€200M for renewable, hydrogen, and storage projects in Spain and Portugal

The Dos Grados renewable energy platform intends to invest 200 million euros in sustainable real assets over the course of two years, with a focus on initiatives for hydrogen production, electricity storage, and other projects that support a just ecological transformation.

Dos Grados, which concentrates its investment activities on the Iberian market, projects that this investment would, over the long term, generate an annual EBITDA of more than 50 million euros.

The recent purchase of Dos Grados by the British investment company Intermediate Capital Group (ICG) provides crucial backing for the goal of consolidating its initial investment in renewable energy project development while also broadening its portfolio and placing bets on energy storage and hydrogen.

“Our mutual growth is our aim, and we shall pursue it in each of these domains. According to Luis Palacios, CEO of Dos Grados, “We are also open to any operation in the market to buy previously developed or ready-to-build assets.”

The majority of the 900 MW worth of projects that Dos Grados has been working on on the Iberian Peninsula since its founding in 2019 will start construction soon.

Construction on the 126.5 MW photovoltaic solar plant in Portugal, which was one of the projects included in the 2019 tenders, will start at the beginning of 2023. The remaining projects in the portfolio will be finished between 2023 and 2024. Dos Grados upholds its social and environmental commitment in each project, making a good contribution to the areas in which they operate.

“This initiative, of which we are immensely pleased, gains a significant social aspect from the return of a portion of the income to the Portuguese national electrical grid,” said Palacios.

The closest photovoltaic solar power plant of those that connect in the Community of Madrid, in a very deteriorated location situated within the Southeast Regional Park, with an installed capacity of 237.5 MW, is another of Dos Grados’ most illustrious undertakings.

The “Solar Forest of proximity to large consumption” project also includes a set of actions that will be kept up for the duration of the park’s usable life and that will be utilized, among other things, for the regeneration of about 500 hectares inside the regional park.

Given the importance of these nearby data center facilities to the Community of Madrid, Dos Grados has also stated its intention to sign PPAs with them under favorable terms and circumstances for this specific project.

The management believes that as significant energy consumers, data centers may benefit greatly from what they have to offer.

The remaining Dos Grados projects, which have a combined portfolio capacity of 900 MW and are spread across Andalusia, Castilla-La Macha, and Castilla y León, will generate enough energy to power 522,500 homes and prevent the emissions of 7 million tons of CO2, which is the same as a fleet of 136,000 cars or 118,440 hectares of forest.

The primary competitive advantage of ICG for Dos Grados is the supply of very flexible financing options tailored constantly to the demands of the market and the differentiating capacity of its investment team, which stands out for its demonstrated and in-depth knowledge of the energy sector.

“Our partnership with ICG enables us to expedite our growth strategy and expand into further electrified market areas, thereby lowering our reliance on energy and advancing national and European goals. Long-term financing of renewable energy is a commitment made by our new partner, according to Palacios.

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