Put Revolve Renewable Power on your radar, this analyst says

Beacon analyst Kirk Wilson said Revolve Renewable Power (Revolve Renewable Power Stock Quote, Chart, News, Analysts, Financials TSXV:REVV) has taken an important step toward monetizing its El 24 wind project in Mexico after securing an interconnection agreement with Comision Federal de Electricidad for the 130MW asset in Tamaulipas.

In an April 6 watchlist report, Wilson noted the company also received the first environmental permit for El 24 from Mexico’s Secretariat of Environment and Natural Resources, marking another key milestone as the project moves toward a build-ready target by the end of 2026. He said Revolve plans to continue engineering work while pursuing a potential sale of the asset, which could enter commercial operation in late 2028.

On valuation, Wilson pointed to the recent sale of the 1,000MW Bouse and 250MW Parker solar and storage projects to ENGIE at roughly US$40,000 to US$50,000 per MW. He said those projects were less advanced than El 24, implying a potential sale price of about US$6.5-million for Revolve’s project on a similar per-megawatt basis.

Wilson also highlighted progress in Revolve’s operating portfolio in Mexico, where the company has started construction on a 2.8MW portfolio of distributed-generation solar projects after putting power purchase, EPC and O&M agreements in place. Construction is expected to cost about US$2.7-million and be funded internally. He said the projects are expected to generate annual revenue of US$0.6-million to US$0.9-million at an EBITDA margin of about 85%.

Once all 16 projects in that distributed-generation portfolio are online, expected by August 2026, Wilson said Revolve will have 5.8MW of operating assets in Mexico, with another 2.2MW of distributed-generation projects in the pipeline.

He also pointed to progress in Alberta, where Revolve’s 15.7MW Bright Meadows solar project moved in early March from Stage 2 to Stage 3 of the Alberta Electric System Operator interconnection process. Wilson said that once Stage 3 is completed and a power purchase agreement is secured, Bright Meadows should effectively be build-ready. He added that the project is expected to become Revolve’s largest operating asset, with projected annual EBITDA of $2.5-million to $2.8-million at a margin above 85%.

Revolve owns and operates run-of-river, wind and solar assets in Canada, the United States and Mexico.

-30-