Renewable Energy M&A: Grenergy’s 300 MW solar portfolio sale to Allianz for $286mn compared to a similar under-construction asset deal 4 months ago

published on 23 October 2023

Similar deals, different valuations:

  • Current deal: 300 MW sold at $0.95 million per MW
  • Previous deal: 150 MW sold at $1.22 million per MW

Unlocking the Valuation Mystery: The PPA Factor 

The key factor driving the variance in valuation? The type of PPA. The previous deal's utility PPA perhaps secured a higher power sale price and hence higher valuation, whereas the current corporate PPA is resulting in a lower valuation.

With the corporate PPA market in Spain being highly competitive and power prices lower, developers are on the lookout for strategies to enhance asset valuation. And here’s where utility PPAs shine, offering a pathway to higher valuations.

To gain a deeper insight into M&A trends at the corporate and asset level globally, request a trial of the Enerdatics Energy Transition M&A database today.  

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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