Novavis: Positioning for Growth in the Photovoltaic Market
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According to Novavis' Board of Directors, there are currently about 15 large companies in the market preparing photovoltaic farm projects (including Elektrum, RPower). Many of the less professional project offices are limited to finding suitable land, and are unable to obtain connection approval after obtaining environmental decisions and construction permits. There are project preparation departments at Solar Technik (Grenevia - the company is also involved in farm construction) or Columbus (still 70% of business exposed to the prosumer).
Onde mainly deals with turnkey construction of photovoltaic farms, and ESoleo (Zygmunt Solorz) mainly operates in the prosumer area. Novavis, for the time being, does not see any interesting companies to acquire on the market. Rather, the company is focusing on finding more land for development.
Financial forecasts
In our forecasts, we try to take a fairly conservative approach to estimating the timing of the next phases of PV farm projects. We assume that in 2023 mainly NG5, NG14, NG1, NG2, NG 13 projects (projects in cooperation with Iberdrola) will contribute to the financial results. On the cost side, the main expenses in 2023 will, in our opinion, be the cost of advances for connections to the network and the cost of work by external companies (working capital).
In the following years, advances for new connections will decrease, and revenues will increase as projects reach their next stages of development. In addition, we assume that in 2025-27 Novavis will gradually liquidate completed projects of its own farms (in addition to contracts with Iberdrola).
