Epopee Gestion, through its maiden infrastructure fund Epopee Infra Climat I, has committed to invest EUR 30 million in a French agrivoltaics platform, further expanding its footprint in sustainable infrastructure. This is the third investment by the fund, showcasing its dedication to supporting renewable energy and integrated environmental projects. The new venture involves a partnership with EnerVivo, a Bordeaux-based solar PV developer, focusing on agrivoltaics—a promising synergy between agriculture and solar power generation. Let’s take a deeper look into this unique investment and its broader impact on sustainability.
What is Agrivoltaics? 🌞🌾
Agrivoltaics involves the combination of solar power generation with agricultural activities, thereby optimizing land use. It includes installing solar PV panels on greenhouses, shade structures over farmland, and even rooftop installations on agricultural buildings. By combining agriculture and solar energy production, agrivoltaics can potentially increase land productivity while providing shade that benefits crops and maintaining power generation.
The investment platform, established in partnership with EnerVivo, is expected to play a key role in developing a mix of agrivoltaic projects that enhance sustainable farming while also contributing significantly to renewable energy production.
The Investment Details 💶📊
The Epopee Infra Climat I fund is injecting EUR 30 million into this project as part of a broader partnership with EnerVivo. EnerVivo itself is committing an additional EUR 7 million to the platform, which is majority-owned by Epopee Gestion. The funds will be used to support 40 projects already secured, with a combined energy production capacity of 104 MW. The platform aims to achieve a total capacity of 200 MW, with project sizes ranging from 1 MW to 30 MW and development costs between EUR 1 million and EUR 15 million.
The investment aims not just to deploy solar PV technology but also to establish a financial model that empowers farmers. EnerVivo offers farmers the opportunity to become co-shareholders in the projects, which enables them to directly benefit from renewable energy production on their land.
Financial Modelling Considerations in Agrivoltaics 📉🔧
Financial modelling for agrivoltaics must address the unique dynamics of combining agriculture and energy production. Here are key considerations:
- Dual Revenue Streams: Agrivoltaic projects generate revenues from both electricity production and agricultural yields. Financial models must accurately forecast both streams, accounting for seasonal variations in crop production and solar output.
- CapEx and OpEx Allocation: The capital expenditure (CapEx) for agrivoltaic projects often includes additional infrastructure for crop protection and shade optimization. Models must incorporate these costs while also assessing operational expenses (OpEx), such as maintenance of both PV systems and agricultural components.
- Land Use Efficiency: Since the land is used for dual purposes, financial models must evaluate the land productivity gains and compare them with the baseline agricultural income. The Net Present Value (NPV) of agrivoltaic projects is therefore affected by the balance between electricity generation revenues and agricultural gains.
- Co-ownership and Profit Sharing: With farmers becoming co-shareholders, the financial structure becomes more intricate. Profit-sharing agreements must be carefully modelled to ensure equitable returns for all stakeholders, including investors, developers, and farmers.
Broader Impact and Sustainability Goals 🌍🚜
This investment marks a crucial step towards achieving the EU’s sustainability goals by promoting energy diversification and optimizing land use. Agrivoltaics not only helps in addressing the energy needs of rural areas but also supports local agriculture by creating a more resilient and sustainable farming system. Projects like these illustrate the value of Article 9 funds, which focus on environmentally sustainable investments with a measurable positive impact.
EnerVivo is well-positioned to lead these efforts, having been founded by experts Sylvain Frederic, Vincent Girault, and Damien Leonard. The team brings extensive knowledge in renewable energy development, making EnerVivo a valuable partner in driving these projects to success.
Epopee Gestion’s Strategic Expansion 🚀
This is the third transaction for Epopee Infra Climat I after recent investments in the electric vehicle charging sector, including Qovoltis and Greenspot, focusing on the EV infrastructure sector. This diversified portfolio approach aligns with Epopee Gestion’s aim to support the energy transition through targeted investments in sustainable infrastructure, particularly in Western France.
Conclusion
Epopee Gestion’s latest investment in French agrivoltaics represents a significant leap forward in the integration of renewable energy with agricultural practices. By enabling dual land use, agrivoltaics offers a unique opportunity to increase both energy capacity and agricultural productivity, making it a pivotal part of the sustainable energy strategy in France. The combination of EUR 30 million from Epopee and EUR 7 million from EnerVivo sets the stage for a powerful partnership aimed at creating a sustainable future.
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