Renewable Energy M&A: Analyze OMV's Latest Solar Acquisition in Romania, Estimated at a Deal Multiple of $0.5mn/MW

published on 10 June 2024

We are excited to share our latest valuation insights on a significant solar M&A transaction in Romania. Here are the key points:

🔹 Deal Overview:

  -- OMV Group to acquire a 50% stake in a 130 MW solar portfolio in Romania from Renovatio Group

  -- The projects, in late-stage development, have already obtained access to the transmission grid

💰 Valuation Estimates:

  -- Enerdatics estimates the deal multiple at $0.5mn/MW, equating to a transaction enterprise value of ~$33mn

  -- This estimate aligns with observed deal valuations for advanced development solar projects in Romania, such as Nofar Energy's $130mn acquisition in Dec'23, at a multiple of $0.6mn/MW

📈 Market Context:

  -- The estimate accounts for the projects selling power on a merchant basis, currently the predominant route to market for renewables projects in Romania

  -- This is likely to change soon, as the Romanian government has proposed CfD rounds for 5 GW of solar and onshore wind capacity

  -- The first auction will award tariffs of €91/MWh for solar projects and €93/MWh for wind projects through 15-year contracts

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.

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