Hanwha Solutions acquires RES France to accelerate foray into global renewable development market 

 

- 727-million-euro deal aims to secure 5-gigawatt clean energy projects with construction and development capability.

- Adding wind power to renewable business portfolios will accelerate transition into “total energy solution provider.”

- With 40 percent increase in renewable power production, France lays foundation for market expansion in Europe.

- Aggressive investments in green businesses are expected, with raised funds from rights offering and financial agreements.

 

Seoul, Aug 9 -- Hanwha Solutions announced that it decided to acquire a French renewalbe development company owned by Renewable Energy System, or RES Group, as a part of its efforts to expand green energy business throughout Europe.

 

Led by the Company’s green energy division Q CELLS, acquiring the French unit’s gigawatt-scale clean energy projects of wind farms and solar plants is expected to accelerate Hanwha Solutions’ transition into a total renewable energy solution provider.

 

◆ Expanding energy solution business with 15-gigawatt pipelines

 

The Company’s board of directors agreed to purchase a 100 percent stake of RES Méditerranée SAS, or RES France, in a deal worth 727 million euro. The deal aims to secure the French firm’s 5-gigawatts pipelines of solar and wind projects, and its development and construction department.

 

Scheduled to complete in October, the acquisition is expected to accelerate the Company’s efforts to become a “total energy solution provider,” bringing its worldwide clean energy project capacity to a total of 15 gigawatts worldwide with wind power installations in its ever-expanding pipelines.

 

Currently, the Company operates about 10 gigawatt of pipelines around the world. Upon the acquisition of RES France, its pipeline capacity will total 10 gigawatt in Europe alone, allowing the Company to achieve economies of scale in the region, where it can supply photovoltaic modules more stably.

 

Another booster for its business prospect is utilizing wind farm installation capacity of RES France, which also engages in developing and construction photovoltaic plants and energy storage system. Integrating wind into its energy portfolio, the Company can expand its business beyond solar into comprehensive renewable business throughout Europe.

 

“Decisive actions can make a company much more sustainable and profitable,” Hanwha Q CELLS CEO Kim Hee-cheul said, speaking on behalf of Hanwha Solutions Corporation.

 

“Thanks to the bold vision of Hanwha Solutions Corporation, this contemplated acquisition shows that Q CELLS is willing to move boldly into the French renewable energy market and to make a significant contribution to the French energy transition, while also accelerating our transformation into a leading provider of total energy solutions that are delivered cleanly, sustainably and reliably.”

 

Including the research and development efforts on next-generation photovoltaic cells, the Company has been successfully running energy retail business in Germany with more than 100,000 households subscribing to its Q. Energy service. It is also operating 5 gigawatt of solar pipeline in Spain and its neighboring countries.

 

The acquisition is expected to spur investments here and abroad. The Company has been ramping up its investment into Perovskite solar cells in Korea, while looking for overseas opportunities to acquire companies with technology to combat climate change. In 2020, the Company acquired US energy storage solution company Growing Energy Labs, or Geli.

 

 

◆ RES: Energy giant with wind power and greenfield development

 

Established in 1999, RES France, a wholly-owned subsidiary of RES Group, has been engaging in comprehensive renewable energy business in development, construction and maintenance area. It includes onshore and offshore wind farms, photovoltaic plants and energy storage systems.

 

What sets it apart from competitors is business strength in greenfield development. Building a brand new power plant from the ground up is considered an effective business model in France, where transaction of existing facilities is quite rare. It becomes a hurdle for new developers, which also have to wait several years to get their plants up and running.

 

Acquiring RES France’s 5-gigawatt pipeline capacity, extensive local network and digitalized development platform will accelerating the Company’s foray into green energy market in Europe. It expects a rapid market growth under the so-called Fit for 55 package, a series of proposals aiming for 40 percent increase of renewables in the total electricity production by 2030.

Leading the energy transition in Europe is France, whose  30.5-billion-euro renewable power support won approval from EU. The country provide more sunlight time convertible into photovoltaic energy than other countries, with its Peak-Sun-Hour (PSH) averaging 5 per day. Combining it with abundant wind power in North Sea, France can make a perfect fit for green energy development.

 

Including its favorable weather conditions and topographic characteristics, the country’s reliable bidding system can also offer lucrative business opportunities. Developers seeking to enter the market there expect sustainable profitability, as the government purchasing renewable energy from them provides higher than auction price for up to 20 years.