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Photon Energy N.V.
Management Reports • Jan 13, 2024
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Management Reports
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Photon Energy N.V.
Monthly Report for December 2023
For the period from 1 to 31 December 2023
1. Short Summary of Business Highlights in the Reporting Period
1.1 Generation Results of Photon Energy Proprietary Power Plants
In December 2023, the total electricity production of our proprietary portfolio amounted to nearly 6.0 GWh compared to 5.0 GWh a year earlier, up by 18.8% YoY. This increase is attributable primarily to 31.5 MWp of new capacities added in Romania during 2023 while the average specific yield declined to 48.4 kWh/kWp compared to 54.7 kWh/kWp a year earlier, due to poor weather conditions.
The year-to-date accumulated electricity generation amounted to 139.4 GWh, compared to 121.6 GWh a year earlier, up by 14.6% YoY. This represents an avoidance of 53,487 tonnes of CO2e emissions during the year 2023.
For details, please refer to chapter 2: Generation Results.
1.2 Average Electricity Prices Realised by Our Proprietary Power Plants
In December 2023 about 87% of our proprietary capacity, a total of 107.2 MWp out of 123.4 MWp of our generation assets sold electricity on energy markets.
The average realised electricity prices in December 2023 amounted to EUR 106 per MWh compared to EUR 168 per MWh a year ago, resulting in a decline of 36.9% YoY. The average realised price on the total portfolio year-to-date amounted to EUR 162 per MWh.
The highest average prices were realised by our Czech power plants, with an average of EUR 607 per MWh, which benefit from the subsidy element in the form of the green bonus system. The lowest prices were achieved in Australia, with an average of EUR 58 per MWh. For details, please refer to chapter 3: Average Revenues Realised by Our Power Plants.
1.3 Developments in the Project Pipeline
Further progress has been made on the construction of our second set of power plants in Romania, with a total capacity of 20.1 MWp. The first power plant, Făget 2 (3.9 MWp), has been completed and grid-connected, bringing our total IPP portfolio to 127.3 MWp. Four additional power plants remain on track with the progress reported in our last monthly report, with 13.0 MWp to be connected in Q1 2024 and 3.2 MWp in early Q2 2024.
The development pipeline has remained stable, but some qualitative changes should be noted. In Romania, new projects with a total capacity of over 6.5 MWp have been added to the pipeline at the feasibility phase. In addition, we have launched the official divestment process of our largest utility-scale solar project in Romania with a total capacity of 54 MWp, located in Gorj county. Our local development team secured the building permit for this project in Q4 2023 and is currently working through the remaining milestones towards the ready-to-build stage. The divestment process is expected to be resolved during Q2 2024.
On the project development side in Hungary, there have been no changes in the total capacities under development, but we have made some efforts to grow the pipeline going forward by submitting three projects to the capacity auction in January 2024.
In Poland, we have made some progress on the divestment of a smaller PV project in Złoczew and remain on track to divest some of the largest projects from our Polish portfolio. With regards to the
project in Złoczew, we are pleased to announce that on 28 December 2023 we signed a sales and development agreement with a subsidiary of Pracownia Finansowa Grupa INWE, on the basis of which we have transferred the rights to the Złoczew project, which has an AC capacity of 2.3 MWp, and agreed to provide further development services to bring the project to ready-to-build stage. With regards to the divestment of some larger projects from the Polish portfolio, the potential buyers received a two-month window to conclude the due diligence process and agree on sale documentation. The execution of this transaction remains on track and is expected to be concluded in Q1 2024.
1.4 Photon Energy Connects 3.9 MWp Solar PV Power Plant to Grid in Romania
In December 2023, Photon Energy Group completed and grid-connected another photovoltaic (PV) power plant in the Romanian market referred to as Făget 2. The power plant has a generation capacity of 3.9 MWp and is located near Făget, Timiș County. Upon completion of this project, our IPP (Independent Power Producer) portfolio now includes 97 solar power plants, with a combined generation capacity of 127.3 MWp.
This latest addition rounds up our portfolio expansion in Romania to a total of nine power plants with a total installed capacity of 35.4 MWp in 2023, with an additional four power plants with a combined installed capacity of 16.9 MWp constructed and expected to be commissioned in the following months. With our strong project pipeline and the dynamic growth in the market, we are looking forward to a busy 2024 in Romania.
In the long term, the electricity generated from Romanian power plants will be sold on the energy market on a merchant basis, without any governmental support or a power purchase agreement with an energy off-taker. In the interim each asset is operating on a 24 month PPA with the Romanian TSO: Transelectrica. For more details please see Project highlights on page 10.
1.5 First 20-year On-site Power Purchase Agreement for 13.5 GWh
Photon Energy Group has entered into a first 20-year power purchase agreement (PPA) to develop, build, own and operate a 630 kWp solar PV power plant on the customer's premises, in Hungary.
