M&A: Electron Holding launches co-investor search for 400MW solar farm in Romania

Hungarian renewables operator Electron Holding has distributed teaser documents in a bid to find a co-investor for a 400MW, late-stage development PV project in Romania, it is understood.

The group earlier in February secured a binding grid connection agreement for the scheme, located in Batar in Bihor County in the north-west of the country, clearing the way to move towards the asset’s construction phase.

Electron has now started a process to find a co-investor to take a 51% stake in the solar farm by launching the so-called Project Batar transaction, with non-binding offers understood to be due around the end of March.

The group will aim to tie up the investor search by mid-summer, it is understood, after likely taking a handful of interested parties through to more advanced negotiations.

Final development of the asset, which is also designed to feature a 50MW battery component, is due to conclude during Q2 or Q3 2024, with a target of achieving COD in 2026.

Electron is understood to be keen to remain as EPC and energy trader for the Batar PV plant, as well as potentially also O&M.

The group is believed to favour achieving around 70% of the project’s revenues from contracted sources, such as a PPA or CfD, with the remainder structured as merchant.

Meanwhile, bank financing is also believed to be in the process of being lined up to help fund capex, dependent on the preferences of the incoming investor.

Electron is understood to be managing the process in-house, rather than working with a sell-side adviser.

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