Renewable energy company reaches milestone in project sales to Global Co.

Revolve Renewable Power Corp. (TSXV:REVV;OTCQB:REVVF) announced the completion of an important event related to the sale of the Bouse Solar and Storage Project in Arizona to ENGIE IR Holdings LLC, a subsidiary of the global energy leader ENGIE SA

The deal, announced last year, included an upfront payment of $2 million, with remaining fees contingent on the achievement of several development goals.

The company said Bouse had met the first requirement to complete further interconnection studies and a key payment of $3.4 million had been made to Revolve.

“We are delighted to have achieved this key milestone for the Bouse project and the overall transaction with ENGIE,” said Steve Dalton, CEO of Revolve. “The Bouse project is one of the largest solar and battery projects underway for the California market, and we look forward to continued progress on the notice of commencement in the coming years.”

Bouse is a 1,000 MW (megawatt) solar and battery project located on approximately 6,155 acres of land managed by the Bureau of Land Management (BLM) in La Paz County, 44 km east of Quartzsite, Arizona. The entire project site is located within the solar variance area identified in the BLM’s Solar PEIS and Record of Decision (ROD) and has the capacity to provide electricity equivalent to approximately 1.2 million homes.

Terms of the sale also included the Parker Solar and Storage Project, also in La Paz County, on BLM land. Located close to the existing transmission infrastructure and local road network, it is capable of powering approximately 300,000 homes.

What. Benefits from global demand

Founded in 2012 to capitalize on the world’s growing demand for renewable energy, Revolve has utility-scale wind, solar and battery storage projects in the U.S., Canada and Mexico. Its second division, Revolve Renewable Business Solutions, installs and operates distributed generation (or “DG”) assets with a capacity of less than 20 MW.

According to Statista research, in 2024 the production of electricity in the renewable energy market will amount to over 7.3 billion kWh, and in the years 2024–2028 it will grow at a compound annual growth rate (CAGR) of 3.88%.

Revolve’s portfolio includes 11 MW (net) of operating assets under long-term power purchase agreements in Canada and Mexico, spanning wind, solar, battery storage and hydropower generation; a 3 MW CHP project and a 450 kWp rooftop solar project, which are under construction and expected to be operational later this year; and a diverse portfolio of utility-scale development projects throughout the United States. Canada and Mexico have a combined capacity of over 3,000 MW, as well as a distributed generation portfolio of over 140 MW under development.

So far, the company has built and sold over 1,550 MW of projects. Going forward, Revolve said it is targeting 5,000 MW of utility-scale projects underway and is rapidly expanding its portfolio of revenue-generating DG assets in parallel.

Further considerations for the Bouse and Parker project contract with ENGIE include ENGIE issuing a notice of commencement of construction (NTP) to the relevant engineering and procurement contractor (EPC); and the commercial operation date (COD) when this project has been synchronized and is able to deliver all of its installed capacity to the grid.

As part of the transaction, the parties entered into a put option agreement allowing ENGIE to re-sell the Bouse Project to the company for a specified period of time after receiving the results of subsequent interconnection tests due for each project. ENGIE decided not to use this option and the option has expired.

Catalyst: the energy industry’s demand for renewable energy

According to Statista research, in 2024 the production of electricity in the renewable energy market will amount to over 7.3 billion kWh, and in the years 2024–2028 it will grow at a compound annual growth rate (CAGR) of 3.88%.

“The energy market is expected to continue to grow as energy demand increases around the world as populations grow and economies develop,” the report said. “However, the energy mix is ​​expected to shift towards cleaner and more sustainable options, with renewable energy sources such as solar, wind and hydro power expected to continue to grow rapidly. The importance of fossil fuels is expected to gradually decline.”

Mordor Intelligence noted that U.S. renewable energy market share is estimated at more than 434 GW in 2024 and is expected to reach 700 GW by 2029, growing at a CAGR of 10%.

Statista analysts wrote that renewable energy growth will be driven by falling technology costs, rising demand, supportive policies and regulations, and improvements in energy storage and grid integration technologies.

“In addition, the Covid-19 pandemic has accelerated the transition to renewable energy as governments and businesses recognize the importance of building resilient and sustainable energy systems,” they noted. “The Russian-Ukrainian war revealed an uncertain and exposed dependence on certain energy sources, such as gas and oil, which ultimately, in the long run, necessitates a significant diversification of countries’ energy portfolios. Overall, the outlook for the renewable energy market is positive and the sector is expected to continue to play an increasingly important role in meeting global energy demand while reducing greenhouse gas emissions.”

Mordor Intelligence noted that U.S. renewable energy market share is estimated at more than 434 GW in 2024 and is expected to reach 700 GW by 2029, growing at a CAGR of 10%.

Therefore, rising investments in this sector are expected to drive the US renewable energy market during the forecast period.

“Factors such as increasing solar and wind installations during this period, supportive government policies, falling solar panel costs and additional renewable energy subsidies are expected to drive the renewable energy market over the forecast period,” the analysts wrote.

The U.S. government announced a framework to invest $555 billion in clean energy programs, which is expected to represent a major opportunity for companies in this space.

Ownership and share structure

Revolve says about 60% of the company is owned by insiders and management.

According to Reuters and company, the top shareholders include Joseph O’Farrell with 13.21%, Roger Norwich with 12.15%, CEO and director Stephen Dalton with 6.01%, president and director Omar Bojoquez with 4.82% and Jonathan Clare with 1.84%.

The rest is retail.

Revolve’s market capitalization is C$23.64 million, with 63.04 million shares outstanding and 38.08 million in free float. It is trading in a 52-week range of C$0.50 and C$0.20.

Important Disclosures:

1. Revolve Renewable Power Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of US$4,000 to US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their households) hold securities of Revolve Renewable Power Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice or an invitation to make any investment. Streetwise Reports does not provide general or specific investment advice, and the information contained in Streetwise Reports should not be considered a recommendation to buy or sell any security. We encourage each reader to consult with their personal financial advisor and conduct their own comprehensive investment research. By opening this page, each reader accepts Streetwise Reports’ terms of use and full disclaimer. Streetwise Reports does not endorse or recommend any company’s business, products, services or securities.

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