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TEL AVIV - Enlight Renewable Energy (NASDAQ: ENLT, TASE: ENLT.TA), a global renewable energy company, has announced the completion of its Solar and Storage Cluster in Israel, marking a significant milestone in the country's clean energy production. The Cluster, consisting of 12 installations with a combined solar generation capacity of 254 MW and energy storage capacity of 594 MWh, began commercial operations in stages starting in 2023, with full operations commencing today.
The facilities, strategically located in northern and southern Israel, are set to bolster the energy and economic security of the agricultural communities involved. The Cluster's output, which currently accounts for over 50% of the clean electricity in Israel's deregulated power market, will be sold directly to customers through Enlight's supplier division. This division has secured corporate power purchase agreements (PPAs) with significant industrial clients, including Soda Stream and Applied Materials (NASDAQ:AMAT), and engages with households and small businesses via a joint venture with Electra Power.
Enlight anticipates the Cluster to generate annual revenue of $34-36 million and EBITDA of $24-26 million in its first full year of operation, not accounting for the additional margin from the supplier division. The transition to a deregulated market and the low production costs of renewable energy are expected to provide competitive clean power prices to consumers while yielding attractive returns for Enlight and its partners.
Gilad Peled, General Manager of Enlight MENA, stated, "Today we completed the commencement of full commercial operations at the largest group of renewable energy facilities operating in Israel's deregulated power market. The Cluster will generate attractive returns for Enlight, while creating a stable and vital source of income for our partners in the agricultural communities of Israel."
Enlight Renewable Energy, founded in 2008, develops, finances, constructs, owns, and operates utility-scale renewable energy projects. With operations in the United States, Israel, and 10 European countries, Enlight has been traded on the Tel Aviv Stock Exchange since 2010 and completed its U.S. IPO in 2023.
This press release includes forward-looking statements, and investors are cautioned that such statements involve risks and uncertainties. The company's actual results may differ materially from those anticipated in these forward-looking statements due to various factors, including but not limited to, the availability of interconnection facilities, regulatory approvals, construction and operational delays, and the impact of weather conditions on energy production. This article is based on a press release statement from Enlight Renewable Energy Ltd (NASDAQ:ENLT).
In other recent news, Enlight Renewable Energy Ltd. successfully raised approximately $133 million through the issuance of its Series D Notes. The Israel-based renewable energy company plans to use the proceeds to fund large-scale renewable energy projects across the United States, Europe, and the MENA region. These notes, which attracted substantial interest from Israeli institutional and classified investors, have a term of 3.73 years.
Enlight Renewable Energy also reported a significant increase in its Q2 2024 financial performance. The company's revenue surged by 61% to $85 million, and adjusted EBITDA climbed by 39% to $58 million. As a result, Enlight has adjusted its full-year guidance upwards, now forecasting revenues between $345 million and $360 million, and EBITDA in the range of $245 million to $260 million.
In line with its expansion strategy, the company has initiated commercial operations at its Atrisco Solar & Energy Storage project near Albuquerque, New Mexico. This project, developed by Enlight's U.S. subsidiary Clenera, features a 364 MW solar generation capacity and 1.2 GWh of energy storage capacity. The company has also scheduled its Annual General Meeting of shareholders for November 2024. These are the latest developments in Enlight Renewable Energy's ongoing growth and operational strategy.
InvestingPro Insights
Enlight Renewable Energy's recent completion of its Solar and Storage Cluster in Israel aligns well with several key financial metrics and insights from InvestingPro. The company's impressive revenue growth of 27.6% over the last twelve months, and a striking 61.14% growth in the most recent quarter, underscore the positive impact of projects like the newly operational Cluster.
InvestingPro data reveals that Enlight boasts a robust gross profit margin of 80.06%, reflecting the company's efficiency in managing costs associated with its renewable energy projects. This high margin is particularly relevant given the anticipated annual revenue of $34-36 million from the new Cluster.
An InvestingPro Tip highlights that analysts expect Enlight to be profitable this year, which is consistent with the company's projection of $24-26 million in EBITDA from the Cluster alone. This positive outlook is further supported by the company's profitability over the last twelve months.
It's worth noting that Enlight operates with a significant debt burden, according to another InvestingPro Tip. This could be a consideration for investors as the company continues to expand its operations and develop large-scale projects like the Solar and Storage Cluster.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Enlight Renewable Energy, providing a deeper understanding of the company's financial health and market position.
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