Q1 2024 Enlight Renewable Energy Ltd Earnings Call

Operator: Good day, and thank you for standing by. Welcome to Enlight's first quarter 2024 earnings call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Yosef Lefkovitz, Vice President and Corporate Finance. Yosef, please go ahead.

Good day and thank you for standing by welcome too in light first quarter 'twenty 'twenty four earnings call. Please be advised that today's conference is being recorded.

Like I would now like to hand, the conference over to Yosef <unk>, Vice President and corporate Finance Joseph Please go ahead.

Yosef Lefkovitz: Thank you, operator. Good morning, everyone.

Yosef: Thank you operator, good morning, everyone and thank you for joining our first quarter 2024 earnings conference call for Enlink renewable energy.

Yosef Lefkovitz: And thank you for joining our first quarter 2024 earnings conference call for Enlight Renewable Energy. Before beginning this call, I would like to draw participants' attention to the following. Certain statements made on the call today, including, but not limited to, statements regarding business strategy and plans, our project portfolio, market opportunity, utility demand, and potential growth. Discussions with Commercial Counterparties and Financing Sources, Pricing Trends for Materials, Progress of Company Projects, including Anticipated Timing of Related Approvals and Project Completion and Anticipated Production Delays, Expected Impact from Various Regulatory Developments, Completion of Developments, the Potential Impact of the Current Conflict in Israel on our Operations and Financial Condition, and Company Actions Designed to Mitigate Such Impact, Expected Changes in Canara?s Leadership, and the Company?s Future Financial and Operational Results and Guidance, including Revenue and Adjusted EBITDA are forward-looking statements within the meaning of U.S. Federal Securities Laws, which reflect management?s best judgment based on currently available information.

Yosef Lefkovitz: We referenced certain project metrics in this earnings call, and additional information about such metrics can be found in our earnings report. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our 2023 annual report, filed with the SEC on March 28, 2024, and other filings for more information on the specific factors that could cause actual results to differ materially from our forward-looking statements.

Yosef: Before beginning this call I would like to draw participants attention to the following certain statements made on the call today, including but not limited to statements regarding business strategy and plans our project portfolio market opportunity utility demand and potential growth discussions with commercial counterparties and financing sources pricing transfer.

Yosef: Cereals progress with company projects, including anticipated timing of related approvals and project completion and anticipated production delays expected impact from various regulatory developments completion of development and the potential impact of the current conflicts in Israel on our operations and financial condition and company actions designed to mitigate that.

Yosef: The impact of expected changes in <unk> leadership, and the company's future financial and operational results and guidance, including revenue and adjusted EBITDA are forward looking statements within the meaning of U S. Federal Securities laws, which reflect management's best judgment based on currently available information.

Yosef: We referenced certain project metrics in this earnings call and additional information about such metrics can be found in our earnings release.

Yosef: These statements involve risks and uncertainties that may cause actual results to differ from our expectations.

Yosef: Please refer to our 2023 annual reports filed with the SEC on March 28, 2024, and other filings for more information on the specific factors that could cause actual results to differ materially from our forward looking statements.

Yosef Lefkovitz: Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Additionally, non-IFRS financial measures may be discussed on this call. These non-IFRS measures should be considered in addition to and not as a substitute for or in isolation from our results prepared in accordance with IFRS.

Yosef: Although we believe these expectations are reasonable we undertake no obligation to revise any statements to reflect changes that occur after this call.

Yosef: Additionally, non <unk> financial measures may be discussed on the call. These non <unk> measures should be considered in addition to and not as a substitute for or isolation from our results prepared in accordance with IRS.

Yosef: Reconciliations to the most directly comparable <unk> financial measures are available in the earnings release and earnings presentation for today's call, which are posted on our Investor Relations webpage with me. This morning are CEO and cofounder of enlighten near you the CFO and Jason Houseworth, CEO and cofounder of <unk>.

Yosef Lefkovitz: Reconciliations to the most directly comparable IFRS financial measures are available in the earnings release and earnings presentation for today's call, which are posted on our investor relations webpage. With me this morning are Gilad Yavetz, CEO and co-founder of Enlight, Nir Yehuda, CFO of Enlight, Jason Ellsworth, CEO and co-founder of Clonera, and Adam Fischel, COO and co-founder of Gilad will provide some opening remarks and will then turn the call over to Jason and Adam for a review of our U.S. activities and then to Nir for a review of our first quarter results. Our executive team will then be available to answer your questions.

Yosef: And Adam official COO and co founder of <unk>, <unk>, who will provide some opening remarks and will then turn the call over to Jason and Adam for a review of our U S activity and then 10 year for a review of our first quarter results. Our executive team will then be available to answer your questions.

Gilad Yavetz: Thank you, Yosef, and thank you all for joining us today. Enlight is off to a strong start to the year, and we are pleased to present a robust set of financial results for the first quarter. Revenue grew 27% year-over-year to $90 million, while adjusted EBITDA grew 28% year-over-year to $68 million in the quarter. We benefited during the quarter from high production levels across our 1.9 gigawatt operational portfolio, particularly at some of our largest wind farms. Net income was $24 million versus $33 million last year, which benefited from one-off financing income we recognized post-IPO last year, which Nir will explain in more detail later on.

Adam: Thank you, Jeff and thank you all for joining us today.

Adam: And like is off to a strong start to the year and we are pleased to present, a robust set of financial results for the first quarter.

Adam: Revenue grew 27% year over year to $90 million, while adjusted EBITDA grew 28% year over year to $68 million in the quarter.

Adam: We benefited during the quarter from high production levels across our it one nine gigawatt operation on the portfolio.

Adam: <unk> early at some of our largest wind farms net income was 24 million versus $33 million last year, which benefited from one off financing income we recognized post IPO last year, which Ian will explain in more detail later on on.

Gilad Yavetz: On the back of these results, we are pleased to reaffirm our full year 2024 guidance. In addition to the strong financial results, we continue to execute on our project portfolio during the quarter. Our projects are proceeding on schedule, including the 579 MW and 1.7 GWh expected to reach CLD this year, as well as the 1.1 GWh and 2.9 GWh of new projects we expect to start construction this year. Enlight is on the cusp of a major expansion, which will ultimately result in the tripling of the company's generation and storage capacity to 5.1 gigawatts and 5.7 gigawatt-hour by We are laser focused on the execution and delivery of our plan.

Adam: On the back of these results we are pleased to reaffirm our full year 2020 for guidance.

Adam: In addition to the strong financial results, we continued to execute on our project portfolio during the quarter.

Adam: Our projects are proceeding on schedule, including the 579 megawatts and one seven gigawatt hour expected to reach you did this year as well as the one one gigawatts and two nine gigawatt hour of New project, we expect to start construction this year.

