EDP Renovaveis SA has reached an agreement to acquire a 70% stake in German developer Kronos Solar Projects GmbH, which has a portfolio of 9.4 GW of solar projects under development and whose domestic market accounts for nearly half.
The renewable energy company said on July 29 that it will pay a majority stake of 250 million euros ($253.05 million) at the close of the deal, with fees to be paid between 2023 and 2028, depending on what Kronos delivers during that period. solar capacity.
The majority stake will be taken from the company founders, who will keep the remaining 30%. Investors have the right to acquire minority shareholders from 2028.
The acquisition of Kronos Solar marks EDPR's entry into the German and Dutch solar markets, which are expected to expand significantly based on the countries' ambitious renewable energy targets.
The Munich-based company has commissioned 80 solar plants with a combined capacity of more than 1.4 GW.
Its 9.4GW pipeline includes projects in various stages of development, with domestic market scenarios accounting for 4.5GW of total capacity. Other core markets for Kronos Solar include France, with 2.7 GW of solar development, the Netherlands with 1.2 GW, and the UK, where the company is working on a 900 MW project.
Entry into Germany and the Netherlands will allow EDPR to expand in other technologies as well, such as through a mix of wind power, hydrogen and storage technologies.