EDP Renováveis (EDPR), a Portuguese company specialising in renewable energy, invested $256 million to acquire a 70 per cent stake in Kronos Solar Projects, a company based in Germany. Currently, Kronos’ portfolio of solar projects totals 9.4 GW, and they are spread out across the UK, Germany, France, and the Netherlands. The solar portfolio includes projects in Germany that make up about 50 per cent of the total and are in various phases of development.
As per the company’s statement, the acquisition will enable it to increase its market share across the 12 European markets that, by 2030, are expected to account for more than 90 per cent of projected solar capacity additions in the European Union (EU). The company is the wind and solar unit of EDP-Energias de Portugal. The deal is also anticipated to open up opportunities for the company to increase its presence across the wind, hydrogen, and energy storage sectors.
In February 2022, EDP Renewables invested S$1.1 billion for a 91 percent stake in Singapore-based solar manufacturer Sunseap. The agreement was initially announced in November 2021, and it was finalised when all regulatory requirements were completed. EDPR also announced plans to invest S$10 billion by 2030 in Singapore to build a clean energy hub that will serve the Asia-Pacific (APAC) region. This investment is part of the company’s APAC market strategy.
REGlobal’s Views: This deal will give Kronos the right financial backing as well as experience to further expand its portfolio in the various European markets. For EDPR, this massive acquisition gives the company a sizable augmentation of its renewable energy portfolio.