TotalEnergies fully acquires Total Eren after successful 5-year strategic alliance

Posted on July 26, 2023 by admin

Paris, July 25, 2023 – TotalEnergies is pursuing its profitable growth in the renewable energy sector with today’s announcement that it is buying out Total Eren’s other shareholders, increasing its stake from close to 30% to 100%. The Total Eren teams will be fully integrated within TotalEnergies’ Renewables business unit. The deal follows the strategic agreement signed between TotalEnergies and Total Eren in 2017, which granted TotalEnergies the right to acquire all of Total Eren (formerly EREN RE) after a five-year period.

As part of this transaction, Total Eren is valued at an Enterprise Value of €3.8 billion based on an attractive EBITDA multiple negotiated in the initial strategic agreement signed in 2017. The acquisition of 70,8%1 represents a net investment of around €1.5 billion for TotalEnergies.

Total Eren’s integration should result in an increase in TotalEnergies’ Integrated Power Net Operating Income of around €160 million and CFFO of around €400 million in 2024.

A global player with a 3.5 GW renewables production and a 10 GW pipeline

Total Eren has 3.5 GW of renewable capacity in operation worldwide and a solar, wind, hydroelectric and storage projects pipeline of over 10 GW in 30 countries, of which 1.2 GW are in construction or late-stage development. TotalEnergies will leverage Total Eren’s 2 GW assets in operation in merchant countries (notably Portugal, Greece, Australia, and Brazil) to build up its integrated power strategy. TotalEnergies will also benefit from Total Eren’s footprint and ability to develop projects in other countries such as India, Argentina, Kazakhstan, or Uzbekistan.

A complementary fit with TotalEnergies’ footprint and workforce

Total Eren will not only contribute high-quality operated assets, but also the expertise and skills of nearly 500 people based in more than 20 countries. Total Eren’s successful organic growth testifies to the expertise that its teams have built up internally and in connection with partners and suppliers since its creation in 2012. The teams and the quality of Total Eren’s portfolio will strengthen TotalEnergies’ ability to deliver production growth while optimizing its operating costs and capex by leveraging its size and purchasing bargaining power.

A pioneer in green hydrogen

Further to its activities as a renewable energy producer, Total Eren has launched pioneering green hydrogen projects in recent years, located in various regions, such as North Africa, Latin America, and Australia. These green hydrogen activities will be pursued through a new partnership in an entity named “TEH2” (80% owned by TotalEnergies and 20% owned by EREN Group).

“Our partnership with Total Eren has been very successful, as shown by the size and quality of the renewables portfolio. With the acquisition and integration of Total Eren. we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player,” said Patrick Pouyanné, Chairman & CEO of TotalEnergies. “I want to thank Total Eren’s founders, Pâris Mouratoglou and David Corchia, as well as their teams, for their incredible development work, which led to this successful achievement. Today, we are welcoming Total Eren’s experienced teams, who will continue their remarkable work with the added resources of a bigger company.”

Pâris Mouratoglou, Chairmanof Total Eren, stated: “With Total Eren, we have successfully created a best-in-class renewable energy player. I want to thank BPI France, Tikehau Capital, NextWorld and Peugeot Invest, for their constant support since 2015. I also want to thank Patrick Pouyanné for his trust and for the spirit of partnership that has led to such achievements with TotalEnergies over the last five years.”

David Corchia, CEO of Total Eren, added: “This success belongs first to Total Eren’s teams around the globe. They will undoubtedly make a huge contribution to TotalEnergies’ highly ambitious plan in the renewable sector. Together with Pâris Mouratoglou, we will continue creating and developing new companies for the energy transition and the planet’s decarbonization, as well as, within our new promising partnership with TotalEnergies, the development of giant green hydrogen production projects worldwide.”

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TotalEnergies and renewables electricity

As part of its ambition to get to net zero by 2050, TotalEnergies is building a portfolio of activities in electricity and renewables. At the end of March 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 18 GW. TotalEnergies will continue to expand this business to reach 35 GW of gross production capacity from renewable sources and storage by 2025, and then 100 GW by 2030 with the objective of being among the world’s top 5 producers of electricity from wind and solar energy.

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

Four multinationals to react against RES producers charge

Posted on October 19, 2020October 19, 2020 by admin

Four multinationals active in Greece’s renewable energy market are set to express their concerns to the government over its plan to impose an extraordinary charge on RES producers in order to help eliminate the RES special account deficit.

Preparing a joint letter to be forwarded this week, the four multinationals, ENEL, Iberdrola, EDF and Total Eren, see any extraordinary charge on RES producers as a move that could breed investor insecurity and force reexaminations of investment plans for the Greek market.

The companies are reacting to recent comments by energy minister Costis Hatzidakis, who announced an extraordinary charger for RES producers is being considered to counter the RES special account deficit.

Older RES producers have already persevered a significant reduction in contracted tariffs for solar energy production at existing units, prompted by a so-called new deal nearly seven years ago.

That setback, plus other extraordinary charges, tightened up investments in Greece’s RES sector, only just beginning to recover.

Industry associations representing local RES enterprises have already spoken out against the plan for an extraordinary charge on producers.

Also, MPs representing various constituencies around the country face pressure by smaller solar energy producers to intervene and question the political leadership over its targeting of RES producers. Some 15,000 families around the country were affected by the new-deal tariff cut in 2014.

Hatzidakis, the energy minister, insists the government is committed to supporting the RES sector, as described in the National Energy and Climate Plan, adding, however, that the RES special account’s inflow has been reduced by the pandemic and its resulting energy consumption decrease.

“An unprecedented crisis exists and is impacting all sectors and all countries…we need to position ourselves with social responsibility,” Hatzidakis noted in an interview published yesterday by Greek daily Kathimerini.

Property owners have been forced to reduce rent levels by 30 percent to help keep Greek businesses afloat, the minister added, implying that RES producers must also contribute to help confront a widespread problem affecting all.

“Industry is under pressure; ordinary consumers are under pressure; and RES producers – I won’t say illegally or legally – are collecting revenue at an average price of 144 euros [per MWh] against a wholesale price averaging about 40 euros,” the minister noted.

Wind energy producers receive around 90 euros per MWh and solar energy producers approximately around 280 euros per MWh, Hatzidakis specified.

The government, like all governments, is right in leaving consumers out of the RES special account deficit equation, Hatzidakis said, as it is taking measures with social awareness intact.

Upcoming mixed RES auction applications submitted today

Posted on March 21, 2019 by admin

Procedures leading to the country’s first mixed RES auction, to place the sector’s main players, wind and solar energy investors, in the same bidding arena with equal terms for intensified competition, begin today with the submission of online applications.

These will be followed by the submission of dossiers containing all required documents ahead of the auction, expected on April 15, according to an announcement made by RAE, the Regulatory Authority for Energy.

A total of 600 MW will be offered to auction participants. Amounts requested in applications will need to exceed this 600-MW total by 40 percent if the entire amount is to be offered at the upcoming auction.

Terna Energy, Mytilineos, PPC, the Panagakos group, as well as major foreign players such as Total Eren, Juwi, EDF and ENEL are among the firms likely to participate.

Mixed RES auctions have become standard practice in other European markets, the objective being to secure optimal solutions for coverage of energy needs at the lowest possible cost.