BREAKING NEWS – 25.03.2024
In a press release of March 21, 2024, Altea Green Power, a Company active in the development of renewable energy generation facilities and as a service integrator during all phases of the construction and operation of green plants, announced that it has signed a Co-Development Agreement for BESS Storage electric energy storage systems with a major North American investment fund specializing in alternative energy. The agreement covers the Co-Development of 9 BESS plants located in various Italian regions, which are to be developed over the next three and a half years for a total capacity of more than 1.1 GW. As part of the activity, Altea will undertake all the necessary arrangements for the completion of the authorization process up to the “Notice to Proceed,” due in 2027.
The value of the deal exceeds € 68.00 million and includes a high project margin, higher than what was presented to the financial community in the 2024-2028 plan. Out of the total consideration, € 15.00 million will be collected by the end of the year following the terms of the agreement and depending on the achievement of certain milestones, and about € 5.50 million have already been paid by the developer upon the signing of the agreement. A success fee amounting to a maximum of an additional € 15.00 million will eventually be added to the payment, to be defined depending on the achievement of some previously agreed performance indicators.
The agreement is part of the pipeline of projects currently being implemented as outlined in the business plan, affirming the effectiveness of the Company’s strategy and strengthening our confidence in its security. While waiting to assess the economic impact of the new projects on year-end figures and 2023 fiscal year results, we confirm our recommendation: target price € 14.00, rating BUY, risk MEDIUM.