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Alternus Energy continues its rapid growth by acquiring the first of several new solar parks in Italy

By February 18, 2021No Comments

Dublin 18 February 2021. Fast-growing pan-European independent power producer, Alternus Energy Group Plc (NOTC: ALT) (the “Company” “Alternus” or “AEG”), is pleased to announce the acquisition of KKSOL S.r.l and its 557 kWp operational rooftop solar photovoltaic (“PV”) power plant located in the province of Acona in Italy. This acquisition is the first of four parks being purchased from the same Italian seller and the Company is in the process of completing the other three parks, expected in Q1 2021. Combined with the Company’s current acquisition programme, Alternus will increase its operating capacity to over 140 MWp over the next few months.

The total compensation for this acquisition is approximately €1.36 million after working capital adjustments, and the project will be financed from the proceeds raised in the successful placement of €110 million green bond fundraise in conjunction with the €27 million equity raise which was completed in December 2020.

“We are happy to close the acquisition of our twelfth solar park in Italy which marks the first purchase under the recent Green Bond placement. Solar energy is the cleanest and most secure energy source in the world, and the Company’s mission is to make this energy widely available as we target our goal of owning and operating over 2 GWp of PV solar by 2025,” said Vincent Browne, CEO of Alternus Energy Group.

KKSOL S.r.l has been in operation since August 2012 and has produced over 2,300 MWh in the past four years. It benefits from a 20-year government counterparty Feed-in-Tariff (“FiT”) that guarantees a fixed sale price for every kWh of energy produced, of which there are just under 12 years left. Additionally, the park sells energy generated to the national grid on the wholesale energy market and will continue to do so beyond the FiT period. The project is expected to yield annual EBITDA margins of 91% and over 20% levered IRR returns.  

“KKSOL is the first of many extensions of our profitable portfolio of solar PV parks across Europe this year. The predictable cash flows from this project, enabled by lean and efficient operations, will support and accelerate our growth going forward,” said Joseph Duey, CFO of AEG 

Currently, Alternus owns 25 solar PV Parks across Europe, with a total installed capacity of 30.5 MWp including this most recent acquisition. The Company has contracted over 300 MWp of additional solar PV projects and has a current pipeline of over 1.2 GWp across Europe for potential acquisition in 2021.

“Notwithstanding our current corporate goal of achieving 2 GWs by 2025, as we sit today, we see a clear path to reaching this goal in less than half that time. We are still at the very beginning of a solar energy boom and we very much look forward to the rest of this journey, including listing on Euronext Growth as soon as possible,” said Vincent Browne, CEO of AEG.

About Alternus Energy Group Plc

Alternus Energy Group is a fast-growing international independent power producer (“IPP”), headquartered in Ireland, with a focus on the midsized utility solar PV market. The Company owns and operates a diverse portfolio of utility scale solar PV parks that connect directly to national power grids on long-term government contracts (“FiT”) and/or Power Purchase Agreements (“PPAs”) with investment grade off-takers. Having started in 2016 with two parks and 6 MWp capacity, the current portfolio consists of 39 owned or contracted parks in Germany, Italy, Netherlands, Romania and Poland in excess of 150 MWp capacity. The Company works closely with both local and international specialist development partners that provide a constant pipeline of new projects, currently over 1.2 GWp, across Europe for acquisition by the Company. Alternus aims to own and operate over 2 GWs of solar parks by the end of 2025.

Forward Looking Statements: Certain information contained in this letter, including any information on the group’s plans or future financial or operating performance and other statements that express the group’s management’s expectations or estimates of future performance, constitute forward-looking statements (when used in this document, the words “anticipate”, “believe”, “estimate” and “expect” and similar expressions, as they relate to the group or its management, are intended to identify forward-looking statements). Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. The group cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the group to be materially different from the group’s estimated future results, performance or achievements expressed or implied by those forward-looking statements.