Voltalia Can’t Meet Surge in Demand for Long-Term Power Deals

(Bloomberg) -- French clean-power producer Voltalia SA said it can’t keep up with demand from corporate clients seeking to lock in long-term supply deals amid soaring electricity costs.

“The increase in spot prices has caught quite a few companies by surprise,” Chief Executive Officer Sebastien Clerc said Thursday. “We can’t meet all the demand” for corporate power-purchase agreements.

Europe’s worst energy crisis in decades is threatening its economic recovery and prompting a number of governments to introduce emergency measures to protect consumers. But companies seeking deals to shield themselves from price spikes will find producers such as Voltalia are passing on higher costs.

Solar and wind developers have faced supply-chain disruptions since the start of the pandemic, and customers will have to shoulder some of the cost burden, Clerc said on a conference call. That will be reflected in new power-purchase agreements, he said. 

Voltalia on Thursday reported a 44% jump in first-half earnings before interest, taxes, depreciation and amortization, following an expansion in its installed capacity. The company reiterated financial targets, and Clerc said it may sell additional shares at a later stage to maintain the pace of growth beyond 2023.

There’s a “significant possibility” for a capital increase, though such a move would depend on the market, Clerc said. Alternatively, the company may decide to take on more debt or grow at a slower pace by selling down its more mature assets, he said. 

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