Austrian independent power producer RP Global is working with Spanish crowdfunding platform Fundeen to raise capital for the construction of a PV power plant in Spain. On May 23, both RP Global and Fundeen announced that the opportunity for investment has been extended to all Spanish citizens. The announcement was first picked up by other renewable energy news outlets.
Named the Carril Solar Plant, the PV project is located in Murcia, a region in southeastern part of Spain. With a nominal generation capacity of 400MW, the PV project is expected to meet the energy demand of 300,000 households once it is operational. The fundraising target of RP Global and Fundeen is EUR 450,000, which will be used to cover some of the costs related to development and construction.
RP Global said the money committed by the investors through Fundeen will be treated as loans that accrue interest every six months from the disbursement and has an annual return rate of 5-6%. The crowdfunding opportunity was first made available to people living near the project site in April, but it has now been extended to all Spanish citizens. The deadline for investment is May 30. According to Fundeen, the amount of capital that had been raised as of May 24 came to almost EUR 139,000.
While crowdfunding with social media input has emerged as trendy tool to get people excited and invest in all sorts of ventures, it also carries a lot of risks. For the Carril Solar Plant, Fundeen actually points out that RP Global has yet to obtain all the permits for the development and construction of the project. At the same time, RP Global is the guarantor of the loans disbursed by ordinary people through the crowdfunding platform. Hence, there is a possibility that RP Global will have to pay the interest and/or principle even if the project has not gotten off the ground. In terms of progress, the proposal for the PV power plant has been approved, and construction will likely proceed immediately after securing all the necessary permits. RP Global currently expects that the PV power plant will begin commercial operation in the first quarter of 2023.