is estimated that the projects have an average remaining lifetime of 18 years.

The acquisition is expected to strengthen ContourGlobal's renewable position in Europe. Besides, it is expected to extend the average remaining contract life for ContourGlobal's portfolio from 11 to 12 years as of 31 December 2017.

ContourGlobal intends to finance the proposed acquisition through a combination of project financing of nearly €635m and cash on the balance sheet.

ContourGlobal president and chief executive officer Joseph Brandt said: "Over the past seven years we have enjoyed successful thermal operations in Spain and developed a solar business in Central and Southern Europe.

"Today's acquisition enables us to combine this operating expertise in a sizable portfolio of long-term regulated assets which will enable us to leverage our existing footprint in the country and deliver on our commitment to pursue operationally led significant growth on our path to double run-rate Adjusted EBITDA without new equity in five years."

The sale is still to receive approval from Spain's National Markets and Competition Commission (CNMC) and the ContourGlobal’s general meeting of shareholders.  

Following the sale, Acciona will have a total capacity of 8.77GW of power generation assets, out of which 84% would be wind farms. With the sale, Acciona expects to reduce its debt to the tune of €760m.

In solar thermal technology, Acciona indirectly owns 64MW Nevada Solar One Plant in the US, through Acciona Energy International.

With a total capacity of about 4.1GW, ContourGlobal's  power generation facilities are located across 19 countries in Europe, Latin America and Africa.  

Image: With this sale Acciona plans to reduce its debt by €760m. Photo: Courtesy of Acciona.