The customer - a global automotive technology leader - will be the corporate offtaker for 100% of the energy produced by the power plant upon its completion. The turnkey solution will support the client's ambitious global onsite PV roll-out and commitment to a reduced carbon footprint while, materially lowering its energy costs in the long term.
This agreement represents another milestone for Photon Energy, further strengthening our position in the Hungarian market and expanding our offering to the industrial sector. We are confident that our turnkey on-site PPA solution will support the client in its ambitious commitment to lowering its carbon footprint while materially reducing energy costs in the long term.
The envisaged PV installation will generate approximately 13.5 GWh of clean electricity over the duration of the PPA, which will contribute to an estimated CO2e emissions reduction of 3,670 tonnes.
2. Generation Results of the Proprietary PV Power Plants
The table below represents generation results of the power plants owned directly or indirectly by Photon Energy N.V.
Table 1. Production Results in December 2023
| Project name | Capacity | Revenue Dec | Prod. Dec | Proj. Dec | Perf. | YTD Prod. | YTD Proj. | Perf. | YTD YoY |
|---|---|---|---|---|---|---|---|---|---|
| Unit | kWp | per MWh | kWh | kWh | % | kWh | kWh | % | % |
| Komorovice | 2,354 | 605 EUR | 45,591 | 40,188 | 13.4% | 2,473,604 | 2,531,373 | -2.3% | -4.4% |
| Zvíkov I | 2,031 | 605 EUR | 36,570 | 44,572 | -18.0% | 2,231,503 | 2,307,181 | -3.3% | -2.2% |
| Dolní Dvořiště | 1,645 | 605 EUR | 30,648 | 35,690 | -14.1% | 1,618,117 | 1,692,303 | -4.4% | -2.7% |
| Svatoslav | 1,231 | 605 EUR | 21,038 | 19,668 | 7.0% | 1,147,725 | 1,214,558 | -5.5% | -6.6% |
| Slavkov | 1,159 | 605 EUR | 23,954 | 25,665 | -6.7% | 1,300,978 | 1,360,818 | -4.4% | -6.4% |
| Mostkovice SPV 1 | 210 | 548 EUR | 4,056 | 4,565 | -11.1% | 210,578 | 222,883 | -5.5% | -6.9% |
| Mostkovice SPV 3 | 926 | 689 EUR | 12,334 | 13,542 | -8.9% | 960,303 | 997,435 | -3.7% | -6.6% |
| Zdice I | 1,499 | 605 EUR | 35,417 | 37,413 | -5.3% | 1,709,288 | 1,715,542 | -0.4% | -2.4% |
| Zdice II | 1,499 | 605 EUR | 35,548 | 38,323 | -7.2% | 1,711,223 | 1,746,687 | -2.0% | -3.5% |
| Radvanice | 2,305 | 605 EUR | 43,338 | 44,973 | -3.6% | 2,474,217 | 2,546,941 | -2.9% | -4.0% |
| Břeclav rooftop | 137 | 549 EUR | 3,222 | 3,469 | -7.1% | 151,739 | 154,513 | -1.8% | -7.9% |
| Total Czech PP | 14,996 | 607 EUR | 291,716 | 308,067 | -5.3% | 15,989,275 | 16,490,234 | -3.0% | -4.1% |
| Babiná II | 999 | 271 EUR | 17,956 | 18,291 | -1.8% | 915,691 | 976,703 | -6.2% | -9.7% |
| Babina III | 999 | 271 EUR | 18,408 | 18,939 | -2.8% | 881,967 | 990,134 | -10.9% | -12.0% |
| Prša I. | 999 | 270 EUR | 21,855 | 19,232 | 13.6% | 988,687 | 1,040,669 | -5.0% | -7.3% |
| Blatna | 700 | 273 EUR | 14,284 | 12,763 | 11.9% | 704,781 | 721,585 | -2.3% | -3.7% |
| Mokra Luka 1 | 963 | 258 EUR | 22,091 | 29,091 | -24.1% | 1,133,626 | 1,155,738 | -1.9% | -8.2% |
