Vestas has taken a minority stake in the German renewables developer Sowitec, with an option to acquire the whole company within three years.
The Danish manufacturer has acquired a 25.1% interest in Sowitec, which has about 60 wind and solar energy projects totalling 2.6GW across the world.
“By investing in Sowitec, Vestas enhances our ability to offer full-scope sustainable energy solutions by tapping into Sowitec’s proven offering within development services,” Vestas said.
It added that the acquisition also strengthens its offering within hybrid power plant solutions.
“With sustainable energy’s share of the energy mix set to grow from around 10% today to more than 30% by 2035, hybrids are a key part of Vestas’ objective to develop sustainable energy solutions with wind at their core,” the company said.
“As such, hybrids are emerging as a grid-friendly and cost-effective solution that can store and release renewable energy into the grid when needed, and hereby increase the penetration of onshore wind,” Vestas added.
The acquisition, which is subject to regulatory approval, is expected to be finalised during the second quarter of 2019.
Vestas chief sales officer Juan Araluce said: “With the acquisition of a minority stake in Sowitec, Vestas gains access to an independent development entity that strengthens our co-development portfolio and improves our solutions and capabilities in strategic markets in Latin America.
“Vestas is continuing to invest in solutions and capabilities that increase our ability to meet our customers’ evolving needs and to partner with them through the energy transition.”
Sowitec chief executive officer Frank Hummel said: “We are proud to have Vestas as a strategic partner that further strengthens our equity and helps us to go further in the value chain.
“Together with our strong track record in emerging markets and our vast experience in developing utility-scale renewable energy projects, this partnership will help Sowitec grow faster and give us the chance to profit from Vestas’ worldwide experience and presence.”
Sowitec is expected to report 2018 consolidated revenues of approximately €30m.