Simtel Team becomes a renewable electricity producer, by completing the first phase of the photovoltaic park in Plesoiu

Simtel Team (BVB: SMTL), a Romanian engineering and technology company listed on the AeRO market of the Bucharest Stock Exchange and a national leader in the field of renewable energy, announces the completion of the first phase of the photovoltaic park in Plesoiu, Olt County, which is part of the new business line developed by the company, namely electricity production. In the medium and long term, the Plesoiu project aims to produce and sell electricity from photovoltaic panels. The electricity produced will be sold through direct contracts with the beneficiaries or OPCOM (Romanian Electricity and Gas Market Operator).

“The completion of the first phase of the Plesoiu project marks a major stage in the evolution of Simtel through the development of a new business line aimed at producing renewable electricity. This step represents a remarkable opportunity for us, as we already have the necessary know-how for installing, maintaining, and operating photovoltaic parks. In addition, compared to the projects for which we provide specific services and solutions, energy production has a much higher added value for the company, generating important additional revenues in the coming period. At the same time, we are thrilled that from now on, Simtel shareholders and investors will be an integral part of Romania’s transition process towards green energy through their involvement in the first project in a series of Simtel renewable energy initiatives. Once fully completed, the Plesoiu photovoltaic park will reduce carbon dioxide emissions in the atmosphere by over 1,500 tons per year,” stated Iulian Nedea, co-founder and Chairman of the Board of Directors of Simtel Team.

The Plesoiu project is divided into two phases, the first of which has been completed, with an installed power of 0.988 MWp, obtained from 2,244 photovoltaic panels. The second phase will have an installed capacity of 0.712 MWp, generated by 1,320 photovoltaic panels. The procedures for obtaining the necessary authorizations are underway for the latter, with an estimated completion date in the first half of 2024. Upon completion of the entire project, Simtel will operate a photovoltaic park with a total installed power of 1.7 MWp.

In the first year of operation, phase I of the project will have an estimated energy production of 1,372.38 MWh. With the full completion of the photovoltaic power plant, it will produce an amount of 2,603.78 MWh in the first year of operation. The total land area where the power plant is located, which includes both phases, amounts to approximately 23,000 square meters.

“We want to expand this field of activity in the future, with the plan to reach a total installed capacity of 100MW in our parks in the medium term. We are currently working on such power generation projects, which are in various stages of development, from procurement to authorization, approval, or certification. The development of renewable electricity production activity reconfirms our commitment to ensuring Romania’s energy independence and a cleaner environment for us and future generations”, added Mihai Tudor, CEO and executive member of the Board of Directors of Simtel Team.

The first phase of the Plesoiu project was financed from the company’s own sources. Simtel is currently negotiating with multiple banks to refinance the first phase of the project and the financing of the second phase.

In terms of financial results, in the first quarter of 2023, Simtel recorded a consolidated turnover of 65.6 million lei, a 579% increase compared to the same period last year, and a net profit of 2.9 million lei, an appreciation of 896%. The company will publish the financial results for the first half of 2023 on September 7.

Simtel is listed on the AeRO market of the Bucharest Stock Exchange as of July 2021 and currently has a market capitalization of approximately 301 million lei.