Vestas has acquired a 25.1% minority stake in SOWITEC, a German-based sustainable energy developer with about 60 wind and solar projects, totaling more than 2,600 MW across the globe. Vestas has an option to acquire the entire company within three years.
“With the acquisition of a minority stake in Sowitec, Vestas gains access to an independent development entity that strengthens our co-development portfolio and improves our solutions and capabilities in strategic markets in Latin America,” said Juan Araluce, Vestas’ Chief Sales Officer. “Vestas is continuing to invest in solutions and capabilities that increase our ability to meet our customers’ evolving needs and to partner with them through the energy transition.”
Based on SOWITEC’s proven track-record within solar PV project development, the acquisition also strengthens Vestas’ offering within hybrid power plant solutions. With sustainable energy’s share of the energy mix set to grow from around 10% today to more than 30% by 2035, hybrids are a key part of Vestas’ objective to develop sustainable energy solutions with wind at their core.
As such, hybrids are emerging as a grid-friendly and cost-effective solution that can store and release renewable energy into the grid when needed, and hereby increase the penetration of onshore wind.
“We are proud to have Vestas as a strategic partner that further strengthens our equity and helps us to go further in the value chain,” said Frank Hummel, SOWITEC Chief Executive Officer. “Together with our strong track record in emerging markets and our vast experience in developing utility-scale renewable energy projects, this partnership will help SOWITEC grow faster and give us the chance to profit from Vestas’ worldwide experience and presence.”
On a stand-alone basis, SOWITEC is expected to report 2018 consolidated revenues of approximately EUR 30 million. The acquisition, which is subject to regulatory approval, is expected to be finalized during the second quarter of 2019 and will have no significant impact on Vestas’ earnings.