Arise AB (publ) (”Arise”) hereby presents its growth plan for 2025.
The forthcoming phase-out of fossil energy and rapid technological advances in the energy field constitute a paradigm shift for the consumption of renewable electricity. The consumption of renewable electricity is expected to increase dramatically in the 2020s and 2030s. Investor appetite in renewable energy has never been greater.
Arise has formulated the following growth plan for 2025 to leverage this potential.
International expansion and diversification of the development portfolio
- Investments in large-scale solar power projects in new geographies, including Poland and the UK
- Continued focus on wind projects in early phases in various geographies
Realise 3-5 TWh of new green electricity production
- Invite financial partners to invest in platforms for green electricity production with attractive returns
- This will maximise Arise’s financial returns on its project portfolio through higher development profits and asset management income
- Arise will retain minority interests in these platforms but at the same time will create flexibility to both sell entire projects and independently finance entire projects
Three segments to be reported – Development, Production and Solutions
- Solutions will be reported separately in a new business area that contains project management, asset management and new services, which will increase transparency in the company
- The business area will positively contribute to the company’s growth and profitability and strengthen other business areas
Arise has a strong track record of developing, selling and managing wind power assets, primarily in Sweden. In total, the company has realised almost 1,000 MW of new wind power since it started. With a strong basis in its existing operations, the company is now ready to apply its expertise to new markets in order to realise the company’s full potential. In the first stage, dialogue has been initiated with a number of players in both Poland and the UK to secure project rights for solar power. In parallel with this international expansion, wind projects in early phases, in various geographies, will remain in focus. Other markets and areas of technology will be continuously evaluated.
The company estimates a rate of expansion of an average of more than 300 MW per year by 2025, which is expected to create substantial value. In order to realise this, the company will, among other activities, invite financial partners to invest in platforms for green electricity production, which are managed by Arise. The aim is also for Arise to retain minority interests over time in these platforms. We have the same aim for our existing own farms.
It will be possible to realise both a high rate of growth and diversification through international expansion and broadening of operations into the area of solar power. The company intends to optimise its holdings of renewable production on an ongoing basis in order to create the best possible outcome in terms of profitability, growth, diversification and capital structure. This will create room for dividends in the future even though growth and modest leverage will be prioritised in the short term.
This year, we expected to divest Ranasjö and Salsjöhöjden in their entirety (about 240 MW) and make an investment decision to construct Lebo (about 30 MW). Under the framework of this growth plan, Lebo may initially be financed by the company to maximise flexibility and value creation.
”The energy transition creates a huge window of opportunity. We have a strong starting point with our attractive project portfolio and our production assets. The organisation has a high capacity and will be strengthened further moving forward. Arise has an exciting growth journey ahead, during which a considerably larger company will take shape,” says Daniel Johansson, CEO of Arise.
Halmstad, 26 March 2021
Arise AB (publ)
For further information, please contact
Daniel Johansson, CEO Arise AB, +46 702 244 133
Linus Hägg, CFO Arise AB, +46 702 448 916
This information is information that Arise AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13.00 CET on 26 March, 2021.
Arise is a leading independent company that realises new green energy. The company develops, builds and manages renewable electricity production. The company is listed on NASDAQ Stockholm.