ABO Energy considers operating energy parks

In the current market environment, the Management Board of ABO Energy sees an opportunity to build and operate its own portfolio of renewable energy parks. “We have been successful as a “pure play” project developer for around 30 years – now is the right time to consider expanding our value chain,” says Managing Director Dr Karsten Schlageter. Building up a portfolio of operational renewable energy parks and battery storage facilities and becoming an Independent Power Producer (IPP) would also open up the possibility of tapping into further energy-related business areas.

With the existing expertise, ABO Energy could develop into a full-fledged Clean Energy Provider. Managing Director Dr Karsten Schlageter: “The energy markets have evolved significantly over the past two years. The new environment offers players with integrated business models additional opportunities and synergies, including for project development. We want to explore these opportunities and exploit them where appropriate.“

As a future operator of a portfolio of wind, solar, and battery storage (BESS) farms, ABO Energy could also make more tailored offers to large electricity consumers in order to meet their specific electricity needs. The company’s existing in-depth experience and expertise with Power Purchase Agreements (PPAs) would be particularly valuable in this regard. A structured portfolio of wind, solar, and battery projects would, for example, enable the company to participate in the electricity market with baseload offers.

For a long time, a lack of supply had characterised the German wind energy market, which is central to ABO Energy. The number of wind farm projects ready for construction used to be significantly lower than investor demand. In this market phase, it made sense for ABO Energy to sell all its projects. Between 2019 and 2024, the amount of wind power capacity approved annually nationwide increased more than sevenfold (from 1.9 to 14.1 gigawatts). Demand can now be met much more effectively. Under these market conditions, it is becoming increasingly attractive to also operate at least part of the developed and constructed projects.

With a large and valuable development pipeline of around 34 gigawatts, ABO Energy would be in an ideal position to build and operate a portfolio of wind, solar, and storage farms. ABO Energy owns a large number of attractive projects in many countries that will be ready for construction in the short term. The company also has the human resources required to set up and operate the projects. These aspects will be considered in the further examination. „What is lacking, however, are the financial resources to build up a significant portfolio,“ says Managing Director Dr Schlageter. To make this possible, partners are needed. Initial discussions with potential investors indicate that many are only willing to make a larger commitment if they also obtain corresponding shareholder rights.

„The Management Board is grateful to the founder’s families Ahn and Bockholt for their willingness to sell shares if necessary,“ says Dr. Schlageter. For such a case, an option already provided for in the articles of association of ABO Energy could come into play: The General Meeting could thus decide to convert the company back into a public limited company (“Aktiengesellschaft”). More than two years ago, when the management initiated the change of the legal for from a public limited company to a partnership limited by shares, they had anticipated a different development in the energy and capital markets. „Although our expectations for 2023 have only been partially fulfilled, we now find ourselves in a very good starting position to successfully develop ABO Energy further,“ says Dr Schlageter. In the coming weeks and months, discussions are to be intensified, and all options will be explored.