Econergy Renewable Energy, a leading investor, developer and operator in renewable energy projects across Europe, has enhanced its strategic cooperation with French independent asset management RGREEN INVEST, by securing targeted equity and project-specific investment worth €250m.
RGREEN INVEST shall invest €87.5 million in common equity to Econergy at a pre-money valuation of €350m, which will be used to strengthen the company’s pipeline development and growth plans. Econergy will be providing Engineering, Procurement and Construction Management services (EPCm) for its European projects as well as Asset Management services for a minimum period of 10 years.
In parallel, €163m worth of investment will directly support the construction of solar and wind projects across Europe, which includes RGREEN INVEST’s previous commitment of approximately €50m to support the construction of Econergy’s 92MW solar project in Parau, Romania, where construction begun earlier this year. The €250m investment will be made through its INFRAGREEN IV and V funds.
This latest transaction marks a new milestone for RGREEN INVEST and Econergy, who have already partnered on four investment projects. The investment will enable Econergy to further develop its renewable energy portfolio and continue its pipeline expansion in Europe, who have raised more than €500m of investment over the past year.
Eyal Podhorzer, Econergy’s CEO said: “We are delighted with the investment from the INFRAGREEN funds and the expansion of our strategic cooperation with RGREEN INVEST. Our partnership dates back to 2016 and has steadily grown stronger due to the trust-based relationship between our teams, as well as the values and alignment of interests that have consistently supported it.
“This latest agreement highlights the growing confidence of investors in Econergy’s business model and growth plans, which in 2022 has seen us launch the construction of utility-scale solar and storage projects in four different markets. With a pipeline of 224 projects and development capabilities that are significant, while there is volatility in the market, we are ready to make the leap to reach this next milestone that will benefit all company stakeholders.”
Olivier Guillaume, CIO of RGREEN INVEST added: “This transaction strengthens our long-term relationship with Econergy and reflects our shared ambition to foster the growth of independent pan-European renewable energy producers and help them scale up their operations.
“The financing of infrastructure projects related to climate change adaptation and mitigation is a core focus for us as investors increasingly seek to decarbonize their portfolios and invest in the energy transition. This appetite is underpinned by their confidence in our expertise to deliver value.”