Updated: Renewables operator Encavis has hit the accelerator on two major solar projects in Spain beset by COVID delays as it looks to capitalise on revenue growth.
Encavis today confirmed that having experienced some delays in the construction of the Talayuela and La Cabrera solar farms in Spain – both of which are being developed by UK-headquartered EPC Solarcentury – the operator had decided to accelerate their development to ensure their completion in the second half of this year.
This came at a cost, Dierk Paskert, chief executive at Encavis, confirmed, but at around €500,000 this additional expense was “considerably lower than our initial calculations”, he said.
News of the projects’ acceleration came as Encavis reported an 8% increase in H1 revenues to €154.8 million (US$182.8 million), driven mainly by the addition of new wind farms in Denmark.
Earnings however fell slightly, down €1.2 million to €119.6 million – which the company attributed to an increase in its 2019 earnings driven by better operating conditions for its portfolio of renewable assets.
This was mainly attributed to positive meteorological effects in the first half of 2020, generating around 10% extra kilowatt hours of electricity than expected average figures, due to higher irradiance levels at PV power plants located in several European countries such as Germany, Spain, UK and the Netherlands. As a result, revenue was €11.3 million higher than expected.
Encavis has nevertheless reaffirmed its full-year revenue and earnings forecasts, which it expects to fall at around €280 million and €220 million respectively.