ENVIRIA – Germany’s leading commercial and industrial (C&I) solar company – secures capital commitment of over USD 200 million from BlackRock
Alexandra Siokou
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Frankfurt – Thursday, 29 February 2024 – ENVIRIA, Germany’s leading commercial and industrial (C&I) decentralized energy solutions provider, announced it has entered into a definitive agreement on an equity investment of over USD 200 million from BlackRock, through its Global Renewable Power IV (GRP IV) fund. The additional capital will support the expansion of the already existing 500 C&I solar projects across Germany as part of the company's growth plan.
With this investment, ENVIRIA and BlackRock are leveraging one of the greatest growth areas in the energy transition: offering decentralized energy via rooftop solar and adjacent services at scale. It is estimated that German companies consume around 70 percent of the total national electricity usage1 while only around 10 percent of suitable company roofs are equipped with a solar system.2 This leaves a potential of several hundred GW of renewable energy capacity untapped. With rooftop sizes across the C&I sector being on average significantly larger than residential buildings, renewable energy capacities can be rapidly deployed.
ENVIRIA is challenging traditional ‘grey’ power plants and gradually reduces dependence on fossil fuels by feeding electricity directly into the grid from its powerful solar systems. Supported by its Series A investors Galileo Green Energy, Redalpine, Alter Equity and BNP Paribas Développement, the company has built a portfolio of 500 C&I solar projects across Germany. Its development pipeline includes approx. 2,000 C&I projects totalling more than 2.3GW, with a plan to realize 1.7GW by 2029, thus enabling a successful energy transition.
ENVIRIA’s strong track record in C&I solar development demonstrates the efficacy of its pioneering end-to-end business approach. By covering the entire solar value chain – from installation and maintenance to asset management – the company offers customized solutions to reliably overcome some of the biggest challenges in the industry. Thereby, ENVIRIA showcases the potential for growth for attractive infrastructure solutions in an economic environment that will continue to create demand for renewable energy.
Melchior Schulze Brock, Founder and Chief Executive Officer, ENVIRIA: “We are delighted to have found such a strong partner in BlackRock, who so enthusiastically supports our vision of empowering companies to harness the potential of solar. BlackRock brings exactly the resources we need to continue our growth – both financially and in terms of knowledge. Understanding the complex, capital intense nature of our business, BlackRock is able to support us in realizing the full potential of the C&I sector across Germany. BlackRock’s experience in working with companies in our sector globally, especially in Asia and America, has impressively shown what a successful collaboration can look like.”
BlackRock’s Climate Infrastructure team were first movers in the space and have been investing in renewable power since the late 90s, with investments in over 15 companies and the first investment in solar PV in 2013. Today, they manage US$11 billion in client assets. GRP IV is the fourth vintage of the flagship climate infrastructure franchise and the fund’s LPs include significant capital from German asset owners. This investment is GRP IV’s second, following the fund’s investment in Recurrent Energy in January.
Keith Mangan, Head of EMEA for Climate Infrastructure at BlackRock: “Our investment in ENVIRIA adds to our strong track record of staying ahead of the curve in investing into infrastructure assets that are aligned with the energy transition, an investment theme that continues to show its growth and scalability. ENVIRIA’s unique value proposition as a full-chain PV provider is a stellar example of the deployment of scalable innovation in this sector, making this an attractive exposure for our clients.”
Dirk Schmitz, Country Head of BlackRock in Germany, Austria, and Eastern Europe: “Germany's shift to a low-carbon economy requires significant investment in renewable power infrastructure. We are pleased to provide our clients access to this investment in a promising macro-economic environment for climate infrastructure in Germany. With a strong German investor presence on our Climate infrastructure platform, I am excited that we will be put our clients’ money to work through ENVIRIA locally."
J.P. Morgan SE acted as Exclusive Placement Agent to ENVIRIA on this transaction. White & Case was legal advisor to ENVIRIA.
Closing of the transaction is subject to regulatory approvals and certain terms and conditions in accordance with the transaction agreements.
ENVIRIA makes it radically easy for companies to switch to solar energy. The startup takes on the financing, planning, installation and operation of solar systems, as well as the integration of charging stations and energy storage. Solar systems can be purchased or rented. ENVIRIA also leases company rooftop areas, operates solar systems on them and markets green electricity. With around 200 employees, ENVIRIA has implemented more than 500 commercial projects since it was founded in 2017.
About BlackRock Private Markets
BlackRock’s private markets platform serves investors seeking outperformance in infrastructure, private debt, private equity, real estate, and multi-alternatives solutions. We strive to bring our investors the highest quality opportunities by drawing upon our global footprint, superior execution capabilities, proprietary technology, and position as a preferred partner. As of December 31, 2023, BlackRock manages US$327 billion in liquid and illiquid alternative investments and commitments on behalf of clients worldwide.
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