ELQ S.A., a renowned producer of transformer substations, is becoming more active in the photovoltaic installations market. The shareholders and the Management Board consistently diversify the business, focusing on growth in diverse areas of the energy industry. As a part of the rearrangement of business operations, the company is also abandoning its involvement in costly projects that did not guarantee market success.
In July, ELQ S.A. signed a three years agreement with Columbus Energy S.A. from Cracow. The entities will cooperate in developing photovoltaic installation projects. The agreement complies with our strategy and will definitely influence the further dynamic development of ELQ Group. The contract will strengthen ELQ S.A.’s position as a leader in the production of transformer substations dedicated to photovoltaic power plants and significantly increase our market share in general contracting services for photovoltaic installations carried out under the EPC formula. Cooperation with Columbus Energy in the development of photovoltaic installation projects is also an opportunity to obtain additional sources financing the development of the ELQ Group not only in Poland but also abroad – says Krzysztof Zawadzki, CEO of ELQ S.A.
According to the agreement, Columbus gained the right to assess and engage in projects prepared by ELQ. Columbus has exclusive rights to acquire individual ELQ projects operating as special purpose vehicles. ELQ has undertaken to notify Columbus, which will have 30 days to accept the offer to sell 100 per cent of the shares in the relevant SPV, within 10 working days of the date on which the relevant SPV receives a final and legally valid decision on the granting of the construction permit for the relevant project. The sales price of each project will be calculated based on the installed capacity provided in the documentation.
The agreement also gave ELQ S.A. the right to act as an intermediary in the acquisition by Columbus of shares in special purpose vehicles implementing photovoltaic installation projects owned by the Estonian company Huffington Invest Group OÜ. The entity from Częstochowa has also been granted exclusive rights for the supply of transformer substations and general contracting of photovoltaic installations carried out under the EPC formula in projects owned by ELQ or the Estonian entity.
ELQ Group consistently increases its worth and executes plans to achieve a position of a significant player in the photovoltaic market. We have ambitious development plans including not only production of transformer substations and general contracting services but also energy storage facilities, hydrogen-based electromobility solutions and production of different energy devices – Marcin Sołtysiak, representative of the main shareholder and Board Advisor.
As a part of rearranging business operations, ELQ S.A. has withdrawn from the provisions of the letter of intent signed several months ago with Fluid S.A. based in Sędziszów. Thus ELQ S.A. finished negotiations concerning a possible investment agreement, which involved the engagement of PLN 29 million in a joint project. – We do not see any perspectives in continuing talks on this matter. ELQ S.A. aims to focus on the development of the RES market, in particular photovoltaic power plants – says CEO Krzysztof Zawadzki.