| Mokra Luka 2 | 963 | 257 EUR | 27,301 | 31,575 | -13.5% | 1,153,169 | 1,199,890 | -3.9% | -8.2% |
| Jovice 1 | 979 | 263 EUR | 11,552 | 15,810 | -26.9% | 881,417 | 896,463 | -1.7% | -4.9% |
| Jovice 2 | 979 | 263 EUR | 10,754 | 15,509 | -30.7% | 862,438 | 891,313 | -3.2% | -6.2% |
| Brestovec | 850 | 257 EUR | 15,633 | 16,305 | -4.1% | 972,161 | 1,024,861 | -5.1% | -7.9% |
| Polianka | 999 | 261 EUR | 13,885 | 14,971 | -7.3% | 950,824 | 984,911 | -3.5% | -5.7% |
| Myjava | 999 | 259 EUR | 18,749 | 19,660 | -4.6% | 1,068,202 | 1,130,513 | -5.5% | -6.2% |
| Total Slovak PP | 10,429 | 264 EUR | 192,468 | 212,145 | -9.3% | 10,512,963 | 11,012,779 | -4.5% | -7.4% |
| Tiszakécske 1 | 689 | 78 EUR | 19,787 | 22,498 | -12.0% | 847,201 | 857,722 | -1.2% | -4.3% |
| Tiszakécske 2 | 689 | 78 EUR | 20,483 | 22,498 | -9.0% | 853,639 | 857,722 | -0.5% | -4.2% |
| Tiszakécske 3 | 689 | 79 EUR | 19,239 | 22,498 | -14.5% | 823,708 | 857,722 | -4.0% | -4.0% |
| Tiszakécske 4 | 689 | 78 EUR | 21,008 | 22,498 | -6.6% | 856,214 | 857,722 | -0.2% | -3.8% |
| Tiszakécske 5 | 689 | 78 EUR | 20,057 | 22,498 | -10.9% | 837,728 | 857,722 | -2.3% | -5.5% |
| Tiszakécske 6 | 689 | 78 EUR | 20,077 | 22,498 | -10.8% | 849,898 | 857,722 | -0.9% | -4.2% |
| Tiszakécske 7 | 689 | 78 EUR | 20,421 | 22,498 | -9.2% | 851,465 | 857,722 | -0.7% | -4.3% |
| Tiszakécske 8 | 689 | 78 EUR | 19,579 | 22,498 | -13.0% | 841,062 | 857,722 | -1.9% | -4.0% |
| Almásfüzitő 1 | 695 | 77 EUR | 17,450 | 21,979 | -20.6% | 802,443 | 837,933 | -4.2% | -7.4% |
| Almásfüzitő 2 | 695 | 77 EUR | 16,444 | 21,349 | -23.0% | 777,834 | 813,913 | -4.4% | -7.5% |
| Almásfüzitő 3 | 695 | 75 EUR | 18,733 | 21,311 | -12.1% | 771,242 | 812,464 | -5.1% | -8.4% |
| Almásfüzitő 4 | 695 | 77 EUR | 17,245 | 22,006 | -21.6% | 802,583 | 838,955 | -4.3% | -7.4% |
| Almásfüzitő 5 | 695 | 77 EUR | 19,956 | 22,308 | -10.5% | 822,671 | 850,452 | -3.3% | -6.6% |
| Almásfüzitő 6 | 660 | 76 EUR | 18,736 | 22,182 | -15.5% | 816,324 | 845,662 | -3.5% | -6.7% |
| Almásfüzitő 7 | 691 | 77 EUR | 18,433 | 22,079 | -16.5% | 815,627 | 841,742 | -3.1% | -6.3% |
| Almásfüzitő 8 | 668 | 78 EUR | 18,125 | 21,722 | -16.6% | 819,926 | 828,116 | -1.0% | -4.3% |
| Nagyecsed 1 | 689 | 72 EUR | 18,639 | 20,800 | -10.4% | 842,422 | 816,708 | 3.1% | -1.3% |
| Nagyecsed 2 | 689 | 80 EUR | 20,872 | 20,800 | 0.3% | 835,211 | 816,708 | 2.3% | -3.9% |
| Nagyecsed 3 | 689 | 80 EUR | 21,140 | 20,531 | 3.0% | 829,468 | 817,116 | 1.5% | -5.5% |
| Fertod I | 528 | 85 EUR | 15,075 | 16,283 | -7.4% | 653,883 | 620,780 | 5.3% | -3.3% |
| Fertod II No 2 | 699 | 85 EUR | 24,469 | 21,830 | 12.1% | 859,958 | 832,247 | 3.3% | -3.1% |
| Fertod II No 3 | 699 | 85 EUR | 24,583 | 21,732 | 13.1% | 859,566 | 828,516 | 3.7% | -2.7% |
| Fertod II No 4 | 699 | 85 EUR | 24,113 | 21,561 | 11.8% | 856,029 | 821,980 | 4.1% | -2.6% |
| Fertod II No 5 | 691 | 85 EUR | 23,871 | 21,342 | 11.8% | 845,787 | 813,654 | 3.9% | -3.7% |
