EDP Renewables has reached an agreement for the €250m acquisition of a 70% stake in solar developer Kronos Solar Projects.
The transaction, which was first reported in the subscriber-only reNEWS newsletter in February allows EDPR to enter into Germany and the Netherlands markets which benefit from ambitious renewables targets.
Kronos is currently fully owned by its founders, who will retain a 30% stake in the company and continue involved in the daily management of the business.
The acquisition price is to be paid at closing of the deal and a success fee is to be paid to the sellers over 2023-28, dependent on the solar capacity delivered by Kronos development team in this period.
The transaction is subject to regulatory and other customary precedent conditions and also includes call/put options on the remaining 30% minority stake, exercisable from 2028 onwards, with strike price associated to the status of renewables projects under development by Kronos on that year.
Kronos has a lean development team with a long-term expertise based on a track record of more than 1.4 GW through 80 successfully commissioned projects and a portfolio of 9.4 GW (7.5GWac) of solar projects in different stages of development in Germany (4.5GW), France (2.7GW), the Netherlands (1.2GW) and the UK (0.9GW), EDPR said.
Out of the total 9.4GW of pipeline of projects under development, 0.2GW are ready to build, it added.
EDP chief executive Miguel Stilwell d’Andrade (pictured) said: “We are very pleased to have reached this agreement with Kronos which will allow us to start our path in Germany and the Netherlands, two markets with high potential for renewable energies, and to strengthen our position in France and the UK.
“We have great expectations in what regards Germany in particular, as it is a key market in Europe with reinforced renewable growth targets.
“With this achievement EDP further deepens its role in the solar segment and our commitment to the acceleration of the energy transition.”