Adam: In light is on the cost was a major expansion, which will ultimately result in a tripling of the company generation and storage capacity to five one gigawatts and $5 seven gigawatt hour by 2026.

Adam: We are laser focused on the execution and delivery of our plan.

Adam: Yeah.

Gilad Yavetz: Let me describe what we are seeing in the United States, where the industry's fundamental backdrop is one of the best we have ever seen. First off, demand for electricity is increasing. For most of the past decade, forecasts for long-term annual U.S. load growth stood at approximately half a percentage. But this accelerated in 2023, when forecasts for long-term demand nearly doubled to 0.9% a year until 2020. This represents an additional 38 gigawatts of peak demand over the next five years, to put that in perspective.

Adam: Let me describe what we're seeing in the United States, where the industry fundamental backdrop is one of the best we have ever seen.

Adam: First off demand for electricity is increasing for most of the past decade forecast for long term annual U S load growth stood at approximately half a percent per year.

Adam: But this accelerated in 2023 when forecast for long term demand nearly doubled to <unk>, 9% a year until 2028. This represents an additional 38 gigawatts will speak of demand over the next five years.

Adam: To put that in perspective that is the equivalent of a 75% of California's peak load today.

Gilad Yavetz: That is the equivalent of 75% of California's peak load today. This rapid acceleration in demand has been driven by the reshoring of manufacturing, EVs, and most importantly, the installation of data centers, which consume an immense amount of power. And there is a strong possibility that this does not capture the true demand picture, which could rise up to 1.5% annual growth until the end of this decade.

This rapid acceleration and demand has been driven by the re shoring of manufacturing Evs and most importantly, the installation of data centers, which consume an immense quantum power.

Adam: And there is a strong possibility that this does not capture the true demand picture, which would drive up to one 5% annual growth until the end of this decade. This also explains why PPA pricing remains high even as equivalent prices have been falling.

Gilad Yavetz: This also explains why PPA pricing remains high, even as equipment prices have been falling. Enlight is uniquely positioned for this tight power market environment, with a broad set of projects that are deliverable in the short to medium term. These projects include Trisco, our 364 megawatt and 1.2 gigawatt hour flagship project located in New Mexico, which will see completion of its solar component during the third quarter of this year, while the storage part is on track for COD during the fourth quarter, both as planned.

Adam: In light is uniquely position for this tie to borrow markets environment.

Adam: With a broad set of projects that are deliverable in the short to medium term.

Adam: These projects include the Transco, our 364 megawatts and one two gigawatt hour flagship projects located in new Mexico, which will see completion of its solar confident during the third quarter of this year.

Adam: While the storage priority is on track for CODI during the fourth quarter, both as planned.

Gilad Yavetz: Moreover, Quail Ranch, Roadrunner, and Country Acres, the three major projects we expect to start construction in the United States in 2024, totaling 810 megawatts and 2 gigawatt hours, have completed all critical development milestones on our own schedule. We will soon initiate major procurement for this project. Equipment pricing remains beneficial to us, with panel prices around $0.25, and all-in battery prices are now $170. Both these elements have fallen by 30 to 35% from the start of 2020.

Adam: Moreover, <unk> Roadrunner and country acres. The three major project, we expect to start construction in the United States in 2024 totaling.

Adam: 810 megawatts and two gigawatt hour have completed all critical development milestones and are on schedule.

Adam: We will soon initiate major procurement for this project equipment pricing remains beneficial to us with current prices around 25.

Adam: All in battery prices are now $170. Both these elements have fallen by 30% to 35% from start of 2023.

Gilad Yavetz: All these factors combined contribute to improving unleveraged returns on the project that we are planning to build between now and 2026. This stands at 10.5%, an improvement of 50 bps since last quarter, and with the additions of financing, has reached mid to high TIN levels on delivered equity returns. In Europe, while short-term power prices have been unusually low, long-term power prices remain high, reflecting attractive returns for Enlight's Operational and Development Portfolios as we continue to secure important milestones at our near-term projects.

Adam: All of these factors combined contributed to improving Unlevered returns on the project that we are planning to build between now and 2026.

Adam: This stands at 10, 5% an improvement of 50 bps since last quarter and with additions of financing rich mid to high teen levels on the Levered equity returns.

Adam: In Europe, while short term power prices have been unusually low long term power prices remained high reflecting attractive returns for an light operational and development portfolio as we continue to secure important milestones at our near term projects.

Gilad Yavetz: We reached financial close for 94 megawatts wind farm project Pupil in Serbia, arranging a 95 million financing package from EBRD and ERST, the same partners who financed our operational Blacksmith project, which is adjacent. Pupin, which has signed a 15-year CFD agreement at 69 euros per megawatt hour, is now under construction and is expected to reach COD as planned in the second half of 2021.

Adam: We reached financial close for 94 megawatts wind farm projects, who opinion, Serbia arranging a 95 million in financing package from <unk>. The same partners will finance, our operational blacksmiths project, which is HSN improvements.

Adam: <unk>, which is signed 15 years Cfd agreement at <unk> 69 per megawatt hour is now under construction and is expected to <unk> as planned in the second half of 2025 in.

Gilad Yavetz: In addition, we reached financial close on two of our smaller Hungarian projects, recovering 29 million of excess equity. The normalization of European energy prices and the prevailing higher cost of capital are sparking a greater flow of attractive later stage project acquisition opportunities across the continent. We are currently evaluating several project acquisitions, and we may seek to take advantage of this opportunistic window. In Israel, we continue to engage with the newly deregulated power sector, enhancing our ability to generate and sell electricity to different segments in our home market. Arad Valley III, a part of the Israel Solar and Storage Cluster, reached COD during the first quarter, as we continue the rollout of this project cluster through 2026.

Adam: In addition, we reached financial close on two of our smaller hand guidance projects recovering 29 millions of access equity invested.

Adam: The normalization of European energy prices and the prevailing higher cost of capital are sparking a greater flow of attractive later stage project acquisition opportunities across the continent. We are currently evaluating several projects acquisitions and we may seek to take advantage of this opportunistic window.

Gilad Yavetz: We also signed PPAs with three additional companies for 50 megawatts of supply as we further expand our reach into Israel's corporate power market. And finally, we announced the formation of a new subsidiary named Enlight Local, led by one of the top management teams in Israel, which will address the power needs of Israeli municipalities and agricultural customers by building distributed power. Finally, turning to our operational portfolio, electricity generation volumes at most of our wind farms were well above expectation, including at Recama in Spain, Blacksmith in Serbia, and Genesis Wind in India. However, this was partly offset by weaker merchant pricing, especially at Hekama, where lower electricity prices were recorded during the quarter.

