German utility EnBW has sold a 49.9% stake in a 597 megawatt (MW) solar power portfolio to local insurance firm ALH Group, reflecting rising deal activity across the renewables sector in light of higher valuations.
The companies decided not to disclose the purchase price for the portfolio, which covers 16 solar farms spread across Germany that produce enough energy to supply more than 200,000 three-person households.
“Selling minority stakes on the basis of investment models is part of EnBW’s renewable energy business model. We plan to invest the sale proceeds in new growth projects in the renewable energy and grids segments,” EnBW Chief Financial Officer Thomas Kusterer said.
“This is more important now than ever because every megawatt-hour from renewables makes Germany a little less dependent on fossil fuels.”
EnBW will continue to manage, service and maintain the solar farms.
Last month, Denmark’s Orsted bought Ostwind, a German developer, owner and operator of onshore wind and solar projects in Germany and France, in a deal that valued the firm at 689 million euros ($704 million).
Ostwind has 152 MW in operation and under construction, about 526 MW in advanced development and a further 1 gigawatt in its development pipeline.
