March 23 (Renewables Now) - Foresight Solar Fund Ltd (LON:FSFL) said on Thursday that it has secured the rights to six subsidy-free solar projects in Spain, which can potentially lead to a total capacity of 467 MWp.
Spanish distribution grid operator and renewables company Grupo Cuerva and another unnamed developer from Spain sold the rights for a “modest down payment”, while full consideration hinges on projects crossing certain milestones off the list and reaching ready-to-build status over the coming years.
The pipeline is in the development stage, which Foresight defines as projects with secured land rights and a delivery plan, but additional work is still required to guarantee the necessary permits to start construction.
In the portfolio are two projects for which grid connections were sought under the existing application routes. Of the two, one site has secured grid access and could potentially reach ready-to-build status in 2024. The remaining projects will apply for connections through upcoming grid capacity auctions, Foresight said.
The UK investor understands that not all of the projects are guaranteed to proceed, but it has plans in place to offset the risks, according to the announcement.
“Securing projects at this early stage allows the Company to capture the full benefit of progressing assets through the value chain, where we can recognise NAV uplift at both the ready-to-build and construction completion milestones, as well as look to recycle capital along the way,” commented Ross Driver, Managing Director at Foresight Group and Co-Manager of Foresight Solar.
Foresight’s team in Madrid will oversee the evolution of the projects alongside the developers responsible for establishing them, a group that will continue the development under a services agreement.