ENCAVIS SPEARHEADS POST-SUBSIDY ORGANISATIONAL TRANSFORMATION

Leading renewable energy IPP works with Pexapark to upgrade its operating system as it seeks to double in size in the post-subsidy market

Zurich/Hamburg, December 6, 2021 - Encavis AG (Encavis), SDAX-listed wind and solar park operator and one of Europe's leading Independent Power Producers (IPPs) has completed a significant 2-year organisational transformation to support its future growth in the merchant renewable energy market.

Working with Pexapark, a provider of software and advisory services for a post-subsidy renewable energy world, Encavis is among the first IPPs to undertake a substantial upgrade of its operating system, building in new in-house capabilities for Power Purchase Agreement (PPA) Origination, Energy Portfolio Management and Energy Risk Management.

These new functions will enable effective energy sales, active management of energy risks, and thorough risk reporting - all of which are fundamental aspects of operating in the post-subsidy market environment. They will be essential in supporting plans to double the size of Encavis' operational portfolio to 3.4GW by 2025.

"We are seeing a paradigm shift in the renewable energy market," said Dr Dierk Paskert, CEO of Encavis. "While acquiring and operating single assets has served us well in subsidised markets, economies of scale are critical to staying competitive in the merchant environment, where the way energy is traded has completely changed. In practice, this means we need to build and actively manage large, diversified portfolios to maintain the margins our investors are looking for."

"To do that effectively, we - along with our peers in the industry - must fundamentally rethink our operating system. It is time to invest in the capabilities that will help us navigate, and ultimately benefit from, this transition."

The organisational transformation at Encavis has been undertaken in four phases and spans its front-, middle- and back-office functions. These changes have been designed to give Encavis full transparency of the new risk exposure it faces in merchant markets, alongside the tools not only to mitigate, but also to intelligently manage that exposure on a portfolio-wide basis in order to realise opportunities and increase profitability.

New teams created in the structural reorganisation include a PPA Origination team, - a dedicated energy sales department responsible for sourcing and structuring PPAs - and an Energy Portfolio Management team focused on managing merchant energy production that is not bound in long-term contracts. These teams are backed up by an Energy Risk Management function, built from scratch, that uses quantitative analysis expertise to assess changing long-term exposure to market risks and set limits for new deals being signed.

Pexapark has acted as an independent guide throughout the upgrade project, bringing its extensive energy trading and quantitative analysis expertise to the table. This has helped Encavis build its in-house competency in each of these new areas and challenge its assumptions about the best organisational structure to support the growing IPP as it scales. Pexapark will continue to support Encavis by providing ongoing advisory services and access to advanced software tools that directly support the optimal construction and management of growing portfolios and strengthen daily risk management practices.

"Encavis is a frontrunner in the race to bolster energy sales and risk management capabilities for the post-subsidy world," added Michael Waldner, CEO of Pexapark. "This new market environment will bring both risk and reward, but IPPs and investors who take action soon to adapt their operating system stand to gain the most. As we strive for net zero, these leaders are setting the stage for the next phase of renewable energy development and commercial operation."

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About Encavis
Encavis AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) is a producer of electricity from renewable energies listed on the SDAX of Deutsche Börse AG. As one of the leading independent power producers (IPP), ENCAVIS acquires and operates solar parks and (onshore) wind farms in ten European countries. The plants for sustainable energy production generate stable yields through guaranteed feed-in tariffs (FIT) or long-term power purchase agreements (PPA). The Encavis Group's total generation capacity currently adds up to more than 3.0 gigawatts (GW), which corresponds to a total saving of 1.31 million tonnes of CO₂ per year. Within the Encavis Group, Encavis Asset Management AG offers fund services to institutional investors.
Encavis is a signatory of the UN Global Compact as well as of the UN PRI network. Encavis AG's environmental, social and governance performance has been awarded by two of the world's leading ESG rating agencies. MSCI ESG Ratings awarded the corporate ESG performance with "AA" and ISS ESG with their "Prime" label.
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About Pexapark
Based in Zurich and founded in 2017 by Michael Waldner, Luca Pedretti and Florian Müller, Pexapark is a rapidly growing, award-winning renewable enterprise software company.
At Pexapark, we are passionate about the global growth of green energy to create a more sustainable world. We are the Operating System of choice for the renewables industry to buy, sell, and manage energy in post-subsidy markets, by creating transparency, facilitating new transactions, and providing the best software foundation for renewable energy sales and risk management.
With more than 12,000 MW of renewable PPA transactions supported, Pexapark has become the one-stop source for software solutions and advisory services in the fastest growing part of the renewable energy market.
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