(AOF) – Neoen, a leading independent producer of exclusively renewable energy, has instructed Nidec, a provider of battery energy storage solutions, to start work on Storen Power Reserve at the end of the month. December 2022. Located in the municipality of Ragunda, about 100 kilometers from the city of Östersund, the 40 MW / 40 MWh lithium-ion battery will be connected to the 130 kV transmission line of the E.ON network. Its commissioning is scheduled for the first half of 2024.
In accordance with its develop-to-own model, Neoen will be the long-term owner and operator of Storen Power Reserve. The battery will provide Svenska Kraftnät, the Swedish electricity transmission system operator, with ancillary services, including primary reserve services (Frequency Containment Reserve services).
It will participate in the balancing of electricity production and consumption in real time, contributing in a competitive manner to the stability of the electricity system while facilitating the integration of new renewable energy plants.
This new battery illustrates Neoen’s ambition to become a leading player in Sweden.
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Key points
– First French independent producer of exclusively renewable energies founded in 2008;
– Turnover of €333.4 million, generated in 15 countries, including 50% in Australia, and 49% from solar, 41% from wind and 10% from storage;
– Portfolio of 13.9 GW, including 5.4 GW of assets in operation or construction;
– “Development to own” business model: integrated with a presence in the 4 phases of the life of the assets – development, financing, project management and operations: operating in countries with network parity, with contracts for the sale of long-term PPA electricity,
– Capital held at 46.51% by Impala (holding of the Veyrat family) and 1.61% by Cartusia (holding of the Barbaro family), acting in concert, ahead of the FSP (6.5%) and the BPI (4 .7%), Xavier Barbaro being Chairman and Chief Executive Officer of the 8-member Board of Directors;
– Balance sheet still tight with debt leverage, increased by new projects, standing at 7.5 but cash of €559 million.
Challenges
– 2021-2025 roadmap with objectives set twice in 2022: capacity in operation or construction of + 10 GW including 5 GW in 2023, annual investments of around €5.3 billion, hence regular fundraising funds, increase in operating income of +20% in 2022 then double digits;
– Innovation strategy: carried out in partnership with customers during pilot projects, innovative in essence, identifying cost reduction and energy storage technologies;
– “Sustainable Framework” environmental strategy: Corporate pillar for reducing the carbon footprint, Projects pillar for managing environmental issues and recycling facilities, launch of green loans;
– Strong position in the storage of lithium-ion batteries, developed in partnership with Tesla in the Australian unit of Hornsdale, in Providence in El Salvador and in Illikkâlâ in Finland;
– Rise in capacity in operation to 3,584 MW at the end of June, in solar and wind power in France.
Challenges
– Activity driven by regulations favorable to renewable energies;
– Capital gains expected from “farm-out” or partial or even total disposals of secured assets;
– Execution of solar projects, of 92.5 MW won in France and 80 MW in Ireland, and wind construction in Sweden and Finland;
– After a 36% increase in turnover and a 69% decline in net profit in the 1
er
semester, 2022 target increased by an operating profit of between 380 and 460 million, i.e. a margin of 80 to 90%.