| Fertod II No 6 | 699 | 84 EUR | 23,631 | 21,495 | 9.9% | 852,365 | 819,453 | 4.0% | -2.5% |
| Kunszentmárton I/ 1 | 697 | 74 EUR | 27,760 | 23,334 | 19.0% | 896,817 | 889,599 | 0.8% | -2.3% |
| Project name | Capacity | Revenue Dec | Prod. Dec | Proj. Dec | Perf. | YTD Prod. | YTD Proj. | Perf. | YTD YoY |
|---|---|---|---|---|---|---|---|---|---|
| Unit | kWp | per MWh, | kWh | kWh | % | kWh | kWh | % | % |
| Kunszentmárton I No 2 | 697 | 75 EUR | 25,671 | 23,334 | 10.0% | 887,239 | 889,599 | -0.3% | -2.8% |
| Kunszentmárton II No 1 | 693 | 75 EUR | 26,729 | 22,493 | 18.8% | 871,456 | 857,537 | 1.6% | -6.0% |
| Kunszentmárton II No 2 | 693 | 75 EUR | 27,077 | 22,493 | 20.4% | 907,796 | 857,537 | 5.9% | -2.6% |
| Taszár 1 | 701 | 79 EUR | 34,527 | 20,327 | 69.9% | 857,970 | 774,934 | 10.7% | -3.3% |
| Taszár 2 | 701 | 79 EUR | 34,342 | 20,635 | 66.4% | 863,738 | 786,687 | 9.8% | -4.1% |
| Taszár 3 | 701 | 80 EUR | 34,261 | 20,691 | 65.6% | 869,963 | 788,831 | 10.3% | -3.6% |
| Monor 1 | 688 | 78 EUR | 18,581 | 22,362 | -16.9% | 777,141 | 852,508 | -8.8% | -12.6% |
| Monor 2 | 696 | 79 EUR | 17,950 | 22,118 | -18.8% | 776,001 | 843,215 | -8.0% | -12.5% |
| Monor 3 | 696 | 79 EUR | 18,656 | 22,377 | -16.6% | 781,896 | 853,096 | -8.3% | -12.9% |
| Monor 4 | 696 | 78 EUR | 18,185 | 22,358 | -18.7% | 779,733 | 852,361 | -8.5% | -13.1% |
| Monor 5 | 688 | 78 EUR | 18,772 | 21,489 | -12.6% | 782,291 | 819,233 | -4.5% | -9.2% |
| Monor 6 | 696 | 78 EUR | 18,667 | 22,333 | -16.4% | 776,492 | 851,400 | -8.8% | -13.4% |
| Monor 7 | 696 | 79 EUR | 19,122 | 22,300 | -14.3% | 780,303 | 850,163 | -8.2% | -12.8% |
| Monor 8 | 696 | 78 EUR | 18,802 | 22,472 | -16.3% | 784,077 | 856,732 | -8.5% | -13.1% |
| Tata 1 | 672 | 106 EUR | 12,929 | 24,483 | -47.2% | 858,714 | 933,382 | -8.0% | -8.7% |
| Tata 2 | 676 | 94 EUR | 14,834 | 24,573 | -39.6% | 763,344 | 936,800 | -18.5% | -9.1% |
| Tata 3 | 667 | 78 EUR | 20,467 | 24,573 | -16.7% | 769,538 | 936,800 | -17.9% | -8.8% |
| Tata 4 | 672 | 106 EUR | 13,491 | 24,912 | -45.8% | 870,868 | 949,727 | -8.3% | -9.0% |
| Tata 5 | 672 | 106 EUR | 13,265 | 24,573 | -46.0% | 861,586 | 936,800 | -8.0% | -9.2% |
| Tata 6 | 672 | 84 EUR | 17,870 | 23,953 | -25.4% | 852,980 | 913,166 | -6.6% | -7.3% |
| Tata 7 | 672 | 84 EUR | 17,431 | 24,573 | -29.1% | 858,546 | 936,800 | -8.4% | -9.3% |
| Tata 8 | 672 | 98 EUR | 14,595 | 24,943 | -41.5% | 869,201 | 950,927 | -8.6% | -9.3% |
| Malyi 1 | 695 | 70 EUR | 15,154 | 19,701 | -23.1% | 841,829 | 819,491 | 2.7% | -1.7% |
| Malyi 2 | 695 | 70 EUR | 15,771 | 19,821 | -20.4% | 841,873 | 820,611 | 2.6% | -4.0% |
| Malyi 3 | 695 | 70 EUR | 15,947 | 19,821 | -19.5% | 833,067 | 820,611 | 1.5% | -5.0% |
| Puspokladány 1 | 1,406 | 106 EUR | 36,399 | 52,850 | -31.1% | 1,819,718 | 2,014,837 | -9.7% | -7.7% |
| Puspokladány 2 | 1,420 | 77 EUR | 38,117 | 54,666 | -30.3% | 1,843,206 | 2,084,088 | -11.6% | -10.0% |
| Puspokladány 3 | 1,420 | 76 EUR | 36,623 | 53,693 | -31.8% | 1,833,427 | 2,047,002 | -10.4% | -8.8% |
