The Spanish power company Halaluz will sell its electricity to a Spanish-based customer at a 46MW solar power plant in Orique, southern Portugal, through a representative agreement.
Halaluz's Portuguese project can sell solar power to Spanish consumers, evading Spain's 7% electricity VAT.
This solar park was built in July 2017 and was put into operation last week. The developer of the project is Welink of the UK and the engineering service provider is China Kaisheng Group. The two companies announced this in March 2017. The first cooperation agreement between a project and other projects, the two companies plan to install a total of 1 GW of solar power plants in Spain and Portugal by 2020.
Holaluz said that the sale of electricity produced in Portugal to Spanish customers has the advantage that Portuguese power producers do not have to pay Spain's 7% electricity value added tax (IIVPEE).
Axpo Ibéria, a subsidiary of the Swiss AXPO Group, said it will purchase electricity from a 28.8 megawatt (DC) photovoltaic power plant in the Portuguese developer Hyperion. The plant started in May this year near the town of Evora in Alentejo, southern Portugal. Its largest shareholder is currently Mirova, a branch of the French financial group NATXIS. AXPO has signed a 10-year power purchase agreement with the power station.
Although several “unsubsidized” solar parks in Portugal have started construction in recent months, more than 700 MW of these grid parity projects have been approved, but the number of projects that can be completed is still uncertain. Most of them face high Land cost, and must agree on a distribution system including lottery selection projects, and this system does not provide absolute guarantee for developers.