Enlight Renewable Energy Secures Major Financing for Solar Project

Enlight Renewable Energy Secures Major Financing for Country Acres

The recent financial close for Enlight Renewable Energy Ltd. marks a significant milestone for the Company. This achievement relates to the Country Acres project, which has successfully obtained a robust debt financing package totaling $773 million. This financing will support the construction and operational phases of the project.

Understanding Country Acres

Country Acres, once fully operational, is set to deliver an impressive 403 megawatts (MW) of solar generation capacity, complemented by 688 megawatt-hours (MWh) of energy storage capability. The anticipated full commercial operations date is towards the latter part of 2026, allowing for ample preparation time for the project’s ambitious goals.

Details of the Financing Package

Through its subsidiary Clenera Holdings LLC, Enlight has coordinated with a consortium of notable global banks, including BNP Paribas, Crédit Agricole, Natixis, and Nord/LB, to finalize this substantial construction financing. This significant partnership will convert the construction loan into a term loan of $376 million upon the project achieving its commercial operations date (COD).

PPA and Energy Supply Agreements

Integral to the success of Country Acres is the establishment of a solar generation power purchase agreement (PPA) with the Sacramento Municipal Utility District (SMUD). This 30-year solar generation contract alongside a 20-year energy storage agreement lays a solid foundation for reliable energy supply. Enlight anticipates finalizing a tax equity transaction soon, capitalizing on the project’s progress and meeting necessary criteria for beginning construction.

Construction Progress and Environmental Benefits

With the ongoing construction on its expansive 966-acre site, Country Acres is on track to meet its operational goals. The project is poised to generate clean electricity, sufficient to power around 80,000 homes in California annually. This clean energy initiative reflects Enlight’s commitment to sustainability and addresses the increasing energy demands of the region.

Expansion of U.S. Projects

Country Acres stands at the forefront of Enlight’s expanding portfolio of renewable projects within the United States. Recent constructions, including Apex in Montana and Atrisco in New Mexico, reflect the company’s strategy to harness the growth potential within the renewable energy sector. Other substantial projects like Quail Ranch and Roadrunner further illustrate Enlight and Clenera’s dedication to enhancing the U.S. renewable energy landscape. The projected annual revenue from U.S. operations post-construction is estimated to range between $195 and $207 million.

Upcoming Projects and Development Strategy

Progressing swiftly are the Company’s next initiatives in the western United States—namely, Snowflake and CO Bar projects. These large-scale projects, featuring 600 MW and 1,211 MW respectively, are nearing the completion of their development phases. Expected to kick off construction soon, they will utilize large grid connections, generating additional opportunities aligned with Enlight's 'Connect and Expand' strategy.

Partnerships and Future Aspirations

Statements from key executives highlight the significance of partnerships in reaching these milestones. Adam Pishl, President of Clenera, expressed gratitude towards the financial institutions involved, emphasizing the long-term benefits renewable projects like Country Acres bring to local communities. Other financial partners echoed similar sentiments regarding commitment to sustainability and clean energy transitions.

Enlight is capitalizing on its strategic relationships with financial institutions as it continues to solidify its standing within the renewable energy sector. This collaborative approach not only enhances financing opportunities but also strengthens the company's ability to achieve its ambitious growth objectives.

About Enlight Renewable Energy Ltd.

Founded in 2008, Enlight has established itself as a prominent player in the renewable energy sector, focusing on the development, financing, and management of utility-scale projects across various segments, including solar and wind energy. Trading on both the Nasdaq (NASDAQ: ENLT) and the Tel Aviv Stock Exchange (TASE: ENLT.TA), Enlight demonstrates its global reach by operating in the United States, Israel, and ten European countries. For further information on Enlight and its initiatives, visit their official website.

Frequently Asked Questions

1. What is the purpose of the Country Acres project?

The Country Acres project aims to produce renewable solar energy and enhance energy storage capabilities to support the energy needs of local communities.

2. What financing did Enlight secure for Country Acres?

Enlight secured a debt financing package amounting to $773 million for the construction and operation of Country Acres.

3. When is the projected commercial operation date for Country Acres?

Country Acres is expected to achieve full commercial operations by the second half of 2026.

4. Where will the energy generated from Country Acres be supplied?

The energy generated will primarily be supplied to households through a power purchase agreement with the Sacramento Municipal Utility District (SMUD).

5. How does Enlight plan to grow its project portfolio in the U.S.?

Enlight plans to grow its U.S. project portfolio through strategic partnerships, securing financing, and developing large-scale renewable energy initiatives across the region.

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