Information on the Target

Origis Energy has successfully completed the sale of a 41 MW solar photovoltaic (PV) portfolio to ForVEI II, a joint venture between VEI Green and Foresight Group LLP. This portfolio consists of 34 ground-mounted solar PV projects located in Italy, contributing approximately 37 MW of capacity, alongside a 4 MW solar plant situated in Slovakia. Notably, these solar plants have been operational since 2010 and 2011 and benefit from long-term remuneration under the Feed in Tariff (FiT) scheme established by the GSE, ensuring a stable revenue stream for the assets.

The financial specifics of the transaction have not been disclosed; however, both parties have expressed satisfaction with the partnership. Guy Vanderhaegen, CEO and President of Origis, remarked on the excitement surrounding the collaboration with ForVEI II, emphasizing the benefits of having a reliable long-term partner for their European assets.

Industry Overview in Italy

Italy has become a significant player in the renewable energy sector, particularly in solar PV technology. The Italian government has implemented various policies to promote renewable energy, making it one of the leading countries in Europe for solar energy capacity. By 2020, Italy had installed nearly 20 GW of solar capacity, supported by various incentives and long-term contracts that make investment in solar energy more attractive.

The Italian solar market is characterized by its diverse investment opportunities, ranging from large-scale installations to decentralized systems on residential and commercial rooftops. The government’s commitment to reducing carbon emissions, along with its ambitious energy transition goals, continues to foster growth within the renewable energy sector.

With abundant sunlight year-round and a growing infrastructure to support solar generation, Italy presents a favorable environment for further investments in solar energy. The transition from fossil fuels to renewable sources is not only a policy objective but becoming increasingly essential for energy security in the region.

Furthermore, European Union regulations and funding programs provide additional support for renewable energy initiatives in Italy. These frameworks enhance investor confidence, driving continuous development in the sector and creating a competitive landscape for energy providers.

The Rationale Behind the Deal

The acquisition of Origis Energy's 41 MW solar portfolio by ForVEI II aligns with the fund's strategy to expand its holdings in renewable energy infrastructure across Europe. By investing in proven operational assets with long-term revenue agreements, ForVEI II aims to create a diversified portfolio that can yield steady and predictable returns for its investors.

The deal marks a critical milestone for ForVEI II, representing its first significant acquisition since its inception and signaling the fund's commitment to renewable energy investments. The established operational status of the solar plants provides the joint venture with immediate cash flow benefits, further validating the attractiveness of the transaction.

Information about the Investor

ForVEI II is the second iteration of the investment platform joint venture between Foresight and VEI Green, launched in June 2018. This multi-shareholder vehicle includes commitments from various investors, including NWS Holdings Limited, a Hong Kong-listed infrastructure specialist, and Family Office FinCarl. The fund is focused on acquiring renewable energy assets throughout Europe, with Foresight serving as the arranger and asset manager for the platform.

Foresight Group LLP has established a strong reputation in the renewable energy sector, having successfully managed several funds focused on sustainable investments. The company is dedicated to accelerating the transition to low-carbon energy sources and works closely with investors to deliver satisfactory returns while supporting environmentally friendly initiatives.

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This acquisition is seen as a promising investment opportunity, given the growing demand for renewable energy and the favorable regulatory environment in Italy. The operational nature of the assets means ForVEI II can benefit from immediate revenues, which is critical for achieving projected returns. Additionally, the FiT scheme provides a layer of financial security for the investments, making them appealing to both institutional and private investors.

Moreover, the partnership between Foresight and VEI Green combines extensive expertise in managing renewable energy projects with robust financial backing. Their track record of success in the sector is likely to inspire confidence in stakeholders and attract future investments into the Fund.

While there are inherent risks in any investment, the strategic focus of ForVEI II on renewable energy assets positions it advantageously within the current market environment. The anticipated shift towards green energy solutions globally further emphasizes the potential for growth, making this acquisition particularly timely.

Overall, the deal stands as a testament to the resilience and attractiveness of the renewable energy sector. As the world accelerates its transition to sustainable energy, investments such as these are anticipated to yield long-term benefits and meet growing demand effectively.

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