Energo-Pro Group Expands Footprint with Acquisition of Hydroelectric Assets in Spain
Czech-based Energo-Pro Group has significantly expanded its portfolio with the acquisition of ten hydroelectric power stations in Spain, boasting a combined capacity of 167 MW, marking a strategic advancement in the Galicia region.
This pivotal move involved the purchase of 100% equity capital in Xallas Electricidad y Aleaciones, S.A.U ("Xeal") and Feroe Ventures & Investments S.L.U. ("Feroe") from the renowned global investment entity, SIXTH STREET. The transaction stands as one of the most substantial Czech investments in Spain, supported by a €300 million financial injection facilitated by lending giants J.P. Morgan and Goldman Sachs.
Xeal's portfolio includes the stewardship and operation of ten hydroelectric facilities and two ferroalloy plants. The acquisition signifies a strategic diversification for Energo-Pro, mitigating macroeconomic and geopolitical risks.
Petr Milev, CEO of the Energo-Pro Group, emphasized the strategic importance of this expansion: "Venturing into the Eurozone's robust and promising market aligns with our diversification strategy, enhancing our resilience against macroeconomic pressures. This acquisition not only scales our presence but also fortifies our capital structure through increased Euro-denominated revenue streams."
With nearly three decades of expertise in hydroelectric generation, Energo-Pro presides over 34 hydro plants across Bulgaria, Georgia, and Turkey, collectively contributing 859 MW. Their presence extends to Latin America, with ongoing construction of a new facility in Colombia.
Beyond generation, the group's operational breadth encompasses electricity distribution networks in Bulgaria and Georgia, catering to over 2.5 million customers. Energo-Pro's workforce, one of the sector's largest, comprises more than 9,000 professionals.
The conglomerate further owns and operates hydro facilities in Turkey, namely Alpaslan II and Karakurt, with a combined capacity of 377 MW, and maintains a presence in the Czech Republic. The group's total installed capacity now surpasses 1248 MW.
On the industrial front, Energo-Pro is anchored by the Litostroj Group, an industry frontrunner in crafting hydro-electromechanical equipment essential for hydroelectric infrastructures. This expansive acquisition heralds a new era of growth and stability for the company, underscoring its commitment to leading the charge in sustainable energy solutions.