AES Closes €50M for PV in Spain & Greece

AES Solar Energy Ltd., a joint venture between The AES Corporation and Riverstone Holdings LLC, announced that one of its subsidiaries closed three long-term non-recourse debt facilities for three of its portfolio of photovoltaic projects in Spain totaling approximately €25 million.

The loans were extended by the Spanish branch of the European ethical and sustainable bank Triodos Bank N.V. The three photovoltaic installations located in Granada, Spain, have a total peak capacity of 4.8 megawatts (MW). First Solar thin film panels are utilized in all three projects.

“We are very pleased to continue our success of developing sustainable sources of power in Spain – one of our core markets – despite the challenging credit markets. This transaction demonstrates our ability to raise non-recourse debt for well-structured projects that have committed people on both sides of the deal. We hope that this deal forms the start of a long term relationship between AES Solar and Triodos Bank,” said Robert Hemphill, CEO of AES Solar.

The company also recently closed a €25 million non-recourse debt facility for the Iktinos project, a 4.3-MW project located in Florina, Greece. The loan was extended by Landesbank Baden Wurttemberg (LBBW) of Germany in several tranches including an 18 year term tranche and three shorter term tranches.

The project is expected to reach commercial operation in early 2010. It qualifies for the favorable regulated tariff under the Renewable Energy Sources Law 3468/2006 (RES Law) as well as a capital subsidy to support eligible project expenditures.