Adam: In Israel, we continue to engage with the newly deregulated power sector, enhancing our ability to generate and sell electricity to different segments at her home market.

Adam: <unk> Valley's III part of the Israel solar and storage cluster rich Vod during the first quarter as we maintain the rollout of this project cluster through 2024.

Adam: We also signed Ppas with few additional companies for 50 megawatts of supply as we further expand our reach into Israel corporate power markets and finally, we announced the formation of a new subsidiary named in light local led by one of the.

Adam: The top management teams in Israel, which will address the power needs of Israeli municipalities and recapture customers by building distributed power infrastructure.

Adam: Finally, turning to operational portfolio electricity generation volumes at most of our wind funds were well above expectation, including actually come in Spain, Blacksmithing, Serbia and Genesis wind in Israel.

Adam: This was partly offset by weaker metals pricing, especially at <unk>, where lower electricity prices were recorded during the quarter. Despite these merchant market conditions, our hedging strategy provided significant downside protection as we hedged 65% of the commerce anticipated production at the high price of one.

Gilad Yavetz: Despite these merchant market conditions, our hedging strategy provided significant downside protection, as we hedged 65% of Hekama's anticipated production at a high price of €100 per tonne for 2024. As we show in the slide deck accompanying this quarter's results, even in an extreme case where merchant prices for the rest of 2024 end up 50% below the internal forecast we made at the start of the year, our corporate adjusted EBITDA would only drop by 2% from the midpoint of our guidance range.

Adam: How did euro for 2024.

Adam: As we show in the slide deck accompanying this quarter results, even in an extreme case, where merchant prices for the rest of 2024 and up 50% below the internal forecast we made at the start of the year, our corporate adjusted EBITDA would only drop by 2% from the midpoint of our guidance range.

Gilad Yavetz: I would like to emphasize that we do not expect lower merchant prices to impact our financial outlook for 2020. Moreover, we are also looking to adapt our commercial strategy to current conditions. After the extraordinary returns that we have made at Hekama, where heavy merchant market exposure over the past two years has returned half of the equity we invested in the project, we are now considering options for entering into a long-term VPA.

Adam: I would like to emphasize that we do not expect lower mentioned prices to impact our financial outlook for 2024.

Adam: Moreover, we are also looking to adapt our commercial strategy to current conditions.

Adam: After the extra ordinary returns that we have made at karma.

Adam: We're heavy merchant market exposure over the past two years has returned half of the equity we invested in the project. We are now considering options for entering into a long term PPA.

Adam: To sum up this quarter showed strong financial performance and we continue to be on schedule and meeting our COPD and project development goals Biz.

Gilad Yavetz: This quarter showed strong financial performance, and we continue to be on schedule in meeting our COD and project development goals. Business fundamentals in the U.S. are very supportive of planned expansion there, with rising power demand and low equipment costs translating into higher PPA pricing and increasing project costs. And it is exactly these trends that enable Enlight to achieve its dual goal of delivering higher-than-market growth and higher-than-market profitability. I'd now like to hand the call over to

Adam: Business fundamentals in the U S are very supportive for planned expansion, there with rising power demand and lower equipment cost translating into higher PPA pricing and increasing project returns.

Adam: And it is exactly this trend that enable <unk> to achieve its dual goal of delivering higher than market growth is higher than market returns.

Adam: I would now like to hand, the call over to Jason.

Adam: Jason.

Jason Ellsworth: Thank you, Gilad. Enlight and Cleanera are rapidly expanding in the US, and we are laser focused on construction and project finance. In total, we plan to be in active construction on more than 1.2 gigawatts of solar and 3.2 gigawatt hours of battery storage by 2024. Our 364 megawatt and 1.2 gigawatt hour Atrisco project in New Mexico is on schedule. We expect to reach COD on the solar project in the

Jason Ellsworth: Thank you July and light and clean ore our rapidly expanding in the U S. And we are laser focused on construction and project finance in total we plan to be in active construction on more than one two gigawatts of solar and three two gigawatt hours of battery during 2020.

Jason Ellsworth: For our 364 megawatt on one two gigawatt hour at Frisco project in New Mexico is on schedule and we expect to reach Sidoti on the solar in the third quarter. The solar project has already reached mechanical completion and commissioning work is underway. The battery is expected to be complete during the fourth quarter.

Jason Ellsworth: The solar project has already reached mechanical completion, and commissioning work is underway. The battery is expected to be complete during the fourth quarter. Equipment is almost all on site, and work is underway to connect the initial circuit. Looking beyond Atrisco, we plan to begin construction on Country Acres, Quell Ranch, and Roadrunner in the second half. These projects together total 810 megawatts of generation and over 2 gigawatt hours of energy storage. The 392 megawatt and 688 megawatt-hour Country Acres project in California is expected to begin first. All regulatory and permitting hurdles are clear, and construction contracts are nearly complete. Quell Ranch is not far behind.

Jason Ellsworth: Equipment is almost all on site and work is underway to connect the initial circuits.

Jason Ellsworth: Looking beyond <unk>, we plan to begin construction on country acres, while ranch and road runner in the second half. These projects together totaled 810 megawatts of generation and over two gigawatt hours of energy storage, the 392 megawatts and 688 megawatt hour country at gross project in.

Jason Ellsworth: California is expected to begin first all regulatory and permitting hurdles are clear and construction contracts are nearly complete.

Jason Ellsworth: The ranch is not far behind the 128 megawatt and 400 megawatt hour project in New Mexico is ready to start construction, but awaiting PPA regulatory approval. Finally, then 290 megawatt and 940 megawatt hour Roadrunner project in Arizona is completing its remaining governmental approvals before year.

Jason Ellsworth: The 128 megawatt and 400 megawatt hour project in New Mexico is ready to start construction but awaiting PPA regulatory approval. Finally, the 290 megawatt and 940 megawatt hour Roadrunner project in Arizona is completing its remaining governmental approvals. Before year-end, we expect all three of these projects to enter construction. Each is an important part of delivering our 2026 objectives.

Jason Ellsworth: And we expect all three of these projects under construction each is an important part of delivering our 2026 objectives.

Jason Ellsworth: Our CO-BAR project in Arizona is comprised of three busbar PPAs totaling approximately 1.2 gigawatts and 824 megawatt hours and contracted with APS and SRP. APS Q reform is ongoing and is still on track to support a year-end 2026 COD for the vast majority of the project, with the remainder to follow in early 2027. We continue to engage with APS to advance the interconnection work as quickly as possible. As a reminder, another 3.2 gigawatt hours of battery potential is under development at the site but not yet contracted.

