On Monday, Engie reached an agreement with the Danish renewable energies group Orsted to acquire all its wind and solar operations in France. This transaction includes the acquisition of nine wind farms, mainly located in Hauts-de-France and Nouvelle-Aquitaine, as well as a solar photovoltaic farm, with a total installed capacity of 78 megawatts, including 24 megawatts still under construction. Completion of this agreement is scheduled for this quarter, although the amount of the transaction has not been disclosed.
Strengthening Engie’s strategy
This operation will enable Engie Green, Engie’s renewable energies division, not only to increase its installed capacity but also to consolidate its organic growth strategy. By the end of 2023, Engie Green already had 2.5 gigawatts of wind capacity and 1.9 gigawatts of solar capacity in operation. The acquisition also strengthens Engie’s expertise and competitiveness on the French market, while affirming its commitment to sustainable development and energy transition.
Orsted’s financial challenges
For its part, Orsted faces significant financial challenges, having announced a net loss of 2.7 billion euros for the year 2023. This loss was partly due to the abandonment of an ambitious offshore wind farm project in the United States. In response, Orsted initiated a series of turnaround measures, including the disposal of certain assets and a reduction in capital expenditure, with the aim of stabilizing its finances.
With this acquisition, Engie solidifies its status as France’s leader in renewable energies, anticipating sustained growth in a sector that is crucial to the energy transition.
