European independent power producer (IPP) Alternus Energy Group said that it has bought the 20 MWp solar park LJG Green Source Energy Beta SRL (LJG) in Romania from Risen Energy GmbH for 22 million euro ($26.4 million).
This acquisition represents a 29% increase in the company’s total installed capacity, bringing the current operating portfolio to 68 MWp across four countries, Alternus said in a press release last week.
"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," Alternus Energy CEO Vincent Browne said.
LJG has been in operation since 2013 and produces approximately 25.5 GWh of electricity each year. This performance delivers strong and stable annual recurring revenues of some 6.4 million euro that are generated from sales of energy under contracted EU incentive programmes until 2028 and to local energy companies under long-term power purchase agreements and/or to Romania's power grid, Alternus said.
"With this acquisition we increase the Company’s annual recurring revenues to over 17 million euro, up from 4 million euro at the end of 2020, and we expect to maintain our average EBITDA margins of approximately 80%," Alternus CFO Joseph Duey said. "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 the first quarter of 2021, subject to successful due diligence on these projects."
This is the Alternus' second acquisition 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.
Dublin, Ireland-headquartered Alternus Energy owns and operates a portfolio of utility-scale solar photovoltaic parks that connect directly to national power grids. The company has operational solar parks in Germany, Italy, Romania, and the Netherlands.
Risen Energy GmbH is a solar energy equipment supplier headquartered in Nuremberg, Germany.
($=0.8326 euro)
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Photovoltaic system
Source: pixabay.com
