THE COMPANY ADVANCES IN THE FULFILLMENT OF ITS OBJECTIVE OF BECOMING AN INDEPENDENT POWER PRODUCER (IPP)
- It completes the connection of two solar parks, developed entirely inhouse. In this way, Enerside values its presence throughout the life of the projects, developing, building and operating photovoltaic parks.
- With a total investment of around €6 million, Enerside consolidates its position as an independent power producer (IPP), with projects that will generate more than €1 million of annual recurring EBITDA, and a return of more than 15% annualized.
- Both projects have long-term energy supply contracts, PPAs, with top-tier counterparties and high credit quality (Investment Grade).
Barcelona, 31 August 2023. Enerside Energy, a Spanish company vertically integrated in the photovoltaic solar industry, has connected this month two new own parks in Brazil. The overall investment made amounts to about 6 €M.
Creation of value throughout the life of projects
The connected wind farms in Brazil have been fully developed and built by the Enerside team, allowing the company to capture all the value over the life of the projects, which will generate an annual EBITDA of more than €1M and a long-term return of more than 15% (25-year IRR).
With these two new own parks connected, added to the Renaico asset, already operational in Chile, Enerside advances in fulfilling its objective of having this year recurring revenues generated by this area of activity, which it decided to address with its IPO in March 2022.
The first of the two parks that Enerside has put into operation in Brazil is in the city of Itabira (state of Minas Gerais) and will allow the supply of energy through a PPA of 4.7GWh per year, which the company has signed with one of the main energy marketers in Brazil. This PPA, which is part of Enerside’s strategy as an independent power producer (IPP), will last for 10 years and is indexed to inflation.
Itabira is a distributed generation park that has a peak capacity of 3.1 MW and according to company estimates will produce up to 5 GWh/year of energy. According to its design, this photovoltaic solar park will avoid the emission of 2,569 TnCO2 / year annually.
Rota do Sol
The Rota do Sol project is in the state of Rio Grande do Norte, Brazil. It is also a distributed generation park of 3.2 MW of peak power and with its operation will avoid the emission of a total of 3,931 TnCO2 / year. Enerside closed last November a PPA for the supply of the energy generated by this facility with the company Raízen, one of the five largest companies in Brazil by turnover. Through the PPA, Enerside will supply 7.7GWh/year of energy for 15 years to this company that is a joint venture between Royal Dutch Shell and the Cosan group, and that is dedicated to the production of ethanol, sugar, fuels, and bioenergy.
Distributed generation. An important growth vector
Enerside continues its growth, both in Brazil with Distributed Generation, and in Chile, with the construction of PMGDs (Small Means of Distributed Generation) parks that are characterized by shorter development deadlines, with lower environmental requirements and important economic benefits as in the case of Chile where there is the possibility of benefiting from the stabilized price regime, which establishes long-term energy price visibility.
It was just with the aim of being able to develop its own parks that, in March of last year, Enerside carried out a capital increase and began trading on BME Growth. Since then, the company has experienced strong growth in its revenues from its activities for third parties, which will now be complemented by the start of the recurring EBITDA contribution derived from its activity as a self-employed generator.
“The start-up of Itabira and Rota do Sol means for Enerside, not only to increase our portfolio of own assets, in line with the objectives of our strategic plan, but also to take another step in our positioning in Brazil as one of the main developers of photovoltaic projects in this country, with a project portfolio of more than 4GW”, highlights the CEO of Enerside, Joatham Grange.
Enerside is a vertically integrated company in the photovoltaic solar energy sector, which stands out for its strong industrial profile and geographical diversification in the markets with the greatest potential for solar energy (Spain, Italy, Brazil, and Chile).
The company is currently immersed in promoting the development of 5.5 GW in differentiated, highly qualified projects with an advanced degree of maturity that give it an excellent position to capture demand growth and a great capacity to generate value, through the sale of projects in the RTB (Ready to Build) phase and with the direct exploitation of part of the pipeline as an independent energy producer (IPP).
More information at www.enerside.com
Telf. 616 952 066