Neoen targets 10GW of capacity by 2025

• French independent power manufacturer (IPP) Neoen is aiming to greater than double its renewable power capacity in the next 4 years.

The company, which reported a 25% rise of its EBITDA in the year to December at EUR270.4 million (US$ 323.6 million) in its full-year results today (11 March), prepares to have more than 10GW of renewables either mounted or under construction by 2025, up from 4.1 GW last year. The firm's pre-tax incomes dropped in-line with the lower-end of expectations last July, when it anticipated an EBITDA margin of greater than 80%.

The wind, solar and also battery storage developer as well as operator claimed in a declaration it will "gradually accelerate" its brand-new growth pipe, with a purpose to win 2GW of projects annually from 2025. It will certainly focus on broadening its presence in countries it already runs in such as Australia, where the IPP is currently working on what, at 460MWp capability, stands to be the nation's largest solar ranch. Neoen stated that around 80% of brand-new projects over the following 5 years will certainly originate from its existing markets. "We get on known terrain", chief executive Xavier Barbaro claimed in a webcast today.

The new 10GW target is expected to set you back EUR5.3 billion, Neoen stated, adding it wishes to increase EUR1.2 billion (US$ 1.44 billion) of added resources between 2021 and also 2025 to satisfy this. Nevertheless, this number would certainly not be gotten to in a solitary concern as well as could be reduced by marketing stakes in some possessions, Barbaro said. Additional investment for the projects will certainly be sourced from cashflow from existing assets in Neoen's profile.

At the same time, the business has not ruled out making purchases in of cheapened properties with reorganizing prospective or generating properties near to completion of their life with repowering possible in order to hit the 10GW ability mark, it said.

The firm currently expects its EBITDA to increase once more this year, getting to in between EUR295 million and EUR325 million and again amounting to a margin of 80%.

Up until now, it has an advanced pipe of 6.9 MW, and an additional 4GW in beginning development. Although it plans to participate in government tenders, Neoen said it will certainly "prioritise" securing lasting power purchase agreements (PPA) with "solid counterparties" such as industrial companies. The business is already investing EUR1.2 billion in a French massive solar-plus-storage project with energy Engie, with which it will certainly produce earnings from over-the-counter contracts with companies.