From Baden-Württemberg to the world: The hep expansion strategy launched last year has been a resounding success, particularly for the Project Development division. The latest example is a 90-megawatt-peak (MWp) project developed by hep in the southern United States. This project is on the verge of finalizing the “Power Purchase Agreement” (PPA), a 20-year power purchase contract designed to secure revenue in exchange for guaranteed electricity prices for the power purchaser.
Milestone Reached: PPA Electricity Purchase Agreement Nearing Completion
hep Peak Clean Energy – the specialist for large-scale projects in the U.S.
From the initial concept to a fully developed solar park – hep Peak Clean Energy, the Denver, Colorado-based project developer acquired by hep in April 2020, managed the 90-MWp project from start to finish, including the signing of the PPAs. The company has specialized in so-called “utility-scale” projects in the southern United States for more than 20 years and has a strong network and extensive market knowledge there. “Utility-scale” refers to photovoltaic plants with an installed capacity of at least ten megawatts.
At the time of the acquisition, hep Peak Clean Energy managed a project pipeline of more than 4,000 MWp. This pipeline includes a number of “late-stage” projects, meaning they are in the final phase before reaching construction readiness. From this, four additional projects with a total capacity of approximately 380 MWp are expected to reach construction readiness by early 2023, corresponding to an expected total revenue of approximately 380 million euros based on market values, assuming a market value of 1,000 euros per kWp.
The 6.5% corporate bond reinforces hep’s winning strategy
“At hep, we bring together all the expertise needed to profitably develop solar projects from inception through to construction readiness. This includes financing them. Until now, we have financed project development services through our own project development funds. But now—and in the future with the help of the 6.5% corporate bond (ISIN: DE000A3H3JV5) currently being placed—we are in a position to carry out early-stage project development on our own account,” explains Christian Hamann, founder and CEO of hep global GmbH, outlining hep’s business strategy.
The 2021/2026 Green Bond can be subscribed to until May 12, 2021, at 12:00 p.m. through the custodian bank via the “DirectPlace” subscription functionality of Deutsche Börse AG in the XETRA trading system. Approximately 75 percent of the proceeds from the issuance are earmarked for financing the acquisition of future photovoltaic projects in the early-stage and active-development phases. About 25 percent of the proceeds are allocated to working capital for the establishment and expansion of the hep global Group.
Driving the global energy transition forward with hep
Globally, hep not only has a massive project pipeline of 5.3 GWp—including 4,800 MWp in the U.S. alone—but is also directly represented in the world’s key solar markets—the U.S., Japan, Germany, and Canada—through its own offices and strategic partnerships. In addition to this expertise, a track record of over 800 MWp of developed solar parks and a consistently strong annual performance record demonstrate that hep has grown into a globally successful solar company over the past decade.
Solar parks developed by hep generated approximately 44,155 megawatt-hours of solar power worldwide in 2020 alone. This prevented over 33.9 kilotons of CO2 emissions that would otherwise have been produced by fossil fuel-based power generation. Trust, responsibility, and transparency have always been at the heart of our operations.