Enlight signs agreement to acquire a portfolio of solar energy projects currently under development in Spain

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Zafrir Yoeli, SVP Business Development: "This is another expansion of our portfolio of projects in Spain, which already includes the largest wind farm in Spain which is in advanced stages of construction (Gecama), as well as another 800MWdc in development. The new portfolio, which already secured grid connection rights to the national electricity grid, will add significant solar power in high-radiation areas and will diversify our production sources in the Iberian region"

TEL AVIV, Israel, Aug. 3, 2021 /PRNewswire/ -- Enlight Renewable Energy (TASE: ENLT) announced that it signed an agreement to acquire a portfolio of photovoltaic solar energy projects, in several stages, that are currently under development in Spain, with potential aggregate capacity of approximately 490 MWdc.

The portfolio is made up of ten projects in two regions, Andalucía and Valencia, which have some of the best radiation in Spain, and supplements the location of the projects the company is building and developing in Spain, currently in the Castilla La Mancha region. The projects are held through special purpose companies, which at this stage hold most of the rights to the land for construction of the projects and the approvals to connect to the electricity grid.

The seller is an affiliate of the private investment fund, Cerberus Capital Management L.P., with the development of the projects being done by one of Spain's leading solar development companies, Renovalia Energy Group SLU, as part of the existing development agreement with it.

The consideration will be paid according to milestones based on the development of the projects, with most of the consideration being paid upon completion of the development and after all the permits for construction of the projects have been obtained. The first milestone is for an amount that is not material for the company, and it includes a guarantee for most of the rights to the land and rights to connect to the grid. The average consideration upon completion of the development is expected to reach EUR 85,000-100,000 per MWdc, depending on materialization of the various parameters of the different projects.

According to the agreements between the parties, the seller will continue to bear the development costs and guarantees for connection to the grid upon completion of development, and then the company will provide the guarantees for connection to the grid and will reimburse the seller for specific expenses only, such as land costs and connection costs, and only for the projects for which development is successfully completed. Additionally, should the development of a specific project not be completed, the consideration paid for it will be offset against the consideration to be paid for the other projects.

Note that the Spanish government recently increased renewable energy production targets to approximately 74% of total energy consumption by 2030, with most expected to come from solar energy, with an estimated additional capacity of 37,000 MW of solar energy.

The company estimates that the portfolio projects that materialize will do so gradually, in whole or in part, over a two-year period. 

Enlight Renewable Energy, established in 2008, is traded on the Tel Aviv 125 Index is 98% publicly held. It is one of the Israeli leaders in initiation, development, financing, construction and operation of ventures for generation of green energy from renewable energy sources. The company operates in Israel and Europe, with a diversified portfolio of income-producing projects, projects under construction and pre-construction, with production capacity of 2,000 MW and additional 2,800 MW in various stages of development. The company enjoys a steadily growing revenue backlog from long-term agreements for the sale of power and is also working to expand its footprint in additional clean energy markets and segments.  

Cerberus, Founded in 1992, is a global leader in alternative investing with over $55 billion in assets across complementary credit, private equity, and real estate strategies. Cerberus invest across the capital structure where their integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. the tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns.

For additional information:

Orli Kasuto Madmon
Scherf Communications

SOURCE Enlight Renewable Energy