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Renewable Energy M&A: Equinor acquires Danish solar developer BeGreen Energy and its 5.6 GW development pipeline in Denmark, Sweden, and Poland

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Mohit Kaul's picture
Founder, Enerdatics

Building Enerdatics. Leadership experience in a high growth SaaS company and secured a successful exit. A natural leader who cares about creating value for all stakeholders. Extensive experience...

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BeGreen is currently owned by the Bregentved Estate, which operates as an agricultural and forestry business in Denmark, focussed on the sustainable production of food and energy. BeGreen’s assets under development comprise 4.7 GW in Denmark, 440 MW in Poland, and 202 MW in Sweden. The projects are at early to medium stages of maturity, with an average project size of 300 MW. BeGreen also holds 302 MW of operational capacity and 288 MW under construction, to be operationalized by the end of 2022. The power produced will be marketed by Equinor subsidiary Danske Commodities. The transaction marks Equinor’s largest renewable energy acquisition in Denmark.

BeGreen reported a revenue of $58.8mn and pre-tax earnings of $8.2mn for the fiscal year (FY) 2021/2022, with a net debt of $45mn at the end of the period. The company had forecast a revenue of $218-245mn and pre-tax earnings of $86-119mn for FY 2022/2023, including the sale of new projects. BeGreen is optimistic about its strategy, focussed on developing unsubsidized utility-scale projects in the high-growth markets of Denmark, Sweden, and Poland. The company has also outlined plans to enter at least one new market in the current fiscal year.  

The deal marks Equinor’s most significant move in the solar sector and will compliment the company’s existing pipeline in Poland, acquired through the takeover of Polish developer Wento in May’21. Beyond Europe, Equinor is developing solar projects in Latin America, in partnership with fellow Norweigan energy company Scatec. The duo are collaborating on the massive 531 MW Mendubim solar project in Brazil, and in 2021 brought online the 117 MW Guañizuil IIA asset in Argentina.

Equinor has also ventured into the floating solar segment, forming a partnership with Saipem subsidiary Moss Maritime in Jan’21, to test a ‘floatovoltaic’ array in the Norwegian Sea.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation. 

Discussions
Jim Stack's picture
Jim Stack on Nov 4, 2022

These solar projects are very large. But doesn't the US have a much higher amount of Solar Energy with clearer skies and perhaps tracking and or more efficient solar panels? I have seen we have 60% more solar energy from the skies than Sweden or Denmark. I would think the total output is how a solar project should be rated.

Kshitij NR's picture
Kshitij NR on Nov 11, 2022

[Replying on behalf of Mohit]

Hi Jim - while the US is definitely the better market for solar development, I believe that Equinor’s move to build solar parks in Denmark is influenced heavily by the presence of its Danish power trading arm - Danske Commodities (DC). The company is one of Europe’s largest electricity marketers, and historically, we’ve observed that Equinor looks for synergies between the upstream and downstream segments of its renewable energy generation business. For example - Equinor signed a 15-year PPA with DC for output from its 3.6 GW Dogger bank offshore wind farm, offshore UK. 

I'm certain that the company could do something similar with its solar assets in Denmark - given that the projects will be un-subsidized and there are limited options for corporate PPAs in the country.

Sanskruti  Rajore's picture
Sanskruti Rajore on Nov 17, 2022

BeGreen's sustainability strategy is based on the fact that they want to contribute positively to the UN's 17 global goals. Post-acquisition Equinor will leverage this strategy to fulfill their UN commitments along with reaching their net-zero emissions target by 2050.

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