Europe's energy transition offers a unique investment opportunity in modern energy generation. At ARETE, we aim to invest in a balanced portfolio of projects that yield predictable returns even during heightened energy price volatility. To ensure a reliable energy supply, renewables must be complemented by high-efficiency natural gas-fired generation and smart energy storage solutions.
With over 20 years of industry experience, our team is equipped to evaluate and combine investment opportunities, ensuring that the target portfolio achieves the expected yields and returns, regardless of future dynamics in the energy market.
LONG-TERM,
INFLATION-LINKED CONTRACTS
FIXED-INCOME
INVESTMENTS WITH REGULATED PRICE
ASSET-BACKED
PROPRIETARY TRADING
Comprehensive Investment Pipeline
Exceeding 500MW in installed capacity in our Pipeline across Flexible Generation, Solar PV, and Wind, ARETE actively builds a diversified energy portfolio. Key projects, among others, include:
1
5 MW
Two cogeneration units with integrated heating generation & distribution.
2
50 MW
Utility-scale solar PV with PPA.
3
130 MW
Construction and refinancing of solar PV assets with COD and PPA.
4
60 MW
Advanced battery solutions for volatility management and enhanced revenue.
Why ARETE and Investments in the Energy Sector?
Quality Market Modelling
In-house quality market modelling focusing on flexible generation resources and battery storage.
Conservative Evaluation
In assessing the return on investment, we take a conservative approach that considers current market opportunities and their potential future value development.
Portfolio Effect
We evaluate investments not only individually but also based on their impact on the profitability and associated risk of the overall portfolio.
Dynamic Decision-Making
We analyse and capitalize on the current market opportunities to ensure investors receive expected returns, even in a highly volatile energy market.
Investment Approach
1
Balanced Energy Portfolio
We are building the portfolio to ensure continuous energy production throughout the year by utilizing a well-balanced mix of flexible generation, renewables, and heating solutions. Our strategy aims to stabilise revenues and return on investment, irrespective of the pace and evolution of the European energy transition.
2
Renewable Energy with Stable Cash Flows
We strategically invest in solar and wind projects to achieve stable returns, including support schemes and long-term power purchase agreements (PPAs).
3
Small and Medium-Sized Heating Plants and Cogeneration
The foundation of a flexible energy sector will consist of small to medium thermal power plants with cogeneration of electricity and heat, including the capacity to transition to heat pumps. Our goal is to develop a portfolio of such projects with a capacity ranging from 50 to 100 MW.
4
Energy Storage Solutions
Our strategy includes energy storage through advanced battery systems and potential hydrogen technology. However, further cost reductions and technological advancements are necessary prerequisites for investment.
Strategy Supported by Secular Tailwinds
1
RISING ENERGY DEMAND
Electricity demand in the EU is projected to increase from 3,000 TWh in 2022 to 3,700 TWh in 2030, emphasizing the need for scalable energy solutions.
2
RENEWABLE ENERGY SHIFT
By 2035, over 60% of electricity will come from renewable sources, rising to more than 95% in the EU by 2050 increasing the demand for energy storage.
3
FLEXIBLE SOURCES REALIGNMENT
30-50 GW of flexible technologies will be needed in Europe in 2030 and beyond to compensate for the growing share of renewables in the grid.
4
HEAT GENERATION
Ensuring reliable heat production during winter is crucial for most European countries. Our approach involves investing in flexible generation sources capable of providing both heat and electricity when renewable generation is less reliable.
5
MASSIVE INVESTMENT
The total EU's capital expenditure on the energy transition could reach €1.7 trillion by 2030, of which around 45% will be allocated to onshore wind and solar photovoltaics capacity.
6
DECARBONISATION
The European Union is a global leader in implementing strategies and measures to fully decarbonise the economy for 2050.
Profile and Investment Horizon
Our investment priority is to provide distributions and capital appreciation. We build our portfolios with the goal of adding value, either by consolidating or transforming projects and subsequently selling them to strategic or larger financial investors.
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