Hanwha Solutions, based in South Korea, has announced plans to buy renewable energy company RES France for $855.2 million in a deal that is scheduled to close within the next two months. RES France is a part of the RES Group, a firm based in the United Kingdom that bills itself as the world’s largest independent renewable energy provider.
Hanwha Q Cells, Hanwha’s green energy branch, is the driving force behind the agreement announced on August 9. Hanwha will own RES France’s wind and solar facilities, totalling around 5 GW of the generation capacity, under the terms of the agreement. Hanwha Solutions has earlier noted that France is among the most attractive opportunities for renewable power, and this move supports the company’s plans to expand its existing solar portfolio to include onshore as well as offshore wind projects.
“Decisions may make a company far more sustainable and profitable,” Hanwha Q Cells CEO Hee Cheul “Charles,” Kim said in a statement. This proposed acquisition demonstrates that Q Cells is willing to enter the French renewable power market and make a meaningful impact on the French energy revolution, while also boosting our transition into a leading supplier of total energy alternatives that are conveyed cleanly, sustainably, and reliably, thanks to Hanwha Solutions Corporation’s bold vision.”
In a statement, RES Chairman Gavin McAlpine said, “The money obtained will help strengthen RES position as we strive to accelerate the expansion of the business globally by increasing the Development Portfolio and Support Services offering.” “We hope going forward to see the team in France continuing to succeed under the proposed new ownership, as well as the possibility of future collaboration with Hanwha Solutions.” In France, RES began operations in 1999 and now has 9 regional offices.
Hanwha said in a statement that buying European projects will allow it to “benefit from economies of scale inside this area, where it can provide solar modules more consistently.” The acquisition, according to the company’s announcement, will quadruple the Q Cells division’s clean energy venture pipeline in Europe to around 10 GW. In Germany, that sector has a European office.
“The acquisition, that will be completed by October, will expand the worldwide capacity of Hanwha Solutions’ clean energy initiatives to 15 GW from the present 10 GW,” according to a statement cited to a Hanwha firm official. Because 10 GW of solar capacity is concentrated in Europe, Hanwha Solutions will realize economies of scale by delivering its solar modules to the projects there.”
“In France, it needs five to seven years from acquiring a license to finishing a renewable energy facility,” the statement stated. Furthermore, project transactions are uncommon, making it difficult for new participants to come into the market. RES France is the ideal partner for Hanwha Solutions.”