Revolve Renewable Power Corp said that it had made strong progress in both its utility scale development and Distributed Generation (DG) business units in its first full quarter of energy generation since completing the acquisition of Centrica Business Solutions Mexico in August 2022.
The renewable energy company had an operational DG portfolio of 2.85MW, DG projects under construction of 6.2MW and utility scale projects under development of 3,600MW by the end of its fiscal second quarter ended December 31, 2022.
"Our Q2 FY2023 results provide shareholders and new investors with a clear view of our business model in action,” CEO Steve Dalton told shareholders in a statement. “We now have a base of operating assets generating recurring revenue, new assets under construction to add to this revenue base and a utility scale development strategy that has delivered another significant transaction with a global utility company.”
READ: Revolve Renewable Power 'delighted' with progress of Battery Energy Storage System in Cancun, Mexico
During 2Q, energy generation revenue from the company's portfolio of operating distributed generation assets was US$99,763 with a cost of sales of US$26,506 for a gross profit of $73,257. For the six-month period, the same business delivered US$124,339 in revenue with a cost of sales of US$26,506 for a gross profit of US$97,833, representing an increase of 405% from revenues of US$24,576 reported in the first quarter.
Meanwhile, renewable energy generation for the quarter was 492,563kWh and 675,211kWh for the six months ending December 31, 2022, which Revolve said represents its first full quarter of energy generation since the completion of the acquisition of the Centrica Business Solutions Mexico portfolio.
“We expect further optimization of these assets over the coming months,” the company said in a statement.
Distributed Generation assets under construction of 6.2MW consisting of a 3MW CHP (combined heat and power) project and a 3.2MWh battery storage project. These are both expected to be commissioned and revenue generating over the coming quarter, according to the company.
Its Distributed Generation project pipeline of 65.8MW encompasses a wide range of new rooftop solar, battery storage and CHP opportunities with industrial customers across a number of different industries, and currently stands at 71.8MW.
Revolve said it is working to convert into signed power purchase agreements and projects under construction “in the short term.”
Utility scale projects under development
Meanwhile, the firm has 2,350MW utility scale projects under development following the successful sale of the Bouse Solar & Storage and Parker Solar & Storage projects to ENGIE in January 2023.
The ENGIE transaction included an upfront payment of US$2 million, which Revolve said will be reflected in its 3Q FY2023 financial results.
Cash on hand as of December 31, 2022 was US$1,140,492, which has since been supplemented by the US$2 million upfront payment received from ENGIE.
“We remain excited by the pipeline of new projects that the company is continuing to advance both in the distributed generation and utility scale markets and we look forward to updating shareholders on these in due course,” CEO Dalton added.
Vancouver-based Revolve aims to capitalize on the growing global demand for renewable power. It develops utility-scale wind, solar and battery storage projects in the US and Mexico with a portfolio of nearly 2,350MW under development.
A second division, Revolve Renewable Business Solutions, installs and operates sub-20MW "behind the meter" distributed generation assets.
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