Eranovum Secures €132 Million Investment for Sabinar Solar Project

In a recent development, Spanish solar developer Eranovum, in collaboration with international partners Noy Fund and Nofar Energy, has successfully secured a substantial €132 million in financing from a prominent German pension fund. This impressive investment is a testament to the continued growth and promise of the renewable energy sector. The funds will be directed toward the development of the 238MW Sabinar solar project, demonstrating a steadfast commitment to sustainability and clean energy solutions.

The remarkable aspect of this financial arrangement lies in the substantial amount of senior debt obtained from a single institutional lender. This financing is partially based on the expected revenue generated by selling energy to the market (commonly known as a merchant arrangement). Furthermore, the loan’s extended lifespan, spanning over 20 years, will cover a significant portion of the project’s capital expenditure, ensuring the successful realization of the Sabinar solar project.

Situated in the picturesque province of Cuenca, the Sabinar project consists of two phases: Sabinar I, with an operational capacity of 155MW, and Sabinar II, which is currently under construction and has a projected capacity of 83MW. These solar initiatives represent a combined investment of over €350 million and form part of the broader efforts to boost Spain’s renewable energy capacity.

Collectively, the Sabinar and Olmedilla projects boast a capacity of more than 400MWp, generating sustainable energy for approximately 250,000 households and mitigating the emission of 320,000 tonnes of carbon dioxide (CO2) into the atmosphere. These projects are pivotal in Spain’s journey toward a greener and more sustainable energy mix.

Notably, in 2022, Eranovum, Noy Fund, and Nofar Energy signed long-term power purchase agreements (PPAs) with Telecor, a subsidiary of El Corte Inglés. These PPAs are significant, covering nearly half of the group’s annual power consumption, making them among the largest of their kind in both Spain and Europe. They ensure a consistent source of clean energy from the Olmedilla and Sabinar photovoltaic plants, further strengthening Spain’s renewable energy sector.

José Luis Aguirre, co-founder and managing partner of Eranovum, expressed his delight at the trust shown by the German institutional investor in the Sabinar project, which is one of Spain’s largest operational photovoltaic installations. “We want to continue leading the energy transition with projects that have a direct impact on the decarbonization of our energy mix,” he emphasized.

In this landmark transaction, Eranovum, Noy Fund, and Nofar Energy received advisory support from CaixaBank as their exclusive financial advisor and Watson Farley & Williams as their legal advisor. This collaboration underscores the commitment of diverse stakeholders to driving the green energy revolution forward and transitioning to a cleaner, more sustainable future.