Encavis Acquires 62-MW Solar Park in Bavaria

• Encavis AG boosts its renewable energy portfolio with a 62-MW solar park in Bavaria, set to deliver 67 GWh annually by 2025, marking a significant step in solar expansion.

Encavis AG has acquired a 62-MW solar park project in Bavaria, currently under construction and expected to be operational by the second quarter of 2025. Developed by Germany’s Fronteris Energie GmbH, the solar park, located in Dietfurt and Breitenbrunn, is anticipated to generate approximately 67 GWh of electricity annually, benefiting from Germany's EEG feed-in tariff for the next 20 years.

This acquisition marks Encavis’s largest photovoltaic project in Bavaria, increasing its total renewable energy capacity to 780 MW across various wind and solar assets. This deal follows the commissioning of Encavis’s largest solar plant, a 114.2 MW facility, in Mecklenburg-Western Pomerania.

How does Encavis AG's acquisition impact its renewable energy capacity and future projects?

Impact of Encavis AG's Acquisition on Renewable Energy Capacity and Future Projects

• Increased Renewable Energy Portfolio: With the acquisition of the 62-MW solar park, Encavis AG will now have a total renewable energy capacity of 780 MW. This positions the company as a significant player in the German renewable energy sector, emphasizing its commitment to expanding its solar and wind assets.
• Strategic Geographic Expansion: The new solar park in Bavaria not only broadens Encavis’s geographical footprint in Germany but also strengthens its presence in a region that is becoming increasingly important for solar energy development, given Bavaria’s favorable climate and policy support.
• Future Project Pipeline: The addition of this solar park may indicate potential future collaborations with Fronteris Energie GmbH and other developers, enhancing Encavis's capacity to invest in and develop more renewable energy projects across Germany and potentially in other European markets.
• Long-Term Revenue Security: By securing the EEG feed-in tariff for 20 years, Encavis AG ensures a stable revenue stream from this project. This long-term agreement mitigates risks associated with electricity price volatility and provides financial certainty that can be leveraged for future investments.
• Contribution to Energy Transition Goals: The operation of the Dietfurt and Breitenbrunn solar park aligns with Germany's broader objectives for energy transition (Energiewende), which aims to reduce greenhouse gas emissions and increase the share of renewables in the energy mix.
• Enhanced Operational Expertise: With the commissioning of its largest solar plant in Mecklenburg-Western Pomerania, Encavis is gaining valuable operational experience and insight, which can be utilized to optimize the performance and management of future projects, including the new solar park in Bavaria.
• Potential for Technological Innovation: As Encavis continues to expand its renewable energy assets, it may invest in innovative technologies and solutions that enhance the efficiency and output of its solar plants, fostering a sustainable and smart grid approach.
• Job Creation and Local Economic Impact: The construction and eventual operation of the new solar park is likely to create job opportunities in the region, contributing positively to local economies and aligning with community engagement and development goals.
• Strengthening Investor Confidence: By consistently expanding its renewable energy capacity and investing in promising projects, Encavis AG is likely to enhance stakeholder and investor confidence, which could facilitate easier access to funding for future projects.
• Compliance with EU Sustainability Goals: The acquisition places Encavis AG in a favorable position to contribute to the European Union's climate targets, which have set ambitious goals for increasing the uptake of renewable energy sources by 2030. This further enhances the company’s credibility and attractiveness in the investment community focused on sustainability.