German renewables company BayWa r.e. is planning to realise more than 1GW of solar and wind plants this year as it heightens its focus on subsidy-free projects.
Having sold about 500MW of solar and wind farms in 2021 – in markets such as Poland and Spain – the company said Spain and the Netherlands will be key markets for its solar project development business in 2022, with Eastern Europe also beginning to pick up speed.
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With the firm’s energy solutions unit realising a record 68 projects in 2021, including signing a power purchase agreement (PPA) for what it said was Poland’s first subsidy-free solar park, BayWa r.e. is this year looking to increase its work on subsidy-free renewables plants, many of which are expected to be backed by PPAs with corporations.
A transaction of note saw the company recently sign a virtual PPA for two PV plants in Spain, with the agreement featuring an “innovative price mechanism” that benefits both the asset owner and offtaker during times of high electricity costs
Expanding its project pipeline, entering new markets and bringing a new investor on board – with Energy Infrastructure Partners acquiring 49% stake in the business – contributed to BayWa r.e. posting “exceptional results” during 2021, said CEO Matthias Taft.
He added that the company is expected to strengthen its performance this year thanks in part to more PPAs with corporations and a greater focus on technologies such as green hydrogen and energy storage. “The industry is poised for further growth in 2022 as the pace of the renewable energy transition increases.”
BayWa r.e. will this year continue developing its Americas pipeline of more than 5GW of solar, wind and energy storage projects while also pursuing 2.5GW of solar and wind in Asia Pacific, where it is also looking into floating PV opportunities.
Despite ongoing supply chain disruptions, the company’s solar distribution unit sold “multiple gigawatts” of modules and inverters during 2021, increasing its revenues by more than 60% year-on-year.
Having established an independent distribution business in Poland and bolstering its presence in the US with the acquisition of distributor Beacon Solar last year, BayWa r.e. said its distribution unit is on track to continue benefitting from rising worldwide demand.
The BayWa Group, which also includes agriculture and building materials businesses, saw its 2021 revenue increase 20% year-on-year to €19.8 billion (US$22.1 billion), while earnings before interest and tax jumped 26% to €266.6 million. The company will publish full details of its 2021 performance on 24 March.