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7C Solarparken AG: reaches its year-end objective of 400 MWp for its IPP Portfolio
Bayreuth (pta017/23.12.2022/16:19 UTC+1)
7C Solarparken (WKN: A11QW6 / ISIN: DE000A11QW68) announces today that the Group has expanded its portfolio by another 10 MWp through the acquisition of an operating freefield installation in Schwerin, Germany. In addition the construction of previously announced solar assets, totaling 12 MWp across its two markets, is making good progress,.
In Belgium, the Group confirmed that the construction of two new rooftop projects (0.3 MWp in Ledegem and 0.5 MWp in Ninove) is nearing completion. The PV power of both project will be sold on-site to the rooftop owner at a fixed PPA price. In Burgwindheim (Germany) the construction of a freefield extension project of 10.8 MWp is making good progress as well. The project is expected to be grid-connected in Q2'23. The new installations are equipped with panels supplied by Topray Solar, Astronergy and Trina Solar.
Following the successful completion of financial, technical and legal due diligence, 7C Solarparken has entered into a sales and purchase agreement regarding a 10 MWp PV plant in Schwerin. The operational solar asset consists of two installation parts – built on an old military site - which were commissioned in July/August 2015 respectively with land lease agreements until the end of 2045. The solar asset enjoys a FIT of EUR 89/ MWh and has a yield of over 1,000 kWh/kWp. Based on receiving its FIT (i.e. not based on estimated market-based capture price), the SPV has estimated annual revenues of EUR 0.9m and an estimated annual EBITDA of EUR 0.6m p.a. for the financial year 2023. The solar asset is being acquired with project financing of EUR 4.8m. PV Panels of Astronergy have been used. The closing of the acquisition is subject to market conform condition precedents.
Through this transaction, the group's IPP Portfolio rises to 401 MWp, in line with the company's target to deliver 400 MWp by 2022 and 525 MWp by 2024.
Steven De Proost, CEO of 7C Solarparken, comments: "We confirm once again that 7C Solarparken combines high visibility in terms of EBITDA generation and IPP growth target achievement. In theory, the German PV industry stands to gain from outstanding growth perspectives defined by the national government. In practice however, the situation is somewhat more complicated: i) delivery times for transformers and grid equipment have never been longer, ii) local authorities tend to slow authorization procedures seeking to apply outdated rules, iii) grid operators remain unable to keep up with the administrative complexities caused by Re-Dispatch 2.0 with lagging pay-out of financial compensation for plant outages as a result, iv) governments planned to structurally re-design the electricity price landscape for renewables leading to uncertainties and (temporary) price caps on projects with feed-in, PPA and merchant pricing. In spite of all of these headwinds, the financial year 2022 will prove to be the best year on record for 7C Solarparken with record revenues, record profits and record cash at hand. Due to the German price cap that starts as from 01 December 2022, our revenues will nevertheless be subject to a reduction in capture price going forward."
7C Solarparken AG
An der Feuerwache 15
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