EDP Renewables (EDPR) has completed the acquisition of a 70% stake in Kronos Solar Projects, a developer based in Germany. Kronos has a “lean development team with a long-term expertise” on solar development and a portfolio of 7.5GW of solar projects in different stages of development, more than half of which is in Germany, and the rest in France, the Netherlands and the UK. The acquisition allows EDPR to enter into Germany and the Netherlands which benefit from ambitious renewables targets, given the increased importance of security of supply and energy independence. With this transaction, EDPR expands its presence to 12 markets in Europe, which overall represent more than 90% of the expected solar capacity additions in EU until 2030. Moreover, the entrance in these new markets creates opportunities to expand not only in solar but also in other technologies, namely wind through hybridisation, new wind pipeline, hydrogen and storage technologies, stated EDPR. The deal was closed for an acquisition price of €250m paid at closing and a success fee to be paid to the sellers over 2023-28, dependent on the solar capacity delivered by Kronos development team in this period. The transaction includes also call/put options on the remaining 30% minority stake in Kronos, which is held by its founders that will continue to be involved in the daily management of the business, exercisable from 2028 onwards, with strike price associated to the status of renewables projects under development by Kronos on that year.
Credits: renews.biz[Image: EDPR]