BayWa enters Dutch solar market with 2 GW, €159 million deal

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German agro-industrial conglomerate, Baywa AG intends to enter the Dutch solar PV market.

The company’s renewable energy unit, Baywa re has agreed to acquire a 70% interest in a 2 GW solar project pipeline in the Netherlands from local developer, Groen Leven Group, the group announced today in a press release. A Baywa spokesperson tells pv magazine that it will pay €159 million for the pipeline.

The Dutch company will remain part of the business by retaining a 30% stake in the joint venture. Baywa has not provided details on the amount of the investments to be made in these projects, nor on the timeframe for their realization.

“Tariffs have already been secured for around 800 MW from the Groen Leven pipeline,” explained Matthias Taft, Energy Director of Baywa. The interest of international investors to buy such photovoltaic systems after their completion is “still high,” he added.

The spokesperson adds that the 800 MW is expected to be built out in the next three years, while the entire 2 GW should be online in five.

After selling off PV assets, Baywa usually takes over the technical and commercial support of the projects, a model that the company now intends to replicate with Groen Leven in the Netherlands as well.

Analysts assume that the Dutch PV market will reach an increase of more than 1 GW capacity for the first time this year. Many German project developers are already active in the neighboring country.

“The Netherlands is a highly interesting market for the construction of solar plants. The country has reasonable incentive regulations and there is a considerable backlog in the production of electricity from renewable energies,” said Baywa CEO, Klaus Josef Lutz.

So far, the country has been relying on natural gas. In order to achieve its CO2 reduction targets, renewable energies also need to be expanded more strongly.

The article was amended on March 15, 2018 at 16.34 to include information about the purchase price.

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