ALBUQUERQUE - Enlight Renewable Energy (NASDAQ: ENLT), a global renewable energy platform, has begun the initial phase of commercial operations at its Atrisco Solar & Energy Storage project near Albuquerque, New Mexico. The project, developed by Enlight's U.S. subsidiary Clenera, features a 364 MW solar generation capacity and 1.2 GWh of energy storage capacity.
The solar array is anticipated to achieve full commercial operations in the coming weeks, with the energy storage complex slated for completion by the end of the year. The Public Service Company of New Mexico (PNM) has agreed to a 20-year power purchase agreement for the energy produced at Atrisco, which is projected to meet the average annual consumption of about 110,000 local households.
Atrisco stands as Enlight's largest project in terms of both capacity and capital expenditure, costing a total of $827 million with net project costs after tax equity amounting to $407 million. The project is expected to generate annual revenues of $51-55 million and EBITDA of $41-45 million in its first full year of operation.
The financing for the energy storage component was completed in July 2024, with the solar portion secured in December 2023. Debt financing for the project totaled $290 million from bank consortiums led by HSBC (LON:HSBA), supplemented by $420 million from tax equity partners Bank of America (NYSE:BAC) and US Bank.
Clenera President and CEO Adam Pishl remarked on the transformation of a brownfield site into a productive clean energy power plant. Gilad Yavetz, CEO of Enlight Renewable Energy, highlighted the project's contributions to New Mexico's economy, climate goals, and energy security. He also noted Enlight's ongoing development of additional clean energy projects in the region.
Enlight Renewable Energy, founded in 2008 and publicly traded on the Tel Aviv Stock Exchange since 2010 with a U.S. IPO completed in 2023, operates in the United States, Israel, and 10 European countries. The company specializes in solar, wind, and energy storage projects.
The Atrisco project employed hundreds of engineers and skilled workers during construction. It features solar panels from Runergy, trackers from Array Technologies Inc, string inverters from Sungrow, and an energy storage system supplied by Tesla (NASDAQ:TSLA). Miller Brothers will handle operations and maintenance, following construction by RES Americas.
This news is based on a press release statement.
In other recent news, Enlight Renewable Energy reported a significant increase in its financial performance for the second quarter of 2024. The company's revenue surged by 61% to $85 million, and adjusted EBITDA climbed by 39% to $58 million compared to the same period the previous year. Enlight has also adjusted its full-year guidance upwards, now forecasting revenues between $345 million and $360 million, and EBITDA in the range of $245 million to $260 million.
This positive outlook is backed by the company's expansion efforts in the U.S. market, where it has multiple projects under construction that are poised to contribute to both revenue and EBITDA upon completion. Despite the overall positive financial results, the company did report a significant decrease in net income. The company is focused on tripling its global generation and storage capacity by 2027, and it anticipates returns on new projects to average 10.5% before leverage.
These are recent developments that highlight Enlight Renewable Energy's strategic positioning in the renewable energy market and its ambitious goals in the rapidly evolving energy landscape.
InvestingPro Insights
As Enlight Renewable Energy (NASDAQ: ENLT) embarks on the Atrisco Solar & Energy Storage project, the company's financial health and market performance provide a broader context for potential investors and stakeholders. According to InvestingPro data, Enlight boasts a substantial market capitalization of $1.88 billion, reflecting investor confidence and the scale of its operations in the renewable energy sector.
The company's revenue growth is particularly noteworthy, with a remarkable 27.6% increase over the last twelve months as of Q2 2024. This is further amplified by a quarterly growth rate of 61.14% for the same period, indicating a strong upward trajectory in sales. Additionally, Enlight's gross profit margin stands at an impressive 80.06%, underscoring the company's ability to manage costs effectively and maintain profitability.
InvestingPro Tips for Enlight Renewable Energy highlight the company's significant debt burden, which is a critical factor for investors to consider given the substantial costs associated with the Atrisco project. Despite this, analysts are optimistic about the company's future, anticipating sales growth in the current year. Moreover, Enlight's ability to maintain high gross profit margins is a testament to its operational efficiency, an essential aspect for sustaining growth in the competitive renewable energy market.
For those seeking a deeper analysis, InvestingPro offers additional tips, including insights on the company's cash burn rate, earnings multiples, and valuation implications. In total, there are 14 InvestingPro Tips available for Enlight Renewable Energy, which can be accessed for a comprehensive investment evaluation.
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