(AOF) – Neoen and Prokon, a large renewable energy cooperative, have announced the signing of a new Power Purchase Agreement (PPA) with data center specialist Equinix for at least 57 MW of green energy in Finland . This is the third PPA signed by Neoen and Prokon with Equinix, following those of Lumivaraa and Björkliden signed in the last 12 months.
Under the terms of this contract, Equinix will purchase for 10 years 60% of the green electricity and guarantees of origin produced by the Storbötet wind farm in Finland. With a capacity of at least 95 MWp, the wind farm will be located in the Finnish municipality of Uusikaarlepyy, in central Ostrobothnia, a region located in the west of the country.
Its construction should be launched in 2023 for commissioning scheduled for 2025. Neoen holds an 80% stake in the project, with the remaining 20% belonging to Prokon.
This PPA concluded with Equinix is partially indexed to market prices.
This is the ninth Corporate PPA contracted in Finland since 2018 by Neoen.
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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
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semester, 2022 target increased by an operating profit of between 380 and 460 million, i.e. a margin of 80 to 90%.