The company aims to selectively reduce its ownership in certain assets to support its expansion. Credit: Zhengzaishuru/Shutterstock.com.

French renewable energy developer Neoen is contemplating the sale of a 30% stake in its Australian subsidiary, a Bloomberg has reported, citing people familiar with the matter.

The move aims to raise more than €1bn ($1.1bn) to finance the company’s growth in Australia beyond 2025. This strategy would allow it to avoid issuing new shares for the Paris-based parent company.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The potential sale, advised by a financial consultant, could occur in the latter half of the year. However, no definitive decision has been reached.

The company has declined to comment on these private discussions. Amidst high trading levels in US and European markets, its shares have seen a 16% decline this year.

Its performance has been affected by investor worries over rising interest rates and equipment costs, which could impact returns from solar and wind projects.

In March 2023, Neoen announced an unexpected €750m capital increase to boost growth and expedite its battery storage ventures, further influencing its market position.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Owned 42% by Impala SAS, Neoen has indicated a willingness to ‘selectively reduce its ownership in certain assets’ to support its expansion.

With over 3.75GW of assets in Australia, making up 47% of its portfolio, Neoen has established significant energy storage projects like the Hornsdale Power Reserve and the Victorian Big Battery.

In June last year, The Australian Energy Market Operator (AEMO) had selected Neoen to build a 197MW battery energy storage system (BESS) in Western Australia (WA).

This contract to build the battery with a four-hour storage capacity was won in a competitive tender launched by the Western Australian co-ordinator of energy.

In the previous year, it also secured solar tenders amounting to 238.5MW from the French Government. These projects were divided into two categories, with Neoen winning two ‘canopies and buildings’ projects totalling 16.9MW and 15 ‘large-scale ground-mounted’ projects totalling 221.6MW. Neoen’s French portfolio now exceeds 2GW.