ARETE ENERGY TRANSITION finalizes its first acquisition: BIO TERM cogeneration plant in Poland
The ARETE ENERGY TRANSITION SICAV fund, part of the ARETE group, has finalized its first acquisition. The portfolio opens with and acquisition of the BIO TERM plant, a modern cogeneration heating plant in Swiebodzice, Poland, with an electrical output of 6.6 MWe and a total thermal output of 11 MWt, which supplies heat and electricity to more than 5,000 customers. The transaction represents a significant milestone for the fund, which focuses on flexible production sources and energy infrastructure, and fulfills its goal of achieving a target return of 11-12% p.a. Established operations and flexible production BIO TERM has two highly efficient gas cogeneration units and a gas boiler, ensuring stable operation and flexibility. It complies with current European environmental standards and benefits from cogeneration support. The production also includes hot water storage tanks, which enable efficient energy management and function as thermal energy storage. “This is the first transaction of the ARETE ENERGY TRANSITION SICAV fund, that was launched in May 2025. It demonstrates our ability to seek out and acquire attractive investments in the energy sector and confirms that we have sufficient high-quality investment opportunities,” says Martin Pacovský, the Chief Investment Officer of Energy Transition. The project’s economics are based on two pillars: regulated revenues from heat supply to households and the ability to generate electricity during peak periods when the market price is highest. “BIO TERM is a prime example of an attractive asset that combines regulated revenues with the opportunity to profit from market opportunities. This contributes to our goal of achieving a long-term return of 11-12%. The hot water storage tank also plays an important role, increasing the flexibility of the entire operation and allowing us to respond effectively to market conditions,” adds Pacovský. In addition, the fund bases its investment strategy on portfolio diversification. BIO TERM is the first step, to be followed in the coming years by further acquisitions of a similar assets in Poland and neighboring countries. “We are currently evaluating three more projects that should expand the fund’s portfolio. The goal is to build a set of facilities with an installed capacity exceeding 50 MW within three years,” says Pacovský. In addition to cogeneration plants, the fund also plans to expand its portfolio to include battery storage and renewable energy sources. This is all part of a comprehensive strategy based on the current transformation of the energy sector, which is opening to new opportunities. “Based on our knowledge of the energy market and the impact of the energy transformation on future production sources, energy transmission, and storage, we are investing in assets whose value will be key to achieving decarbonization and energy security goals,” says Lubor Svoboda, co-founder of the ARETE Group. The strategic importance of the transaction is also underscored by the situation in Poland, which remains one of the European countries with the highest share of coal in electricity and heat production. Modern gas and cogeneration sources are therefore becoming increasingly important in the country, not only for achieving emission targets, but also for increasing energy security and grid stability. BIO TERM operates in a market where demand for decentralized and flexible sources is growing rapidly. In addition, the fund operates its own in-house trading desk, which actively trades electricity and other energy commodities, which will further increase the return achieved.
Bez nových plynových elektráren to nepůjde. Energetiku čeká investiční vlna
Nový závazek EU v podobě odebírání trojnásobného množství plynu v energetice znamená jediné: plyn bude hrát v evropské energetice ústřední úlohu a budou nutné do energetiky značné investice. Evropská unie oznámila nový energetický závazek vůči Spojeným státům, podle kterého by měla každoročně dovážet americkou energii až za 250 miliard dolarů. V roce 2024 přitom EU z USA energetické produkty za přibližně 80 miliard dolarů. Tento závazek, více než trojnásobek dnešní hodnoty dovozů, vyvolává nejen otázky kolem jeho realizace, ale zejména praktické důsledky pro evropskou energetiku. Kdo spotřebuje dovážený plyn? Podstatou problému není jen samotná velikost slíbených dovozů. Evropa má aktuálně dostatečné terminálové kapacity na dovoz LNG z USA, přesto mnohé terminály v posledním roce zůstávaly výrazně pod využitím. Důvodem byl hlavně pokles poptávky