Revolve Renewable Power Corp told shareholders that the company had rapidly advanced its renewable energy portfolio with its most advanced projects being primed to reach ready-to-build targets by 2024.
The Vancouver-based company, which was formed in 2012 to capitalize on the demand for renewable power, announced the filing of its financial and operating results for its fiscal first quarter that ended September 30, 2022.
In a sweeping update, Revolve CEO Steve Dalton told shareholders the firm had made “considerable progress” over the last eight months since being a public company on the TSX Venture Exchange.
READ: Revolve Renewable Power plans to ramp up development activities at Vernal BESS project in 2023
"We have continued to develop and expand our Utility Scale project portfolio, which currently stands at 3.6 gigawatts (GW) across 12 wind, solar, and battery storage projects in the US and Mexico. Key milestones are being met on the various projects as we move closer to reaching a ready-to-build (RTB) status in 2024 on our most advanced projects,” Dalton said in a statement.
“We are expecting a very robust 2023 as we support the development of our renewable energy portfolio to reach various RTB targets. The most significant development for the company has been the transition from being solely a project developer to becoming an independent power producer, generating electricity with recurring long-term revenue, and cash flow from a growing renewable energy portfolio of commercial and industrial customers in Mexico."
Gaining traction in US and Mexico
In May this year, Revolve kicked off its transition with a new division — Revolve Renewable Business Solutions — to focus on the fast-growing distributed generation (DG) market in Mexico and the US. To accelerate its entry into the market, Revolve successfully completed the acquisition of Centrica Business Solutions Mexico in August 2022.
“This provided the company with a 2.85-megawatt (MW) portfolio of operating rooftop solar and combined heat and power (CHP) projects along with a further 3 MW CHP project that is under construction,” said Dalton. “The acquisition has provided a platform to quickly expand our pipeline of new distributed generation project opportunities, which led to the signing of our first battery storage (BESS) project in September 2022.”
The 3.2 MWh BESS project in Cancun, Mexico has increased the firm’s overall distributed generation portfolio to 10 MW of operating and under-construction assets. Revolve's project development pipeline is growing rapidly and now stands at over 60 MW.
“Our target is to convert this development pipeline into signed projects during 2023, which will continue to grow both the revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) generated by this division," said Dalton.
The Revolve boss noted that there were several “positive” announcements from the US and Mexican governments. The passing of the Inflation Reduction Act in the US last August provides both long-term certainty on tax incentives to support the development of renewable energy projects as well as at least $369 billion of new investment, which will be directed towards energy security and climate change.
“We expect these announcements to act as a catalyst for accelerated growth in the sector in the near and longer term,” said Dalton.
Similarly, as part of the COP 27 proceedings, Mexico has pledged to reach 40GW of deployed wind and solar generation capacity by 2030 with the strategy of reducing its greenhouse gas emissions by 35%.
“In order to meet this 40GW target it will require the addition of 10GW of new renewable energy capacity over the next 8 years or 1.25 GW per year. With Revolve's successful track record in Mexico and an advanced pipeline of competitive wind projects totalling 1.6 GW, we anticipate more clarity from the government on private sector involvement in delivering this ambitious target," said Dalton.
Investors can learn more about progress on the company’s Parker Project, a 250MW utility-scale solar and storage project located in Arizona here.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive