Greencoat Renewables is to acquire Torrubia solar farm from Lightsource BP, marking the company's first solar transaction and entry into the Spanish market.
The 50MW asset is currently under construction in La Muela, Spain, with commencement of commercial operations expected in Q4 2022.
The transaction is structured under a forward sale model and will only complete once Torrubia is fully operational.
The agreement is in line with Greencoat Renewables' European growth strategy and follows the company's expansion into France, Finland and Sweden.
Spain represents an exciting opportunity having emerged as one of the leading European unsubsidised markets, with strong solar resources and a correspondingly low cost of electricity generation.
Lightsource BP will finance and manage the construction of the solar farm and will continue to provide operational management services.
Greencoat Capital partner Paul O'Donnell said: "The combination of low-cost renewable energy, and a well-developed Corporate PPA market make Spain a very attractive target for renewable energy investment.
"We're delighted to secure such a high-quality asset from Lightsource BP and have sight of further value-accretive opportunities in Spain.
"As the renewable generation market continues to develop, we expect to see greater opportunity in the unsubsidised renewable market and believe Greencoat Renewables is well positioned to benefit both in Europe and in Ireland."
Lightsource BP country head Fernando Roger added: "We are delighted to partner with Greencoat Renewables on this strategic transaction, which will be instrumental for our growth in the Spanish market.
"As one of our leading markets we are looking to increase the impact that our developments can have on the energy transition within Spain.
"By selling and reinvesting in new projects we can increase Lightsource BP's market impact, ultimately positioning Spain as a key hub for our operations.
"This approach allows us to increase the speed of our influence on the energy transition, which is vital if we are to successfully shift to a low carbon economy in line with government targets."