Spain's Grupo Greening inks 20-MW PPA for solar self-supply in Mexico

Spanish clean energy solutions provider Grupo Greening 2022 SA (BME:GGR) will install 20 MW of on-site solar self-consumption systems under a new power purchase agreement (PPA) it signed with a food company in Mexico.

The 15-year contract will result in the installation of 176 solar photovoltaic arrays during the next eight months, the Spanish firm said in a bourse filing on Thursday. Investment in the projects will reach USD 18 million (EUR 16.8m).

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The customer is an unnamed Mexican food sector company listed on the stock exchange.

Grupo Greening signed a 15-year PPA with the same company in July 2023, securing the delivery of 41.9 MW of on-site solar self-consumption systems. The investment value of those projects is USD 38 million.

The firm’s unit Greening Concesiones Mexico will be responsible for the investment, construction, commissioning and maintenance of the systems, and the supply of electricity generated by them across both contracts.

Grupo Greening said that it expects the projects to generate recurring EBITDA of USD 6.8 million annually for the next 15 years. This will bring the company close to the target of gathering 50% of EBITDA from power generation projects with long-term recurring revenues by the end of 2025, Grupo Greening added.

(USD 1.0 = EUR 0.935)