Information on the Target

Levanta Renewables, an independent power producer based in Southeast Asia, has acquired a 90% controlling interest in a solar project portfolio with a capacity of 139.4 MWp in Thailand. This acquisition includes 24 ground-mounted solar farms strategically located across four provinces in the country. Each of these solar farms operates under a 25-year power purchase agreement with the Provincial Electricity Authority of Thailand, ensuring a reliable revenue stream for Levanta.

This acquisition is not only Levanta's inaugural transaction but also marks its entry into the Thai renewable energy market. The company aims to enhance its operating capacity to 1.5 GW across Southeast Asia, making this acquisition a strategic move to achieve its broader objectives in the region.

Industry Overview in Thailand

The renewable energy sector in Thailand has witnessed significant growth in recent years, driven by supportive government policies aimed at increasing the share of renewable sources in the energy mix. The country's National Power Development Plan (PDP) sets ambitious targets for renewable energy utilization, decreasing reliance on fossil fuels, and improving energy security.

Thailand is also characterized by diverse renewable energy resources, particularly solar power, which has gained traction due to abundant sunshine throughout the year. Recent advances in solar technology have made solar projects more economically viable, attracting both domestic and foreign investment.

As part of its commitment to sustainable energy, the Thai government has incentivized investments in solar and other renewable energies through feed-in tariffs and renewable energy certificates. This regulatory framework, coupled with a growing awareness of environmental issues, has facilitated the establishment of a competitive renewable energy market.

As the demand for clean energy sources continues to rise, Thailand is positioned to be a significant player in Southeast Asia's renewable energy landscape, offering lucrative opportunities for international investors and developers in the sector.

The Rationale Behind the Deal

Levanta’s acquisition of the solar project portfolio aligns with its strategy to expand its footprint in Southeast Asia's renewable energy market. By entering Thailand, Levanta aims to capitalize on the nation's favorable regulatory environment and robust demand for clean energy. The solar farms acquired are expected to provide stable cash flows through long-term power purchase agreements with local authorities, enhancing the company’s financial stability.

The collaboration with Super Energy, a prominent player in the Thai renewable sector, adds further value by leveraging local expertise and operational capabilities. This partnership is expected to facilitate Levanta's growth in the region as they explore additional utility-scale and commercial & industrial solar opportunities.

Information About the Investor

Actis, a leading sustainable infrastructure investor, is the parent company of Levanta Renewables. Renowned for its focus on investing in sustainable energy solutions across emerging markets, Actis has established a strong reputation for delivering scalable renewable energy projects. With a comprehensive portfolio spanning various countries in Southeast Asia and beyond, Actis is committed to driving the transition to a low-carbon economy.

Actis has developed and financed numerous renewable energy projects, reinforcing its dedication to achieving impactful growth in the sectors it operates in. The company’s extensive experience and strategic insight into renewable infrastructure development position Levanta favorably for sustained growth and innovation in the Thai renewable energy market.

View of Dealert

The acquisition of the solar project portfolio by Levanta Renewables is viewed as a sound investment for several reasons. Firstly, the established power purchase agreements provide a guaranteed income stream, which is essential for maintaining financial health and stability. This stability is crucial for Levanta as it seeks to expand its market presence and portfolio in the region.

Secondly, the partnership with Super Energy ensures that Levanta benefits from local knowledge and expertise, which can significantly enhance operational efficiency and project execution. Collaborating with a recognized local leader can mitigate risks associated with new market entry.

Furthermore, with Thailand's growing commitment to renewable energy and favorable regulations, Levanta stands to gain from a supportive investment climate. The potential for future growth in both utility-scale and commercial & industrial solar projects further strengthens the rationale behind this acquisition.

In conclusion, Levanta's entry into the Thai market through this acquisition represents a strategic and timely investment, poised to yield positive returns while contributing to the sustainable energy landscape in Thailand.

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