ABO Energy, a German company specialised in the development of renewable energy projects, is considering broadening its scope by directly operating its own generation parks. The Management Board believes that the current market environment offers opportunities to integrate the value chain by becoming an Independent Power Producer (IPP). This move would mark a shift for the company, historically positioned as a pure-play developer for three decades.
A strategy based on market evolution
According to Managing Director Dr Karsten Schlageter, the past two years have transformed sector dynamics, making integrated models more attractive. By combining wind and solar power generation with battery storage (Battery Energy Storage Systems, BESS), ABO Energy could make tailored offers to large industrial consumers. The company’s experience with Power Purchase Agreements (PPA) would support this strategy by enabling it to participate in the electricity market with baseload offers.
A substantial development pipeline
The company currently has a development pipeline of around 34 gigawatts across several countries. This volume would allow a significant share to be retained for own operation. Until now, all developed projects were sold, notably due to the lack of supply in the German wind market. Between 2019 and 2024, annually approved wind capacity rose from 1.9 to 14.1 gigawatts, enabling a better balance between supply and demand.
Financing needs to be filled
To deliver this strategic shift, ABO Energy will need to raise substantial funding. Dr Schlageter indicated that while technical and human capabilities are already in place, financing remains a hurdle. Discussions are under way with potential investors, but commitments are often contingent on securing shareholder rights.
Towards a legal restructuring
The Management Board could rely on an option already embedded in the company’s articles, allowing a return to a public limited company (Aktiengesellschaft) via a General Meeting decision. Founding families Ahn and Bockholt have expressed willingness to sell a portion of their shares if required. Such a legal change would facilitate capital opening and the arrival of strategic financial partners.
The coming weeks will be devoted to intensifying discussions with investors to examine all available options to enable ABO Energy to take this next step.
