Grenergy Renovables (GRE) CMD 2025 summary

Strategic Update and Business Transformation

• Shifted focus from solar-only to hybrid and standalone battery storage, with BESS now representing two-thirds of planned CapEx for 2025-2027, compared to one-third previously.

• Gross delivery target for 2027 is 4.4 GW solar and 18.8 GWh storage, nearly quadrupling the previous storage target and reflecting higher expected returns from storage.

• Asset rotation proceeds target increased to €800 million for 2025-2027, after achieving the prior €600 million target two years early.

• Expansion of hybrid platforms in Chile and Spain, with the Oasis of Atacama project nearly tripling BESS capacity since last update and Central Oasis signing a baseload 24x7 PPA with Codelco.

• Launch of Greenbox platform in Europe, targeting 3 GWh operational standalone storage by 2027 and a 35 GWh pipeline across six countries, with the flagship project in Spain (150MW/600MWh) targeting >12% IRR.

Financial Guidance and Funding

• Gross CapEx for 2025-2027 set at €3.5 billion, with 80% leverage assumed and a self-funded business plan relying on asset rotation and disciplined funding.

• Run-rate EBITDA guidance for 2027 is €450–500 million, up from €160 million in 2024, excluding asset rotation gains, with recurring EBITDA supported by contracted revenues and new platforms.

• Asset rotation is opportunistic, focusing on high-return markets and recycling equity from build-to-sell countries like Peru, Mexico, and Colombia.

• Share buyback program of up to €100 million planned over three years, to be executed opportunistically, with €63 million already completed.

• No share capital increase planned; business plan remains self-funded, with 70-80% of project capex covered by non-recourse debt.

Business Model and Operational Highlights

• Vertically integrated model enables rapid scaling, cost control, and flexibility, with over 100 plants built and 2.6 GW solar plus 6.7 GWh BESS under construction.

• Pioneered hybrid and 24/7 PPAs in Chile, including landmark deals with Codelco and major mining/data center clients.

• Asset rotation since 2017 includes 65 projects and 1.7 GW/2.54 GWh, with recent large transactions such as the $1 billion sale to KKR and ContourGlobal.

• Retail unit GR Power targets 5%+ market share in Chile by 2027 and >3 TWh/y, leveraging 24/7 PPAs and growing demand from mining and data centers.

• Strategic partnerships with BYD and CATL secure supply chain and innovation leadership in battery storage.