Jason Ellsworth: Our steel bar project in Arizona is comprised of three bus bar Ppas totaling approximately one two gigawatts and 824 megawatt hours and contracted with Aps and SRP.

Jason Ellsworth: The Acs Q reform is ongoing and is still on track to support a year end 2026 EOD for the vast majority of the project with the remainder to follow in early 2027, we continue to engage with Aps to advance the interconnection work as quickly as possible as a reminder, another three two gigawatt.

Jason Ellsworth: Hours of battery potential is under development at the site, but not yet contracted.

Jason Ellsworth: Taking a step back, we continue to see strong support for our project fundamentals. However, PPA pricing remains sticky in light of the trends Gilad mentioned earlier. Equipment prices have also declined, with costs for both solar panels and batteries falling in the past year. Since the beginning of 2023, both solar module and battery prices have dropped by approximately 30 to 35%. This has served to offset the increase in financing costs and deliver improved returns.

Jason Ellsworth: I step back we continue to see strong support for our project fundamentals PPA pricing remains sticky in light of the trends get lard mentioned earlier equipment prices have also declined with cost for both solar panels and battery following in the past year since the beginning of 2023, both solar module and battery.

Jason Ellsworth: <unk> have dropped by approximately 30% to 35% this is.

Jason Ellsworth: Served to offset the increase in financing costs and deliver improved returns.

Jason Ellsworth: Turning to the supply chain, there is currently renewed concern regarding possible trade sanctions aimed at Asian equipment producers. Cleanera uses modules supplied from Southeast Asia and India that are audited by third parties to ensure compliance with today's UFLPA and ADCVB rules. Our suppliers have proven the ability to work efficiently and successfully through routine customs investigations and deliver on time. If additional sanctions emerge, Cleanera has put contingency plans in place to limit potential sanction impact, including use of U.S. assembled bifacial panels and batteries.

Jason Ellsworth: Turning to supply chain. There is currently renewed concern regarding possible trade sanctions aimed at as an equipment producers primarily uses module supply from southeast Asia, and India that are audited by third parties to ensure compliance with today's youth LTA and <unk> rules, our suppliers have proven ability to work efficiently and <unk>.

Jason Ellsworth: <unk> fully through routine <unk> investigations and deliver on time.

Jason Ellsworth: Additional sanctions emerge clean ore has supply contingency plans in place to limit potential sanction impact, including use of U S assembled bifacial panels in batteries.

Jason Ellsworth: On a final note, Adam will lead the company's U.S. commentary next quarter. I'm excited to see the organization grow and develop under his exceptional leadership. I'd now like to turn the call over to Nir for a review of our quarterly results.

Jason Ellsworth: On a final note Adam will lead the company's U S commentary next quarter I'm excited to see the organization grow and develop under his exceptional leadership.

Jason Ellsworth: I would now like to turn the call over to near for a review of our quarterly results.

Nir Yehuda: Thank you, Jason. In the first quarter of 2014, the company's revenue increased to $90 million, up from $70 million last year, a growth rate of 27% year-over-year. Growth was mainly driven by new operational projects compared to last year, while being offset by a decline in revenue caused by much lower electricity prices in Spain relative to the prices observed in the same quarter last year. Since the first quarter of last year, 10 new projects in the US, Hungary, and Israel have started selling electricity.

Ner: Thank you Jason in the first quarter of 'twenty for the company's revenue increased to $19 million up from $70 million last year.

Ner: Growth rate of 27% year over year.

Nair: <unk> was mainly driven by new operational projects compared to last year, while being offset by a decline in revenue caused by much lower electricity prices in Spain relative to the prices observed in the same quarter last year.

Nair: Since the first quarter of last year 10, new projects in the U S Hungary, and Israel started selling electricity. The most important of these is genesis win which contributed $9 million to revenue. In addition joined Bill which barely sold at the start of 'twenty three contributed $7 million in this quarter.

Nir Yehuda: The most important of these is Genesis Wind, which contributed $9 million to revenue. In addition, Bjornberg, which barely sold power at the start of 2023, contributed $7 million in this quarter. Hekama generated approximately 20 million in revenues, however, its contribution fell 6% year-over-year due to much lower Spanish power prices compared to Q1 2012. We sold power in Spain at an overall average price of 65 euros per megawatt this quarter versus 85 euros per megawatt in the same period last year.

Nair: <unk> generated approximately $20 million in revenues. However, its contribution fell 6% year over year due to much lower Spanish power prices compared to Q1 'twenty three we.

Nair: We saw borrowing spend at de Novo an average price of 65 megawatts this quarter versus <unk> 85 per megawatt in the same period last year.

Nir Yehuda: The decline in pricing was offset by a very high production volume, which was 20% higher than last year, as well as the result of our hedging strategy, which allowed us to sell 52% of Hekama production at a price of €98 per month. In Israel, 7 of the 12 Solar Plus Storage Cluster units are now in operation, contributing 3 million kwh, while none were selling electricity in the same period last year.

Nair: The decline in pricing was offset by very high production volume, which were 20% higher than last year as well as the result of our hedging strategy, which allowed us to sell 52% of <unk>.

Nair: Production at the price of 98 per megawatt.

Nair: In Israel seven of the 12 solar plus storage cluster units are now in operation contributed $3 million why none will sell in electricity in the same period last week.

Nir Yehuda: Finally, the reclassification of financial asset projects in Israel to fixed asset projects boosted revenues by 3 million, though at the same time removed the sum from the financial income line. Fourth quarter net income declined by 26% to $24 million from $33 million last year due to an unusually high finance income in 2020. In the first quarter of last year, we recorded a one-off $12 million benefit caused by the depreciation of the Israeli shekel on the large amount of cash the company had received following completion of our Nasdaq IPO in February 2013.

Nair: Finally, the reclassification of financial assets project in Israel to fix asset project boosted revenues by 3 million DAU at the same time, we moved <unk> from the financial income line.

Nair: Fourth quarter net income declined by 26% to 24 million from $33 million last year due to unusually high financing come in 'twenty three in the first quarter of last year, we recorded a one off 12 million benefit caused by depreciation on these early chicken on the large amount of cash the company.

Nair: <unk> received following completion of our NASDAQ IPO in February 23. In addition, we recorded 2 million non cash gain in Q1, 'twenty four stemming from the mark to market of interest rate hedges and a positive revaluation of foreign exchange denominated liabilities.

Nir Yehuda: In addition, we recorded a $2 million non-cash gain in Q1 2024 stemming from the mark-to-market of interest rate hedges and a positive evaluation of foreign exchange-denominated liabilities. Cash from operations declined by 36% to $35 million from $55 million last year, influenced by working capital.

Nair: Awesome operation declined by 36% to 35 million from $55 million last year influenced by working capital in.