po zemním plynu, zejména v elektroenergetice, která mezi roky 2021 a 2024 zaznamenala snížení spotřeby o více než pětinu. Pokud má Evropa nakoupit a odebrat slíbená množství amerického plynu, musí vzniknout nová poptávka. A ta je reálná prakticky pouze v energetice. ,,Plynové elektrárny jsou aktuálně jediný reálný sektor, kde by se mohly tyto nové objemy uplatnit,” uvádí Martin Pacovský, investiční ředitel fondu ARETE Energy Transition. ,,Bude nutné nejen transformovat elektrárny spalující uhlí na plynové, ale postavit elektrárny na zelené louce,” dodává. Nové plynové elektrárny se přitom navrhují jako vodíkově připravené (,,H₂-ready”), což znamená, že budou schopny postupně přejít od spalování zemního plynu ke směsím s vodíkem, až po případné využití čistého vodíku, a budou tedy hrát ústřední úlohu při dekarbonizaci v energetice. ,,Teplárny čeká také optimalizace provozu, kdy nebudou jen vyrábět teplo, ale ve špičkách, kdy cena spotové elektřiny dosáhne vrcholu,” uvádí Pacovský. Nové trendy v energetice tak otevírají zajímavé investiční příležitosti. ,,Energetika se může stát investičním ternem, jako dříve nemovitosti, které měly pravidelně od roku 2015 dvouciferné růsty. Zatímco u nemovitostí se možnost dalšího růstu vyčerpává, v případě energetických investic se nové možnosti otevírají,” zakončuje Pacovský. O skupině ARETE: Investiční skupina ARETE je od roku 2014 profesionálním správcem aktiv, který realizuje investiční řešení pro institucionální a kvalifikované investory ve dvou základních strategiích zaměřených na nemovitosti a energetickou transformaci. Základem investičních strategií skupiny je nastavení a dodržovaní investičních cyklů aktiv a investičních produktů. Součástí úspěšné historie jsou dva již uzavřené investiční fondy, které byly vyplacené s nadstandardním výnosem. V současnosti skupina spravuje fond ARETE INDUSTRIAL zaměřený na investice do kvalitních průmyslových nemovitostí a nově také fond ARETE ENERGY TRANSITION, který bude směřovat investice především do flexibilních zdrojů energie. Oba fondy jsou otevřeny pro investování pouze kvalifikovaným investorům. Více informací najdete na www.arete.eu. Kontakt:PR konzultant, Martin MocTel: +724 724 280Email: moc@prmoc.net
TA3 Investment Conference: Energy of the Future
At the “Energy of the Future” conference, hosted by Slovak television TA3 on 25 May 2025, leading energy experts gathered to discuss the outlook for energy prices, energy investment, and energy security across the EU. Martin Pacovský, Chief Investment Officer at ARETE for the ENERGY TRANSITION strategy, was a guest speaker in the opening panel discussion. In his remarks, he focused on two key points: Why he sees natural gas as a critical component of modern energy generation Why investing in flexibility within the energy grid is essential You can watch the full recording of the panel discussion here: Investiční konference TA3 Energie budoucnosti The new ARETE ENERGY TRANSITION fund is built, among other things, on investments in flexible energy sources. The fund will primarily invest in flexible electricity and heat generation based on natural gas, with additional allocations to battery storage systems and renewable energy projects, especially across Central and Western European markets. Over the next four years, the ARETE ENERGY TRANSITION fund plans to invest CZK 5 billion, targeting an annual return of 11–12%.
Europe’s Energy Transition: An Opportunity for Smart Investors
Europe’s energy sector is undergoing a transformation, and investors are seeking new ways to grow their capital. In the latest issue of Euro weekly, Martin Pacovský, Chief Investment Officer for the Energy Transition strategy at ARETE, explains why flexibility is key. The rapid growth of renewable energy brings both opportunities and challenges — especially when it is not supported by flexible generation capacities and battery storage. Without these, the profitability of energy investments and the stability of supply decrease. At ARETE, we are preparing to launch the new ARETE Energy Transition Fund, targeting a combination of renewable energy, flexible generation, and battery storage projects across the EU. The fund aims for a stable annual return of 11–12% and plans to invest over CZK 5 billion in its initial phase. It will be open to qualified investors, with investments starting this May. A key point is that the fund will not focus solely on production volume but on the ability of projects to adapt smartly to changing market conditions. Flexibility has now become the primary driver of predictable cash flow and efficient returns in the energy sector.
