The 3.9 MW Torre de Cotillas 1 project is located in Las Torres de Cotillas municipality in the southeastern Murcia region, and represents the company’s second solar project in the region to begin construction this year.
The project is part of a larger 18 MW portfolio being developed on the Iberian peninsula, Foresight said, following its acquisition of the 7.2 MW Vale Matanças solar project in Portugal.
Spanish contractor Solarig Global Services has developed the project and will build it on a turnkey basis, with grid connection planned for the first half of 2019.
Once completed, the solar farm is expected to deliver 7 GWh per year, which will be sold under a long-term power purchase agreement (PPA) with Spanish energy supplier Energya-VM.
The PPA is the first of its kind in the solar industry, Foresight said.
Carlos Rey, Foresight’s director, said the firm was “delighted to conclude this solid step in our strategy to develop a multi-megawatt portfolio in Southern Europe without regulatory support where revenues are derived purely from the sale of the power generated and delivered to private counterparts.
“The project sets an exciting new precedent in the Spanish solar industry as it is supported by a ten-year PPA at a fixed price. This proves Foresight’s capacity to deliver secured long-term revenues to our investors in an unsubsidized context.”