Arise has successfully secured a 70% stake in Fenix, a company specializing in solar, onshore wind, and storage projects in Norway and Ukraine. The acquisition, valued at approximately NOK330,000 (€28,800), underscores Arise's strategic move to diversify its business geographically and technologically.
As part of the agreement, Arise will provide financing for Fenix's project development activities. Fenix, boasting a team of nine professionals, including local management in both Ukraine and Norway, brings substantial expertise in the development and construction of infrastructure projects. Notably, the team has a track record of success in Ukrainian wind farm developments predating the recent conflict.
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Fenix's established network in Ukraine grants exclusivity over an initial portfolio of around 300MW comprising early-stage solar, onshore wind, and storage projects. These projects are poised to attain ready-to-build status within the next 12 to 24 months.
The strategic partnership between Arise and Fenix is expected to expedite greenfield development in Ukraine, aligning with Arise's goal of establishing a robust project pipeline in the region over the coming years.
Arise's Chief Executive, Per-Erik Eriksson, expressed enthusiasm about the collaboration, stating, “We firmly believe that renewable energy will play a key role in Ukraine's recovery, and the injection of public capital has the potential to transform Ukraine into a significant destination for foreign investment.”
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Ukraine, with its untapped potential for wind and solar power, is viewed by Arise as a pivotal market in Europe. Despite acknowledging the challenges posed by the ongoing conflict and the associated risks, Eriksson believes there are regions in Ukraine with manageable risk levels where recovery efforts can commence.
He added, “With excellent conditions for both wind and solar power, we view Ukraine as the last big, untapped market in Europe.”
Arise's expansion into Ukraine is regarded as a capital-efficient strategy to establish a substantial presence in the Ukrainian market and build a robust project pipeline for the future.
Notably, Ukraine's energy landscape is dominated by approximately 35GW of predominantly Soviet-era nuclear and thermal plants, contributing to 84% of electricity generation in 2021. A significant portion of this capacity is under Russian control as of December 2023.
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Arise, in addition to its activities in Ukraine, will leverage Fenix's team in Norway to intensify and manage greenfield development in the country. This includes overseeing various leads and early-stage projects currently in the pipeline.
Arise received advisory support from CMS Kluge in Norway, CMS CMNO in Kyiv, and KPMG, while Fenix was advised by GreenCap Partners, Thomessen, and Asters.
