MADRID, Apr 15 (Reuters) – Northland Power has made its first foray into the rapidly growing Spanish market for renewable power generation, with a deal to buy a portfolio of wind and solar farms, the Canadian company said on Wednesday.
The avalanche of global targets to reduce carbon emissions is fueling investor interest in renewable energy companies. The sunny plains of Spain, its windswept hillsides and the political enthusiasm aroused by the sector have made it a focus of attention for the market in Europe.
Northland Power said in a statement that it will pay 345 million euros ($ 413.3 million) in cash for the assets, which are spread throughout Spain, and assume 716 million euros of debt.
The seller is an investment fund created by the asset manager Plenium and Bankinter. Santander has advised Northland on the operation, as reported by a bank spokesperson.
The solar and wind farms in question were built under a previous regulatory regime, which sets the returns that the owners receive for their production for an average of 13 years for the whole set.
(Information from Isla Binnie; edited by Aurora Ellis and Alistair Bell; translated by Flora Gómez in the Gdansk newsroom)