Project valuations fall amid tighter auction conditions
ABO Energy has adjusted its earnings forecast for 2025 following a reassessment of projects under development prompted by changing market conditions.
The company said renewable energy expansion in Germany has gained strong momentum in recent years, with federal targets including the construction of up to seven wind turbines per day.
It said this progress has been accompanied by simplifications and acceleration of approval processes.
According to ABO Energy, auctions for feed-in tariffs in 2025 were heavily oversubscribed, noting that project submissions in the August tender totalled 5.7GW against a tendered volume of 3.5GW, leaving numerous projects without awards.
The company said studies by external market analysts in October indicated a further acceleration of this trend for the onshore wind auction in November.
ABO Energy said management now considers a continued decline in award levels likely.
It said an internal review led to adjusted valuations of projects under development and a portfolio analysis as part of business planning.
The company said some projects have been rescheduled due to lower award probabilities and valuations have been aligned with the anticipated lower market level.
ABO Energy said that under these assumptions the remaining project portfolio continues to hold substantial value.
The company said international markets will not contribute to stabilising its 2025 results, citing negative impacts from an oversupply of solar in Spain, an oversupply of wind in Finland, changes to grid access regulations in Greece and legislative changes affecting infrastructure sales in Hungary.
ABO Energy said it has consistently reported positive earnings since its founding nearly 30 years ago but will not be able to do so in 2025 due to the reassessment.
The company said management began adapting the business model at the end of 2024, though market developments progressed faster than anticipated.
ABO Energy said its projected annual result for 2025 has shifted from a surplus of 2939 million to a net loss of approximately -95 million, adding that the adjustment is primarily driven by valuation effects and has only a minor impact on liquidity.
The company said its project pipeline totals around 30GW, including ten gigawatts in Germany, and forms the foundation for a swift return to profitability.
Dr Karsten Schlageter said: “We will rigorously adapt our cost structures to the significantly changed market conditions at home and abroad and drive this forward with urgency and the support of a renowned consulting firm, which has now commenced its work. We are confident that we will report a positive result again in the next fiscal year.”
ABO Energy said it remains a reliable partner for business associates, customers, banks, investors, landowners, authorities, municipalities and employees.
