Neoen Signs Direct Renewable Electricity Purchase Agreement with SNCF
Neoen, a leading renewable energy company, has recently signed a 25-year direct renewable electricity purchase agreement with SNCF Energie, a subsidiary of SNCF Voyageurs. The agreement, signed in May, will see the production of electricity from a new solar plant, “Le Couret,” located in Haute-Vienne starting from 2028. The plant will have a capacity of 139 megawatts peak (MWp) and will generate 172 GWh of green electricity annually, equivalent to the consumption of around 67,000 residents.
In a move to further strengthen its position in the renewable energy sector, Canadian fund Brookfield has expressed its interest in acquiring Neoen, valuing the company at 6.1 billion euros.
Regulatory approvals for the new solar park are expected to be obtained by the fourth quarter of 2024, with a public tender offer projected to be launched in the first quarter of 2025.
The long-term electricity purchase agreement with SNCF Energie will help finance the construction of the new solar park, set to commence in early 2026 and be operational by 2028, contributing significantly to France’s energy transition.
This agreement will also enable SNCF Voyageurs to reduce its electricity procurement costs, making it less reliant on market price volatility. The electricity production from the new photovoltaic park is equivalent to the annual electricity needs for its TGV Paris – Marseille high-speed rail link or the entire electricity requirements for its TER services in the Occitanie or Normandie regions.
Xavier Barbaro, the CEO of Neoen, expressed pride in the company’s efforts to decarbonize the transport sector through such agreements, following similar Corporate Power Purchase Agreements (PPAs) signed with major digital and industrial players worldwide.
**Key Points:**
– Neoen, founded in 2008, is the leading independent producer of exclusively renewable energies in France.
– The company has a revenue of 503 million euros, with operations in 15 countries, primarily in Australia.
– Neoen’s portfolio includes 19.3 GW, with 7 GW in operation or under construction.
– The company follows a “development to own” business model, with long-term electricity sales contracts.
– Neoen’s capital is held by Impala (42.16%), Cartusia (1.49%), FSP (6.92%), and BPI (4.39%).
– Neoen aims for a sustainable future with a focus on innovation, environmental strategies, and battery storage solutions.
**Challenges:**
– Neoen faces challenges such as asset divestments, project execution, and financial targets for 2023-2025.
– The company aims to increase dividends distribution gradually until 2025 while maintaining financial stability.
Overall, Neoen’s partnership with SNCF Energie signifies a significant step towards a sustainable energy future and highlights the company’s commitment to environmental stewardship and innovation in the renewable energy sector.