Project PEFOR: operating/greenfield – clean energy
Sector: Power generation from renewable energy – solar
Sponsor: Arpinge (100%), on behalf of Arpinge Energy Efficiency & Renewables (“AEER”), subsidiary for clean energy investments
This acquisition is part of the growth strategy of Arpinge in the power generation from renewable sources and energy efficiency sectors. Through AEER, Arpinge aims to build up a portfolio of assets with expected stable earnings and cash flows. AEER might target plants with finance or in full equity.
Specifically, Arpinge’s Board of Directors, in July 2016, has approved a budget of up to 25 million Euro for investments in operating solar plant, aiming to enhance their technical, contractual and financial structure.
Under this framework, Arpinge has closed the acquisition of 9 running solar plant, with an overall installed power of 9.5 MWe, additional to NORA Energy project – 4.2 MWe, already in Arpinge’s portfolio since 2015. Current Arpinge’s commitment in this portfolio is overall 25 million Euro (partially with debt and partially full equity), while other projects in pipeline might add further 14 MWe to complete Arpinge’s budget.
Arpinge’s approach – targeting assets with strong track record and in a close geographical area – aims to increase the economies of scale, to create better a financial return than the average of the market.
In parallel, Arpinge is diversifying in other renewable sources, such as wind and hydropower sectors, as well as testing new technologies to reach grid parity, aiming to generate clean energy without subsidies.