ABO Wind realises more projects than ever

wind turbines in the German Hunsrück region
ABO Wind has dismantled nine wind turbines commissioned more than 20 years ago in the German Hunsrück region in recent months. A new wind farm is now under construction at the same location. As of 2024, the three modern wind turbines will produce significantly more electricity than the nine old ones. The project is among many projects currently being implemented by ABO Wind, particularly in Germany.

(Wiesbaden, 30 May 2023) The acceleration of the energy transition in Germany and other countries is boosting ABO Wind's business development. "We are well on track and satisfied with the business figures of the first quarter," says Managing Director Alexander Reinicke. There is evidence that the group will generate a net profit of significantly more than 20 million euros in 2023. The company achieved this for the first time in the 2022 financial year. Further increases are expected in the coming years. Meanwhile, the number of ready-to-build projects is increasing significantly. To be able to rapidly build as many of these wind and solar farms as possible in the company's European core markets, the Managing Board is currently examining various options, such as a capital increase. A lot of capital is needed during the construction phase. Building many projects at the same time requires appropriate liquidity. The invested funds will flow back after the project financing and sale are completed. "In order to fully exploit the favourable and improving conditions for renewable energies, we are considering various financing options, including issuing new shares," says Reinicke. However, no decisions have been taken in this regard so far.

The reason for the good development in the first quarter and the positive outlook is the growing number of permits. Currently, this trend is particularly noticeable in Germany. Nationwide, the approved wind energy output grew by 59 percent in the first quarter of this year compared to the same period last year. In March, the approved capacity exceeded the threshold of 1,000 megawatts. So far, a higher monthly value has only been achieved once before. ABO Wind is benefiting from this positive development. In the first five months of 2023, the company has already obtained permits for more than 70 megawatts of wind energy capacity in Germany. ABO Wind expects to obtain permits for a total of around 200 megawatts of wind energy in Germany in 2023.

The growth of renewable energies is being driven by legislative changes that are increasingly taking effect. For example, the German Federal Government has adapted the "Onshore Wind Act" in line with the EU Emergency Ordinance. Approval procedures in designated wind priority areas are no longer subject to species protection assessments. This is expected to speed up procedures and further increase the number of permits. Several of ABO Wind's ongoing wind energy projects have already benefited from the amendments because the courts and authorities have drawn the appropriate conclusions. In Germany and other European core markets, ABO Wind aims to build turnkey projects as a general contractor. Therefore, obtained permits in these countries have an impact on liquidity requirements.

In Colombia, ABO Wind has also developed solar projects that are now ready to build. The two projects, each with a capacity of around ten megawatts, are the first ones that ABO Wind is building on a turnkey basis in Latin America. The construction phase has begun. Commissioning is planned for the first half of 2024. This means that these projects will also tie up liquidity until they are sold after completion. The same applies even more so to the two Finnish wind farms Pajuperänkangas (87 megawatts) and Illevaara (30 megawatts), which are scheduled for construction at the end of 2023. Pajuperänkangas is the largest project to date that ABO Wind is building on a turnkey basis. It contributes significantly to the fact that the company is currently building more megawatts on a turnkey basis than ever before.

In particular, the development in Germany indicates a further increase of this trend. In the past ten years, the company had commissioned an average of 75 megawatts per year in Germany. In 2023, this milestone was already reached at the end of May. And there will be more to come: 19 renewable energy projects with a total capacity of around 200 megawatts are in a very advanced stage in the company’s German home market. These projects are either already under construction or about to be built. Of these, wind energy projects account for 80 percent and solar projects for 20 percent. Another seven wind energy projects with a capacity of around 100 megawatts have been fully permitted. As soon as tariffs are secured for these projects, they will also enter the construction phase in the short term. In addition, further approvals are expected for more than 100 megawatts of wind energy capacity this year, as well as for more than 100 megawatts of additional solar capacity. Construction is expected to begin in the next 13 months.

Due to the large number of projects currently under development particularly in Germany, it can be assumed that the volume of projects in the construction phase will continue to grow after 2025. "It is a rewarding task for the Managing Board to master the challenges associated with the realisation of a steadily increasing project volume," says Reinicke.

Download press photo


Alexander Koffka

Alexander Koffka

Tel. +49 611 267 65-515
Fax +49 611 267 65-599