Vestas has announced the acquisition of a 25.1% minority stake in SOWITEC, a renewable energy projects developer, with an option to acquire the entire company within three years.
SOWITEC is a Germany-based sustainable energy developer with around 60 wind and solar projects totaling more than 2,600MW across the globe.
Vestas aims to enhance its ability to offer full-scope sustainable energy solutions by investing in SOWITEC and tapping into SOWITEC’s proven offering within development services.
Vestas Chief Sales Officer Araluce said: “With the acquisition of a minority stake in Sowitec, Vestas gains access to an independent development entity that strengthens our co-development portfolio and improves our solutions and capabilities in strategic markets in Latin America.
“Vestas is continuing to invest in solutions and capabilities that increase our ability to meet our customers’ evolving needs and to partner with them through the energy transition.”
SOWITEC’s expertise in solar PV project development is expected to strengthen the Vestas’ capabilities in hybrid power plant solutions.
The acquisition is subject to regulatory approval and is expected to be closed during the second quarter of 2019, with no significant impact on Vestas earnings.
SOWITEC chief executive officer Frank Hummel said: “We are proud to have Vestas as a strategic partner that further strengthens our equity and helps us to go further in the value chain.
“Together with our strong track record in emerging markets and our vast experience in developing utility-scale renewable energy projects, this partnership will help SOWITEC grow faster and give us the chance to profit from Vestas’ worldwide experience and presence.”
Vestas said that hybrids are a key part of its objective to develop sustainable energy solutions with wind at their core, as sustainable energy’s share of the energy mix would grow from approximately 10% to more than 30% by 2035.
In February 2018, the Danish wind energy company agreed to acquire New York-based Utopus Insights, an energy analytics company, for $100m. The acquisition was made to offer digital solutions for greater predictability, increased renewable energy production, efficient operations and better integration with energy grids.