7C Solarparken AG has reached an important milestone in its Strategy 2015-17 by fully executing the optimization of the Miskina portfolio (13.7 MWp) which has been acquired last year. The optimization encompasses an improvement of the performance ratio (PR) and a re-financing of the project loans, and exceeds management forecasts which have been communicated on last year’s Investor Day. Management’s priority will now shift to growth as to reach the 105 MWp target before year-end 2017.
Two parks within the Miskina portfolio, Kissing (2.4 MWp) and Wiesenbach (1.8 MWp), have been yielding a PR of hardly 70% versus 77-78% levels achieved by the others parks in the portfolio. Through internalizing the O&M contract and exchanging the old stringboxes, inverters and transformers through high-efficiency equipment, both installations now reach a PR of 79% which bring EUR 160T in additional revenues per year. Further cost savings will result from a five-year inverter warranty, less repair costs and a reduction of own power usage by the stringboxes. While the improvement is fully matching management’s indication outlined at last year’s Investor Day, the total investment cost of EUR 0.7 Mio fell short of the EUR 1.0 Mio plan.
Parallel to the re-powering of the plant, management also executed a re-financing of the existing project loans. Under the new basis and excluding free available liquidity, net debt will amount to EUR 31.9 Mio at the end of June 2016. The average fixed interest rate has been reduced from 5.5% to 2.05% and will therefore generate annual savings of EUR 1Mio. The redemption penalty on the entire loan portfolio has been limited to EUR 2,3 Mio versus the management’s initial estimate of EUR 2,4 Mio which even did not reflect a re-financing of the loan on the Kissing project. On a like-for-like basis, the total saving therefore amounts to EUR 0.6 Mio which almost covers the technical optimization cost.