Revolve Renewable receives $3.4M milestone payment

Revolve Renewable Power announce the completion of the interconnection milestone related to the 1,000MW Bouse Solar and Storage Project, which was sold in January 2023 to ENGIE IR Holdings LLC, a wholly-owned subsidiary of ENGIE. The terms of the sale, which also included the sale of the 250MW Parker Solar & Storage Project, are set out in the news release dated January 11, 2023. The total consideration payable by ENGIE is within the range of guidance previously provided by the Company for the sale of utility scale development assets. The Company received an upfront payment of US$2,000,000 on completion of the transaction in January 2023. Of this sum, US$800,000 was recognised as revenue in the Company’s Q3 FY2023 financial accounts with the remaining US$1,200,000 accounted for as deferred revenue. The balance of this deferred revenue as at March 31, 2024 was US$960,000. The remaining consideration is linked to each of the Parker Project and Bouse Project successfully completing the following development milestones: Completion of further interconnection studies; Issuance by ENGIE of a Notice To Proceed construction works to the applicable Engineering and Procurement Contractor. On the Commercial Operations Date, with such date being the date that a project has been synchronized to the grid and is capable of delivering all of its installed capacity to the grid. The Company previously guided that it expected the completion of the interconnection studies milestones for the Bouse Project to be achieved prior to the end of H1 2024 when further interconnection studies are issued. We are now pleased to confirm that the completion of further interconnection studies milestone has been met for the Bouse Project. As part of the transaction the parties entered into a put option agreement allowing ENGIE to sell the Bouse Project back to the Company for a limited period following receipt of the results of the next interconnection studies due for each project. ENGIE has chosen not to exercise the Put Option and it has therefore expired for the Bouse Project. The next milestone payment related to the Bouse Project totalling US$3,400,000 has now been paid to the Company. There were no additional development costs incurred by the Company in relation to this milestone. The deferred revenue of US$960,000 is now expected to be recognised as revenue in the Company’s Q4 FY2024 financial statements.