Restructuring report shows good future prospects for BayWa r.e.

The core of the planned measures is a stronger focus on business areas with positive market outlooks where BayWa r.e. already holds a solid competitive position. This includes project development in the wind, solar, and battery storage sectors, as well as operating these plants as an Independent Power Producer (IPP). Together with energy trading, which offers strong synergies with the IPP business, BayWa r.e. is well positioned across the entire value chain. The strategic goal is to establish a focused project developer in the renewable energy sector with its own IPP portfolio. 

Like BayWa AG, BayWa r.e. has reached a standstill agreement with its financing banks, effective until 31st December 2024. Under this agreement, the banks have extended additional guarantee lines totalling €125 million. Energy Infrastructure Partners (EIP), a minority shareholder in BayWa r.e., has also provided an additional shareholder loan of €36 million. 

To lead the restructuring efforts, Felix Colsman (54) joined the Board of Management of BayWa r.e. as Chief Restructuring Officer (CRO) on 16th August 2024. Colsman brings with him extensive experience in renewable energy and corporate restructuring, having successfully guided companies back to growth through targeted realignment strategies. His previous roles include management positions at DAH Group, Johnson Controls, Minimax, and the Boston Consulting Group, amongst others. 

Felix Colsman, CRO of BayWa r.e.: “The draft restructuring report outlines a promising future for BayWa r.e., achievable through targeted restructuring measures. We have already begun implementing some immediate actions, such as the closure of our software development division, and are actively working on others. With our integrated approach, combining the development and operation of wind farms, solar plants, and battery storage projects alongside our established electricity trading business, we see significant opportunities in the renewable energy sector. As a project developer with a focused IPP business, we are going to achieve healthy and profitable growth.” 

BayWa r.e. expects to successfully complete the ongoing sales of solar, wind, and battery storage projects in the second half of 2024, particularly in the fourth quarter. Recently, the company sold four solar projects in the UK to one of Europe’s largest renewable energy investors. In Germany, BayWa r.e. handed over three wind farms to their future operators in October. BayWa r.e. expects additional project sales in the coming weeks, including solar projects in the US, Germany, France, and Poland, as well as wind projects in Austria and the UK. 

Matthias Taft, CEO of BayWa r.e.: “As has been the case in previous years, most project and plant sales typically occur at the end of the year. Overall, we expect a sales volume of over one gigawatt in the Projects segment during the second half of 2024. This reaffirms our solid position in our core business of developing, implementing, and operating renewable energy projects.”