Energie Baden-Württemberg (EnBW), a German energy company, sold its 49.9 per cent stake in a portfolio of 597 MW solar projects to Alte Leipziger Hallesche Insurance Group (ALH Group). The solar portfolio consists of 16 solar power parks spread over several German states, including Saxony, Baden-Württemberg, Mecklenburg-Western Pomerania, Baden-Württemberg, and Rhineland-Palatinate.
Reportedly, the large-scale projects such as Weesow, Gottesgabe, and Alttrebbin are also included in the portfolio, and are said to be among the largest developed in Germany to date and built without subsidies. These three solar parks have the ability to eliminate over 325,000 tonnes of carbon emissions annually and make up around 80 per cent of the portfolio’s installed capacity. Each year, the solar portfolio generates 580 GWh of clean energy, enough to power more than 200,000 three-person households. The deal is anticipated to close later in 2022, pending approval from the relevant regulatory authorities.
In June 2022, EnBW agreed to purchase 400 MW of solar projects in Brandenburg from Procon Solar. EnBW has the option to acquire an additional 400 MW of capacity under the terms of the agreement. The contract would be completed in two stages and would involve solar projects at varying stages of development. In July 2022, advanced-stage projects with a capacity of approximately 400 MW would be transferred to EnBW.
REGlobal’s Views: This minority stake sale in EnBW’s 16 solar projects will help the company to finance new projects in the renewable energy space. This part stake sale is frequent strategy used by the company in its renewable energy business.