Edisun Power Europe AG

Edisun Power focuses on large-scale Solar plants

Edisun Power Europe AG / Key word(s): Strategic Company Decision Edisun Power Europe AG: Edisun Power focuses on large-scale Solar plants 27-Dec-2023 / 23:15 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad hoc announcement pursuant to Art. 53 LR

Zurich, December 27, 2023

 

Edisun Power focuses on large-scale Solar plants 

• Strategy will strongly be focused on large-scale solar plants
• Edisun acquires 941 MWp of large-scale solar plants, which will be ready for construction in 2024
• Edisun reduces remaining project portfolio of smaller plants by 706 MWp and realizes one-off capital gain of 18.7 MCHF
• Transactions thanks to strategic partnership with SMARTENERGY Group AG

 

Focus on large-scale solar plants

The Board of Directors of Edisun Power today unanimously approved the reallocation of a significant part of its solar projects for the strategic development of its solar PV portfolio.

The agreements reached with strategic partner SMARTENERGY Group AG cover the sale of projects with a volume of 706 MWp and, in return, the purchase of three large-scale solar plants in the Madrid area with 941 MWp. These large-scale plants will be ready for construction by end of 2024.

The transactions covered by the agreements can be financed entirely without cash outflows against offsetting the interest-free loan granted by SMARTENERGY Group AG to Edisun in 2021. Edisun will thus simultaneously strengthen its balance sheet structure and substantially reduce its debt by over CHF 50 million. In addition, Edisun will generate a one-off gain of MCHF 18.7 from the project sales, which will be recognized in 2023.

For 2024/25, Edisun is planning to further optimize its portfolio by selling smaller solar plants. This restructuring should be completed by mid 2025.

 

Increased attractiveness for large financing rounds

The aim of the entire transaction is to align Edisun's portfolio more closely with the needs of the capital market and strategic investors. The Spanish PV market is currently developing dynamically, as the Iberian Peninsula is also considered as one of the hotspots in Europe for the establishment of green hydrogen production projects. At the same time, due to the grid bottlenecks, large-scale solar plants that already have a grid connection commitment are particularly attractive. The three large-scale solar plants with a total capacity of 941 MWp are strategically located in the greater Madrid area.