Energy producer Power Capital secures €125m to fund Irish solar projects

The funding will be used to finance projects across Cork, Louth, Meath and Wexford

Last year, Power Capital was awarded a 15-year subsidy support for 300 MW of solar projects in the 2022 Renewable Energy Support Scheme (RESS-2) auction

Power Capital Renewable Energy, Ireland's largest solar power producer, has announced the closing of two greenfield project finance transactions with a club of lenders composed of AIB and La Banque Postale (LBP), for an aggregate commitment of €125m in bank facilities.

Proceeds from the first of the agreed financing packages will be used to fund a portfolio of solar projects across Cork, Louth and Meath with an aggregate capacity of 150 MW and supported by long-term Power Purchase Agreements (PPAs) with Microsoft. 

The facilities from the second financing will go towards the construction of a single solar farm of 85 MW located in county Wexford, with all projects already under construction and expected to be commissioned over the next 9 months.

Established in 2011, Power Capital has since grown its Irish pipeline to 5 GW following a strategic investment in the company from Omnes Capital in 2020.

Last year, Power Capital was awarded a 15-year subsidy support for 300 MW of solar projects in the 2022 Renewable Energy Support Scheme (RESS-2) auction. Currently, the company is working on deploying a solar and battery storage pipeline of 5 GW in Ireland.

In January 2023, Power Capital secured €240m of construction equity facilities from a consortium of lenders managed by Eiffel Investment Group including Belgian insurance company Ethias and the European Investment Bank, with the facilities supporting the power producer's growth at home and abroad.

In addition to its domestic expansion, Power Capital has also made advances in the United States, having recently acquired the development platform “Hawthorne Renewables,” marking the company's first investment outside of the Irish market. The Phoenix-based team boasts a pipeline of 5 GW of solar and storage across three US markets in New Mexico, Oregon and Washington.

Speaking on the funding, Justin Brown and Peter Duff, Co-CEOs and Founders of Power Capital Renewable Energy, said: “Securing €125m from two major banks is a huge vote of confidence in the future of solar power and corporate power purchase agreements. 

"We are delighted to begin construction on these projects which will employ up to 400 people and will boost the renewable energy footprint of Ireland." 

Luis Duran from AIB’s Energy Climate Action and Infrastructure Team said: “We are delighted to back Power Capital Renewable Energy’s ambitious plans to construct a portfolio of solar projects in counties Cork, Louth, Meath and Wexford supported by long-term Corporate PPAs.’’