Hanwha Solutions has invested $855.2 million for a 100 percent share in renewable energy producer RES France in order to extend its business portfolio in Europe. As a result of this agreement, Hanwha Solutions will have complete ownership of RES France’s solar and wind power projects totaling 5 GW, which was handled by the company’s green energy business Hanwha Q Cells.
The acquisition, which is expected to be completed in October 2021, would boost the global capacity of Hanwha Solutions’ clean energy projects from 10 GW to 15 GW. Hanwha Solutions will benefit from economies of scale by delivering solar modules to projects in Europe.
It will recoup its investment by selling off the projects when they have been completed. According to DB Financial Investment, the cost of per GW will be between 700 and 800 billion South Korean won. According to the company, it takes between five and seven years to complete a renewable energy project in France from the time a licence is obtained. Furthermore, project transfers are rare, making it difficult for new entrants to enter the market. Thus, RES France is the ideal partner for Hanwha Solutions.
Hanwha Q Cells, which has a European headquarters in Germany, will use France as the second local base to achieve Europe’s goal of increasing the proportion of renewable energy to 40% of final consumption by 2030.