Neoen Targets 20 GW Renewables Portfolio By 2030

• Neoen has announced a vision for 20 GW renewables capacity in operation or under construction by 2030
• It remains firm with 10 GW target to be achieved by 2025 for which it will strive to win at least 2 GW capacity annually from 2025
• Increased construction costs have increased its estimated budget for 10 GW target by €900.0 million to €6.2 billion, since March 2021

Cushioned by its 11.9 GW advanced renewable energy pipeline at the end of 2022, French renewable independent power producer (IPP) Neoen has set itself a target to achieve over 20 GW of assets in operation or under construction by 2030 while reiterating 10 GW target to be achieved by 2025-end (see Neoen's 9M/2021 Financial Results).

At the end of 2022, Neoen had 4.1 GW operational capacity which it aims to grow to 5 GW by 2023-end. While the company does not offer any bifurcation of individual technologies in the 6.6 GW operational and under construction capacity till December 31, 2022, it is solar heavy with 50% share, followed by wind with 34% and storage 16%. Most of it is located in Australia, Europe-Africa and Americas, in that order.

To reach 2030 vision of 20 GW, it expects to secure at least 2 GW in new project wins annually from 2025. Its advanced pipeline of 11.9 GW at the end of 2022 includes 5.4 GW added last year alone, giving it the confidence to reach the target. Overall its projects under operation, under construction, awarded, tender ready and in advanced development all added up to 19.3 GW.

The company's strategy to achieve the goals is to strengthen its position in current markets and expand into new ones, tap into corporate power purchase agreements (CPPA) with its solar/wind with storage offerings, win government tenders, and step up investments in storage.

Increase in construction costs per MW for solar, wind and storage has been factored in for anticipated investments for 2021-2025 that have increased by €900.0 million since March 2021 to now expected as €6.2 billion.

Financials

In 2022, Neoen's annual revenues grew 51% to €503.2 million, and adjusted EBITDA by 38% to €414.0 million with a net income of €48.0 million.

For 2023, it forecasts adjusted EBITDA to range between €460.0 million to €490.0 million and adjusted EBITDA margin of around 80%. Neoen added that this guidance assumes no delay in the commissioning of the projects scheduled to become operational in 2023.