Information on the Target

BHM Renewables, a subsidiary of BHM Group, has successfully completed the sale of two solar projects located in Slovakia and Slovenia. Both projects have reached the Ready to Build (RtB) stage, and management has handed them over to new investors for construction and operation. The first project is situated on the roof of the BHM Park Dunajská Streda logistic and manufacturing facility in Kostolné Kračany, Slovakia. This project boasts a capacity of 4.5 MWp and an anticipated annual energy production of over 5 GWh, which has been acquired by Energe SK, an independent energy supplier and aggregator. The second project, yielding 3 MWp with an expected annual production of 3 GWh, is located on the roof of BHM Park Maribor in Hoče, Slovenia, and has been sold to Resalta, part of the global energy group Aggreko.

Industry Overview in the Target’s Specific Country

The renewable energy sector in Slovakia has shown significant growth, underpinned by favorable government policies aimed at enhancing energy independence and sustainability. With the increasing focus on reducing carbon emissions, solar energy has become a key player in Slovakia's energy matrix, contributing to both energy security and job creation. The country’s abundance of solar potential, particularly on commercial rooftops, presents ample opportunities for new developments.

In Slovenia, the solar market is also on the rise, buoyed by EU incentives for renewable energy projects and a strong public commitment to sustainable energy. The Slovenian government has launched several initiatives aimed at increasing the share of renewables in total energy consumption, and solar energy is expected to play a prominent role. As a result, companies investing in solar infrastructure are likely to benefit from government support and an increasingly favorable regulatory environment.

Both markets are poised for further expansion as technological advancements continue to drive down the cost of solar installations, making them more accessible. Consequently, the potential for integration with energy storage solutions is becoming a priority, as ongoing developments suggest a substantial increase in energy storage projects alongside solar facilities to enhance energy efficiency.

The Rationale Behind the Deal

The sales of these solar projects align with BHM Renewables' long-term strategy to develop solar parks to the RtB phase before transferring them to specialized investors. Utilizing the rooftops of their facilities for photovoltaic installations is a strategic move towards a sustainable future, generating synergies among BHM’s investment segments. These projects not only contribute to the company's developmental objectives but also reinforce its commitment to energy transformation.

Furthermore, both projects are designed with future facility upgrades in mind, particularly for the eventual installation of battery storage systems, which will optimize energy usage. The construction is slated to begin in 2025, with initial energy deliveries to the grid anticipated in 2026, demonstrating the proactive approach of BHM Renewables in facilitating effective energy management.

Information about the Investor

Energe SK is a reputable player within the Slovak energy market, known for its independent supply and aggregation of energy. The company has been actively involved in promoting renewable energy sources and enhancing energy efficiency for its clients. Their acquisition of the solar project at BHM Park Dunajská Streda reflects Energe SK's strategic focus on expanding their renewable energy portfolio, thus contributing positively to Slovakia's energy independence.

Resalta, the new owner of the project in Slovenia, is recognized for its commitment to innovating within the energy sector, especially as part of the globally recognized Aggreko group. Resalta has actively engaged in promoting sustainable energy solutions and is poised to leverage its expertise in renewable projects to capitalize on new growth opportunities in the Slovenian market.

View of Dealert

From an investment perspective, the acquisition of these solar projects by Energe SK and Resalta is expected to yield substantial returns, given the growing demand for renewable energy in both Slovakia and Slovenia. BHM Renewables' strategic approach of developing projects to the RtB phase before selling aligns well with market trends that favor established players taking on operational roles.

Moreover, considering both projects are equipped with the potential for future battery storage installations, this adds further value, allowing the new owners to enhance energy management and capitalize on peak pricing during high-demand periods. The foresight shown in these developments increases their attractiveness as investments.

In conclusion, the sale of the solar projects not only enhances BHM Renewables' operational flexibility but also positions the buying companies well within rising renewable energy markets. Overall, this transaction could represent a solid investment choice, reinforcing the trend towards sustainable energy and providing an opportunity for significant future growth.

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