Spain: Project Helios Progress – Hybrid Solar Project Aims to Boost Electricity Output by 60%
Prospex Energy PLC (AIM: PXEN), the AIM-listed investment company specializing in European gas and power projects, is delighted to report the positive progress of the El Romeral power plant’s photovoltaic hybrid solar project, referred to as “Project Helios.” This project aims to increase the plant’s output by up to 60%, with the final investment decision scheduled for June 2023.
Key Points:
· 20 hectares next to the El Romeral power plant have been leased for 25 years
· The project, which will install solar panels with a maximum power output of 5MW peak, has received bids from five Spain-based companies with the tendering process expected to conclude in early May 2023
· The Final Investment Decision (FID) for the project is set for June 2023
· Permitting, procurement, and installation are anticipated to take under 12 months
· El Romeral’s existing grid connection has an 8.2MW output allocation, currently utilizing just 2.7 MW
· Additional grid capacity is available to accommodate increased output within the existing infrastructure
The El Romeral power plant, located in Andalusia, Spain, is operated by Tarba Energía S.L. (“Tarba”) and co-owned by Prospex (49.9% working interest) and Warrego Energy Limited (50.1% working interest), which is now entirely owned by Hancock Energy (PB) Pty Ltd. in Perth, Western Australia.
The 20-hectare plot adjacent to the power plant has been leased for an initial 2-year period starting January 1, 2023. The lease rate is set at €800 per hectare per year, with the option to terminate the lease if full permitting or FID is not achieved. Upon full authorization, the lease rate for the subsequent 25 years will be €2,000 per hectare per year, adjusted for CPI annually, with options to extend in 10-year increments.
El Romeral generates electricity from natural gas produced by three contiguous El Romeral production concessions in the region, wholly owned by Tarba. By developing Project Helios, electricity production through renewable energy would increase output by up to 60%.
This groundbreaking project combines conventional natural gas production with photovoltaic solar energy generation, using existing grid connections to provide enough energy to supply over 20,000 homes.
El Romeral was recently declared a public utility by the Junta de Andalucía, reflecting Tarba’s strong relationships with local authorities and the Carmona community. Tarba is committed to being a stable electricity supplier for the region.
Prospex’s CEO, Mark Routh, commented on the project, emphasizing the importance of Project Helios in increasing output by 60% and its role in ensuring energy security and ecological transition. Natural gas is widely acknowledged to have a critical role in addressing these pressing issues.
