The ERG Group presented its 2018 – 2022 Business Plan during a meeting with the Financial Community in Milan on 8 March 2018.
Business Plan
The goal in the 2018-2022 time interval is to increase installed capacity by 850 MW through three channels:
1) Greenfield and co-Development: ERG intends to continue with its growth strategy through the organic development of its own pipeline of projects or agreements for co-development in France, Germany and the United Kingdom;
2) Repowering and Reblading in Italy: in consideration of the technological evolution of the wind power sector, ERG has the goal of carry out repowering and reblading on wind farms provided with obsolete technology, with turbines of less than 1 MW, with incentives already expired or expiring, but at the same time located in the windiest sites, therefore with very high expected profitability even in the absence of incentives;
3) M&A: ERG intends to continue to have an approach in order to exploit growth opportunities in renewable sources in the countries of interest for it, leveraging the experience acquired along its transformation path and the synergies deriving from consolidation with its own portfolio.
ERG'S STRATEGY AND SUSTAINABILITY COMMITMENTS
ERG, in accordance with the 2018-2022 Business Plan, approved the Sustainability targets for the same period in line with UN SDGs and consistent with ERG's strategy of developing renewables and combating climate changes.
ERG's commitments are focused on 3 main threads:
• the development of generation of electricity from renewable sources, which will represents our commitment to combat climate change;
• care for the environment, working conditions and welfare;
• implementation, at Group level, of the new Anticorruption Policy and of the new supplier selection procedures.
Our Commitments - discover more!
1) Greenfield and co-Development: ERG intends to continue with its growth strategy through the organic development of its own pipeline of projects or agreements for co-development in France, Germany and the United Kingdom;
2) Repowering and Reblading in Italy: in consideration of the technological evolution of the wind power sector, ERG has the goal of carry out repowering and reblading on wind farms provided with obsolete technology, with turbines of less than 1 MW, with incentives already expired or expiring, but at the same time located in the windiest sites, therefore with very high expected profitability even in the absence of incentives;
3) M&A: ERG intends to continue to have an approach in order to exploit growth opportunities in renewable sources in the countries of interest for it, leveraging the experience acquired along its transformation path and the synergies deriving from consolidation with its own portfolio.
ERG'S STRATEGY AND SUSTAINABILITY COMMITMENTS
ERG, in accordance with the 2018-2022 Business Plan, approved the Sustainability targets for the same period in line with UN SDGs and consistent with ERG's strategy of developing renewables and combating climate changes.
ERG's commitments are focused on 3 main threads:
• the development of generation of electricity from renewable sources, which will represents our commitment to combat climate change;
• care for the environment, working conditions and welfare;
• implementation, at Group level, of the new Anticorruption Policy and of the new supplier selection procedures.
| Tackling climate change | People enhancing | Sustainable thinking sustainable acting |
|---|
Our Commitments - discover more!
2Q 2020 Highlights - Recent Developments
- Projects under construction and or/ready to build
Where MW Construction
Commercial
Operation Date
Producibility
Evishagaran
UK 47 started on January 2020 4Q 2021 3,700 heq
Sandy Knowe
UK 50 to start in 4Q2020 4Q 2021 3,100 heq
Craiggore
UK 23 started in 4Q2019 4Q 2021 3,400 heq
Creag Riabach
UK 79 to start in 3Q2020 2H 2022 2,900 heq
Laski
Poland 36 to start in 4Q2020 4Q 2021 2,500 heq
Limousine I
France 15 1Q 2021 4Q 2021 2,200 heq
Champagne I
France 22 1Q 2021 4Q 2021 2,300 heq
Vaa2 ext.
France 7 1Q 2021 4Q 2021 2,100 heq - 280 MW to go under construction/ready to build in 2020 in UK, France and Poland
- Already included 6 months delay due to Covid-19 lockdown
- 280 MW to go under construction/ready to build in 2020 in UK, France and Poland
- Repowering and Reblading in progress
Repowering Project Portfolio in Italy
No. of projects MW AS IS
MW post RPW Grid Connection Advancement of Authorization Expected Commercial Operation Date 3 92 218 Secured VIA Decree signed by Environment Ministry, waiting for signature by F.A.M. (1) 2022 - beginning 2023
2 69 146 Secured Positive opinion Commissione VIA, waiting for F.A.M.(1) opinion 2022 - beginning 2023
2 21 42 Secured Waiting for Commissione VIA opinion 2022 - beginning 2023
7 182 407
Secured Projects well advanced with expected COD by 2022 - beginning 2023 1 43 113
Secured Positive opinion Commissione VIA, F.A.M.(1) negative opinion under recourse 2023+ 2 37 67
Applied(2) Positive opinion Commissione VIA, waiting for F.A.M. (1) opinion 2023+ 4 92 195
Secured Applied for Authorization to Commissione VIA 2023+ 1 18 40
Applied(2) Engineering for Authorization 2023+ 8 190 415
Projects with expected COD 2023+ 15 372 822
TOTAL
Reblading Project Portfolio
No. of projects
MW In operation as of Expected COD
1
13 Avigliano 1 2Q 2019
1
2 Greci 2 2Q 2020
1
20 Obtained VIA Decree 3Q 2021
1
40 Applied for Authorization to Commissione VIA 4Q 2021
4
75
Already included 6 months delay due to Covid-19 lockdown
(1) Fine Arts Ministry
(2) Waiting for TSO confirmation
Source: Second Quarter 2020 Results Presentation
(2) Waiting for TSO confirmation
Source: Second Quarter 2020 Results Presentation
2018-2022 Capacity Evolution: strong execution from 2018 to date
(Growth in installed capacity in MW)
In 2019 ERG made progress towards its growth objectives outlined in the Business Plan, having added 137 MW both originating from M&A in solar power (with particular reference to the acquisition of Andromeda for 51 MW) and in wind power (acquisition of Polaris, 52 MW in France to the more recent acquisition of Barkow, 34 MW in Germany), and having advanced greenfield development (opening construction sites in the UK and obtaining authorisations in France for 37 MW) and the repowering project with the submission of the authorisation requests for a number of MW that may even exceed those included in the Plan.
Source: Annual Report as at 31 December 2019
Page updated at 12 Aug 2020