Aug 8, 2025
Forestalia signs a 10-year power purchase agreement with Galp.
Forestalia has entered into a 10-year power purchase agreement (PPA) with Galp Energia Espana to refinance its 42.7 MW Canteras 3 wind farm in Zaragoza. The project, authorized for 40 MW, includes seven GE 158-6.1 MW turbines from General Electric and began operations in July 2025. The refinancing, facilitated by Banco Sabadell, amounts to €46.7 million and consists of a senior loan plus three additional tranches: two for PPA-related guarantees and one for decommissioning.
The pay-as-produced contract secures 65% of the plant's output, approximately 73,515 MWh annually, ensuring stable revenue for the next ten years. Forestalia received legal guidance from MAIO Abogados, while Banco Sabadell was advised by Clifford Chance for legal matters and DNV for technical aspects. Willis Towers Watson served as the insurance advisor.
This new agreement follows a prior PPA between Forestalia and Galp for the 48.8 MW El Campillo wind farm in Zaragoza, also covering 65% of its production. Both projects, located in Quinto, Fuentes de Ebro, and Zaragoza municipalities, are projected to prevent around 80,000 tonnes of CO2 emissions each year.
The pay-as-produced contract secures 65% of the plant's output, approximately 73,515 MWh annually, ensuring stable revenue for the next ten years. Forestalia received legal guidance from MAIO Abogados, while Banco Sabadell was advised by Clifford Chance for legal matters and DNV for technical aspects. Willis Towers Watson served as the insurance advisor.
This new agreement follows a prior PPA between Forestalia and Galp for the 48.8 MW El Campillo wind farm in Zaragoza, also covering 65% of its production. Both projects, located in Quinto, Fuentes de Ebro, and Zaragoza municipalities, are projected to prevent around 80,000 tonnes of CO2 emissions each year.