Where to Invest in 2025? Insights from ARETE’s Co-Founder
In an exclusive interview with Euro magazine, Lubor Svoboda, co-founder of ARETE investment and real estate group, shares his perspective on the shifting dynamics of the global investment landscape. Lubor explains how diversified strategies including real estate and energy transition can help investors navigate challenges like inflation, regulatory pressures, and geopolitical shifts. Key takeaways: – Real estate remains a “safe haven” with stable, inflation-proof returns, while energy transition offers higher yields for those willing to navigate regulatory complexities. – The importance of diversification: “A well-balanced mix of stocks, bonds with ratings, and real estate can ensure long-term growth.” – What lies ahead? The evolving demand for energy and robust investments in renewables present an unparalleled opportunity for forward-looking investors. Curious to learn more? The full interview is available in the weekly magazine Euro published on 13 January 2025, or here:
We are entering the energy transition business
Martin Pacovský, a prominent figure in the Czech energy industry and a former director of Pražská plynárenská, who also had a long tenure at ČEZ, introduces his latest project with the investment group ARETE in an interview for Hospodářské noviny. Currently, Martin oversees the Energy Transition strategy at ARETE, focusing on investments in energy transition, specifically renewable energy projects and flexible power generation solutions primarily in Western Europe and in the Balkans. Martin’s extensive prior experience are within energy transition sector, such as the construction of wind farms in Romania, and energy production from gas. These make him ideally suited to lead our infrastructure and energy acquisitions. The targeted investments include renewable energy sources, large-capacity batteries, and gas-powered electricity generation to balance the grid during periods of low renewable production. As part of this strategy, we plan to create small energy hubs within our industrial parks, allowing us to efficiently manage energy consumption within the park and trade the generated electricity externally. Our approach emphasizes precise weather forecasting, mathematical modeling, as well as data analysis and positions us well to take advantage of the transitioning infrastructure industry. You can find the interview with Martin here.
Former Head of Pražská Plynárenská Building an Investment Strategy in Energy Transition with Arete
In an interview with Forbes magazine, Martin Pacovský introduces his role in the investment group Arete, where he has been working since April. The new investment strategy, Arete Energy Transition, which Martin leads, focuses on investments in energy transition. The fifty-one-year-old manager brings his experience in the energy sector to this project, while Arete contributes its investment know-how and a database of qualified investors. The newly prepared platform in the form of a fund will primarily invest in wind, solar, and gas power plants, including battery storage. Martin’s primary task will be to seek investment opportunities in the energy sector across Europe, with current interests in locations such as Spain, Germany, and Poland. What was also mentioned in the interview: “I think now is the best time to invest in energy. Uncertainty has entered the market, and it is this uncertainty that brings the most interesting investment opportunities.” You can read the full interview here.
It’s a good time to look at energy with completely new eyes
Martin Pacovský, the Chief Investment Officer of the newly established ARETE ENERGY TRANSITION fund focused on energy investments, was the first guest on the “Vysoké napětí (High Voltage)” podcast in June. He discussed the future of energy, the future of gas, the energy self-sufficiency of the Czech Republic, and the challenges of investing in the energy sector with Vladimír Piskáček and Michal Půr. Do you know how to invest in energy? According to Martin Pacovský, these investments will require working with data. In the future, we can expect a shift in energy sector towards “kind of” stock exchange trading, and those who have good analytical skills, understand data, and can predict consumption and production in the span of days will win. This also applies to investments in various renewable resources. Standalone investments in photovoltaics today do not have a positive return, and the energy sector and investments in this area operate differently than in the past. Owners of photovoltaic power plants without PPA (long-term power purchase agreements for renewable energy at a fixed or indexed price) optimize production based on weather predictions or capacity market forecasts. For instance, they deliberately do not produce or produce 20% less energy and sell this unproduced capacity on the deviation market. They arbitrage between different markets based on their demand and supply forecasts. It’s no longer enough to have a power plant connected to the grid and produce energy when the sun shines. One must have a mathematical model and analysis over their business model and know when, where, and to whom to sell the produced energy. In the show, you will also learn how Martin views the energy self-sufficiency of the Czech Republic and the future of gas. You can listen to the entire podcast here: https://youtu.be/rMf1NGvtRcw
