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.
