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UK firm running Portugal’s largest solar plant files for insolvency

British company Welink Energy, owner of Solara4, Portugal’s largest solar power plant, has entered insolvency proceedings. The 219 MW facility in Alcoutim, Algarve, has operated since 2021 but has faced…

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News

UK firm running Portugal’s largest solar plant files for insolvency
British company Welink Energy, owner of Solara4, Portugal’s largest solar power plant, has entered insolvency proceedings. The 219 MW facility in Alcoutim, Algarve, has operated since 2021 but has faced persistent operational and market challenges. Electricity production has fallen below forecasts, while rapid growth in Iberian solar capacity has pushed wholesale electricity prices down, sometimes to zero or negative levels, resulting in lower-than-expected revenues. 

Operations have also been affected by difficulties with contractor China Triumph International Engineering, fires and other technical problems. Welink had proposed a €400 million expansion combining additional solar capacity, wind power and battery storage, but Portugal’s environmental assessment committee issued an unfavourable opinion. A revised plan, reducing the number of wind turbines, subsequently entered public consultation and awaits a final decision. 

Within the insolvency proceedings, the priority is now to attract new investors to acquire the Solara4 asset.

Read more at EuroNews
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