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SMBC group has an established track record within the EMEA region for renewable energy project financing having participated in wind and solar power projects totalling more than €5bn across Spain, Italy, France and Germany.
With a total portfolio capacity in excess of 1,550MW, SMBC group's European renewable energy portfolio delivers more than 2,750GWh of clean energy every year, enough to supply almost 800,000 households.
SMBC group regards the renewable energy sector as one of its most important areas for growth within the utility sector and will continue to provide financing to clean energy projects throughout the EMEA region as the market matures.
Case Studies
Olivento SA
In January 2009, SMBCE acted as Mandated Lead Arranger on the acquisition of Babcock & Brown Wind Partner’s Spanish wind portfolio by Fomento Construcciones y Contratas SA (FCC). Total debt facilities for the acquisition amounted to €481.5m. The portfolio consists of 14 wind farms with a combined output of 422MW and a supplementary 45MW backlog to be developed in the near future. This deal makes FCC the sixth-largest wind park operator in Spain with annual revenues of €100m.
Although wind power only accounts for approximately 1% of worldwide electricity generation today, it has experienced rapid growth, with total worldwide supply increasing from 10GW to over 100GW in the ten years to 2008. Europe accounts for around 60% of this generation capacity and new capacity installations outweigh those of all other sources, including natural gas. Wind generated electricity now meets approximately 4% of Europe’s electricity demand, which is enough to supply 90 million residents. Several countries have achieved levels of penetration far above this average, namely Denmark with 19% of electricity production from wind, Spain and Portugal with 9% and Germany with 6%.
Aliwin (Abertura Project)
In June 2008, SMBCE participated in the financing of a €210m loan for a 20MW solar photovoltaic (PV) plant in Cáceres, Spain.
The plant is made up of 200 PV units – each with 100kW nominal power – making it the largest park of its kind in Spain, and one of the largest in the world to use double-axis tracker technology. The park occupies an area of almost 200 hectares and produces enough energy to supply 22,570 homes.
Photovoltaic cell technology directly converts solar radiation to electricity through the use of semi-conductors. Specifically, when solar radiation strikes a cell it is absorbed causing electrons to be excited. These electrons then pass through an external circuit, producing electricity, before returning to their original position. This is known as the Photovoltaic Effect.
Solnova 1&3
In January 2008, SMBCE acted as Mandated Lead Arranger together with a number of other banks on a €520m financing of two 50MW Concentrating Solar Power (CSP) trough plants in Seville, Spain.
These plants are the first two of five such plants to be built as part of the Abengoa Solar Solúcar Platform. Once completed in 2013, the platform will have 300MW of installed capacity and will produce enough energy to supply 153,000 households. During the life of the platform it will prevent the emission of 185,000 tonnes of CO2 per annum. The total investment for the project is €1.2bn.
CSP trough technology utilises a field of parabolic troughs to focus solar energy on an absorber tube. This process heats synthetic heat transfer oil which is then used to generate superheated, high-pressure steam. This steam is used to drive an electrical generator which produces electricity.
Each of the Solnova plants uses 54km of troughs to power their electrical generators and are predicted to deliver 114.6GWh of clean energy per annum. This will be enough to supply 25,700 homes and reduce CO2 emissions by more than 31,200 tonnes per annum.
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