French fund manager Mirova is teaming up with General Electric to invest in a portfolio of nine Spanish wind farms worth €298 million.
The projects have a combined capacity of 300MW and have a €50 million debt package from the European Investment Bank. The pair had their joint acquisition of the sites approved by the European Commission yesterday.
Mirova’s investment will be made through its €350 million Eurofideme-3 fund, which had invested €250 million as of the end of last year. The fund, which targets returns of about 8 percent, is making its first investment in Spain, with previous deals inked in countries such as France, Sweden and Croatia.
The deal also diversifies from the fund’s previous investments, which have typically been backed by regulatory regimes. The projects were among the 500MW of subsidy-free wind awarded in Spain’s January 2016 renewable energy auction, the first time the government had procured renewables since a moratorium on new sites in 2012.
Forestalia, the vendor to Mirova and GE, was awarded the lion’s share of the auctioned projects, despite previously being relatively unknown in Spain’s renewables market. In a subsequent auction in May last year, the group was awarded a further 1.2GW.
Mirova is set to launch a successor fund to Eurofideme-3 this year, targeting about €500 million in commitments and the firm is currently analysing the prospect of investing in battery storage, energy efficiency and electric vehicle infrastructure. A broader Mirova Core Infrastructure Fund II has already been launched and could garner in excess of €1 billion.