Dublin, 23 December 2021 International Independent Power Producer (IPP) Alternus Energy Group Plc (OSE: ALT) (the “Company” or “Alternus”) has acquired 12.9 megawatts (MW) of operational solar PV assets. The projects, each 1 MW in size, are located across the country.
Alternus partnered with an experienced local developer for the development and construction of the projects. The commercial operation date (COD) for the acquired portfolio was reached during December. This forms part of the agreement between Alternus and the developer for a total contracted pipeline of 24 MWp. The additional 11 MWp is currently expected to reach COD in Q1 2022.
The projects have Government-backed contracts in place as part of the policy mechanism supporting the installation of projects up to 1 MWp in size. Alternus Energy’s Polish portfolio is now diversified with both subsidised and unsubsidised projects following the acquisition of the 64.6 MWp Witnica solar park from BayWa r.e. in August. That project was Poland’s first subsidy-free utility-scale solar installation with a 10-year virtual power purchase agreement (PPA) in place with Górazdze Cement S.A., the Polish subsidiary of Heidelberg Cement Group.
Speaking about the latest acquisition, Vincent Browne, Chairman and CEO, said
“This transaction further strengthens our position in the Polish market following our market entry earlier this year. We view Poland as a key growth market thanks to the supportive policy, clean energy targets and established routes to market. We look forward to further expansion of this portfolio next year and are engaged in negotiations to support our ambitious growth plans to achieve 200 MW of Polish operational clean power stations by YE 2022 and a 400-500 MW operational portfolio in the country by 2025.”
The 13 MWp portfolio was acquired for circa €13 million in gross proceeds, fully funded by the €20 million bond issuance completed by Alternus in November.
Joseph Duey, CFO, Alternus Energy added
“The contracts for difference (CfD) in place for these projects add a secure predictable revenue stream to our Polish portfolio to complement the existing PPA contract. These projects are expected to provide an average of €1.2 million in annual recurring revenues over their 30+ year lifetime. Our ability to acquire projects with both types of off-take contracts in place demonstrates the maturity of the market and range of attractive opportunities available.”
About Alternus Energy Plc
Alternus Energy Group (Alternus) is an international vertically integrated independent power producer (IPP) that is currently listed on the Euronext Growth Market – Oslo. Headquartered in Ireland, the company is focused on the midsized utility scale solar PV market. Alternus owns and operates a diverse portfolio of utility scale solar PV parks on long-term government contracts and/or power purchase agreements with investment grade off-takers. Having started in 2016 with two parks and 6 MWp capacity, the current operational portfolio consists of 24 parks across Poland, Romania, Italy, the Netherlands and Germany totalling 130 MWp. Alternus works closely with local and international specialist development partners providing a constant pipeline of new projects for acquisition and construction. Alternus aims to own and operate over 3.5 GWs of solar parks by the end of 2025 and to become one of the largest pan-European IPPs by the end of the decade.
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