GCIProspex Energy's solar hybridisation project to boost El Romeral plant's output by 60%
( ), an investor in European gas and power projects, announced the development of Project Helios, a photovoltaic hybridisation solar project to be built adjacent to Prospex's El Romeral natural gas power plant in Spain.
Prospex said Project Helios would increase output from El Romeral by up to 60% and was progressing "well ahead of the final investment decision", scheduled for consideration in June 2023.
Project Helios is out to tender with 5 companies based in Spain, with tenders expected to complete in early May 2023. Prospex expects permitting, procurement, and installation to take less than 12 months.
Project Helios will occupy 20 hectares adjacent to Prospex's El Romeral power plant. The project will consist of a solar array with a maximum output of 5 MW. Prospex has leased the new land for 25 years with the option to extend in increments of 10 years.
The existing grid connection has 8.2 MW output allocated to El Romeral, which is currently utilising only 2.7 MW. Prospex says further grid capacity is available to accept increased output with the existing infrastructure.
Prospex has a 49.9% interest in the El Romeral power plant through operator Tarba. Warrego Energy has the remaining 50.1%.
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By adding 5 MW of additional capacity, Project Helios will materially increase the output of Prospex's El Romeral gas power plant. The plant's existing connection to the Spanish national grid is a significant existing asset, already capable of accepting the additional 5 MW with future upgrades possible.
El Romeral power plant in Carmona near Seville, Spain
Project Helios will allow Prospex to increase its power export in the near term alongside a capacity increase expected from drilling new gas wells on the existing El Romeral concession. In March 2023, Prospex submitted a revision to its application to drill new wells on the concession, which is currently making its way through an Environmental Impact Assessment.
Project Helios is the result of Prospex's hybridisation plan, i.e. using resources and income from electricity generation from conventional natural gas production to reinvest in renewable energy generation from a photovoltaic plant. That is a prudent transition as electricity prices across Europe begin to normalise. Solar deployments in southern Spain currently have an ROI of only 3-4 years, making this an ideal hedge for the company.
Prospex has already reaped the benefit of high energy prices in Spain, with its El Romeral plant now running 24/7 following optimisation and automation upgrades last year. Prospex's natural gas operations at Selva field, Italy are on track for first gas in 2Q 2023, and expected to yield strong revenues as well. As a result, stock is up 93% in the past 12 months.
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