Nir Yehuda: In the first quarter of 2014, the company's adjusted EBITDA grew by 28% to $68 million, compared to $54 million for the same period in 2013. On the whole, adjusted EBITDA growth was driven by the same positive factor which affected our revenue. Look at our balance sheet. Enlight achieved two financial closings for projects in Central Europe. We raised $95 million loans for the construction of the Pupin Wind Project in Serbia and $42 million financing facility for the construction of the Tarposa Solar Project in Hungary.

Nair: In the first part of 'twenty, the company's adjusted EBITDA grew by 28% to $68 million compared to 54 million for the same period in 2003 on the hotel adjusted EBITDA growth was driven by the same positive factors, which affected our revenue growth looking to our balance sheet, a night achieved to financial close.

Nair: <unk> four project in Central Europe, we.

Nair: With 95 million known.

Nair: For the construction of the <unk> wind project in Serbia, and 42 million financing facility for the construction of the surplus of solar project in Hungary, We also resized and $29 million of excess capital back to unite the result of this transaction.

Nir Yehuda: We also recycled 29 million of Axis capital back to Enlight as a result of this one's action. In addition, Enlight has 325 million of revolving credit facilities at Israeli and international banks as of the balance sheet date, none of which have been drawn.

Nair: In addition, <unk> has $325 million revolving credit facility Israeli and international banks as of the balance sheet date, none of which have been drilling.

Nir Yehuda: This is $65 million above what we reported in our Q4'23 results. Moving to year-end guidance, given the strong set of results we delivered for the first quarter, we reaffirmed our financial outlook for the year, expecting annual revenue between $335 to $360 million and with adjusted EBITDA between $235 million and $255 million. In addition, 90% of 24th generation output will be sold at a fixed price either through hedges or PPA. Our guidance reflects annual growth of 36% and 30% at the midpoint compared to 23%, respectively, demonstrating our accelerated growth path in 2024 and the years ahead. I will now turn it over to the operator for questions.

Nair: This is $65 million above what we reported in our Q4 2020 results.

Nair: Moving to 'twenty full guidance given the strong set of results we delivered for the first quarter, we reaffirm our financial outlook for the year expecting annual revenue between $335 million to $360 million and adjusted EBITDA between $235 million and 255 million.

Nair: Dollars.

Nair: In addition, 90% of 24 generation output will be solid fixed price either through hedges or ppas.

Nair: <unk> reflects annual growth of 36% and 30% at the midpoint compared to 'twenty tweak respectively, demonstrating our accelerated growth path in 'twenty four and to use it.

Speaker Change: I will now turn it over to the operator for questions.

Operator: If you would like to ask a question, please press star followed by the number one on your telephone keypad. And if you would like to withdraw that question, again, press star one. Questions will be answered in the order that they are received. Your first question comes from the line of Justin Clare on Roth MKM; please go ahead.

Speaker Change: If you would like to ask a question. Please press star followed by the number one on your telephone keypad.

Speaker Change: Would like to withdraw that question again press star one.

Speaker Change: Questions will be answered in the order that they are received.

Speaker Change: First question comes from the line of Justin Clare with Roth MTM. Please go ahead.

Justin Lars Clare: Hi, everyone. Thanks for taking our questions. So first off, I just wanted to start on module supply. I was wondering, you know, since the announcement of the latest ADCBD case that's targeting Southeast Asian countries, can you talk about whether you're seeing any change in the market so far? You mentioned pricing is down to 25 cents a watt. Are you seeing that change? Are you seeing it move higher at this point? And then, if tariffs were placed on, you know, both cells and modules from Southeast Asia, can you just talk about your ability to access supply? And whether you see any potential for disruption to your product timeline?

Justin Lars Clare: Hi, everyone. Thanks for taking my questions.

Yosef Lefkovitz: Jason, would you like to take the answer, and I will compliment you if needed?

Justin Lars Clare: So first of all just wanted to start on module supply was wondering since the announcement of the latest 80 CVD case, that's targeting stout.

Justin Lars Clare: Southeast Asia countries can you talk about whether youre seeing any change in the market. So far you mentioned pricing is down to 25 cents or what are you seeing that change youre seeing it move higher at this point and then if tariffs were placed on both cells and modules from Southeast Asia.

Can you just talk about your ability to access supply.

Justin Lars Clare: And whether you see any potential for disruption to your product timelines.

Justin Lars Clare: Jason would you like to take the answer and I will complement if needed.

Jason Ellsworth: Yeah, absolutely. Thank you.

Jason: Yeah, absolutely. Thank you.

Jason: Great question, and certainly on our mind something we've been spending a good amount of time on as we work through detailed related to supply chain. So specifically, we're seeing the market there and remain fairly stable in terms of supply and pricing.

Jason Ellsworth: A great question and certainly on our minds, something we've been spending a good amount of time on as we work through details related to the supply chain. So specifically, we're seeing the market remain fairly stable in terms of supply and pricing. There is some shuffling going on, and certainly some of that shuffling is an increased emphasis on investment in the U.S. and acceleration of those investments by producers who are looking to increase U.S. content as the demand is there and there's likely a need for that in the future.

Jason: There is there is some shuffling going on and certainly some of that shuffling is an increased emphasis on investment in the U S and acceleration on those investments bye Bye bye producers who are looking to.

Jason: Increased U S content.

Jason: As the demand is there and there's there's likely need for that in the future in.

Jason Ellsworth: In the meantime, we're seeing a mix in terms of our supply chain that is manageable given the outcomes, especially given our emphasis on non-targeted Southeast Asian supply. That said, we also have a solid set of relationships and work related to supply out of the U.S. that would allow us to sidestep eventual issues with some cost impact, but it's a manageable amount of cost impact, a few pennies of cost impact to us and then to the projects.

Jason: In the meantime, we're we're seeing a mix in terms of our supply chain that is that is manageable.

Jason: Given the outcomes, especially.

Jason: Especially given our our emphasis on our non targeted southeast Asia supply.

Jason: That that said, we also have a solid set of relationships and and work related to supply out of the U S that that would allow us to sidestep eventual eventual issues.

Jason: With some cost impact, but it's a it's a manageable amount of cost impact a few a few pennies of cost impact to us and then.

Jason: And then to the projects of course the benefit there is there is additional opportunity related to domestic content and the upside related to domestic content. If that shift occurs. So we see this is as is generally a aid.

Jason Ellsworth: Of course, the benefit there is there's additional opportunity related to domestic content and the upside related to domestic content if that shift occurs. So we see this as, generally, in large part, a neutral topic in the near term and potentially, in the longer term, accelerating the shift to domestic supply that will, in fact, benefit the project.

Jason: And in large part a neutral.

