EIP To Increase Stake In German Renewables Company BayWa R.E.

Switzerland-based investor Energy Infrastructure Partners (EIP) will expand its existing stake in the German renewable energy developer BayWa r.e. from 49% to 65% as part of the comprehensive restructuring of the company.

EIP will make a fresh capital investment of €150 million in the German company, acquiring an additional stake from BayWa AG. The latter will retain the remaining 35% share.

This will enable BayWa r.e. to operate independently in the future, both strategically and financially. EIP said it will refocus the company on its core competencies as one of the largest renewable energy developers globally.

BayWa r.e. will use this capital to prioritize its renewable energy assets and independent power producer (IPP) business in its core markets that ‘exhibit lower economic risks and growth opportunities.’ Its restructuring plan, announced at the end of 2024, targets to focus on business areas with ‘positive market forecasts’ including project development in wind, solar and battery storage, operation and maintenance (O&M) of such facilities as an independent power producer (IPP), and energy trading.

“With the strengthened capital base, we have the opportunity to reliably and consistently implement the initiated transformation. Our focus is on achieving sustainable financial stability and further developing BayWa r.e. as a leading player in the renewable energy sector,” said BayWa r.e. CEO Matthias Taft.

As part of the restructuring, Hans-Joachim Ziems will come on board as the new chief restructuring officer (CRO) with the execution of the restructuring program and financial stabilization of the company as his primary focus.

This will extend the target timeline for the completion of BayWa r.e.’s restructuring from the end of 2027 to the end of 2028. BayWa r.e. had earlier announced plans to reduce its workforce to around 1,500 employees by the end of 2027 and phase out about 350 full-time positions.