Shell intends to sell German solar storage firm sonnen
- September 8, 2023
- Posted by: Quatro Strategies
- Categories: Business & Politics, ESG & Renewable Energy, Europe
Shell is reportedly considering the sale of sonnen, a German solar storage manufacturer that it acquired around four years ago for roughly €500 million. This potential divestment comes as Shell, like many other energy companies, faces challenges due to shrinking retail profit margins amid rising wholesale energy prices following supply disruptions.
Sources familiar with the matter suggest that sonnen could be valued at €1.35 billion to €1.8 billion, which is three to four times its expected 2023 sales of €450 million. However, neither Shell nor sonnen has officially confirmed these reports.
Sonnen specializes in providing storage batteries for rooftop solar systems. Last month, the company celebrated connecting 25,000 homes to the grid, accumulating a capacity of 250 megawatt-hours (MWh). While 250 MWh represents a relatively small portion of total power demand in Western countries, it positions sonnen as a notable player in the European electricity storage sector.
While sonnen has refrained from commenting on these reports, the company emphasizes its ongoing global expansion strategy in the growing energy storage market.
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