OPC Energy submitted its plan of acquiring CPV, an American firm, with close to $800 million, which will also be part of the investment in its projects with the company. Nevertheless, the contract is still under the proposition stage, waiting for the two companies to reach an agreement.
OPC Energy’s chief executive, Giora Almogi, stated that they have been eyeing the US electricity market’s potential, especially when it comes to renewable energy since the country experiences regular power outages. The blackouts are evidence that their national grid that supplies electricity is overcrowded.
Nevertheless, the US seems to be switching to an awkward kind of energy alternative to supplement its needs. Instead of venturing renewables, the country focuses on coal and natural gas plant modernization while suspending nuclear power projects. The government argues that this is the best alternative that is economical and caters to environmental regulations.
Almogi explains that they have been conducting research and market analysis on the firm that best serves Americans’ interests. Their search led them to CPV, whose growth and market share projections are at a high rate. The CEO added that the company had proved its entrepreneurial and expansion capacity after verifying that it can create electricity channels generating over 14000 MW of power. Some of the projects accounting for this quantity include wind power plants, which draw even more interest to OPC Energy.
Additionally, CPV has a renewable energy potential that can top up to 2245 MW of power, making it a reliable and efficient company for any foreign company to acquire to dominate the energy sector.
The successful acquisition of CPV by OPC Energy will help the latter become an investment portfolio in the US and allows the company to have various revenue sources as it expands. The US energy market is undergoing a transition to renewable energy after realizing that this is the appropriate method to achieve the Paris Agreement’s environmental regulations.
The Energy Information Agency anticipates approximately 130000 MW of coal power plants and fossil-fuel power plants by the end of this decade. The agency also expects establishing more than 230000 MW renewable energy plants to replace the phased out plants. These expectations put OPC Energy into the limelight and probable high profitability if it manages to acquire the CPV energy company.
In conclusion, OPC hopes that CPV can consider this deal given that they can finance all their operations in the energy projects and share the accrued benefits. Additionally, the company would create employment opportunities for the Americans, putting it in a favorable position to win government contracts and funding.