Pro-Active Investors – March 25th 2021 – By completing the acquisition of two additional solar parks in Romania from Renesola Power, Alternus has ramped up its power generation capacity by 55%
Alternus Energy Group PLC (NOTC:ALT), the fast-growing pan-European independent power producer, has announced the completion of the acquisition of two additional solar parks in Romania from Renesola Power following definitive sales contracts signed between the parties in December last year.
Alternus said that Lucas Est SRL situated in Dumbrava, in Prahova county western Romania, has an installed power capacity of 6 MWp. Meanwhile, Ecosfer Energy S.r.l., in Costestii din Vale, barely an hour outside the capital Bucharest, has an installed capacity of 9.4 MWp.
With these additional power plants, Alternus said it has ramped up its power generation capacity by 55%, compared to the same time last year. It now operates a “diverse portfolio of 27 solar PV parks across four European countries with a combined capacity of 46 MWp,” the company added.
Under the terms of the contracts, Alternus paid €26 million for ownership of the two Romanian SPVs after working capital adjustments from effective date to closing.
In a statement, Alternus Energy CEO Vincent Browne said the power producer was “very pleased” to complete the acquisitions in the “exciting European solar market.”
“These parks more than triple our presence in Romania with a single step and we are now moving to complete on contracts in place for further expansion there in the near term,” added Browne. “The world is currently at the beginning of a one-time transition from fossil-based energy to renewables. We are proud to be in the forefront of this transition, offering affordable and clean energy in Europe.”
Browne noted that the acquisition is the first of many projects it has planned as part of “strengthening” its strategic partnership with Renesola which will “underpin our pipeline of future projects as part of our journey to becoming the leading pan European solar IPP company in Europe.”
ReneSola Power echoed the sentiments.
“We are energized to complete the transaction with Alternus Energy, and we look forward to building on this transaction and expanding our partnership with future opportunities,” said ReneSola Power CEO Yumin Liu. “The proceeds from the sale of these operating assets will enable us to generate solid cash flow, realize profits and further strengthen our financial position.”
Lucas has been in operation since April 2013 and has produced 30 GWh of solar power over the last four years, while Ecosfer has been in operation since August 2013 and has produced 48 GWh since 2017. Their performance represents “stable annual recurring revenues of approximately €4.5 million that are contracted under EU incentive programs until 2028,” said the company.
Thereafter the parks will continue to generate income from selling energy under Power Purchase Agreements (PPAs) or to the country power grid. Both parks have a minimum remaining useful life until at least 2038 based on current land leases. Alternus owns the land for Ecosfer.
These acquisitions are in addition to that of the previously announced KKSOL S.r.l project in Italy, and form part of the 109 MWp worth of deals set to be acquired from the proceeds raised via the successful placement of a €110 million green bond, and a €27 million equity raise completed by the company in December 2020.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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