Mercuria Energy Trading’s Partnership With CWP

Burges Salmon advised CWP on the transaction.

CWP, the leading independent renewable energy developer in Southeast Europe and Australia, and Mercuria Energy Trading, one of the world’s largest independent energy traders with more than US$100 billion of revenue, have joined forces to complete development and build out CWP ‘s renewable energy portfolio in Southeast Europe.

CWP’s project portfolio has been in active development since 2018 and consists of more than 2 gigawatts (GW) of large-scale wind, solar, and battery storage projects across Bulgaria, Serbia, Romania and Ukraine.

Mercuria’s investment in CWP Europe will support its efforts to accelerate decarbonisation in the four carbon-intensive countries. Mercuria, a commodity trading giant, will provide its broad expertise in energy markets as well as increased financial support, which will allow CWP Europe to realise its €1.9 billion investment plan over the next several years.

CWP has a successful track record of developing, managing, and owning renewable energy projects, using a proven approach for advancing each project from inception to full operation while ensuring genuine engagement with all stakeholders. The company has won multiple awards for community engagement. It is already the leading international developer active in the region, having developed the largest wind farms in Serbia – the 156-megawatt Cibuk project, and Romania – the 600-megawatt Fântânele-Cogealac project. The strategic investment in CWP Europe by Mercuria will accelerate the development of the existing portfolio and significantly expand the opportunity with additional developments.

CWP is also one of Australia’s largest renewable energy developers, having realised 760 megawatts of capacity, with another 2.5GW of wind, solar, and storage under development in a joint venture with Partners Group. The company is an innovator in the renewable energy space, pioneering innovations such as marked-based (i.e., merchant) projects, corporate PPAs, hybridization and battery storage, and now counts some of Australia’s most reputable businesses among its clients, including Commonwealth Bank, Sydney Airport and the Sydney Opera House.

Mercuria is a leading player in European wholesale power with a deep understanding of both regional and pan-European markets. It’s broad spectrum of trading activities across the energy space and deep understanding of all commodities allows for a cross-commodity analytical approach. Bringing Mercuria’s experience to CWP Europe will enable it to optimise its portfolio of renewable energy assets, better manage market exposure, and develop structured transactions to enhance its product offering to corporate clients.

Bulgaria, Serbia, Romania and Ukraine are Europe’s most carbon-intensive energy markets, with coal still playing a dominant position. These markets also have some of Europe’s most polluted air, and some of the highest rates of premature deaths caused by air pollution in the developed world. The decarbonisation of these markets is an urgent priority and will require tens of thousands of megawatts of wind and solar energy. Together, CWP and Mercuria will lead the transition from polluting fossil fuels to clean, low-cost green energy.

Alexa Capital acted as exclusive financial advisor to CWP. Alexa Capital is a leading independent investment bank providing clients with capital solutions on the path to net-zero.

Burges Salmon’s team included Dominic Davis (Picture), Partner and Julie Book, Senior Associate.

Involved fees earner: Julie Book – Burges Salmon; Dominic Davis – Burges Salmon;

Law Firms: Burges Salmon;

Clients: CWP Energy Holdings Ltd;

Author: Giulia Di Palma