The RES market moves at the pace of deals

By Haris Fludopoulos

The domestic green energy market has been moving at the pace of deals lately, as four major transactions have been completed within a few weeks, with the total value of the agreements exceeding 1.2 billion euros. The main characteristic of these deals is that traditional and large players in the energy market acquire projects or smaller companies that, however, have in their portfolio important projects under development or in operation.

In this way, the larger companies strengthen their position in the RES market, at the same time as the smaller players reap significant profits for the projects they have managed to develop or bring to a significant degree of maturity. After all, the Greek green energy market is now considered to have entered a maturation phase, as the scope for new players is limited given that most attractive geographical points are already occupied. This means that in order for a major player to strengthen its position in the RES market it will have to move mainly through acquisitions.

But what are the market deals lately?

DEPA

Last week a new acquisition agreement was announced in RES, by DEPA Emporias which has set the goal of reaching 1 GW in force.

More specifically, the public gas company proceeded with the acquisition of 100% of NEW SPES CONCEPT, a company whose object is the development of electricity production projects through photovoltaics. The company develops 14 photovoltaic projects and holds 14 electricity producer certificates.

This is the second acquisition move by DEPA Emporia, which in 2021 acquired 49% of North Solar, a company that has a plan to develop photovoltaics with a total capacity of 500 MW in Western Macedonia. The specific parks are reportedly expected to receive final offers of connection terms in the third quarter of the year and then enter the construction phase. DEPA Emporias, in the agreement it had made for 49% of North Solar, also had the right to acquire the largest share, i.e. 51%. The information states that it is going to practice it and now the 500 MW will be completely owned by it.
With the acquisition of NEW SPES CONCEPT, DEPA increases its “green” portfolio to 732 MW.

ELPE

Another summer deal, announced a few days ago in the Greek RES market, concerns the acquisition by the Hellenic Petroleum group of the companies “MAKRYLAKKOMA SA.” and “SAGIAS SA”, owned by the Kopelouzo Group and the “International Construction” Group.

The two companies have wind farms with a total capacity of 55.2 MW, in Eastern Mani of Laconia, which have been in operation since December 2019. The total price for 100% of the shares of the two companies amounts to 90 million euros.

It is worth mentioning that the RES activity, after the start of operation of the large photovoltaic park of Kozani, is expected to reach 50 million euros. ELPE has set the goal, from 285 MW of RES projects in operation today, to reach 400 MW by 2023 and 600 MW by 2024.

PPC

Another important market deal took place at the beginning of June when PPC Renewables announced the acquisition of Volterra’s RES projects with the value of the transaction reaching 133 million euros. Specifically, PPC Renewables acquired 55% of the shares of Volterra KR SA and Volterra LYKOVOUNI SA, in which it is already a 45% shareholder in each company as of 2019. Volterra KR SA and Volterra LYKOVOUNI SA . have in operation wind farms with a total capacity of 69.7MW in Aitoloakarnania and Viotia.

Also, PPC Renewables acquired 100% of Heliophania S.A. which owns a 2.7 MW photovoltaic park in operation in Viotia, as well as the companies Volterra DOUKAS SA and Volterra KOUKOULI SA which own wind parks under development with a total capacity of 39.5 MW. It is noted that PPC Renewables has already proceeded with a share capital increase of 150 million for its capital reinforcement in view of the financing of its business plan.

Motor Oil – ELAKTOR

Of course, Motor Oil’s agreement to acquire control of the RES portfolio of the ELLAKTOR group is the biggest deal of recent years for the electricity market in general. The value of the agreement reached 1 billion euros given that MOH is paying 750 million euros for the acquisition of 75% of the new company where ELLAKTOR’s RES projects will be invested, while the agreement for the entry amounts to 180 million euros in the share capital of the ELLAKTOR group.

Essentially, through the agreement, MOH placed under its control the second largest RES portfolio in the Greek market, and automatically becomes number 2 in the Greek green energy market behind TERNA Energy. In particular, MOH, which so far has 279 MW of projects in operation, 84 MW under construction, 650 MW in additional production licenses, adds to its portfolio a portfolio of wind, photovoltaic and energy storage systems of the order of 493 MW capacity in operation and another series of projects under construction or development with a total capacity of more than 1.6 GW.