- Neoen has moved up its target to achieve 5 GW operational capacity from 2022 to 2023 citing supply chain challenges
- It has reiterated the target to achieve more than 5 GW capacity in operation or under construction by the end of 2021
- In Q3/2021, it achieved consolidated revenues of €77.7 million, and in 9M/2021 it grew to €242.7 million
Current difficulties in the supply chain, especially in the solar segment, have forced French renewable energy company Neoen to alter its short-term targets. The renewables developer and IPP now expects to reach 5 GW renewable capacity in operation by 2023, instead of its previous target of 2022.
“This adjustment reflects the difficulties currently affecting the supply chains, especially in the solar segment, prompting expectations of longer start-up and construction periods for certain projects,” explained Neoen without going into details of the kind of supply chain challenges.
These measures by the French company echoes the fears voiced by Rystad Energy that expects surging costs to negatively impact 56% of 2022’s global utility PV pipeline (see High Prices May Thwart 50 GW Solar PV In 2022).
Nonetheless, Neoen continues to aim for 10 GW capacity in operation or under construction by the end of 2025. It is also on track to report more than 5 GW capacity in operation or under construction by the end of 2021, having increased its operational or under construction capacity to 4.8 GW by the end of September 2021.
It also won 130 MW solar for 9 PV projects, in the CRE 4.10 French government auction concluded recently, the largest it has been awarded in a French solar tender.
Management has also reiterated its 2021 EBITDA target of between €295 million and €310 million with an EBITDA margin of around 80%. In 2022, it targets to generate EBITDA growth of more than 20% YoY, followed by double-digit annual percentage growth between 2022 and 2025.
At the end of 9M/2021, its operational renewables capacity increased 119 MW from December 31, 2020 to 2.735 GW, comprising 75 MW solar power capacity. It generated 3,491 GWh electricity during the reporting period, up 12% annually.
In Q3/2021, the group increased its annual consolidated revenues to €77.7 million, comprising 3% lower solar revenues.
Of the group’s consolidated revenues of €242.7 million for 9M/2021, solar contributed the maximum at €123 million having grown over 9% from previous year, followed by wind with €94.3 million (+13% YoY), storage by €23.8 million (-12% YoY), among others.
To solar revenues, there was stronger contribution from the El Llano Plant in Mexico, as well as from projects that came online in France. “Conversely, it was held back by unfavorable irradiation conditions in Europe and Australia in the third quarter of 2021, as well as the lower level of market prices in Australia during the first quarter of 2021 than in the first quarter of 2020. Solar’s contribution to Neoen’s consolidated revenue stood at 51% over the first nine months of 2021, versus 50% in the first nine months of 2020,” it added.
Neoen Chairman and CEO Xavier Barbaro admitted the slowdown in the pace of new project wins due to the COVID-19 pandemic related challenges, he added that his company has an existing large pipeline of projects that it can count on. At the end of September 2021, Neoen had a total portfolio capacity of 12.75 GW comprising total advanced pipeline of 7.23 GW.