| Puspokladány 4 | 1,406 | 76 EUR | 35,882 | 52,322 | -31.4% | 1,828,277 | 1,994,714 | -8.3% | -8.0% |
| Puspokladány 5 | 1,420 | 76 EUR | 38,775 | 53,780 | -27.9% | 1,878,303 | 2,050,316 | -8.4% | -8.4% |
| Puspokladány 6 | 1,394 | 106 EUR | 34,668 | 52,036 | -33.4% | 1,599,979 | 1,983,794 | -19.3% | -19.3% |
| Puspokladány 7 | 1,406 | 106 EUR | 35,392 | 53,449 | -33.8% | 1,836,798 | 2,037,694 | -9.9% | -8.0% |
| Puspokladány 8 | 1,420 | 76 EUR | 36,394 | 53,836 | -32.4% | 1,744,401 | 2,052,442 | -15.0% | -13.2% |
| Puspokladány 9 | 1,406 | 106 EUR | 27,511 | 53,528 | -48.6% | 1,835,011 | 2,040,701 | -10.1% | -8.3% |
| Puspokladány 10 | 1,420 | 76 EUR | 36,481 | 53,757 | -32.1% | 1,850,644 | 2,049,434 | -9.7% | -7.9% |
| Tolna | 1,358 | 78 EUR | 58,245 | 54,925 | 6.0% | 2,029,978 | 2,093,966 | -3.1% | -3.3% |
| Facankert (Tolna 2) | 1,358 | 78 EUR | 60,298 | 55,851 | 8.0% | 2,080,506 | 2,129,253 | -2.3% | N/A |
| Total Hungarian PP | 51,814 | 82 EUR | 1,507,803 | 1,773,032 | -15.0% | 64,418,962 | 67,874,965 | -5.1% | -6.3% |
| Siria | 5,691 | 102 EUR | 203,648 | 198,000 | 2.9% | 7,143,232 | 7,688,011 | -7.1% | N/A |
| Calafat 1 | 2,890 | 102 EUR | 148,842 | 150,686 | -1.2% | 2,314,080 | 3,679,424 | -37.1% | N/A |
| Calafat 2 | 1,935 | 102 EUR | 85,554 | 94,597 | -9.6% | 1,568,961 | 2,451,449 | -36.0% | N/A |
| Calafat 3 | 1,203 | 102 EUR | 58,983 | 63,503 | -7.1% | 1,034,086 | 1,634,527 | -36.7% | N/A |
| Aiud | 4,730 | 102 EUR | 142,860 | 151,000 | -5.4% | 3,462,980 | 6,279,000 | -44.8% | N/A |
| Teius | 4,730 | 102 EUR | 148,020 | 157,000 | -5.7% | 3,130,720 | 6,444,000 | -51.4% | N/A |
| Făget | 3,178 | 102 EUR | 100,016 | 117,400 | -14.8% | 925,712 | 4,168,800 | -77.8% | N/A |
| Săhăteni | 7,112 | 102 EUR | 291,072 | 333,630 | -12.8% | 1,690,952 | 10,075,986 | -83.2% | N/A |
| Total Romanian PP2 | 31,469 | 102 EUR | 1,178,995 | 1,265,817 | -6.9% | 21,270,723 | 42,421,197 | -49.9% | N/A |
| Symonston | 144 | 185 EUR | 18,400 | 21,877 | -15.9% | 158,054 | 166,895 | -5.3% | 0.0% |
| Leeton | 7,261 | 55 EUR | 1,500,026 | 1,584,208 | -5.3% | 13,938,868 | 14,296,848 | -2.5% | 12.5% |
| Fivebough | 7,261 | 59 EUR | 1,277,974 | 1,572,214 | -18.7% | 13,070,700 | 14,119,937 | -7.4% | 6.7% |
| Total Australian PP | 14,744 | 58 EUR | 2,796,400 | 3,178,298 | -12.0% | 27,167,623 | 28,583,679 | -5.0% | 9.5% |
| Total | 123,374 | 106 EUR | 5,967,382 | 6,737,359 | -11.4% | 139,359,545 | 166,382,854 | -16.2% | 14.6% |
Notes:
Capacity: installed capacity of the power plant
Prod.: production in the reporting month - Proj.: projection in the reporting month Perf.: performance of the power plant in reporting month i.e. (production in Month / projection for Month) - 1.
YTD Prod.: accumulated production year-to-date i.e. Jan- the end of the report. month. YTD Proj.: accumulated projection year-to-date i.e. Jan - the end of the reporting month. Perf. YTD: performance of the pp YTD i.e. (YTD prod. in 2023 / YTD proj. in 2023) – 1. YTD YOY: (YTD Prod. in 2023 / YTD Prod. in 2022) – 1.
