O.Hajji (CEO of GreenYellow): "Decentralized energy is the future of the energy transition"

*Following a problem with our printer, this paper did not appear in the paper version of the newspaper for this Friday, July 16.

What is the volume of projects developed to date by GreenYellow?

We have developed 355 MWp (Mega watt-peak) of solar power plants in France and abroad at the end of March 2021. This makes us one of the leaders in decentralized solar power for businesses and communities. In the second part of our activity, more than 2,600 energy performance contracts have been signed. They generate 855 GWh of annual energy savings for our customers.

The year 2020 marks a clear acceleration in the development of the company. Is it linked to changes in energy transition regulations?

The real acceleration results from the established fact that decentralized energy - therefore that which is close to consumers - represents the future of the energy transition. Companies make commitments to reduce their carbon trajectory and act for greener consumption. The health crisis has exacerbated these issues.

What developments are planned to support this growth?

On the one hand, we have built a unique model of complementary offers serving the energy transition of our customers: producing green energy, reducing its consumption and providing complementary services with monitoring, for example. The second subject to remember is marked by our international presence, in 16 countries on four continents (Africa, Latin America, South East Asia, Europe). The 3 ^rd element concerns the solid base of assets that we have developed. Which, from a numerical point of view, gives more than €62 million in EBITDA achieved in 2020. This makes GreenYellow a credible player in the energy transition and above all a benchmark player in the sectors we cover, retail (food or non-food), logistics, industry and the public. The energy transition is ahead of us. This is why we are going to invest more than €1.9 billion in total by 2025. Today, we can clearly see that subcontractors, principals, all the partners who gravitate around and with companies are asking them to be players in the energy transition. Market depth is therefore very important. The ecosystem that revolves around us, the banks, the investors from whom we have already raised €900 million in debt, means that all the planets are aligned so that we are a benchmark player in this market.

Is it to support this investment (€1.9 billion) that an IPO is planned?

The logic of acceleration requires more capital and equity. Of course, we are studying the best option, including, very clearly, going public. At this stage, we have not yet decided on the preferred solution.

© Johan Boulet ^-GreenYellow installed 28,000 m2 of photovoltaic panels in 2020 on the Magny-Cours racing circuit

Technically, what is your business model?

In the photovoltaic solar business, we carry out studies, invest in the installation at the customer's site, so the assets belong to us. We sell the energy to the consumer customer in short circuit at a competitive price, that is to say less expensive than the price of the network. In France, the green energy that we sell is 15% cheaper than that of the network. In Thailand, where the price of energy is a little higher than here, we are able to sell it at 50% less. To give two examples of achievements: in 2020, we delivered 28,000 m ² of solar panels - the equivalent of four football pitches - to meet the needs of the Magny-Cours circuit. We have also equipped Roland-Garros airport in Reunion with a 1.3 MWp plant which covers 30% of their energy needs. This technology is set to become more democratic and we aim to make it accessible to as many people as possible.

What is the status of the solarization project in the metropolis of Saint-Etienne launched in 2019?

A progress report with Saint-Etienne Métropole will be carried out next September. As a reminder, over time, more than 90 sites will be equipped with photovoltaic panels.

Has this led to other projects in the region?

Saint-Etienne Métropole was a pioneer in this solarization policy. With our subsidiary Reservoir Sun, we have been selected for the solarization of middle and high schools in Hauts de France. Discussions are underway with other cities and we are going to respond to Lyon Saint-Exupéry's call for tenders. Everything is decided now, the next ten years will be crucial.

On energy efficiency, a framework agreement has just been signed with Franprix, what does it consist of?

Energy efficiency is the first lever for reducing CO2 emissions. With Franprix, we are tackling an important element: that of the cold chain in order to reduce the carbon footprint of their refrigeration installations. The first fifteen stores will be optimized by 2022 with this "Cold as a service" offer. This is a win-win model that will reduce the carbon impact of stores on the one hand and save money on the other. On the economic level, we re-invoice them a share of these energy savings to come, in reality, to make the investment made profitable. We are therefore in a virtuous economic model, this is a game-changer in the acceleration of the decentralized energy transition. It is no longer, I would say, a communication gimmick, based on greenwashing. We are really into business strategy and the ability to make them more competitive. In terms of service provision, we have several textbook cases such as the Accor group, which we support in a program aimed at monitoring the consumption of their 1,400 hotels, with the aim of carrying out action plans for help take charge of their energy consumption and reduce their carbon trajectory.

After Vietnam and South Africa in 2020, are future internationalization projects under consideration?

We intend to continue to develop our sales forces in these countries but we do not plan to deploy in China, North America or India. We must not forget that by 2040, there will be a global growth of 50% in energy needs, particularly in “non-OECD” developing countries. For example, Madagascar has only 15% electrification.

Interview by Noémie Coquet