Market environment
The European Union solar market is on a steady growth path, with this development set to continue for many years to come. By 2030, the European Union (EU) has committed to installing 209 GW of additional solar PV capacity under the member states' National Energy and Climate Plans (NECP). Furthermore, the addition of solar energy in Europe is estimated at 24 GW per year.
Issuer
aream has specialised in the asset management of solar and wind power plants for over 15 years. With a transaction volume of more than 1.5 billion euros, aream is one of the leading asset managers in this market and has thus long been helping to drive the energy turnaround and make the energy supply cleaner. aream has over ten years of experience in various renewable energy markets. Coupled with broad expertise, the team's capabilities cover the entire renewable energy value chain, from project development and technical asset management of the plants to the structuring and execution of an exit strategy.
Investment strategy
Due to more attractive returns, more and more institutional investors are getting involved in the early stages of development for their long-term existing plants. With financing of €24m, the investor is contributing to early-stage development, i.e. starting with securing land for photovoltaic plants in Germany and Spain. The funds will be used to realise the project development; this includes services from securing land, necessary grid voltage analyses and permits to the ready-to-build status of the plants. Repayment plus interest is made through refinancing when the project is ready for construction. In order to create an attractive risk-reward ratio for the investor, he will gain a profit share of the pipeline sale proceeds. The development financing of the solar plants is carried out with a term of three years against predefined milestones, i.e. the financial resources are only called up after the successful development of defined sections.
