Solar Farm

WFW advised KGAL on €111m co-investment with GE in Spanish solar thermal power plant Extresol II

7 November 2011

EN | DE |

Watson, Farley & Williams (“WFW”), a leading international law firm, is pleased to announce that it has advised KGAL GmbH & Co. KG (“KGAL“) on its co-investment in Extresol II, a 50 MW solar thermal power plant in Badajoz, Spain. The overall investment amounts to €111.1m.

KGAL acquired the solar power plant jointly with GE Energy Financial Services, a unit of General Electric Co. (GE). The seller was Spain-based ACS, Europe’s largest developer, builder and operator of solar thermal power plants. ACS will remain a minority shareholder after the acquisition.

The solar power plant Extresol II uses molten salt storage, contributing to the European Community’s goal of generating 20 percent of its power from renewable sources, reducing emissions by 20 percent and increasing energy efficiency by 20 percent by 2020. The plant generates enough renewable electricity to power approximately 37,900 average Spanish households and achieves a reduction of 149,000 tonnes of carbon dioxide per year (assuming its power displaces generation from coal- and oil-fired power plants).

The WFW team was led by Munich-based partners Dirk Janssen (Corporate) and U. Tobias Ackert (Tax). Madrid-based partners María Pilar García (Corporate) and Joaquín Sales (Project & Structured Finance) advised on Spanish law.

Munich-based Corporate partner Dirk Janssen, who led the deal, said: “We are pleased to have assisted KGAL on this transaction. The corporate structure of the transaction (structured equity) and the special tax and regulatory aspects were particularly complex. We believe that close co-operation and trust between WFW’s integrated cross-border team and the highly professional in-house team at KGAL were paramount for completing this transaction successfully.”