Jason: That topic in the in the near term and potentially in the longer term accelerating the shift to domestic supply that that will in fact benefit the projects.

Jason Ellsworth: So let me just add two short points to that. First, in general, we still see a positive trend in terms of the panel's pricing. So we see them still going down and then offsetting some of the other elements. And it's worth to mention the strategic step we took last year with Warid, the Indian supplier, and the MSA that we have with this supplier that allows us very good responsiveness to the ADCVD future steps that will be taken. So we have a good source that we believe will be available. Got it. Okay.

Speaker Change: Got it okay.

Speaker Change: Maybe just something.

Speaker Change: No go ahead.

Speaker Change: <unk> two short runs to that first.

Speaker Change: In general we still see a positive trend in terms of the balanced pricing. So we see them still going down and then offsetting some of.

Speaker Change: The other elements and.

Speaker Change: It's worth to mention the strategic step, we did last year with where read the engine supplier that.

Speaker Change: The MSA that we have with the supplier that allows us very good responsiveness to the CBD future steps that will be taken so we have a good source that we believe will be available.

Jason Ellsworth: Got it. Okay. Just to follow on that, with the domestic content adder, can you talk about the timing potential in which you think you could secure that adder, you know, on the solar side of the business, but then also for storage projects as well? Curious what the time frame might be.

Speaker Change: Got it okay.

Speaker Change: Just to just to follow on that.

Speaker Change: With the <unk>.

Speaker Change: Domestic content out or can you talk about the timing potential and which you think you could secure that out or.

Speaker Change: On the solar side of the business, but then also for storage projects as well.

Speaker Change: I'm curious what the what the timeframe might be.

Speaker Change: So.

Jason Ellsworth: We are aligning some of our projects in order to get more from the domestic content, especially in projects where the tax equity path will be ITC. Then we see a strong benefit for that, for example, Rustic Hills. And we believe that for 2027, we will be on track to get the adder on that.

Speaker Change: We are aligning some of the project in order to get more from the domestic content, especially in project, where the tax equity path will be ITC, then we see a strong benefit for that for example, <unk> and we believe that for 2007.

Speaker Change: We will be on track to get the adder on that.

Jason Ellsworth: Got it. Okay. And then maybe just one more here. We've seen a very strong increase in demand for electricity from data centers. Wondering if you're looking to participate in RFPs that are being done for data centers and whether or not those might incorporate solar and storage.

Speaker Change: Got it okay.

Speaker Change: And then maybe just one more here.

Speaker Change: We've seen obviously, a very strong increase in demand for electricity for data centers I'm wondering if you're looking to participate in rfps that are being done from data centers, and whether or not those might incorporate solar and storage.

Gilad Yavetz: I'll start and then Yosef can compliment me. So, I think it's a great question. We see a very positive... environment for us right now that is being created in the US because of the data center growth, which you know leads to this increase in electricity demand primarily and also opens up a lot of opportunities for us also in the business model. So it's not only participating in PPAs; we are reviewing and exploring other business development and even M&A options that are related to this trend, which will, we believe, be long term.

Speaker Change: Yes, I'll start and then assess can complement me. So so I think it's a great question.

Speaker Change: We see a very positive.

Speaker Change: Environment for US right now that is being created in the U S. Because of the data center.

Speaker Change: Growth and that leads to this increase in electricity demand, primarily and also opens up a lot of opportunities for US also in the business model.

Speaker Change: So it's not only participating in Ppas, we are reviewing and exploring other.

Speaker Change: I would say business development and M&A auctions that are related to this trend, which will be we believe that will be long term.

Yosef Lefkovitz: And may I just add to that, in the West, which is, you know, obviously power constrained, and with big data center builds over the next decade, that is contracted via the utility. So the utility will sleeve the corporate demand through a PPA directly with the utility. So we won't see it in an RFP with the data center providers directly. We'll see it with increased demand from the utilities. And just given the interconnection positions we hold in the West, we think that puts us in a really good position to deliver in the near term for those data center clients, which is of huge value.

Speaker Change: And Matt just to add to that in the West which is obviously power constrained and with Big data center builds over the next decade.

Speaker Change: That is contracted via the utilities, the utility will sleeve the corporate demand.

Matt: Through a PPA direct with the utility so we won't see it in an RFP with the datacenter providers directly we'll see it with increased demand from utilities and just given the interconnection positions. We hold in the west we think that puts us in a really position to deliver in the near term for those data center clients, which is a huge value to them.

Operator: Got it. Okay. Very helpful. Thank you.

Speaker Change: Got it okay very helpful. Thank you.

Speaker Change: Thanks Anthony.

Maheep Mandloi: Your next question comes from the line of Maheep Mandloi from Mizuho. Please go ahead.

Speaker Change: Your next question comes from the line of Matt Heap, among non Loy from Mizuho. Please go ahead.

Speaker Change: Yeah.

Maheep Mandloi: Hey, good morning. Thanks for taking our questions here. Just on the module procurement, can you talk about the sourcing? You talked about WARI being one of the big ones. Are you looking to source solar cells from them or potentially modules from their potential expansion in the U.S.? Or do you have any other suppliers lined up for that as well?

Matt Heap: Hey, good morning, Thanks for taking our questions yet.

Matt Heap: On the module procurement, if I could ask them that.

Matt Heap: Can you talk about.

Matt Heap: <unk>.

Matt Heap: The sourcing I talked about why are you being one of the big ones.

Matt Heap: Are you looking to source solar cells from them or potentially modules from theirs what.

Matt Heap: Potential expansion in the U S or do you have any of the suppliers lined up for that vessel.

Jason Ellsworth: Jason, would you like to take this?

Matt Heap: Jason would you like to take that.

Jason Ellsworth: Yeah, absolutely. I'll take that.

Jason: Yes, absolutely I'll take that our relationship with Huawei includes solar cells and while he is a producer of solar cells. So yes, they're produced solar cells are part of our.

Jason Ellsworth: Our relationship with Wariye includes solar cells, and Wariye is a producer of solar cells. So, yes, their produced solar cells are a part of our sourcing plan with them and our contractual relationship. We're continuing to look at the advent and introduction of solar cells in the US, and that's a longer-term equation. That is the 2027 timeframe for projects and domestic content that Gilad was referencing. We're targeting that timeframe to be careful, though we're, of course, open to and working on accelerating as much as possible as it relates to other projects and opportunities that might pull us in a little earlier than that. But 2027 is really the reasonable timeframe that we're looking at to include US cells.

Jason: Of our sourcing plan with them and our contractual relationship.

Jason: We're continuing to look at at at the at the advent and an introduction of solar cells and in the in the U S and that's a longer term equation that is that is the 2027 time frame for projects in domestic content that dialogue was referencing were.

