Grants and other liabilities

9 Months Ended

Sep. 30, 2023

Grants and other liabilities [Abstract]

Note 16. - Grants and other liabilities

	Balance as of September 30,		Balance as of December 31,
	2023		2022
	($ in thousands)
Grants		867,439		911,593
Other liabilities and provisions		369,411		340,920
Dismantling provision		146,349		140,595
Lease liabilities		80,786		63,076
Accruals on Spanish market prices differences		99,993		91,884
Others		42,283		45,365
Grants and other non-current liabilities		1,236,850		1,252,513

As of September 30, 2023, the amount recorded in Grants primarily corresponds to the ITC Grant awarded by the U.S. Department of the Treasury to Solana and Mojave for a total amount of $586 million ($610 million as of December 31, 2022). The amount recorded in Grants as a liability is progressively recorded as other income over the useful life of the asset.

The remaining balance of the “Grants” account corresponds to loans with interest rates below market rates for Solana and Mojave for a total amount of $280 million as of September 30, 2023 ($299 million as of December 31, 2022). Loans with the Federal Financing Bank guaranteed by the Department of Energy for these projects bear interest at a rate below market rates for these types of projects and terms. The difference between proceeds received from these loans and its fair value, is initially recorded as “Grants” in the consolidated statement of financial position, and subsequently recorded progressively in “Other operating income”.

Total amount of income for these two types of grants for Solana and Mojave is $43.8 million and $43.9 million for the nine-month periods ended September 30, 2023 and 2022, respectively (Note 20).

The “Accruals on Spanish market prices differences” corresponds to the non-current portion of the payables related to the high market prices in Spain at which the solar assets in Spain invoiced electricity up to September 30, 2023, as a result of a negative adjustment to the regulated revenues for the deviation from the estimated market prices used by the Administration in Spain, which is expected to be compensated over the remaining regulatory life of the solar assets of the Company.