Chart 1.a Total Production of the Czech Portfolio Chart 1.b Total Production of the Slovak Portfolio
Chart 1.c Total Production of the Hungarian Portfolio Chart 1.d Total Production of the Australian Portfolio
In December 2023, power plants in all geographical locations performed below the energy audits. In the Czech Republic and Slovakia the weather conditions (cloudy days and snow) were the main factors behind the poor performance, which resulted in the generation output 5.3% and 9.3% below the energy forecasts. Hungarian power plants delivered 15.0% of electricity less than expected, mainly due to weather conditions but also some technical issues. The power plants in Romania produced 6.9% less
3. Average Revenues Realized by Our Power Plants
The table below represents an estimation of average prices realized on sales of electricity from our generation assets. Estimates of revenues are based on the management reports and may deviate from final financial statements due to exchange rates.
| Portfolio | Capacity | Prod. December | Avg. Revenue December |
Total Revenue December |
YTD Avg. Revenue |
YTD Revenue |
|---|---|---|---|---|---|---|
| Unit | MWp | MWh | EUR/MWh | In Euro thousand | EUR/MWh, in 2023 | In Euro thousand |
| Czech Republic1 | 15.0 | 292 | 607 | 177 | 636 | 10,166 |
| Slovakia2 | 10.4 | 192 | 264 | 38 | 263 | 1,993 |
| Hungary | 51.8 | 1,508 | 82 | 123 | 90 | 5,826 |
| Romania | 31.5 | 1,179 | 102 | 120 | 98 | 2,087 |
| Australia3 | 14.7 | 2,796 | 58 | 161 | 63 | 1,700 |
| Total Portfolio | 123.4 | 5,967 | 106 | 620 | 162 | 21,773 |
Table 2. Estimated Revenues from Electricity Generation in December 2023
1 - Green Bonus + realized electricity price during the reporting period in the Czech Republic.
2 Slovak joint-ventures SK SPV 1 s.r.o., Solarpark Polianka s.r.o., and Solarpark Myjava s.r.o. are not presented in the above table. Remaining power plants recieve a fixed feed-in-tarrif. 3 Realized market electricity price + Australian Large-scale Generation Certificate spot closing price in Australia.
All power plant in Romania and 46.2 MWp in Hungary sells electricty under merchant model. Remaining 4.6 MWp in Hungary remains in Feed-in-Tarrif.
Q1 Q2 Q3 Q4
Cumulative production in MWh
0
5,000
10,000
15,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
than expected while Australia 12.0% below expectations. As a result the total production in December came 11.4% below the energy audits.
The specific yields of our proprietary portfolio (SY), which shows the production efficiency of PV technology, amounted to an average of 48.4 kWh/kWp compared to 54.7 kWh/kWp a year earlier.
4. Reporting on the Project Pipeline
Project development is a crucial activity in Photon Energy's business model of covering the entire value chain of PV power plants. The main objective of project development activities is to expand our PV proprietary portfolio, which provides recurring revenues and free cash flows to the Group. For financial or strategic reasons, we may decide to cooperate with third-party investors either on a jointventure basis or with the goal of exiting the projects to such investors entirely. Ownership of project rights provides us with a high level of control and allows locking in EPC (one-off) and O&M (longterm) services. As a result, project development is a key driver for our future growth. The Group's experience in project development and financing in various markets and jurisdictions is an important competitive advantage and mitigates the inherent risks related to project development. Projects currently under development are presented in the table below.
Table 3. Projects under development as of the reporting date (DC capacity)*
| Country | 1. Feasibility* | 2. Early development |
3. Advanced development |
4. Ready-to-build technical |
5. Under construction |
Total in MWp |
|---|---|---|---|---|---|---|
| Romania | 14.9 | 90.3 | 80.1 | 17.7 | 20.1 | 223.1 |
| Poland | 252.5 | 16.8 | 20.3 | - | - | 289.6 |
| Hungary | 37.6 | - | 2.7 | 4.1 | - | 44.3 |
| Australia | 455.0 | 200.0 | 9.8 | - | - | 664.8 |
| Total in MWp | 760.0 | 307.1 | 112.9 | 21.8 | 20.1 | 1,221.9 |
*Development phases are described in the glossary available at the end of this chapter. Photon Energy refers to the installed DC capacity of projects expressed in Megawatt peak (MWp) in its reporting, which might fluctuate over the project development process.
**Projects in feasibility stage 1. are presented at AC capacity as DC is difficult to estimate at the early-stage of utility scale projects.
Chart 2. Project pipeline as of the reporting date, in MWp DC
During the reporting month the following changes took place in the project development pipeline:
► Further progress has been made on the construction works of the second set of power plants in Romania, with a total capacity of 20.1 MWp. As of the reporting date, one power plant with the total generation capacity of 3.9 MWp, located near Făget in Timiș County, has been completed and energised, bringing our total IPP portfolio to 127.3 MWp. More details can be found in on page 10 of this report, in the Project Highlights section. Three of the remaining power plants (Făget 3, Bocsa and Magureni), with the total capacity of 13.0 MWp, are technically completed and connection works have been finalised. Before these power plants are energised and start feeding electricity to the grid, allowing invoicing of produced electricity, documentation must be completed and the connection protocol approved by the respective DSOs. (This phase is called commissioning.) The initial application documentation has been submitted for Făget 3, Bocsa and Magureni, and are expected to be commissioned and energised in Q1 2024. The fifth project in Sarulesti, with a capacity of 3.2 MWp, requires reinforcement works related to strengthening the power line. This is to be executed by the respective DSO and is scheduled for February 2024. As a result, delays on this project are expected and energisation may take place in Q2 2024.
