EDP completes acquisition of solar development platform in Germany

The deal was reached "for an acquisition price of €250 million paid at closing and a success fee to be paid to the sellers over 2023-28," announced EDP this Thursday.

EDP has completed the purchase of 70% of the solar development platform in Kronos for €250 million. The deal will allow the Portuguese company to enter the Dutch and German markets.

“Following the information released to the market on July 29th 2022, EDP – Energias de Portugal, S.A. (“EDP”), through its 74.98% owned subsidiary EDP Renováveis, S.A. (“EDPR”), informs that the acquisition of a 70% stake in Kronos Solar Projects GmbH (“Kronos”), a solar development company based in Germany, is completed,” informed EDP in a statement published on CMVM.

The deal was reached “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”. EDP also explained that the “transaction includes also call/put options on the remaining 30% minority stake in Kronos, which is held by its Founders that will continue to be involved in the daily management of the business, exercisable from 2028 onwards, with strike price associated to the status of renewables projects under development by Kronos on that year.”

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).

“This acquisition allows EDP to enter into Germany and the Netherlands which benefit from ambitious renewables targets, given the increased importance of security of supply and energy independence,” stated the Portuguese company.

By taking control of Kronos, EDPR will now be present in 12 European markets, which represent more than 90% of the solar capacity additions expected in the EU by 2030.