EDP Renováveis buys 70% of Kronos Solar
With this transaction, EDPR expands its presence to 12 markets in Europe, which represent more than 90% of the expected solar capacity additions in EU until 2030.
EDP Renováveis bought 70% of Kronos Solar Projects GmbH, a solar developer company, for €250 million. With this acquisition the company led by Miguel Stilwell is able to enter the German and Dutch markets.
“EDPR is acquiring 70% of Kronos for an acquisition price of €250 million paid at closing and a success fee to be paid to the sellers over 2023-28, dependent on the solar capacity delivered by Kronos development team in this period,” the company clarifies in a statement sent to the market. “The transaction includes also call/put options on the remaining 30% minority stake, exercisable from 2028 onwards, with strike price associated to the status of renewables projects under development by Kronos on that year,” EDPR adds.
This 30% still held by the company’s founders who will remain “involved in the daily management of the business.”
Kronos has a portfolio of 9.4 GW (7.5 GWac) of solar projects in different stages of development in Germany (4.5 GW), France (2.7 GW), the Netherlands (1.2 GW) and the UK (0.9 GW). Of the 9.4 GW of pipeline of projects under development, 0.2 GW are ready for construction, details the CMVM statement.
The company led by Miguel Stilwell explains this operation “allows EDPR to enter into Germany and the Netherlands which benefit from ambitious renewables targets, given the increased importance of security of supply and energy independence”. Furthermore, “Germany, which is Kronos’ domestic market, represents close to 50% of the acquired solar development portfolio and the government has recently announced the “Easter Package” that stands out with ambitious renewables capacity targets, with 360 GW of renewable installed capacity until 2030.” To meet this target, Germany intends to install 155 GW of solar capacity, representing close to 40% of the expected EU solar additions, which will make it one of the largest and fastest growing solar markets in the world.
With this transaction, EDPR expands its presence to 12 markets in Europe, which represent more than 90% of the expected solar capacity additions in EU until 2030.
