2020. Between resilience and continuous growth
By Francesco CALABRETTA – Cluster Lead Hungary & Italy
A single year which unfortunately we will remember. 2020 is coming to an end but what characterized it, namely the Covid-19 pandemic, will certainly not end on December 31st. It is highly probable that another wave of infections awaits us, new closures and confinements, an economy in great difficulty and a recovery to be postponed at least until the spring of 2021. Always trusting in the effectiveness of the vaccine and its rapid diffusion among the most vulnerable groups weak of the population.
A complex year also for the energy sector, which recorded - thanks to the blockage or slowdown of production activities - a significant reduction in energy consumption. The Italian data relating to the third quarter speak of an increase in 18% compared to the first part of the year, but a lower 7% compared to 2019 (ENEA). In short, the road is still uphill. Numbers and percentages that we also find at a global level, with demand recording a -5% (World Energy Outlook).
In this year – it must be said – horribilis there positive note it concerns him development of renewables, never as strong as today. According to Renewables 2020, the annual report of the International Energy Agency IEA, RES used for electricity generation will grow by almost 7% this year, with a new record estimated at +10% in 2021. Net installed renewable capacity will rise by around 4% globally in 2020, reaching almost 200 GW. In this framework, 90% of new electricity generation will come from renewables and only 10% from gas and coal. Solar photovoltaic is growing the most, followed by wind power. Hydroelectric is less good. Long-term contracts, greater renewable capacity auctioned (+15%) and the installation of new plants have contributed to this year's success, keeping the interest of those who believe and invest in RES high.
As analysts write, in October 2020, shares of solar photovoltaic companies around the world had more than doubled in value compared to December of the previous year.
Therefore, resilience in the face of contingency of course, but a convinced and continuous drive for growth. A phrase that can also adapt well to 2020 Audax Renovables.
As far as our Group is concerned, the resilience capacity was aimed at containing the effects of the decline in energy consumption, especially strong in the first half of the year, when the lockdown policies severely hit production activities in Italy, Spain and in the other markets where we are present. The 3Q data show substantial stability, with an EBITDA slightly increasing compared to the 2019 financial year (+31TP3Q).
If we consider the actions implemented to encourage growth, 2020 was a year full of activities and results.
First, it was on the plan of international expansion, according to a strategic line that has led the Group to enter 9 different energy markets from 2012 to today. The last stage of this journey is theHungary. In July, a purchase and sale contract was signed for the acquisition of the 100% of E.ON Energiakereskedelm. (Eker), a Hungarian company operating in the marketing of electricity, in turn part of E.ON Hungária. Thanks to this agreement Audax Renovables now controls 25% of the Hungarian energy market for SMEs, Large Industry and PA, increasing the number of customers by approximately 80,000 units and increasing the volume of energy supplied up to 6TWh/year.i Kft
This is an important project, which involves me personally - as Cluster Lead Hungary & Italy - and which brings a bit of Audax Italia to those latitudes too.
Moving to the far west of Europe, I would like to highlight the further growth in Portugal thanks to the acquisition of PH Simples, an energy sales company. Following the operation, Audax became the first independent energy group in the Portuguese electricity market, with over 23,000 customers, a volume of energy supplied of 1.2 TWh/year and a total turnover of 175 million euros.
But these were not the only notable initiatives. From the point of financial view, there have been several issues of so-called green bonds. In November, one was finalized on the international market for a total amount of 125 million euros which involved over 50 investors. The operation was coordinated by Goldman Sachs International and BNP Paribas.
In the previous months there had been bond issues destined for the MARF, the Mercado Alternativo de Renta Fija of the Spanish Stock Exchange, for a total amount of 200 million euros.
The objective of these operations is twofold: to increase the liquidity and solidity of the Group and, at the same time, to be able to finance or refinance "green" projects such as the construction of plants for the generation of renewable energy from photovoltaic and wind power. A further way to strengthen the Group's position in the field of "green" energy production. In fact, the over 185 MW of wind energy capacity already active will be added to the 320 MW deriving from the development of photovoltaic projects, some already under construction.
All actions that fall within the development strategy to 2022 and whose three pillars are: the continuation of an expansionary policy in other markets, the consolidation of the position as the first independent supplier in the Spanish SME segment and the stipulation of other PPAs (Power Purchase Agreements) to cover 2/3 of the energy sold . A system that of PPA agreements which, in 2019, saw Audax Renovables among the European protagonists.
Looking at theItaly, the work to strengthen and expand the offer continues. Energy is the starting point – indispensable, because without it nothing or almost nothing is possible – from which to move to propose a multiplicity of services value added intended for domestic or work spaces: electric mobility and micromobility, energy efficiency solutions, assistance and facility management. Regarding this last item, I would like to recall the agreement signed with Generali for home assistance dedicated to our customers.
To these activities must be added the commitment to improve the usability of the service, with the development of all those applications that allow easier, freer and - therefore - more convenient management of one's supply: mobile app, reserved area, customer care multi-channel.
All in a sustainable way, given that the 100% electricity supplied comes from renewable sources and the gas is Co2 free.
To face a certainly challenging 2021 we need all the energy possible.
