Enlight Announces Financial Close on Atrisco Energy Storage Project

Core Insights - Enlight Renewable Energy Ltd. has successfully closed financing for the Energy Storage portion of its Atrisco Solar and Energy Storage project, which combines 364 MW of solar generation capacity with 1.2 GWh of battery storage capacity, expected to reach full Commercial Operation Date (COD) later this year [1][9]. Financing Details - The financing includes a loan agreement totaling $401 million with a consortium of eight global banks led by HSBC, which will convert into a $185 million term loan and $222 million in tax equity financing upon project COD [2][10]. - The term loan has a 20-year amortization profile with a 5-year mini perm and an all-in interest rate of 5.6% to 5.9% [2]. Financial Projections - The total project cost for Atrisco is $827 million, with $290 million in term debt and $420 million in tax equity, covering 86% of the total cost, while Enlight's long-term equity investment amounts to $117 million [9][11]. - Expected revenues for the Atrisco Energy Storage project in its first full year are projected to be between $32 million and $34 million, with expected EBITDA between $27 million and $29 million [4][5]. Future Growth and Expansion - Enlight plans to recycle $234 million of equity back to its balance sheet for future growth, with Atrisco being the second of several major solar and energy storage projects planned in the U.S. [3][6]. - The share of U.S. generation capacity within Enlight's total installed base is expected to rise from 5% at the end of 2023 to 59% by the end of 2026, indicating significant expansion in the U.S. renewable energy market [6]. Project Characteristics - Atrisco is located on a desert plateau with high solar irradiation and spans approximately 1,700 acres, expected to provide clean electricity equivalent to the average annual consumption of about 110,000 New Mexico households [13]. - The project construction was led by RES, and the battery energy storage system was provided by Tesla, showcasing collaboration with leading industry players [13].