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AMPYR Solar Europe

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Come and meet our M&A team at InterSolar M&A activity for ground mounted solar in Germany has gained traction in recent months. AMPYR Solar Europe has been observing plenty of opportunities with projects being sold even before „Aufstellungsbeschluss“. We have looked at the drivers of this deal renaissance to understand the rationale behind market participants deciding to sell their assets now. Setting aside the environmental necessity to move away from fossil fuels and increasing social awareness, Germany still has one of the best-established frameworks for renewable energy policies in the world with EEG as a backbone. The recent adoption of Solarpaket I and the reintroduction of a 50 MWp limit in the EEG tender underpins the political will to make utility-scale solar happen. Regulatory exceptions, such as the absence of a B-Plan procedure  for projects in privileged areas, have accelerated development timelines with the first privileged projects having reached RTB status this year. Market growth has been steady and appetite for renewable power is growing, reflected in premiums being paid for renewable electricity or offtake arrangements being announced in the market. Additionally, module prices are at an all-time low. Considering this, why are developers/investors still willing to sell their projects? The answer is uncertainty and the increasing complexity of getting projects online. High interest rates continue to put pressure on the renewable energy business model. Lower forecasted merchant electricity prices and lower future capture rates for electricity generated by solar assets increase the need for alternate routes to markets (e.g., PPAs or the sale of GoOs), for which smaller developers typically lack the expertise and resources. Community participation requirements introduce contractual and regulatory complexity, while the announcement of additional levies such as the so called “Solar Euro” add to uncertainty. Widespread grid congestion and long lead times for substations also add to the overall complexity, with adequate connection points hard to find. All this creates M&A opportunity for the solar industry - not only in Germany, but across a wide range of European markets - as established players seek to expand their market share, new players look to enter the market, and project owners contemplate exit strategies before valuations fall further. Addressing the above challenges will be paramount for companies to be successful in the future. AMPYR Solar Europe (ASE) is well positioned to leverage its inhouse PPA expertise, economies of scale, strong financial backing and the experience of its shareholders to reinforce its position as one of the fastest growing IPPs in Europe.   Come and meet our M&A team at InterSolar in Munich next week: Alexander Kinnel and Juan Atxa Untiedt will be there, and happy to discuss. Please contact them directly through LinkedIn. #Intersolar

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