- Hanwha Q Cells has signed an exclusivity and POA to acquire 100% equity stake in RES Group’s RES France
- Once complete, the acquisition will increase the South Korean company’s European clean energy project pipeline to around 10 GW
- For RES Group, the transaction will bring in capital raise which it plans to deploy for global portfolio development
South Korean energy solutions group Hanwha Group’s company Hanwha Solutions Corporation (HSC), which is module maker Q Cells’ parent company, is to acquire 100% stake of RES Méditerranée SAS in a bid to expand its French renewables portfolio. RES Méditerranée SAS is a group company of England headquartered RES Group.
Project developer RES France has a project pipeline of around 5 GW in France of onshore and offshore wind along with solar PV plants and energy storage. Its acquisition will double up Hanwha Q Cell’s clean energy project pipeline in Europe to around 10 GW since its current downstream energy business holds a global project pipeline of around 10 GW, of which 5 GW is in Europe, mostly in the Iberian Peninsula.
Now, the renewable energy business division of HSC, Q Cells believes this acquisition of RES France would rapidly expand its French renewable business and will diversify its European pipelines in a ‘single stroke’.
“This proposed transaction also reflects Q CELLS’ strategy to actively expand its business focus beyond solar to other renewable energy sectors, including onshore and offshore wind, where RES France has successfully built a strong market position in France,” the company stated.
For RES Group, the divestment of its French portfolio will bring in capital to help its expand development portfolio globally and support services offerings.
HSC has signed an exclusivity and Put Option Agreement (POA) to acquire the equity interest. The group said a definitive acquisition agreement would be entered on completion of relevant consultation process of RES France. The transaction is expected to close in October 2021.
Hanwha’s strong interest in the French renewables market comes from the country’s commitment to achieve carbon neutrality by 2050 as it attempts to grow the share of renewables to account for 40% of the national energy mix by 2030, for which the European Commission recently approved €30.5 billion renewables support scheme of the government (see European Commission Clears €30.5 Billion French RE Scheme).
In October 2020, the Hanwha Group announced the creation of Imagina Energia as a 100% solar energy marketer in Europe with a mandate to develop over 1 GW solar in Spain (see Hanwha Launches New Solar Company For Spanish Market).