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TEL AVIV - Enlight Renewable Energy (NASDAQ: ENLT, TASE: ENLT.TA), a $1.84 billion renewable energy company showing impressive 47.8% revenue growth over the last twelve months, has entered into a 12-year contract with Vishay Israel Ltd., a top manufacturer of discrete semiconductors and passive electronic components. The deal, valued at approximately $105 million, includes an option to increase electricity consumption over the contract duration. According to InvestingPro data, Enlight maintains strong gross profit margins of nearly 80%.
This agreement positions Enlight at the forefront of Israel’s shift towards renewable energy following the deregulation of the country’s electricity market. This change has enabled large consumers to negotiate direct supply agreements with power producers such as Enlight, which boasts the largest portfolio of renewable energy assets in Israel. With analysts forecasting continued sales growth and profitability this year, Enlight appears well-positioned to capitalize on market opportunities.
The partnership with Enlight is expected to significantly reduce Vishay’s electricity costs in Israel. Additionally, the environmental impact of the deal is notable, with emission reductions equivalent to planting around 740,000 trees annually or taking about 17,000 fuel-powered vehicles off the roads each year.
Gilad Peled, CEO of Enlight MENA, expressed his satisfaction with the agreement, highlighting that it follows a series of contracts with prominent Israeli companies committed to environmental responsibility. Boaz Bazak, Director of IEHS at Vishay Israel, emphasized the agreement’s alignment with their sustainability goals and its role in enhancing operational efficiency while reducing environmental impact.
Enlight Renewable Energy, founded in 2008, has a presence in the United States, Israel, and 10 European countries, with operations spanning solar, wind, and energy storage segments. Vishay Intertechnology serves a global customer base, with applications in various high-tech sectors. Trading near its 52-week low at $15.12, InvestingPro analysis suggests Enlight is currently undervalued, with 12 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.
The information for this article is based on a press release statement.
In other recent news, Enlight Renewable Energy Ltd. has successfully completed its public tenders for Series G and Series H notes in Israel, raising approximately $235 million from classified investors. These funds are earmarked for investment in large-scale renewable energy projects in the U.S., Europe, and MENA regions. The Series G notes were offered at a fixed annual interest rate of 5%, while Series H notes, convertible into ordinary shares, had a fixed annual interest rate of 4%. Additionally, Enlight secured $243 million in construction financing for its Quail Ranch solar and battery storage project in New Mexico, which is expected to be operational by the end of 2025. This project is part of a broader $1.5 billion financing effort for three U.S. projects, anticipated to generate annual revenues between $135-140 million. Enlight also entered a $22 million Power Purchase Agreement with NTA Metropolitan Mass Transit System Ltd. in Israel, further establishing its position in the renewable energy sector. The agreement supports NTA’s transition to clean energy, promising significant reductions in electricity costs and carbon emissions. Enlight’s CEO highlighted the company’s rapid financial closings, projecting approximately $200 million in annual revenues from U.S. operations.
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