Greek-Spanish conglomerate Etem Gestamp to acquire solar energy via Bulgarian Private Equity Fund, Growth

Greek aluminium extrusion provider Etem Group and the Spanish automotive components supplier, Gestamp, signed a partnership deal, resulting in a joint venture called Etem Gestamp, that has now adhered to a ten years power purchase agreement (PPA) with a Bulgarian renewable energy investor, Growth for 4 GWh of solar energy annually, as was reported by consultant, Elnova on August 3.

As early as March, Etem Gestamp had declared that it would invest more than a 120million levs or US$62.5 million to upgrade its facility in Sofia that makes components for cars.

After the Paris Environmental Agreement signing in 2015, several concerned companies are shifting toward a more sustainable option to produce their individual products. While the aluminium industry is a power-intensive area, with Gestamp moving towards solar energy, the company might save a massive amount of money and also deliver good quality products all at once.

Etem Gestamp will satisfy 100 per cent of its energy requirements from a currently under-construction solar plant scheduled to begin operations in the autumn of 2022, as the Bulgarian electricity enabler Elnova declared after rigorous discussions about the configuration of the transfer. 

The CEO of Etem Gestamp, Emanuel Fundukis, commented: “The purchase of electricity from this new solar plant is our next step towards more sustainable aluminium extrusion with facilities powered by renewable energy.”

Elnova claims that this is the first deal forged between a producer and an industrial consumer of electricity that confirms the regular supply of green electricity generated in the solar plant.

Etem Gestamp, to produce extruded aluminium profiles without any distraction, will buy energy at a fixed price given that the spark provided is arriving from a green source and is 100 per cent certified. Etem Gestamp excels in making aluminium extruded components required by the automotive industry.

In a press release, the Private Equity Fund, Growth’s executive director, Dimitar Vartigov, alluded: “The contract enables us to predict the project’s cash flow for the next ten years, which is almost unattainable via other market instruments. This motivates us to continue investing in new renewable energy projects because, with this type of contract, we get security, stability and conviction.”

Founded in 2012, Private Equity Fund – Growth helps start-ups boom with sound investments, with emphasise on digital or green technologies or renewable energy projects with the capacity of 5 MW, not more. The private equity fund is also trying to elongate its target portfolio by future investments in carbon-neutral assets.