Soltech Energy Solutions Streamlines Operations – Alight Acquires Development Portfolio of up to 2 GWp
Ramsjoholm
Soltech Energy Solutions Streamlines Operations – Alight Acquires Development Portfolio of up to 2 GWp
Soltech's subsidiary, Soltech Energy Solutions (SES), has entered into an agreement to divest parts of its large-scale solar park development portfolio to Alight. The transaction forms part of Soltech Energy Solutions' strategic shift towards a more streamlined business model focused on EPC contracting services and long-term operations and maintenance (O&M) services. At the same time, the transaction reduces future capital commitment and risk associated with self-financed project development. Following approval from the Swedish Inspectorate of Strategic Products (ISP), the transfer can now be completed.
Over the past several years, Soltech Energy Solutions has built a project portfolio within its Development business area consisting of large-scale solar park projects, in many cases complemented by energy storage solutions and hybrid projects incorporating BESS (Battery Energy Storage Systems). The portfolio has been developed through the identification of suitable land areas, lease agreements with landowners, environmental permitting processes, and project engineering. As a result, projects representing more than approximately 700 MWp have already obtained the necessary regulatory approvals.
The transaction will provide Soltech Energy Solutions with a guaranteed purchase price of SEK 14 million, of which SEK 8 million will be paid upon signing of the agreement, with the remaining amount payable during 2027-2028. In addition, Soltech Energy Solutions may receive future earn-out payments linked to the projects. The size of any additional consideration will depend on the future development of the projects. The transaction establishes a structure through which value creation from the developed project portfolio can be realized over time, while simultaneously reducing Soltech Energy Solutions' future capital commitments. The transfer is not expected to have any material impact on earnings at the time of completion.
Through the transaction, Alight assumes responsibility for the continued development of the projects and the associated capital requirements as the projects progress towards investment decisions and potential construction. For SES, the transaction reduces future capital commitments and risk exposure within project development, enabling the company to focus its resources on its core business.
The dialogue between Soltech Energy Solutions and Alight regarding the future development of the projects has been ongoing for an extended period. As a significant portion of the projects have now reached a more advanced stage of maturity, both parties believe that Alight, as a long-term investor and future owner, is well positioned to take responsibility for further development of the portfolio and advance the projects towards future investment decisions and potential construction.
"This acquisition provides us with a strong and mature project portfolio in Sweden and represents a significant step in our continued growth. The projects strengthen our ability to offer Swedish industrial companies long-term power purchase agreements (PPAs) with renewable electricity generated from solar parks that we own and operate ourselves. Soltech Energy Solutions has carried out extensive and high-quality development work, and we look forward to continuing our collaboration with them and with the landowners as the projects continue to progress," says Warren Campbell, CEO of Alight.
The transaction aligns closely with Soltech Energy Solutions' strategy of further streamlining its operations and strengthening its focus on its core business areas: EPC contracting and long-term operations and maintenance agreements for solar and battery energy facilities.
"Over several years, we have built a portfolio of utility-scale solar energy projects, taking them from an early development stage to their current level of maturity. The projects are now entering a phase where a long-term investor is better positioned to advance them towards investment decisions and construction. Through our collaboration with Alight, we reduce our future capital commitments in project development while retaining the opportunity to participate in the continued value creation of the projects. This is fully aligned with our strategy of focusing on EPC services and operations and maintenance. We look forward to continuing our successful collaboration with Alight for many years to come," says Christoffer Caesar, CEO of Soltech Energy Solutions.
The collaboration will continue following the transfer. Soltech Energy Solutions may participate in the further realization of the projects through advisory services, engineering, EPC contracting, and operations and maintenance support as the projects reach the required level of maturity and investment decisions are made.