Vestas to buy into Sowitec as importance of co-development grows

Enel's Fonte dos Ventos wind project in Brazil, developed by SOWITEC and turned into a wind/solar hybrid. Source: SOWITEC group

April 12 (Renewables Now) - Denmark’s Vestas Wind Systems A/S (CPH:VWS) has agreed to acquire a 25.1% stake in German renewables developer Sowitec Group GmbH and there is an option for a full buyout within three years.

The transaction is pending regulatory clearance and is seen to close in the second quarter. It will not have a significant impact on Vestas' earnings, the buyer said in a statement.

Sowitec has developed over 2,600 MW of projects around the world, already in operation or under construction, and that includes not only wind but solar projects as well. The group is active in Latin American markets such as Argentina, Brazil, Chile, Colombia, Peru and Uruguay, as well as in Europe, Asia and Africa. It is also engaged in the development of floating solar photovoltaic (PV), energy storage, green hydrogen and ammonia production projects.

According to Sowitec's website, the group has a global pipeline of roughly 28,000 MW, including more than 8,000 MW of solar and wind in Brazil alone.

“With the acquisition of a minority stake in Sowitec, Vestas gains access to an independent development entity that strengthens our co-development portfolio and improves our solutions and capabilities in strategic markets in Latin America,” said Juan Araluce, Vestas’ chief sales officer.

Vestas said that its investment in the German company enhances its ability to deliver full-scope sustainable energy solutions. It supports the turbine maker’s strategy to grow beyond wind and is seen to bolster its offering within hybrid power plant solutions. The Danish company views developing hybrid projects as a way to increase the penetration of onshore wind.

Sowitec expects to post consolidated revenues of about EUR 30 million (USD 33.9m) for 2018.

(EUR 1.0 = USD 1.129)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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