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Emeren Group Ltd SOL recently clinched a deal to monetize 29 megawatts (MW) of the solar PV portfolio in Spain to Rubis Photosol. The monetization deal involves the sale of the three late-stage projects located in Spain.
Currently in the advanced phase of obtaining the Administrative Authorization for Construction, these projects are anticipated to reach commercial operation by the second half of 2025 and will have the capacity to produce nearly 57,000 MWh of clean energy.
Emeren’s Expansion Plans in Europe
Emeren has been eyeing expansion opportunities in Europe to reap the benefits of the growing solar demand in the region. Europe contributed 87% to the total revenues of the company in the last reported quarter.
The robust revenue contribution from the region is backed by diverse strategies employed for regional expansion. One such strategy includes developing solar projects in the region and monetizing the same, like the latest one. This leads to consistency in revenue inflows for Emeren, thereby boosting its margins and strengthening its cash flows.
The company monetized two major projects in Poland and Hungary for a total of 62 MW and closed the sale of an 11.5 MW solar project to the Swiss-based energy company, MET Group, in the second quarter of 2023. Also, the company had 5,620 solar projects in the pipeline under advanced-stage and early-stage development and owned and operated nearly 60 MW of power purchase agreement projects in Europe as of Jun 30, 2023.
In addition to its focus on project development, the company actively pursues merger and acquisition opportunities across Europe to leverage favorable market conditions. Such a formidable expansion strategy is poised to establish a significant presence in the region, ensuring a sustained influx of robust revenues for the company.
Peer Moves
Europe has been on the radar for expansion for many solar companies since the past few years as the region boasts immense opportunities for growth and revenue generation. Per the report by SolarPower Europe, new solar photovoltaic (PV) capacity is likely to exceed 50 gigawatts (GW) of deployment in 2023. The growth is also projected to double to 85 GW in 2026 from the current levels.
Considering such growth prospects, apart from SOL, other solar companies that have been significantly expanding in Europe are as follows:
Enphase Energy ENPH: The company has been steadily expanding in Europe. In the third quarter of 2023, Enphase entered the U.K., Sweden, Denmark and Greece markets with both IQ8 microinverters and IQ batteries. Meanwhile, the Netherlands, France and Germany remain the three largest markets for Enphase.