Alternus Energy Group PLC, the independent power producer, said it has further strengthened its position in the Polish market after buying 12.9 megawatts (MW) of operational solar photo-voltaic (PV) assets for around €13 million.
The deal was fully funded by the €20 million bond issuance completed by Alternus in November this year.
Alternus is partnered with a local developer for the construction of the projects - part of a deal with a total contracted pipeline of 24 megawatt peak (MWp). The additional 11 MWp is currently expected to reach commercial operation in the first quarter of 2022.
"This transaction further strengthens our position in the Polish market following our market entry earlier this year. We view Poland as a key growth market thanks to the supportive policy, clean energy targets and established routes to market," said Vincent Browne, the CEO of Alternus.
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"We look forward to further expansion of this portfolio next year and are engaged in negotiations to support our ambitious growth plans to achieve 200 MW of Polish operational clean power stations by YE 2022 and a 400-500 MW operational portfolio in the country by 2025."
The projects have Polish government-backed contracts in place as part of its policy mechanism supporting the installation of projects up to 1 MWp in size, highlighted Alternus.
The company's Polish portfolio is now diversified with both subsidised and unsubsidised projects following the acquisition of the 64.6 MWp Witnica solar park from BayWa r.e. in August, 2021.
"The contracts for difference (CfD) in place for these projects add a secure predictable revenue stream to our Polish portfolio to complement the existing PPA contract," noted Joseph Duey, the chief financial officer of Alternus Energy.
"These projects are expected to provide an average of €1.2 million in annual recurring revenues over their 30+ year lifetime.
"Our ability to acquire projects with both types of off-take contracts in place demonstrates the maturity of the market and range of attractive opportunities available."
Having started in 2016 with two parks and 6 MWp capacity, the firm's current operational portfolio consists of 24 parks across Poland, Romania, Italy, the Netherlands and Germany totalling 130 MWp.
Contact the author at giles@proactiveinvestors.com