Our project development pipeline in Romania has been further increased, as new projects with a total capacity of 6.5 MWp have been signed and the feasibility phases initiated.
We have launched the divestment process for our largest utility-scale solar project in Romania, with the total capacity of 54 MWp, located in Gorj county. Our local development team secured the building permit on this project in Q4 2023 and is currently working through the remaining milestones towards the ready-to-build stage. At the same time, the divestment process has been launched and is expected to be completed during Q2 2024.
- ► In Hungary, there have been no changes in the total capacity under development, though multiple projects were submitted to the capacity application tender in January 2024.
- ► In Poland, we have made progress on the divestment of a smaller PV project in Złoczew and remain on track to divest some of the largest projects from our Polish portfolio. With regards to the Złoczew project, we are pleased to announce that on 28 December 2023 we signed a sales and development agreement with a subsidiary of Pracownia Finansowa Grupa INWE, on the basis of which we have transferred the rights to the project, which has an AC capacity of 2.3 MWp, and agreed to provide further development services to bring the project to ready-to-build stage. Złoczew is located in the Lodz, a region known for its robust solar energy potential. Upon the completion of the permitting process, the new rights holder intends to
build the project on single-axis tranches, as originally planned by Photon Energy. The original design of the project included over 4000 tier 1 bifacial modules, anticipated to generate nearly 3000 MWh annually. The project is set to connect to the overhead MVL within the project site, with PGE as the DSO. This agreement reinforces our commitment to fostering sustainable energy development in Poland and across the globe.
With regards to the divestment of some larger projects from the Polish portfolio, the potential buyers received a two-month window to conclude the due diligence process and agree on sale documentation. The execution of this transaction is expected to be concluded in Q1 2024.
Finally, we have decreased the capacity of Polish projects under development at the feasibility stage by 20.3 MWp. This change is due to land lease agreements that were not renewed, as no capacity was available in the grid.
| Country | Location | Dev. phase |
Equity share |
MWp DC |
Commercial Model |
Land | Grid connection |
Construction permit |
Expected SoC1 |
Update on the project |
|---|---|---|---|---|---|---|---|---|---|---|
| Romania | Tamadu Mare-1 | 4 | 100% | 4.1 | Merchant/PPA | Secured | Secured | Secured | Q2 2024 | Projects adheres to DSO schedule for grid reinforcement works |
| Romania | Tamadu Mare-2 | 4 | 100% | 6.1 | Merchant/PPA | Secured | Secured | Secured | Q2 2024 | Projects adheres to DSO schedule for grid reinforcement works |
| Romania | Sannicolau Mare | 4 | 100% | 7.5 | Merchant/PPA | Secured | Secured | Secured | Q2 2024 | Project awaits DSO relocation of overhead cable prior to start of construction. |
| Hungary | Tolna 2 | 4 | 100% | 1.36 | Merchant/PPA | Secured | Secured | Secured | Q2 2024 | Construction date delayed due to DSO commissioning timeline. |
| Hungary | Tolna 3 | 4 | 100% | 1.36 | Merchant/PPA | Secured | Secured | Secured | Q2 2024 | Construction date delayed due to DSO commissioning timeline. |
| Hungary | Tolna 5 | 4 | 100% | 1.36 | Merchant/PPA | Secured | Secured | Secured | Q1 2024 | Construction date delayed due to DSO commissioning timeline. |
| TOTAL | 21.8 |
Table 4. Progress on Projects Ready-to-Build stage 4, as of the reporting date.
1SoC stands for expected start of construction date.
Table 5. Progress on projects under construction, as of the reporting date.
| Location | Dev. phase | Equity share |
MWp DC | Commercial Model | Construction progress | |||
|---|---|---|---|---|---|---|---|---|
| Faget 2 | 5 | 100% | 3.9 | Merchant/PPA | 100% | |||
| Sarulesti | 5 | 100% | 3.2 | Merchant/PPA | 98% | |||
| Magureni | 5 | 100% | 1.7 | Merchant/PPA | 98% | |||
| Bocsa | 5 | 100% | 3.8 | Merchant/PPA | 98% | |||
| Faget 3 | 5 | 100% | 7.5 | Merchant/PPA | 95% | |||
| 20.1 | ||||||||
Procurement Site preparations Substructures Technology installed Connection works Comissioning
Projects Highlights
This month we would like to provide you with more info on the below project:
► PV power plant Făget 2 (3.9 MWp DC), located in Timiș County, Romania has been connected to the grid and energized.
We have commissioned a power plant with a generation capacity of 3.9 MWp near Făget, Timiș County. In the same location, the Company is set to commission an additional four power plants with a combined capacity of 16.9 MWp early this year. The total annual production of the power plant is expected to be around 5.8 GWh, corresponding to expected revenues of around EUR 550,000 in 2024 based on the current forward prices for electricity base load in Romania. This latest addition rounds up our portfolio expansion in Romania to a total of nine power plants with a total installed capacity of 35.4 MWp in 2023, with an additional four power plants with a combined installed capacity of 16.9 MWp constructed and expected to be commissioned in the following months. With our strong project pipeline and the dynamic growth in the market, we are looking forward to a busy 2024 in Romania.
