Baywa has recorded €1.5 billion ($1.63 billion) in revenue from its renewable energy business in Q1 2023, which represents just under 25% of the group's total quarterly revenue of €6.3 billion ($6.8 billion). While this quarter saw a slight downturn in revenue and a 17.1% YoY decrease in earnings before income and taxes (EBIT) for Baywa's renewable energy development arm, Baywa r.e, the company has described Q1 2022 as an exceptional quarter and expects significant project sales in H2 2023 to give larger returns.
PV and energy trading were the biggest drivers of earnings for Baywa's renewable energy business this quarter, making it the best-performing business segment in both revenue and EBIT. Marcus Pöllinger, Baywa CEO, said that the results lay a good foundation for the rest of the year and that the volatile market environment of one year ago has since settled down somewhat.
Baywa's plans to sell Solar Trade, the solar trading business that it owns under Baywa r.e, were announced in March, and the proceeds from the sale will be used to expand Baywa r.e's project business volume threefold by 2026. The company has already sold a 115MW Spanish PV portfolio to L&G NTR Clean Power Fund in January, with a number of corporate power purchase agreements (PPA) in place for the projects.
Overall, Baywa's Q1 2023 performance highlights the company's continued success in the renewable energy sector, despite the challenges posed by the COVID-19 pandemic. As the demand for renewable energy solutions continues to grow worldwide, Baywa is well-positioned to capture more market share and drive sustainable growth in the years ahead.
