Gestamp Solar rebrands, sets 2.5-GW target by 2020

Gestamp Asetym Solar SL, the former solar photovoltaic (PV) arm of Spain’s Gestamp Renewables, has changed its name to X-Elio and set a target to reach up to 2.5 GW of installed capacity by 2020.

The rebranding occurred after US investor KKR & Co LP (NYSE:KKR) gained all the needed regulatory nods to complete the acquisition of an 80% stake in the Spanish business, the parties said in a statement today. The deal, first unveiled in July 2015, gave X-Elio an enterprise value of roughly USD 1 billion (EUR 883m).

The rebranded business expects a solid expansion in Japan, where it aims for up to 600 MW of installed solar capacity by the end of next year. Half of that capacity will be achieved through acquisitions. At present, the company has two plants and 50 MW under operation there.

X-Elio is targeting Latin America as well, where it has already deployed 100 MW and is now developing over 500 MW in Mexico and Chile. Moreover, it is actively expanding into other South American markets such as Peru and Colombia.

The company is also working to boost its project pipeline in the US. Its current portfolio of operating assets in the country amounts to 24 MW.

“X-ELIO combines all the elements that are needed to capture the dramatic increase in demand for solar energy: capital resources to invest in the long term, an entrepreneurial mindset, technology leadership and the ability to scale the business,’’ CEO Jorge Barredo said in a statement.

Jesus Olmos, global co-head of infrastructure at KKR, said in an interview with Bloomberg that the company has about USD 500 million of equity committed to expand the new solar platform. The X-Elio investment is financed by the USD-3.1-billion KKR Global Infrastructure Investors II fund, according to the press statement.

(USD 1.0 = EUR 0.883)

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