The project portfolio is the basis for our success
A portfolio of high-quality projects that are developed and optimised over time – this is what makes Eolus a successful project developer in renewable energy and energy storage. It also forms the basis for our entire offering of design, operation and management.
Market conditions change over time in terms of technological advancements, establishment costs, electricity prices and investor requirements and requests. Eolus’s strategy has a major focus on the development, sale and establishment of projects that we believe in – those that have the very best conditions to be realised at the lowest cost per MWh, regardless of technology or market. Over the years, we have succeeded in meeting the changing demands and requests of investors. At present, Eolus conducts project development operations in Sweden, Norway, Finland, the US, Poland and the Baltics.
Our portfolio
Eolus’s project portfolio includes both proprietary and acquired wind, solar and energy storage projects in various phases of development and in a range of markets. In some cases, projects are developed and realised together with one or more partners. Development and optimisation is an extensive, long-term process and not all projects are realised, perhaps because we are unable to obtain the necessary permits or the establishment cost per MWh becomes too high. In the vast majority of cases, all project development is carried out at Eolus’s own risk. A recent trend is for the sales process to start earlier, with investors already involved during project development, before permitting is completed.
Turnkey facilities are the norm
Eolus’s projects are realised in different ways, depending on the type of investor and their requirements. Projects can be constructed and sold as turnkey projects, where Eolus provides the financing until handover to the customer. Another method is where Eolus sells the project rights and then signs various forms of contract taking responsibility for the construction of the facility on behalf of the investor. Depending on the type of contract signed, revenue is recognised after construction and final commissioning or is recognised according to the percentage of completion method. Project development activities are mainly financed using equity, construction loans or advance payments from customers.
Offshore, solar and storage
Offshore wind power will play a key role in the transition to a sustainable electricity system. As establishment costs fall, more offshore wind power will be established. Eolus is aiming to be a clear part of the value chain in this segment by being involved in the development of attractive projects.
The project portfolio for solar power and energy storage is in earlier stages of development than wind power projects and Eolus has not yet established any facilities in these technologies. The portfolio consists of projects in the US at present, but we see great potential to broaden the portfolios moving forward to include projects in our other markets. One positive aspect is that permitting and establishing solar power projects generally takes less time than for wind projects.
Reporting provides clarity
We want the information about Eolus’s project portfolio to be clear and so we are reporting the ongoing status of our top-priority projects over the next few years. We summarise the status in interim reports and here on our website. Other, lower-priority projects in Eolus’s project portfolio may be included in this summary if they meet the demands and requirements of investors. A project can also be removed from the summary, depending on how it develops.
Read about Eolus’s operation and management offering for established projects here.