The total annual production of the power plant is expected to be around 5.8 GWh. High-efficiency bifacial photovoltaic modules mounted on single-axis trackers will deliver clean energy to the grid managed by E-Distribuție Banat. In the electricity generated will be sold on the energy market on a merchant basis, without any governmental support. In the interm the electricity is being sold via a 24-month power purchase agreement with Romanian TSO, Transelectrica.
Located near Făget (Timiș County), the power plant extends over 6.6 hectares of greenfield land and is equipped with a combined total of 7,280 photovoltaic modules.
The Company's IPP (Independent Power Producer) portfolio now includes 97 solar power plants, with a combined generation capacity of 127.3 MWp.
| Glossary of terms | Definitions |
|---|---|
| Development phase 1: "Feasibility" |
LOI or MOU signed, location scouted and analyzed, working on land lease/purchase, environmental assessment and ap plication for grid connection. |
| Development phase 2: "Early development" |
Signing of land option, lease or purchase agreement, Environmental assessment (environmental impact studies "EIS" for Australia), preliminary design. Specific to Europe: Application for Grid capacity, start work on permitting aspects (construction, connection line, etc.). Specific to Australia: community consultation, technical studies. |
| Development phase 3: "Advanced development" |
In Europe: Finishing work on construction permitting, Receiving of MGT (HU)/ATR (ROM) Letter, Finishing work on permit ting for connection line, etc. In Australia: Site footprint and layout finalised, Environmental Impact Statement and development application lodged. Grid connection studies and design submitted. |
| Development phase 4: "Ready-to-build technical" |
In Europe: Project is technical ready to build, we work on offtake model (if not FIT or auction), securing financing (inter nal/external). In Australia: Development application approved, offer to connect to grid received and detailed design com menced. Financing and off-take models/arrangements (internal/external) under negotiation. |
| Development phase 5: "Under construction" |
Procurement of components, site construction until the connection to the grid. On top for Australian projects, signature of Financing and off-take agreements, reception of Construction certificate, con clusion of connection agreement, EPC agreement, Grid connection works agreements. |
| DC and AC capacity | Electricity grids run on alternating current (AC). Solar modules produce direct current (DC), which is transformed into AC by inverters. Heat, cable lines, inverters and transformers lead to energy losses in the system between the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore, for a given grid connection capacity a larger module capacity (expressed in Watt peak – Wp) can be installed without exceeding the grid connection limit. At times of extremely high production, inverters can reduce the volume of electricity so that the plant stays within the grid connection limits. |
5. Operations & Maintenance Reports Further Growth
In December 2023, the growth of our O&M portfolio was not as impressive as in November 2023, but the positive trend continued, and a total capacity of approximately 25.7 MWp was added to our portfolio of O&M solutions, bringing the portfolio to a total of 629.0 MWp, compared to 606.2 MWp in November 2023 and 334 MWp at the end of 2022. Our 'Inverter Cardio' inverter maintenance contracts remained unchanged at 50.6 MWp.
Chart 3a Full O&M Solutions and Inverter Cardio, in MWp Chart 3b Full O&M Solutions, Geographical Split
The total of 296.3 MWp which was added to our O&M portfolio in 2023 translates to a growth ratio of +77.3% YoY.
Geographically, the two leading markets for O&M services are currently Poland and Hungary, with approximately 271 MWp and 182 MWp, respectively. Those two are followed by the Czech Republic with nearly 98 MWp under O&M contracts.
6. Investor Calendar
The following investor reports will be published in 2024:
- 14 February 2024: Monthly report for January 2024
- 19 February 2024: Quarterly report for Q4 2023
- 14 March 2024: Monthly report for February 2024
- 15 April 2024: Monthly report for March 2024
- 24 April 2024: Annual report for 2023
- 16 May 2024: Monthly report for April 2024
- 16 May 2024: Quarterly report for Q1 2024
- 14 June 2024: Monthly report for May 2024
- 16 July 2024: Monthly report for June 2024
- 14 August 2024: Monthly report for July 2024
- 19 August 2024: Quarterly report for Q2 2024 / H1 2024
- 13 September 2024: Monthly report for August 2024
- 15 October 2024: Monthly report for September 2024
- 15 November 2024: Monthly report for October 2024
- 18 November 2024: Quarterly report for Q3 2024
- 13 December 2024: Monthly report for November 2024
7. Investor Relations Contact
E-mail: [email protected]
Photon Energy N.V. Barbara Strozzilaan 201 1083 HN Amsterdam The Netherlands Web: www.photonenergy.com
Amsterdam, 12 January 2024
Georg Hotar, Member of the Board of Directors Michael Gartner, Member of the Board of Directors