German renewables developer ABO Energy is looking to begin owning and operating its energy projects in a transition from a “pure play” developer to an independent power producer (IPP) model.
ABO managing director, Karsten Schlageter, said the decision was motivated by the way energy markets have “evolved” in recent years. “The new environment offers players with integrated business models additional opportunities and synergies, including for project development. We want to explore these opportunities and exploit them where appropriate.”
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The move would allow ABO Energy to enter into larger, “tailored” deals with big electricity consumers like regional authorities or corporations. The company expressed the desire to develop and own a “structured portfolio of wind, solar, and battery projects,” which would allow it to participate in electricity markets with baseload offers. It added that its past experience with power purchase agreements (PPA) would be “particularly valuable in this regard”.
As renewable energy has grown, it has become more attractive to own and operate projects than develop them for sale, ABO said. It gave the example of the German wind power market, where in previous years actual capacity lagged significantly behind demand, putting a premium on projects.
Now, as projects are more frequently realised and the cost of renewables across the board has fallen, “it is becoming increasingly attractive to also operate at least part of the developed and constructed projects,” the company said.
But Schlageter said the company currently lacks “the financial resources to build up a significant portfolio. To make this possible, partners are needed.”
ABO Energy said it would consider relisting as a public limited company to attract investment, depending on the decision reached at its upcoming general meeting. When it transitioned away from public shareholding in 2023, the management had “anticipated a different development in the energy and capital markets,” ABO Energy said.
Currently, the majority of shares in ABO Energy are held by the company’s founders, Jochen Ahn and Matthias Bockholt, and their families. Schlageter said the two parties had expressed “willingness to sell shares if necessary.”
Last month the company closed a US$280 million loan from a consortium of banks led by Commerzbank to develop and build more renewable energy and energy storage projects.
“Although our expectations for 2023 have only been partially fulfilled, we now find ourselves in a very good starting position to successfully develop ABO Energy further,” Schlageter said.
