Revolve Renewable Power Corp has released its earnings statement for the third quarter in which it highlighted the progress of its Distributed Generation (DG) business.
The operator and developer of renewable energy projects reported total revenues US$888,185 for the quarter ending March 31, 2023, comprising electricity generation revenue from its operational DG portfolio and initial proceeds from the sale of the development rights to the Bouse and Parker Solar & Storage projects to ENGIE.
In the financial year to date, total revenues were US$1.01 million.
Low operating costs boosted the gross profit margin, which was 83.2% in the third quarter and 82.7% in the year to date.
Renewable energy generation was 334,870kWh for the quarter and 1,010,081kWh so far this year. Extensions to power purchase agreements (PPA's) with existing customers mean the average PPA contract length is now nine years.
DG assets under construction during the quarter totalled 6.2MW, consisting of a 3MW CHP project and a 3.2MWh battery storage project. The latter was commissioned post-period and is now operational and generating revenue, Revolve noted.
The company highlighted the “significant increase” in its DG project pipeline, which has jumped to 156.8MW at present from 65.8MW at the end of the second quarter due to a number of business development initiatives that have started to generate new project opportunities.
Going forward, Revolve is focused on converting the pipeline projects into PPAs and it revealed it has signed a letter of intent (LOI) for a new 533kW rooftop solar project in Mexico.
In addition, it has issued further LOIs to prospective customers for an additional 32MW of new DG capacity, which are currently awaiting acceptance and signing.
Utility-scale projects under development total 2,838MW, reflecting the sale of 1,250MW of US solar and storage projects to ENGIE in January and the recent addition of 480MW of new greenfield development projects in the US.
Revolve CEO Steve Dalton said in a statement: "Our Q3 FY2023 results demonstrate the benefits of our diversified strategy towards the renewable energy market. Revenue from our operating portfolio of DG assets was combined with the initial proceeds from the sale of some of our utility scale assets to increase revenue to US$1 million.
“We are also extremely pleased with the Cancun BESS project reaching commercial operations and with the progress across our DG business unit in general.”
He said the company plans to start construction on its next DG project shortly and expressed confidence that further DG projects will be signed in the coming months.
Revolve reported a third-quarter net income of US$523,085 and a net loss of US$235,972 for the year to date.
It had cash of US$1.4 million at the end of March, following receipt of the US$2 million upfront payment from ENGIE from the sale of the Bouse and Parker solar & storage projects.
Contact the author at jon.hopkins@proactiveinvestors.com