EQS Group-Ad-hoc: Edisun Power Europe AG / Key word(s): Strategic Company Decision
Ad-hoc Press Release
The Next Milestone in Edisun Power's Growth Strategy
- Construction of a 49 MW photovoltaic power installation in Portugal
- Entry into the non-subsidized solar power production market
- Expansion of cooperation with project developer Smartenergy Invest AG
There is already an established business relationship between Edisun Power and Smartenergy. In February 2017, Edisun Power purchased the 12 MW Requena project near Valencia in Spain from Smartenergy. Since connection in March 2018, the facility has been feeding electricity to the grid at favorable levels of performance. In the context of the new transaction, Smartenergy will acquire an interest in Edisun Power by means of an increase in capital through a contribution in kind.
The 49 MW plant heralds a new era for Edisun Power, as the energy produced will be sold on the market without any government subsidies or feed-in tariffs. Thanks to the high levels of solar radiation and low investment costs, production costs will be far below current market prices. In order to secure income for the first few years of operation, the company plans to conclude a PPA (Power Purchase Agreement) with fixed price purchase commitments.
Construction of the plant will begin this year and the facility should be connected to the grid in the first half of 2020. Around 80 million kilowatt hours of electricity will be produced per year from an area of about 65 hectares, which is equivalent to the annual needs of a city with around 20'000 inhabitants. From 2020 onwards, the project will realize a net result of around CHF 1 million on an annualized basis.
The investment will be covered by existing funds, project financing and by a capital increase through contribution in kind. The contribution in kind will result from the issue of 80'715 shares from the authorized capital, whereby Smartenergy will hold a share of around 13.6% in Edisun Power after completion of the transaction.
On the occasion of Edisun Power's General Meeting on 17 May, a representative of Smartenergy will be proposed for election to the Board of Directors in order to reinforce closer strategic cooperation.
The transaction marks not only a further important milestone in the development of the Group, but also, with the involvement of Smartenergy Invest AG, a clear sign of continued commitment to growth.
For more information
Horst Mahmoudi, CEO & Executive Chairman
Edisun Power Group
Smartenergy Invest AG
End of ad hoc announcement
|Company:||Edisun Power Europe AG|
|Phone:||+41 44 266 61 20|
|Fax:||+41 44 266 61 22|
|Listed:||SIX Swiss Exchange|
|End of Announcement||EQS Group News Service|
772317 04-Feb-2019 CET/CEST