Dublin, April 30th 2021 – Pan-European independent power producer (“IPP”) Alternus Energy Group Plc (NOTC: ALT) (the “Company”, “Alternus”) continues its European expansion with the acquisition of 20 MWp solar park LJG Green Source Energy Beta SRL (LJG) in Romania from Risen Energy GmbH. This is the Company’s second expansion in Romania this year, and the largest single park the company has acquired to date. In March Alternus extended its portfolio with the acquisition of two solar parks in Romania from Renesola Power, with a combined capacity of 15.4 MWp. This latest acquisition of LJG provides an additional 20 MWp of solar PV power generation capacity, more than doubling the company’s power capacity in Romania to over 40 MWp.
LJG is part of over 150 MWp total capacity planned from the proceeds of the successful placement of €110 million green bonds and €27 million equity in December 2020.
This acquisition represents a 29% increase in the Company’s total installed capacity, bringing the current operating portfolio to 68 MWp across four countries.
“Looking back at where we were only twelve months ago, it’s quite extraordinary how far we have come. I am very pleased with this latest acquisition, which is another milestone achievement for the Company and continuing proof of our growth execution capabilities. 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 €50 million in the acquisition of six solar PV parks so far this year. 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” said CEO, Vincent Browne.
LJG has been in operation since 2013 and produces approximately 25.5 GWh of power each year. This performance delivers strong and stable annual recurring revenues of approximately €6.4 million that are 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. LJG owns the land on which the park operates.
Under the terms of the contracts, Alternus paid €22 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 €1 million of the proceeds that will be released on conclusion of an ongoing regulatory enquiry less any amounts that may be payable as a result.
“With this acquisition we increase the Company’s annual recurring revenues to over €17 million, up from €4 million at the end of 2020, and we expect to maintain our average EBITDA margins of approximately 80%. 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”, said CFO Joseph Duey.
About Alternus Energy Group Plc
Alternus Energy Group (NOTC: ALT) is a fast-growing pan-European independent power producer (“IPP”), headquartered in Ireland, with a focus on the midsized utility solar PV market. Alternus 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 150 MWp capacity. Alternus works closely with both local and international specialist development partners that each provide a constant pipeline of new projects for acquisition by Alternus. Alternus aims to own and operate over 2 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.
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.