Our Growth Opportunities
Atlantica intends to grow our cash available for distribution by optimizing the operations of our existing assets and acquiring new contracted revenue-generating assets in operation.
We intend to take advantage of, and leverage our growth strategy on, favorable trends in the clean power generation, transmission and transportation infrastructures and water sectors globally, including energy scarcity and the focus on the reduction of carbon emissions. We believe that we are well positioned to benefit from the expected transition towards a more sustainable power generation mix. In addition, new sources of water are needed worldwide, and water desalination and water transportation infrastructure should help make that possible. We believe that our cash flow profile, coupled with our scale, diversity and low-cost business model, offers us a low risk profile and provides us with a significant competitive advantage with which to execute our growth strategy.
We will seek to grow our cash available for distribution and our dividend to shareholders through organic growth and by acquiring new assets in operation from AAGES. We expect to complement this with acquisitions from third parties and potential new future partnerships.
- We believe we can achieve organic growth through the optimization of the existing portfolio, price escalation factors in many of our assets and the expansion of current assets, particularly our transmission lines, to which new assets can be connected. Additionally, we should have repowering opportunities in certain existing generation assets once their contracted life has expired.
- In addition, we have in place exclusive agreements with AAGES and Algonquin which provide us with a right of first offer on any proposed sale, transfer or other disposition of certain of AAGES and Algonquin assets.
- Furthermore, we plan to sign similar agreements or enter into partnerships with other developers or asset owners to acquire assets in operation. We may also invest directly or through investment vehicles with partners in assets under development or construction, ensuring that such investments are always a small part of our total investments.
- Finally, we also expect to acquire assets from third parties leveraging the local presence and network we have in the geographies and sectors in which we operate.
With this business model, our objective is to pay a consistent and growing cash dividend to shareholders that is sustainable on a long-term basis. We expect to distribute a significant percentage of our cash available for distribution as cash dividends and we will seek to increase such cash dividends over time through organic growth and through the acquisition of assets.