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Leading the charge away from carbon

The French power market is undergoing a major transition as it looks to reduce its reliance on nuclear generation and to increase generation from renewable sources of energy such as wind and solar.

Renewables benefit from strong support from the French Government, who played a central role in the 2015 Paris climate accords.
There is a national objective to have 32% of power generated in France contributed by renewables by 2032 and 100% carbon neutral energy generation by 2040.

Addressing UN Sustainable Development Goals

1000 MW

wind power capacity installed

3.5 GW

in development

73%

of France's electricity comes from nuclear with plans to reduce to 50% by 2025 through switch to renewables

“Lack of ambition will cost us dearly. Wind and solar are unbeatable. ”

Jean-Yves Grandidier, Chairman Valorem

Valorem was established in 1994 and has grown into a leading independent renewable energy development and operating company. It is one of the largest onshore wind developers in France, having developed over 750MW of capacity over the last 10 years. As of the start of 2020, the company had 3.5GW in development. Valorem, which employed 260 people in 2019, is headquartered in France and operates in the Caribbean, Northern & Eastern Europe, North Africa and Latin America. Valorem initially focused on wind power, but the company has subsequently expanded into solar and hydro power.

When developing projects, Valorem pays particular attention to the environmental impact of its projects and works closely with local stakeholders to ensure they fit the needs of the area and population and foster local economic development.

VALOREM, green energy operator from VALOREM on Vimeo.

To achieve the move away from a carbon and nuclear based energy generating market, companies like Valorem will be crucial in leveraging the expertise, experience and funding of the private investment industry.

Valorem’s pipeline is developing fast across sources (wind, solar and hydro) and geographies (France, Finland and Greece).

This growth in installed capacity, which helps to meet the ambitious de-carbonisation targets, is aided by sustainable earnings growth for energy generators.

Investment Source

In 2016, Valorem finalised an equity financing transaction worth €74million. Valorem welcomed a new lead investor, 3i Infrastructure plc, who joined existing shareholders.

In line with Valorem’s values and commitments, the company offers crowdlending opportunities of its energy projects in order to share the benefits with the local communities and inhabitants.

Benefits

Valorem is supportive of French national policy towards renewable energy, with generation capacity set to double in 10 years. It also has operations in Haiti, Columbia, Morocco, Guadaloupe, Sweden, Ukraine and recently won a tender to operate a new solar PV farm in Greece.

3i has regional operations across South America, Morocco, Europe, entering a joint venture with Octopus Energy Investments in May 2019 to construct and operate a wind farm generating 71.4 MW of electricity capacity in Finland.

Assisting and developing local communities

Valorem develops projects to promote regional resources in close cooperation with local communities. The company assists local authorities (communities, state agencies, experts, associations and neighbours) throughout the development process of a project which includes workshops, meeting and discussions.

Valorem values its relationship with the local communities when planning projects.

Sustainable supply

Valorem provides sustainable sources of renewable electricity to households and businesses across France, with the equivalent electricity capacity roughly equal to serving the demands of a population the size of Bordeaux (c. 250,000 people).

In remote areas like the island of Guadeloupe, Valorem has leveraged the naturally high winds to create and store a renewable source of power that helps smooth the supply of energy and match demand with supply in times of peak demand. This leads to lower prices for consumers whilst providing sustainable power without emitting carbon into the atmosphere.

Environment

Renewable energy projects are discussed and re-evaluated with local stakeholders (elected representatives,  government departments and experts) to ensure they beset fit the needs of both the area and its population. As a pioneer in wind power, Valorem is commited to always choosing the right energy source for the right area and informing, and working closely with its local partners throughout the process of project development.

Valorem aims to foster local economic development in the areas where it operates, collaborating wherever possible with local companies on construction projects and surveys.

Final results / benefit to partners

This investment diversifies 3i’s portfolio with exposure to a growing renewables business in one of the most attractive European markets, and provides access to sustainable returns underpinned by a robust regulatory regime.

Valorem is seen as a best in class developer, being the fourth largest French wind developer, and the largest independent one. It has a significant pipeline of projects at an advanced stage of development which it expects to convert into operating assets, with further projects at earlier stages to bring through the development process.