Jason: We're targeting that timeframe to be careful though we're of course open to and working on accelerating as much as possible as it relates to other projects and opportunities that might pull us in a little earlier than that but.

Jason: 2027 is is really the reasonable timeframe that we're looking at to include U S cells.

Maheep Mandloi: I appreciate that. And then maybe just switching to the construction schedule, you kind of talked about everything. The team's on target now or on track.

Speaker Change: I appreciate that and then maybe.

Speaker Change: Maybe just switching to the construction schedule you kind of talked about everything.

Speaker Change: It seems on target now and are on track.

Speaker Change: But curious on your thoughts on how should we think about going forward do you expect any bottlenecks away on a run rate basis either from.

Speaker Change: EPC constrains or transformer switchgear constrains.

Speaker Change:

Speaker Change: For the market doesn't meet obviously hearing from some of the suppliers.

Speaker Change: Projects are getting pushed out but just curious why you would want to see that right now.

Speaker Change: What are your expectations for that going forward.

Gilad Yavetz: But curious about your thoughts on how we should think about going forward. Do you expect any bottlenecks over here, on a run rate basis, either from EPC constraints or transformer switchgear constraints? For the market, and we're obviously hearing from some of the suppliers that projects are getting pushed out, but just curious why you're not seeing that right now. And what are your expectations for that going forward?

Speaker Change: Yeah. Thanks, Nathan this is a great question I think that we are very confident right now on the operational track.

Gilad Yavetz: Thanks Maheep, I think this is a great question. I think that we are very confident right now on the operational track, first on Trisco. That is a major project for us, and we plan the COD of both the solar side and the battery side before the end of 2024, and we are at least on track. And I believe that we took very important operational and procurement decisions that will also support construction on time of the new three projects that we are going to build in the U.S. in 24, including decisions for transformers that we did and other elements that can be bottlenecks. So we feel quite confident right now about our plan. And if I may add, to Gilad,

Speaker Change: First on the <unk> that is a major project for us.

Speaker Change: We plan to COPD.

Speaker Change: Both the solar side and battery side before the end of 'twenty four and we are at least on track.

Speaker Change: And I believe that we took very important operation.

Speaker Change: Procurement.

Speaker Change: Decisions that will also supports.

Speaker Change: Construction on time.

Speaker Change: New <unk> projects that we're going to build in the U S. In.

Speaker Change: In 24, including decision for Transformers that we did in other elements that can be bottleneck. So we feel quite confident right now on our plans and if I may add to <unk> point I think all of those projects have signed interconnection agreement signed Ppas real estate.

Gilad Yavetz: And if I may add to Gilad's point, I think all those projects have signed interconnection agreements, signed PPAs, real estate, and, for the large part, all their permits. So that gives us a large degree of comfort on the milestones that these projects have achieved, which were on plan, if not ahead.

Speaker Change: And for the large part of their permits so that gives us a large degree of comfort on the milestones that these projects have achieved that were on plan.

Speaker Change: Ed.

Maheep Mandloi: And then maybe just one last one on merchant pricing in Spain. The table in the press release was pretty useful to understand the sensitivity, but spot prices are already down 50% versus the 68.5 number you have in there. Just curious how should we treat that table going forward here?

Speaker Change: And then maybe just one last one on much in pricing in Spain.

Speaker Change: The table in the press release is pretty useful to understand the sensitivity, but for questions already down 50% versus the 65 number you haven't just curious how to how should we treat that.

Speaker Change: Told you.

Maheep Mandloi: So what was...

Speaker Change: So what was exactly the question.

Maheep Mandloi: The spot prices in Spain are almost around 30-something dollars right now per megawatt hour, so almost 50% below your assumption of 68.5.

Speaker Change: That would be spot prices in Spain is almost <unk> 30, something dollars right now megawatt so almost 50% below your assumption of $68 five.

Speaker Change: So.

Speaker Change: Does that imply like.

Speaker Change: EBITDA could be 2% below the mid point for the rest of the year or no.

Gilad Yavetz: Does that imply EBITDA could be 2% below the midpoint for the rest of the year? No, so the current price today may be 30, but if you look at the forwards for the remainder of the year, There's been kind of a short-term decline in power prices, which we've seen in February and mostly in March, which has been driven by strong hydro and a lot of wind and solar resources. That hydro is expected to come off, which is why you see the near-term futures at this 70 range, July, August, September, and so on and so forth.

Speaker Change: The current price today, maybe 30, but if you look at the forwards for the remainder of the year there in the 70 range if not higher so.

Speaker Change: Theres been kind of a short term decline in power prices, which we've seen in January and February and mostly in March which has been driven by strong hydro in a lot of wind and solar resource that hydro is expected to come off which is why you see the near term future Zappers 70 range July August September and so on and so forth.

Gilad Yavetz: So the $30,000 is maybe today's price, but it's not the expectation of price in the market for the remainder of the year. Yeah, and I would add to that the point we are making in the presentation is our resilience to even a short-term downturn in prices in the spot prices in Spain. And the point that we just made is that even with a reduction of 50% in merchant prices, we don't see any impact.

Speaker Change: So the 30 is maybe today's price, but it's not the expectation of price in the market.

Speaker Change: During the year and I would add to that is that the point, we're making in the presentation is our resilience to even a short term.

Speaker Change: Yes.

Speaker Change: Downturn in the in the prices in the spot prices in Spain, and the point that we we just.

Speaker Change: <unk> shown is that even in a reduction of 50%.

Speaker Change: In the merchant prices.

Speaker Change: We don't see any impact.

Gilad Yavetz: It's on EBITDA and the opposite; what we see are other positive results in other projects. So we do not see any reason why to reduce our guidelines, maybe to the opposite, but we will consider that next quarter.

Speaker Change: On the EBITDA and.

Speaker Change: The opposite what we see is either.

Speaker Change: Positive.

Speaker Change: Resides in other projects. So we do not see any reason why to reduce our guideline guidelines may be to the opposite but we will consider that next quarter and on the long term, we see also in Spain very goods.

Gilad Yavetz: And in the long term, we also see in Spain very good, I would say a forecast and folds for the electricity prices, the electricity prices, including PPAs. So the fact that we get offers right now for 10 years of PPA on a high basis gives us a lot of confidence that we can either remain in the merchant profile where we have benefited a lot in the last two years, as you know, or we can basically withdraw more than 50% of the equity of the project.

Speaker Change: I would say a forecast unfolds for.

Speaker Change: The electricity prices, including Ppas. So the fact that we get offers right now for 10 years PPA on the high basis provided a lot of confidence that we can either remaining in the merchant profile, where we benefited a lot in the last two years as you.

