RE Royalities – Energy Crisis as a Catalyst

An opinion piece by Stefan Feulner (Apaton Finance GmbH).

With its latest deal, the Canadian company has delivered concrete evidence of growth. RE Royalities is currently making targeted investments in the US market and has put together its first major project portfolio with developer Solaris Energy. A total of up to USD 9 million is set to flow into several solar projects.

The first tranche of USD 3 million has already been disbursed, followed shortly thereafter by an additional USD 800,000. The initial portfolio includes 15 plants across several US states, including California, Maine, and Colorado, with the majority already under construction. This, in turn, means a rapid transition from investment to cash flow.

What sets it apart is the structure. RE Royalties secures revenue shares over a period of up to 25 years. This creates a predictable long-term revenue stream. At the same time, the operational risk remains with the operator. Cost increases, maintenance, or delays affect the developers, while RE Royalties directly participates in the electricity revenue.

The Solaris deal exemplifies how the business model can be scaled. At the same time, the company is already evaluating a second project portfolio with additional plants. Combined with a broadly diversified portfolio of solar, wind, and hydroelectric projects in North America and Europe, this creates a growing stream of recurring revenue.

Read the full article here.