Enlight Announces the Commencement of Commercial Operations at the Tapolca Solar Project in Hungary
Rhea-AI Summary
Enlight Renewable Energy (NASDAQ: ENLT) has announced the commencement of commercial operations at its Tapolca solar project in Hungary. The project, with a 60 MW production capacity, began selling electricity on July 31, 2024, ahead of schedule. This marks Enlight's fifth project in Hungary, bringing its total generating capacity in the country to 144 MW.
Key details:
- Total construction cost: $48 million
- Expected first-year revenues: $6 million
- Projected EBITDA: $5 million
- Enlight's equity investment: $21 million
The project will sell electricity at merchant prices and is expected to provide green power equivalent to the annual consumption of 30,000 Hungarian households. Financing was provided by Raiffeisen Bank, with financial close occurring in March 2024.
Positive
- Commencement of commercial operations at Tapolca solar project ahead of schedule
- 60 MW production capacity added to Enlight's portfolio
- Total generating capacity in Hungary increased to 144 MW
- Expected first-year revenues of $6 million
- Projected EBITDA of $5 million
Negative
- None.
Insights
The commencement of operations at Enlight's Tapolca solar project in Hungary marks a significant milestone for the company's European expansion. With an investment of
The merchant pricing model for electricity sales introduces some revenue volatility but also offers upside potential in a rising energy price environment. Enlight's strategy of diversifying across markets could help mitigate country-specific risks. The project's ahead-of-schedule completion and the backing of Raiffeisen Bank underscore the company's execution capabilities and credibility in the renewable energy sector.
Enlight's Tapolca project significantly bolsters its presence in Hungary, increasing its operating capacity by
The merchant pricing model chosen for Tapolca reflects confidence in Hungary's energy market dynamics and potential for favorable electricity prices. However, it's important to monitor how this strategy performs against fixed-price alternatives in the long term. The project's swift completion and integration into Enlight's portfolio demonstrate the company's operational efficiency and scalability in the competitive European renewable energy market.
Enlight's expansion in Hungary with the Tapolca project reflects a strategic positioning in the Central European renewable energy market. The company's growing portfolio in the region, now at 144 MW, indicates a committed long-term presence. This move aligns with the broader European Union push towards clean energy, potentially benefiting from supportive policies and growing demand for sustainable power sources.
The project's merchant pricing model suggests confidence in market dynamics but also exposes Enlight to price fluctuations. Investors should watch how this strategy performs compared to fixed-price contracts in other markets. The ability to complete the project ahead of schedule is a positive sign for Enlight's project management capabilities, which could be a competitive advantage in securing future opportunities in the rapidly evolving European renewable energy landscape.
The Project incorporates 60 MW of solar generation capacity, and cost
Tapolca is Enlight’s fifth project in Hungary, bringing the Company to a total of 144 MW of operating generation capacity in the country
TEL AVIV, Israel, Aug. 18, 2024 (GLOBE NEWSWIRE) -- Enlight Renewable Energy (“Enlight”, "the Company”, NASDAQ: ENLT, TASE: ENLT.TA), a leading renewable energy platform, announces the commencement of operations at the Tapolca solar project (“the Project”) in Hungary, which has a production capacity of 60 megawatts. The project began commercial sales of electricity on July 31, 2024, ahead of the Company’s original schedule.
This is Enlight's fifth project in Hungary, bringing the Company’s total generating capacity in the country to 144 MW. Tapolca will sell electricity at merchant prices, and it is expected to provide green power equal to the total annual consumption of approximately 30,000 Hungarian households.
The Project’s total construction cost amounted to
Gilad Yavetz, CEO of Enlight: "We are happy to announce the grid connection and commencement of commercial operations at our fifth project in Hungary. The continued development and operation of new European projects such as Tapolca is another example of Enlight’s broad international execution capabilities on a number of different continents. Enlight Europe is undergoing significant expansion, implementing our operating strategy in diverse markets which hedge and balance each other, accelerating the growth of our operating portfolio and the Company as whole.”
About Enlight Renewable Energy
Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 10 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its U.S. IPO (Nasdaq: ENLT) in 2023. Learn more at www.enlightenergy.co.il.
Contacts:
Yonah Weisz
Director IR
investors@enlightenergy.co.il
Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
+1 617 542 6180
investors@enlightenergy.co.il
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s expectations relating to the Project, the PPA and the related interconnection agreement and lease option, and the completion timeline for the Project, are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects; availability of, and access to, interconnection facilities and transmission systems; our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits; construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors; our suppliers’ ability and willingness to perform both existing and future obligations; competition from traditional and renewable energy companies in developing renewable energy projects; potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire; offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks; various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues; the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions; our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected; government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production; electricity price volatility, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; our dependence on certain operational projects for a substantial portion of our cash flows; our ability to continue to grow our portfolio of projects through successful acquisitions; changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies; our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business; our ability to retain and attract key personnel; our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure; our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war; the potential impact of the current conflicts in Israel on our operations and financial condition and Company actions designed to mitigate such impact; changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy; our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, tariffs, sanctions, export controls and anti-bribery and anti-corruption laws; our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations; our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects; limitations on our management rights and operational flexibility due to our use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; our ability to comply with tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future; the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares; various risks related to our incorporation and location in Israel; the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) and our other documents filed with or furnished to the SEC.
These statements reflect management’s current expectations regarding future events and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as may be required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
FAQ
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