Alternus Energy grows annual recurring revenues to over EUR17M with acquisition of largest park to dat
Alternus Energy PLC (NOTC:ALT), the independent power producer (IPP), told investors it had lifted its total installed capacity by 29%, having acquired the 20 MWp solar park LJG Green Source Energy Beta SRL (LJG) in Romania from Risen Energy GmbH for EUR22 million.
The move continues the group’s expansion into Europe and is the largest single park the company has acquired to date.
READ: Alternus Energy shining through with diverse portfolio of photovoltaic solar parks across Europe
“With this acquisition, we increase the company’s annual recurring revenues to over EUR17 million, up from EUR4 million at the end of 2020, and we expect to maintain our average EBITDA margins of approximately 80%,” said the group’s finance chief Joseph Duey.
“Our successful acquisition strategy is allowing us to continue to grow rapidly and we look forward to fully completing the current 150 MWp portfolio and thereafter announcing more transactions from the 1.2 GWp additional contracted backlog we signed during Q1 2021, subject to successful due diligence on these projects.”
The LJG park becomes part of over 150 MWp total capacity the firm has planned from the proceeds of its EUR110 million placing of green bonds and EUR27 million equity in December last year.
The acquisition provides Alternus with an additional 20 MWp of solar PV power generation capacity, and more than doubles its capacity in Romania to over 40 MWp.
In March 2021, Alternus bought two solar parks in Romania from Renesola Power, with a combined capacity of 15.4 MWp.
Operating since 2013, LJG produces around 25.5 GWh of power each year, delivering stable annual recurring revenues of around EUR6.4 million generated from sales of energy under contracted EU incentive programs until 2028 and to local energy companies under long-term Purchase Agreements (PPA’s) and/or to the country power grid.
Alternus paid EUR22 million for full ownership of the operating company having been adjusted for working capital changes between the contract reference date and actual closing. Alternus has held back just under EUR1 million of the proceeds that will be released on conclusion of an ongoing regulatory enquiry, less any amounts that may be payable.
“The strong relationships we have fostered with our partners across Europe, coupled with the tireless efforts of the entire Alternus team have been crucial in our ability to invest over EUR50 million in the acquisition of six solar PV parks so far this year,” added CEO Vincent Browne.
“Closing this acquisition allows us to focus on the next park, and the one after that, as Alternus strives to achieve its goal to become one of the leading pan-European solar IPP’s in Europe.”
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