2020. Between resilience and a continued push for growth
By Francesco CALABRETTA – Cluster Lead Hungary & Italy
A unique year that we will unfortunately remember. 2020 is coming to an end but what characterized it, that is, 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 serious difficulty and a recovery that will have to be postponed at least until spring 2021. Always trusting in the effectiveness of the vaccine and its rapid diffusion among the weakest sections of the population.
A complex year also for the energy sector, which recorded - due to the blocking or slowdown of production activities - a significant reduction in energy consumption. The Italian data for the third quarter speak of an increase of 18% compared to the first part of the year, but of a minus 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 marking a -5% (World Energy Outlook).
This year – it must be said – horrible there positive note it concerns the development of renewables, never as strong as today. According to the 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 increase by around 4% globally in 2020, reaching almost 200 GW. In this context, 90% of new electricity generation will come from renewables and only 10% from gas and coal. Solar PV is growing the most, followed by wind. Hydroelectricity is performing less well. Long-term contracts, higher renewable capacity auctioned (+15%) and the installation of new plants have contributed to this year's success, maintaining high interest among those who believe and invest in RES.
As analysts write, in October 2020, shares of solar PV companies around the world had more than doubled in value compared to December of the previous year.
So, resilience in the face of contingency certainly, but a convinced and continuous push for growth. A phrase that can also be well suited to 2020. Audax Renewables.
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 lockdown policies severely affected production activities in Italy, Spain and other markets where we are present. The 3Q data show substantial stability, with EBITDA slightly increasing compared to the 2019 financial year (+3%).
If we consider the actions implemented to promote growth, 2020 was a year full of activities and achievements.
First of all, 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 agreement was signed for the acquisition of 100% from E.ON Energiakereskedelm. (Eker), a Hungarian company operating in the electricity marketing, which is 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 a significant 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 leading 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 significant initiatives. From the point of view of financial view, there have been several emissions of so-called green bonds. In November, one was completed on the international market for a total amount of 125 million euros, involving 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, to the over 185 MW of wind energy capacity already active, 320 MW will be added deriving from the development of photovoltaic projects, some already under construction.
All actions that fall within the development strategy to 2022 whose three pillars are: the continuation of an expansion policy in other markets, the consolidation of the position as the leading independent supplier in the Spanish SME segment and the stipulation of other PPAs (Power Purchase Agreements) up to covering 2/3 of the energy sold. A system of PPA agreements that, in 2019, saw Audax Renovables among the European protagonists.
Looking at theItaly, the work of strengthening and expanding 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 the home or work space: electric mobility and micromobility, energy efficiency solutions, assistance and facility management. Regarding this last item, I would like to mention the agreement made 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 your supply: mobile app, reserved area, customer care multichannel.
All in a sustainable way, given that 100% of the electricity supplied comes from renewable sources and the gas is Co2 free.
To face a certainly challenging 2021 we need all the energy we can get.
