Dublin 25th March 2021 – Fast-growing pan-European independent power producer, Alternus Energy Group Plc (NOTC: ALT) (the “Company”, “Alternus” or “AEG”), is pleased to announce the completion of the acquisition of two additional solar parks in Romania from Renesola Power, a leading international developer of solar parks, following definitive sales contracts signed between the parties in December 2020.
Lucas Est SRL (“Lucas”) has an installed power capacity of 6 MWp and is located in Dumbrava, in Prahova county west in Romania. Ecosfer Energy S.r.l. (“Ecosfer”), has an installed capacity of 9.4 MWp and is located in Costestii din Vale, approximately one hour outside Bucharest.
With these additional powerplants included, Alternus increases its power generation capacity by 55% compared to the same time last year and now operates a diverse portfolio of 27 solar PV parks across four European countries with a combined capacity of 46 MWp.
“We are very pleased to complete these acquisitions in line with our continuing and previously announced growth programme 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. 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”. said Vincent Browne, CEO of Alternus Energy Group.
“This acquisition also represents the first of many projects we have planned as part of our strengthening strategic partnership with Renesola which will further underpin our pipeline of future projects as part of our journey to becoming the leading pan European solar IPP company in Europe.’’ continued Browne.
ReneSola Power CEO Yumin Liu, commented “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. 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 1st April 2013 and has produced a total of 30 GWh of solar power over the last four years while Ecosfer has been in operation since 1st August 2013 and has produced a total of 48 GWh since 2017. This performance represents stable annual recurring revenues of approximately €4.5 million that are contracted under EU incentive programs until 2028. Thereafter the parks will continue to generate income from selling energy under Power Purchase Agreements (PPA’s) and/or to the country power grid. Both parks have a minimum remaining useful life until at least 2038 based on current land leases and the fact that Alternus owns the land for Ecosfer.
Under the terms of the contracts, Alternus paid €26 million for ownership of the two Romanian SPV’s after working capital adjustments from effective date to closing. These acquisitions are in addition to the previously announced KKSOL S.r.l project in Italy that form part of the 109 MWp set to be acquired from the proceeds raised in the successful placement of €110 million green bond and the €27 million equity raise which was completed in December 2020.
“Our proven business model, with lean and efficient operations and average EBITDA margins above 80%, drives highly predictable cash flows available for debt service providing Alternus with flexible debt options to maximize equity returns. We are tracking to €100 million recurring annual EBITDA by 2025, and this latest acquisition is another strategic step in that regard. Despite the acquisition being completed in March, Alternus benefits from the cash flows of the parks from the beginning of 2021”, said Joseph Duey, CFO of Alternus Energy Group.
About Alternus Energy Group Plc.
Alternus Energy Group is a fast-growing pan-European independent power producer (“IPP”), headquartered in Ireland, with a focus on the midsized utility solar PV market. The Company owns and operates a diverse portfolio of utility scale solar PV parks that connect directly to national power grids on long-term government contracts (“FiT”) and/or Power Purchase Agreements (“PPAs”) with investment grade off-takers. Having started in 2016 with two parks and 6 MWp capacity, the current portfolio consists of 39 owned or contracted parks in Germany, Italy, Netherlands, Romania and Poland in excess of 140 MWp capacity. The Company works closely with both local and international specialist development partners that provide a constant pipeline of new projects, currently over 1.2 GWp, across Europe for acquisition by the Company. Alternus aims to own and operate over 2 GWs of solar parks by the end of 2025.
Forward Looking Statements: Certain information contained in this letter, including any information on the group’s plans or future financial or operating performance and other statements that express the group’s management’s expectations or estimates of future performance, constitute forward-looking statements (when used in this document, the words “anticipate”, “believe”, “estimate” and “expect” and similar expressions, as they relate to the group or its management, are intended to identify forward-looking statements). Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. The group cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the group to be materially different from the group’s estimated future results, performance or achievements expressed or implied by those forward-looking statements.