Chile, USA, Africa: Cap Vert Energie is accelerating its international development
Chile, USA, Africa:
Cap Vert Energie is accelerating its international development
Cap Vert Energie, a French producer of renewable energies, is positioned in the photovoltaic and biogas markets in France. It employs a direct energy sale model for the B2B market. The group is now ramping up its international expansion.
Paris, May 12, 2017 – Within five years we aim to increase our production capacities by 10 times to nearly 820 MWp of installed capacity and capacity under construction, over half of which will be abroad,” said Pierre de Froidefond, one of the founding partners of Cap Vert Energie, alongside Christophe Caille and Hervé Lucas. The group opened subsidiaries in Chile and North America in 2015 and 2016 respectively. As a French energy company, Cap Vert Energie continues to grow and develop internationally by capitalizing on its fundamentals: industrial know-how, strong financial and industrial partners and its vision as an independent producer of renewable energies engaged in the direct sale of energy to businesses and communities.
The decision to locate Cap Vert Energie facilities in the states of New York and Massachusetts and in Chile, with Africa prospecting from its headquarters in Marseille, is the result of market research, policy analysis and the local climatic conditions. “Chile, for example, benefits from ideal sunshine conditions (around 3,400 kWh/m²/year), a direct energy sales model and a free market for subsidies. This is in keeping with our strategic vision for the development of renewable energies” explains Pierre de Froidefond. The three photovoltaic units under construction in Chile will come into operation in June 2017, producing 23 GWh (Giga-Watt hours) of electricity throughout the year, equivalent to the consumption of 25,000 inhabitants.
Cap Vert Energie has adapted its strategy to each country by offering private Power Purchase Agreements (PPA) in Chile and the USA. Encouraged by US policies, Cap Vert Energie is considering developing a community solar model in the USA. “In Africa, poor structuring of power grids and the growing desire of manufacturers to decarbonize their energy mix has guided us towards a renewable electricity offering which meets the needs of industrial companies, such as cement manufacturers” explains Pierre de Froidefond.
To support its foreign development, the group has strengthened its equity by
€19 M as at the end of 2016 and is considering a new fund raising round in early 2018. Cap Vert Energie adapts its financing tools to each stage of the project. Development is financed through equity, construction through short-term borrowings and operations through 80% long-term bank debt and 20% mezzanine financing.
To improve its autonomy, Cap Vert Energie has chosen to internally develop the skills and the engineering required for its projects. “To support our development, we have recruited 4 people in Chile and 3 in the United States, and we plan to recruit 6 new employees for our subsidiaries by the end of 2017”, underlines Pierre de Froidefond.