Q ENERGY has completed the financing of a portfolio of seven photovoltaic plants in Spain, with a total capacity of 251.71 MWp. The financing was structured as non-recourse debt at the holding company level, with Mitsubishi UFJ Financial Group and BNP Paribas acting as lead arrangers. All projects are under construction and will be equipped with battery energy storage systems, currently in development.
A first IPP portfolio for Q ENERGY in Iberia
This is Q ENERGY’s first independent power producer (IPP) portfolio on the Iberian Peninsula. The company acts as sole owner, engineering, procurement and construction (EPC) contractor, and operations and maintenance (O&M) provider across the entire portfolio. The expected output of the facilities will, according to projections, supply around 131,000 Spanish households.
The projects are located in three provinces in northern and southwestern Spain, enabling natural diversification of weather conditions, solar yield, and grid access. This geographical spread helps to mitigate operational risks linked to renewable power generation.
A financial structure designed to reduce risks
The financial setup is based on a “hard maxi-perm” structure, with cross-collateralisation between projects. This mechanism allows for optimised financing conditions while ensuring stronger economic resilience.
Revenues are secured by 10-year fixed-profile power purchase agreements (PPAs). These contracts shield the portfolio against negative or zero market prices observed in Spain, as well as against technical curtailments imposed by the grid operator. Even in the event of curtailment, the projects will continue to benefit from the predefined contractual tariff.
Storage backing up solar generation
Each site will gradually be hybridised with battery energy storage systems (BESS), strengthening the portfolio’s flexibility and opening additional revenue streams through grid services.
Q ENERGY’s Chief Investment Officer Terry Lee stated that this transaction “highlights the robustness of the financial structuring and the company’s ambition in the Iberian market.”
