Grenergy, a leading player in the renewable energy sector, marked a significant milestone during its inaugural Capital Markets Day, revealing a comprehensive growth strategy intricately tied to its steadfast dedication to energy storage—an essential element in advancing the decarbonization of the global energy system towards a greener and more sustainable future.
As a pivotal part of this milestone event, the company declared a substantial investment of €2.6 billion earmarked until 2026. Out of this total, €1.5 billion will be directed towards the expansion of its photovoltaic projects portfolio, while €800 million will be allocated to bolster battery storage initiatives.
With development teams operating in eleven countries across Latin America, Europe, and the United States, Grenergy boasts a robust track record in project pipeline development and value creation through its assets. Currently managing a 15.5GW platform at various stages of development, the company has successfully sold a total of 1.1GW.
During the event, Grenergy unveiled its Ebitda (Gross Operating Profit) target, aiming to reach €300 million by 2026. The company also set ambitious three-year installed capacity targets, aiming for a gross installed solar capacity of 5GW and a renewable energy storage capacity of 4.1 GWh by 2026.
Oasis de Atacama: A Cornerstone for Growth
Chile emerges as a pivotal player in Grenergy’s storage sector growth strategy, with the initiation of construction on the Oasis de Atacama project in the northern part of the country. This project, set to be the world’s largest with a capacity of 4.1 GWh and 1GW solar, will see a total investment of $1.4 billion distributed across five phases. Anticipated to come online in phases over the next 36 months, Oasis de Atacama aims to enhance grid stability and contribute significantly to the decarbonization of the economy.
David Ruiz de Andrés, CEO of Grenergy, emphasized Chile’s prominence in energy storage development, stating, “Today, Chile is a superpower in terms of the development of energy storage due to the exceptional conditions of the Atacama Desert in terms of hours of solar radiation and the particularity of the energy mix of this vast area, where the penetration of solar energy reaches 50%.”
Last week, Grenergy achieved a groundbreaking milestone by announcing its first overnight long-term sales contract, committing to supply over 8 TWh of green energy to EMOAC, a subsidiary of COPEC, for a duration of 15 years. This agreement positions Grenergy as one of the pioneering companies globally to sign a Power Purchase Agreement (PPA) combining solar energy and storage projects.
To date, Grenergy has closed agreements for the sale of 2.8 TWh of energy through PPAs, accumulating a contracted revenue value of €2.7 billion.
Financial Strength and Strategic Plans
Grenergy’s solid financial position, achieved through successful asset rotation models, is exemplified by the Valkyria Project. Announced earlier this year, 85% of this project has already been completed with the sale of 447 MW for €450 million. The company plans to continue this successful model by putting a portion of its future capacity up for sale, anticipating sales of 350-450 MW of installed solar capacity per year and 1 GWh of storage. These sales are projected to generate over €600 million by 2026.
David Ruiz de Andrés emphasized the iconic nature of the Oasis de Atacama project, stating “Oasis de Atacama will be an iconic project for Grenergy and the entire renewable sector. We have the backing of five international banks mandated to finance it, the secured sale with a PPAs signed with EMOAC, and the know-how and talent needed to get it off the ground.”
ESG Strategy 2024-2026
At the Capital Markets Day, Grenergy unveiled its new sustainability roadmap for 2024-2026. Focusing on environmental concerns, talent development, value chain optimization, climate change initiatives, sustainable financing, and governance, the company outlined 17 strategic levers and over 100 actions, underscoring its commitment to Environmental, Social, and Governance (ESG) principles.
In an additional effort to showcase commitment, Grenergy executed a sustainability plan, ensuring a carbon-neutral event on Capital Markets Day. This move aligns with the company’s dedication to the Sustainable Development Goals while actively contributing to the reduction of its environmental footprint.
“Today is an important day for Grenergy, which is launching its strategic plan for the next three years and which will guide the path that will place us in another dimension as a company”, concluded David Ruiz de Andrés.
