Aquila Clean Energy assets actively shape the European energy transition
Intesa Sanpaolo confirms its commitment to the decarbonisation objectives set by the European Union to fight against climate change, including through the acceleration of development of renewable energy sources (RES).
Head of Global Corporate, Intesa Sanpaolo
This financial transaction stands as the largest in the history of both Aquila Clean Energy and Aquila Group. It underscores the credibility and attractiveness of our clean energy assets, playing an active role in shaping the European energy transition.
Head of Treasury Aquila Clean Energy EMEA
ABOUT AQUILA CLEAN ENERGY1
Aquila Clean Energy is Aquila Group´s clean energy platform in Europe. Aquila Clean Energy develops, realises and operates clean energy assets using the technologies of solar, wind, hydropower and battery storage. Currently, Aquila Clean Energy manages a portfolio with a total capacity of around 11 GW.
With a local approach and through local teams of experts, Aquila Clean Energy initiates, develops, realises and operates what it identifies as essential assets along the entire value chain and over the lifetimes of the assets. Aquila Clean Energy has built a permanent presence in seven countries with more than 250 employees, believing that local, on-site management teams are key to the company’s operations.
Aquila Clean Energy is part of Aquila Group, an investment and asset development company focused on generating and managing essential assets on behalf of its clients. Currently, Aquila Group manages assets worth EUR 14,6Bn on behalf of institutional investors worldwide. The company has been committed to climate change for more than fifteen years. Sustainability has always been part of its value system and is an integral part of its investment strategies, processes and asset management.
THE ENERGY MARKET CONTEXT
In response to the hardships and global energy market disruption caused by Russia's invasion of Ukraine, in May 2022 the European Commission launched its REPowerEU Plan. The Plan is helping the EU speed up the green transition and promotes increased investments in renewables energies.
In the short and medium term, renewables will underpin the move to electrification and more broadly decarbonisation. Solar is notably expected to contribute about 28% of Europe’s cumulative installed power generation capacity by 2030 with investment driven by continued declines in CapEx costs and innovations in areas like solar trackers. In the longer term, hydrogen is increasingly recognized as the best low or zero carbon alternative to fossil fuels.
In particular, the Spanish renewable sector2 is expected to see 58 GW of new capacity come online in the market between 2023 and 2032. The solar PV sector will have the largest contributing effect with just under 40 GW, or 69% of the total additions, expected over the same time frame. The wind sector will play a more marginal role, representing 31% of additions, with the notable inclusion of offshore wind.
THE PROJECT
In September 2022, Aquila Clean Energy EMEA, Aquila Group’s European clean energy development platform, has finalised a EUR 1Bn construction facility supported by the InvestEU programme to finance the development and construction of its renewable energy pipeline in Spain and Portugal, consisting of more than 50 solar PV and onshore wind projects for a total generation capacity of 2.6 GW, equivalent to the annual consumption of around 1.4 million households.
The financing package consists of a EUR 400M credit facility from the European Investment Bank (EIB), one of the biggest loans ever granted by the EIB, and a EUR 600 million commercial facility from a consortium of international banks, including Intesa Sanpaolo through its IMI Corporate & Investment Banking Division.
Working with such high-level clients like Aquila Clean Energy, highlights Intesa Sanpaolo commitment on this transition to a low-carbon economy and its role as an international accelerator to promote sustainable best practices.
The total invested amounted to more than EUR 2Bn.
KEY SUCCESS FACTORS
- Champion in Sustainability on an international level
We believe that finance plays a central role, having a significant impact on the entire system, supporting the transition towards ESG, NET ZERO and Circular Economy principles. We support our clients in their challenges by helping them to develop and continue a responsible and sustainable business over the years. - Public and private funds in support of renewable energies
The financing package combines funds provided by the EIB and by the private banking system to support the investment in clean energy projects from a reputable company with a significant track record in the renewable energy sector. - Understanding of the client's strategic objectives
Thanks to our highly skilled specialists and our variety of financial products, we can easily understand the strategic potential of the Client's projects, especially in the sustainability field, preserving both its long-term competitiveness and the level of compliance with ESG standards. - Product innovation
Product innovation is one of the key pillars of the IMI Corporate & Investment Banking Division, since it allows the wider application of complex strategies and their association with incentive based on the implementation level of ESG policies.
1 SOURCE : Aquila Clean Energy Press Release, 14.12.2023
2 SOURCE : Fitch – Spain Renewables Report, June 2023