Case

Repowering of Solar Park Flusi

We conducted a total turnaround and repowering of Solar Park Flusi – a 2,265 MW PV plant near Oldenburg, Germany. When we took over, the project was a heavily distressed solar project totally out of function.

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What is it?

2,265 MW Solar Park near Oldenburg, Germany

What did we do?

Complete turnaround of a non-functioning solar park close to bankruptcy

What was the outcome?

Bankruptcy avoided, long term finance secured and investors investment rescued.

The situation was critical

When we took over, the project was a heavily financial stressed 2,265 MW solar project totally out of function.

The project had major financial and technical difficulties caused by defect panels and poor management.

The financing bank and other creditors were all in default – the situation was critical on all parameters.

The project documentation was very poor due to lack of proper management from former manager.

Local pressure

There was a huge pressure from local authorities to get the plant into production or remove it immediately at owners’ costs.

There was no cash – a total refinance and cash injection from owners was inevitable to avoid bankruptcy.

From close to bankruptcy to a plan of action

Momentum did a full analysis of the situation and approached the investors with a plan for saving the project from bankruptcy.

The financing bank and creditors was contacted to find a solution.

The existing investors bought the misfunctioning assets and rights out of the company causing a heavy “haircut” for the financing bank who wanted to step out

A new finance was arranged from reputable German bank.

24.000 defect solar panels was removed and replaced them with 6.000 new, as the old panels exploded or went on fire risking damage to surroundings or worse, to people.

The project was back in full production less than a year after the plan Momentum took over the responsibility to assist the owners, and later, the production was increased again by expanding the plant with a further 750 kW capacity.

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A financial, technical and local turnaround

Momentum saved the company from bankruptcy and thereby all the investors’ money. The project is now yielding 6-7% after all costs, including original investment. We secured satisfactory legal, technical and financial due diligence to form a much more secure base for the future.

A long-term plan to increase capacity

The next repowering of 750 kW is already implemented and up and running – and a further 500 kW is planned to be implemented in the near future.

The investors now have a well-functioning and well performing asset, with all necessary documentation in place.

All processes and reporting to investors are running smoothly and all stress in the company is eliminated.

Kim Madsen from Momentum says:

By completing this project Momentum has proved, that we can take over the management of very technically and financially stressed assets, and under extreme time pressure from all parties, succeed with a complete turnaround the satisfaction of all involved parties.

Kim Madsen, CEO

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