IHS: Rumored EverStream takeover of Enfinity shows trouble among European solar PV developers

02. September 2013

IHS Inc. (Englewood, Colorado, U.S.) has commented on EverStream Energy Capital Management's (Minneapolis, Minnesota, U.S.) rumored takeover of Enfinity NV (Waregem, Belgium), noting that the deal will give EverStream access to a geographically diverse portfolio, including 100 MW of advanced stages solar photovoltaic (PV) projects.

It also describes the acquisition as a sign of difficulties in European PV markets, which it predicts will contract 50% to only 11.5 GW in 2013. IHS had named Enfinity the 8th largest PV developer globally in 2010.

“The rumored acquisition of Enfinity is a sign not only of the expansion challenges Europe based PV companies face as the regional market declines, but also of how PV investments are losing their allure as financial products,” states IHS Senior Solar Analyst Josefin Berg.

“The company built a model around PV investment vehicles that were sold to pension funds and other equity investors. Their model lost ground in 2012 as feed-in tariff schemes across Europe were dismantled.”

“In an effort to broaden its exposure, Enfinity pursued projects in India, China and the US, and advanced a pipeline in the Philippines – an emerging PV market that offers some large-scale project opportunities. These new ventures however, could not fill the growing gap in the company’s finances.”

SunEdison to gain access to projects

While a structurally an independent private company, EverStream was established by SunEdison Inc. (St. Peters, Missouri, U.S.) as part of its efforts to raise capital, and Enfinity's projects may end up in SunEdison's pipeline.