Revolve Renewable Power is a catalyst rich story, this analyst says

Beacon Securities analyst Kirk Wilson notes that Revolve Renewable Power (Revolve Renewable Power Stock Quote, Chart, News, Analysts, Financials CSE:REVV) has added three U.S. utility-scale solar development projects to its pipeline.

In a June 9 report, Wilson said Revolve has signed definitive agreements to acquire three solar projects with a combined capacity of 125 MW. The projects are the 30-MW Henry project in Illinois, the 56-MW Columbus project in New Mexico and the 39-MW Endeavor project in Wisconsin.

Each project has site control in place and is located in a market where solar power generation already exists. Wilson said key utilities operating solar projects in those states include Ameren in Illinois, Columbus Electric Co-op in New Mexico and Wisconsin Power & Light in Wisconsin.

The acquisition carries no upfront cost to Revolve. The company will pay a US$0.02-per-watt fee, or about US$25,000, when it issues a notice to proceed to construction, along with 10% deferred consideration based on the realized sale price or fair market value at that stage.

“We will watch for details of capital costs to develop these projects but note that REVV expects to fund all costs from existing resources,” Wilson said. “Main development steps are to include permitting and interconnection in order to further each project to a construction-ready stage.”

Wilson said Revolve still has potential 2026 catalysts, including the possible sale of its 130-MW El 24 wind project in Tamaulipas, Mexico, and the buildout of its 15.7-MW Bright Meadows solar project south of Edmonton.

The analyst said Bright Meadows is in Stage 3 of the Alberta Electric System Operator interconnection process and could become build-ready once that stage is complete and a power purchase agreement is secured. The project is expected to be Revolve’s largest operated asset, with projected annual EBITDA of $2.5-million to $2.8-million at a margin above 85%.

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