DUBLIN: International Independent Power Producer (IPP) Alternus Energy Group has acquired 12.9 megawatts (MW) of operational Polish projects. 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 megawatt peak (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 our portfolio next year and are engaged in negotiations to support our ambitious growth plans to achieve 200 MW of operational clean power stations by YE 2022 and a 400-500 MW operational portfolio 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.”
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.
