Enlight Renewable Energy Ltd

What they do

The company develops, constructs, and operates renewable energy facilities, primarily photovoltaic (PV) and battery energy storage systems (BESS). It manages projects through the full lifecycle, from initiation to operation, and finances construction with debt linked to SOFR and Euribor, capitalizing interest during construction. It also engages in hedging transactions to manage USD/NIS and USD/EUR exchange rate exposure on contractor payments.

Revenue drivers

• Electricity sales from operating projects — Revenue from power generation under long-term power purchase agreements (PPAs), which are not reflected on the balance sheet.
• PV projects in Israel — A cluster of PV projects in Israel was reclassified from contract assets to fixed assets in 2024 due to significant changes to the concession agreement, indicating ongoing contribution.
• PV + Storage projects in Israel — A cluster of PV + Storage projects in Israel was reclassified to disposal group held for sale at end of 2024, expected to generate proceeds from sale.

Recent performance

The company completed an equity issuance on August 21, 2025, raising approximately NIS 1,000 million (USD 292.5 million) by issuing 11,396,012 ordinary shares. Capital reserves grew from USD 25,273 thousand in 2024 to USD 99,311 thousand in 2025, reflecting the issuance and other items. The liability for deferred consideration in the Halutziot project stood at USD 2,480 thousand as of December 31, 2024, down from USD 2,591 thousand in 2023.

Strategy

The company plans to sell a cluster of PV + Storage projects in Israel, classifying them as held for sale at the end of 2024. It continues to develop renewable projects, including battery energy storage systems, and uses project finance debt during construction. Management hedges currency exposures (USD/NIS, USD/EUR) to manage contractor payment costs. It also capitalizes finance expenses during construction to reduce income statement impact.

Risks

• Interest rate risk — Loans linked to SOFR and Euribor expose the company to higher financing costs on construction debt if rates rise.
• Currency risk — Exchange rate fluctuations between USD/NIS and USD/EUR affect contractor payments and financial results, mitigated partially by hedging transactions.
• CPI linkage risk — Some liabilities are linked to the Consumer Price Index, so rising inflation increases outstanding obligations.
• Project sale execution risk — The planned sale of the PV + Storage cluster in Israel may not close on expected terms or timeline, affecting liquidity and returns.

Outlook

Management expects to complete the sale of the Israeli PV + Storage cluster classified as held for sale. The proceeds from the August 2025 equity issuance will support ongoing construction and development activities. Interest expenses during construction will continue to be capitalized, reducing near-term income statement impact. Ongoing hedging will mitigate currency volatility on project costs.