German renewables firm BayWa r.e. AG is set to intensify its focus on project development in the wind, solar, and battery storage sectors, as detailed in a draft restructuring report. The company's strategic goal is to solidify its position as a dedicated project developer within the renewable energy sector while maintaining its role as an independent power producer (IPP) with a diverse portfolio.
The final version of the restructuring report, expected in December, highlights promising prospects for the company, contingent on the successful implementation of targeted measures. BayWa r.e. has already begun executing some of these actions, including the closure of its software development unit.
In a proactive move, the company aims to sell over 1 GW of projects in the latter half of 2024, aligning with its goal of increasing sales in its project segment. This strategic pivot comes as BayWa r.e. and its parent company have entered into a standstill agreement with their financing banks, securing additional guarantee lines totaling EUR 125 million (USD 134.6 million). Additionally, minority shareholder Energy Infrastructure Partners (EIP) has provided a EUR 36 million shareholder loan to support the firm.
However, the company has faced challenges, reporting EUR 171.5 million in impairment losses in the first half of 2024, primarily due to write-downs on wind and solar assets. The restructuring aims to navigate these obstacles and position BayWa r.e. for future growth in the renewable energy landscape.
