Enlight secures $310 million for Spain’s hybrid energy project

Published 03/06/2025, 12:52
Enlight secures $310 million for Spain’s hybrid energy project

TEL AVIV – Enlight Renewable Energy (NASDAQ: ENLT, TASE: ENLT.TA), a $2.32 billion market cap renewable energy company with impressive 78% gross profit margins according to InvestingPro, has announced financing agreements totaling around $310 million for the expansion of its Gecama Wind Project in Spain, aiming to create the nation’s largest hybrid renewable energy complex. The project will integrate wind, solar, and battery storage to deliver continuous clean electricity, with a total capacity of 554 MW and 220 MWh.

The Gecama facility, currently Spain’s largest wind farm at 329 MW, will be enhanced with a solar array and utility-scale energy storage system. This hybridization is expected to yield high returns due to complementary technology profiles and a battery system that optimizes energy resource use.

The project is set to play a crucial role in advancing Spain’s energy storage infrastructure, in response to recent widespread blackouts in the country. It is one of the first in Spain to deploy utility-scale battery storage on this scale, which will also support grid services such as frequency response.

Commercial operation of the solar and storage components is anticipated for the second half of 2026. Once operational, the Gecama Hybrid Project is projected to increase annual revenues by $38–40 million and EBITDA by $31–33 million in its first full year, with potential total annual revenues of $95–105 million and EBITDA of $75–80 million.

The financing includes two tranches, with a fixed interest rate of approximately 5.1%, covering both refinancing of the existing wind project and construction of the new hybrid project. InvestingPro data shows the company operates with a significant debt burden, though its liquid assets exceed short-term obligations with a current ratio of 1.31x. With 13+ additional ProTips available, investors can gain deeper insights into Enlight’s financial position through InvestingPro’s comprehensive analysis. The financing is led by MEAG, the asset management arm of Munich Re, and includes additional institutional co-investors.

Enlight’s CEO, Gilad Yavetz, highlighted the significance of this milestone in the company’s European operations, emphasizing the project’s innovative approach to maximizing the potential of existing infrastructure.

The transaction was supported by BNP Paribas as the sole financial advisor and DLA Piper as the legal advisor. MEAG was advised by Linklaters and received technical advice from G-Advisory and Hartford Steam Boiler.

This expansion reflects Enlight’s strategy to scale projects and optimize financial returns, contributing to a broad growth plan across Europe, Israel, and the U.S. The company’s growth trajectory is supported by strong fundamentals, with InvestingPro analysts forecasting 36% revenue growth for FY2025 and the stock trading near its 52-week high of $20.19. Discover more detailed insights and access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering what really matters about Enlight and 1,400+ other top stocks. The information is based on a press release statement.

In other recent news, Enlight Renewable Energy has secured a 12-year contract with Vishay Israel Ltd. valued at approximately $105 million. This agreement allows Vishay to negotiate direct electricity supply, significantly reducing its costs and environmental impact. Enlight’s partnership positions the company prominently in Israel’s renewable energy sector following electricity market deregulation. Additionally, Enlight has achieved financial closure for its Quail Ranch project in New Mexico, securing $243 million in construction financing commitments. The project, which combines solar generation and battery storage, is expected to be completed by the end of 2025 with a 20-year Power Purchase Agreement in place. Enlight has secured a total of $1.5 billion in financing for three U.S. projects, projected to generate significant annual revenues upon operation commencement. A consortium of global banks, including BNP Paribas and Crédit Agricole, led the financial close for Quail Ranch. Enlight’s CEO expressed pride in the rapid financial closings, which enhance the company’s revenue potential in the U.S.

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