Paris Banking & Finance team advises on one of the first greenfield PPA financings in France

Our Banking & Finance team in Paris has advised BPCE ENERGECO (a subsidiary of BPCE Lease and dedicated to renewable energies) in connection with the financing of a 15.9 MWc solar farm under construction in Pézènes-les-Mines (Hérault, France), operated by BORALEX.

The deal sees BORALEX (as borrower) and METRO France (as electricity purchaser) enter into an underlying power purchase agreement (PPA) and is believed to be one of the first greenfield PPA financings in France. Therefore the solar farm will be built and financed exclusively on the basis of income from a corporate power purchase agreement (CPPA), without the Government's support mechanism such as a call for tenders or purchase obligation.

Once constructed, the farm at Pézènes-les-Mines will produce approximately 23 GWh per year – covering 20% of the electricity needs of METRO France, the French subsidiary of the German wholesaler, for a period of 20 years.

The Gowling WLG team advising BPCE ENERGECO on this latest deal was led by partner Antoine Pampouille, with associate Thi-Hong-Hanh Pham advising on banking and finance aspects and Of Counsel Julie Vuagnoux on public law aspects.

Gowling WLG's Paris cross-firm Energy team is proud to have been involved in this project for BPCE ENERGECO – the very first greenfield PPA financing for BPCE ENERGECO in France – that contributes to the energy transition by allowing renewable energy developers and companies to control their energy bill over the long term.