TEL AVIV - Enlight Renewable Energy (NASDAQ: ENLT, TASE: ENLT), a global renewable energy platform, has secured a $101 million loan for the construction of a new windfarm in Serbia. This financial package, arranged by The European Bank for Reconstruction and Development (EBRD) and Erste Group Bank AG (OTC:EBKDY), along with Erste Bank a.d. Novi Sad, marks the first project financed under Serbia's 2023 renewable energy auction scheme.
The 94-megawatt windfarm, named after Serbian scientist Mihajlo Pupin, is slated to begin commercial operation in the second half of 2025. It will be an extension of the existing Kovacica windfarm in Vojvodina, also developed by Enlight and financed by the same lenders in 2017. The new Pupin windfarm is expected to generate enough electricity to power over 40,000 households.
This move comes as Serbia aims to diversify its energy sources and shift away from coal, which currently dominates its electricity production. The financing is part of a broader effort to address Serbia's structural energy challenges by promoting cleaner, renewable sources of power.
The renewable energy auction scheme, which awarded contract-for-difference for 400 MW of wind capacity in 2023, is set to hold additional auctions for both wind and solar capacity in 2024 and 2025. The scheme, developed with support from the EBRD and funded by the Swiss State Secretariat for Economic Affairs (SECO), aims to integrate renewables into the market by aligning developer support with market prices and revenue from electricity sales.
Matteo Colangeli, EBRD Regional Director for the Western Balkans, highlighted the significance of Serbia's auction scheme in unlocking the country's renewable energy potential. Gilad Yavetz, CEO and co-founder of Enlight, noted the efficiency and higher returns achieved by leveraging existing infrastructure and knowledge from the Kovacica project.
Wolfgang Hargassner, Head of Corporate Finance at Erste Group, expressed hope that the Pupin project's financing would lead the way for future renewable energy projects in Serbia. The information provided is based on a press release statement.
InvestingPro Insights
As Enlight Renewable Energy (NASDAQ: ENLT) forges ahead with its new windfarm project in Serbia, the company's financial health and market performance offer valuable insights. The company's market capitalization stands at approximately $2.02 billion, reflecting investor confidence in its growth potential.
With a price-to-earnings (P/E) ratio of 27.77 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 28.37, Enlight is trading at a valuation that suggests investors are expecting earnings growth.
One of the key InvestingPro Tips for ENLT is its impressive gross profit margin, which was reported to be 79.35% for the last twelve months as of Q4 2023. This is indicative of the company's ability to manage its cost of goods sold effectively and maintain profitability. Additionally, analysts are optimistic about the company's future, anticipating sales growth in the current year and predicting that the company will be profitable this year.
From a financial perspective, Enlight's revenue growth also stands out, with a 33.06% increase in the last twelve months as of Q4 2023. This growth trajectory is a positive signal for potential investors, as it demonstrates the company's expanding operations and market reach.
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