Novavis Group: Innovating the Renewable Energy Landscape

Navavis Group - business model

Novavis Group is an entity operating in the Renewable Energy industry. The Group pursues a strategy based on the preparation of photovoltaic projects for construction, as well as innovative electricity storage and management systems. Novavis has a portfolio of 583 MW of capacity of photovoltaic farm projects that will reach ready-to-build status within 2-3 years.

The company's main activities are searching for land for the construction of PV farms, securing them with lease agreements, obtaining environmental and construction permits, connecting to the grid and permission to build a connection. Once the above formalities are completed, the project is ready to be sold to an investor who will carry out the physical construction of the energy source.

Currently, Novavis has a portfolio of 583MW of power projects for the construction of photovoltaic farms with a total area of more than 500 hectares secured by lease agreements for a period between 21-29 years. At present, prices for ready-to-develop photovoltaic farm projects in Poland range between EUR 140,000-180,000/MW, which means that the above portfolio, after obtaining the required permits, will acquire a market value in the vicinity of PLN 360-470mn. The development time of a large-scale PV project for construction is usually 1.5-2 years.

 

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Novavis in 2022 signed a framework agreement with Iberdrola Renewables Poland for the preparation of 350MW of photovoltaic projects, which was later expanded to 425MW. The cooperation is expected to last until at least 2027 with the possibility of extension. Iberdrola currently has RES investments in Poland of about 600MW of capacity (in the design phase). The agreement with Iberdrola stipulates that payment for the project will be made when milestones are met within 14 days of implementation. As a result, Novavis is prepaid at any point in the project work, which does not require significant expenditures to finance operations (the largest expense is the deposit for connection conditions - PLN 30,000 per MW).

 

Within the framework of cooperation with Iberdrola, there are currently 12 projects in progress at varying degrees of advancement with an expected connection decision at the end of 2023 and the middle of 2024. We estimate that the value of the projects with Iberdrola has been set at around EUR 80tsd/MW, resulting in a pipeline of projects worth more than PLN 180mn. Most of the payments from Iberdrola will fall in late 2023 and 2024 according to this schedule