BayWa AG is strategically restructuring BayWa re to sell its solar business. In the future, the subsidiary will focus on international projects as an independent power producer (IPP).
BayWa AG says it wants to sell its BayWa re subsidiary’s solar product distribution business. It aims to use the sale proceeds to expand the unit’s portfolio as an IPP to 3 GW with the aim of tripling its renewable energy project business by the full year 2026. According to the German conglomerate, BayWa re’s project pipeline currently comprises 24 GW of projects.
BayWa re’s solar energy trading division has 20 distribution companies and more than 1,400 employees around the world. It says it has the potential to increase annual sales of solar modules and inverters to more than 10 GW. However, the Munich-based group did not provide information on the expected sales revenue.
“Thanks to a powerful buyer, we have the opportunity to continue the exceptional success story of the group that started in 2008,” said Klaus Josef Lutz, CEO of Baywa AG and Chairman of the BayWa Supervisory Board. “Today, we are an important accelerator of energy change. We collect more than half of the group’s profit from renewable energy sources.”
According to BayWa’s spokesperson, the strategic restructuring is related to the capital increase launched at the end of 2020. Since then, the Swiss investor Energy Infrastructure Partners (EIP) has taken a 49 percent stake in BayWa re, and the parent company BayWa AG owns 51 percent. BayWa re has received 530 million euros ($563 million) in capital investment.