Spanish engineering firm Global Dominion Access announced in early December that it has conducted a capital increase for its renewable energy unit Dominion Energy. Specifically, Dominion Energy will receive a capital injection from its parent company and take on a new minority partner. According to the official press release about this event, the fresh capital will be used to finance more than 1GW of PV and wind power projects that Dominion Energy is developing in Europe and Latin America.

Incus Capital, a Spanish real estate firm, will acquire a 23.4% stake in Dominion Energy for EUR 50 million. Meanwhile, Global Dominion Access will invest an additional EUR 25 million into the renewable energy unit. With the contributions from the parent company (with the remaining stake of 76.6%) and the minority partner, Dominion Energy is expected to attain a value of about EUR 213 million.

The capital increase agreement was made with the assistance from Swiss investment bank Mirabaud, law firm Linklaters, and renewable energy developer Taiga Mistral. Mirabaud served as the financial consultant to Global Dominion Access, whereas the Linklaters and Taiga Mistral advised Incus Capital.

Dominion Energy will be using the fresh capital to transform itself into an independent power producer and support its project development pipeline. Currently, Dominion Energy is working on more than 1GW of PV and wind power projects located in many European and Latin American countries including Spain, Portugal, Italy, Mexico, and the Dominican Republic.

Commenting on the latest transaction, Mikel Barandiarán, CEO of Global Dominion Access, said that the capital hike will help “crystallize the real value” of the renewable energy unit and fund its bold plan for the next several years.

The press release also noted that Dominion Energy has been collaborating with its associate company BAS Projects Corporation in developing renewable energy projects under the build-and-sell model since 2016. Dominion Energy has a 35% stake in BAS. The bourse filing that Dominion Energy has prepared for the transaction stated that BAS will continue to work with Dominion Energy as the latter becomes an independent power producer. Together, they will initiate projects under the build-to-hold model.

Global Dominion Access said that a new series of projects will be implemented in the next five years, and Dominion Energy will putting several wind power and PV projects in Mexico and Dominican Republic into operation next year. By the first quarter of 2022, Dominion Energy’s operating assets will have a total generation of 184MW.