Speaker Change: Now in.

Speaker Change: Basically being able to withdraw more than 50% of the equity of the project. So we had a very good apps and in the last two years and what we see currently forward for the next 10 years.

Gilad Yavetz: So we had a very good upside in the last two years, and what we see currently for the next 10 years is a good level of prices and also flexibility to sign long-term PPA at high levels that represent, I would say, higher returns than the original models. So I think that we stand there with a very good situation. In Spain, I think this was the goal of showing that table on the shorter. Got it. I am going to appreciate that color as well. Thank you.

Speaker Change: Good levels of prices and also flexibility to sign long term PPA, it's high levels that represent I would say higher.

Speaker Change: <unk> then the original model. So I think that we stand there with very very good situation in Spain.

Speaker Change: I think this was the goal of showing that stable on the on the shoulder.

Speaker Change: Got it got it I appreciate that color. Thank you.

Mark Wesley Strouse: Your next question comes from the line of Mark Strouse with J.P. Morgan. Please go ahead.

Speaker Change: Your next question comes from the line of Mark Strouse with Jpmorgan. Please go ahead.

Michael Fairbanks: Hello, this is Michael Fairbanks on behalf of Mark Strouse. Thanks for taking our questions. For the US development pipeline, how are you feeling about the availability of tax equity, particularly on the PTC side? We've heard some tightness there, so just wondering if you're seeing that and to what extent can you use transferability to offset that?

Speaker Change: Hello. This is Michael Fairbanks on for Mark Strauss, Thanks for taking our questions.

Michael Fairbanks: For the U S development pipeline.

Michael Fairbanks: How are you feeling about the availability of tax equity, particularly on the PTC side.

Michael Fairbanks: Heard some tightness there. So I'm just wondering if youre seeing that and to what extent can you use transfer ability to offset that.

Yosef Lefkovitz: So I can begin, Yosef, if you want to just add. I think the profile of our offtake, the rest of the fundamentals, but primarily offtake of our project in the West is very attractive to tax equity providers because we have long-term busbar PPAs for 20 and, in some projects, 30 years with a very, I would say, solid profile. So as produced, we don't have any exposure to curtailment as opposed to hub-settled PPAs that you can find in other areas.

Speaker Change: So I can begin a necessity if you want to just add I think the.

Michael Fairbanks: For all five of our offtake rest of the fundamentals, but primarily offtake of our projects in the West is is very attractive to tax equity providers. Because we have long term bus bar ppas for 'twenty is in some projects 30 years with a very.

Michael Fairbanks: I would say a solid profile. So as produced we don't have any exposure to.

Michael Fairbanks: A curtailment.

Michael Fairbanks: As opposed to <unk> sales of Ppas that you can find in other areas.

Michael Fairbanks: So this leads to I think very strong demand that we're getting for tax equity for the project. So we feel less the bottlenecks right now and I think.

Yosef Lefkovitz: So this leads to, I think, very strong demand that we are getting for tax equity for the project. So we feel less the bottlenecks right now. And I think that this is one of the advantages of the portfolio that we see right now in work and specifically with the project online. And just to add, there's also

Michael Fairbanks: That this is one of the advantages of the portfolio.

Michael Fairbanks: That that we see right now in work and specifically with the project online right now.

Yosef Lefkovitz: And just to add, there's also the optionality that transferability has provided for the hybrid structures, which is around tax equity providers syndicating the credits to corporate clients of theirs which have tax exposure, and then retaining the interest for the purposes of monetizing the depreciation. So there's plenty of demand. It's just a matter of exactly the structure that works best for us.

Michael Fairbanks: And just to add there is also the optionality that transferability as provided to do the hybrid structures, which is around.

Michael Fairbanks: The tax equity provider syndicating the credits to corporate clients of theirs, which have tax exposure and then retaining.

Michael Fairbanks: The interest for the purposes of monetizing the depreciation so there's plenty of demand. It's just a matter of exactly the structure that works best for us.

Operator: Great, thank you very much. And then just one follow-up. Any update on the overall ramp-up on the Genesis and Beyond Wind projects since the last call? Yeah, yeah.

Speaker Change: Great. Thank you very much and then just one follow up any update you guys have on the overall ramp up at the Genesis and beyond wind projects since the last call.

Gilad Yavetz: Yeah, yeah, thanks. It's on plan and even better than planned. So we see improved performance on both plans and we are also getting to an arrangement, a continuous arrangement with the supply on the path. So we feel very good there.

Michael Fairbanks: Yeah.

Speaker Change: Thanks, it's unplanned and even better than plan.

Michael Fairbanks: So we see improved.

Michael Fairbanks: Performance of both plants and also we are getting to arrangement continuous arrangement with the supply on the on the past so we feel very good there.

Michael Fairbanks: Okay.

Speaker Change: Great. Thanks.

David Alexander Paz: And if you'd like to ask a question, please press star one on your telephone keypad. Your next question comes from the line of David Paz with Wolf Research. Please go ahead.

Speaker Change: And if you'd like to ask a question. Please press star one on your telephone Keypad. Your next question comes from the line of David Paz with Wolfe Research. Please go ahead.

David Alexander Paz: Hey, good morning.

David Alexander Paz: Good morning, David. Oh, great, great. I'm sure you can hear me.

David Alexander Paz: Good morning, David.

David Alexander Paz: I wanted to just circle back on the PGM portfolio. You touched on it, but, just if you could maybe at a high level talk about your plans in that market, and then, in particular, all the demand, of course, we're seeing from data centers and so forth. Do you anticipate, as part of your farm down strategy, I think it was 30% or so on going forward? You know, just one of those kind of portfolios we should look at? What kind of interests are you seeing? And are you particularly looking at breaking it down to pieces, or as you mentioned in your earlier comments on M&A, just maybe overall just address your PJM. Strategy.

David Alexander Paz: Great Great. So I'm not sure can you hear me I wanted to just.

David Alexander Paz: Circle back on PJM portfolio, and then you touched on it but.

David Alexander Paz: Just if you could maybe at a high level talk about.

David Alexander Paz: To your plans.

David Alexander Paz: In that market and then particularly with all the demand of course with some.

David Alexander Paz: Data centers and so forth.

David Alexander Paz: Do you anticipate as part of your farm down strategy I think it was 30% or so going forward.

David Alexander Paz: Just one of those kind of portfolios that we should look at it.

David Alexander Paz: What kind of interest.

David Alexander Paz: And are you, particularly looking at.

David Alexander Paz: Breaking it down pieces that you mentioned on your one of your.

David Alexander Paz: Earlier comments on M&A.

David Alexander Paz: Overall, it was a gesture PJM.

David Alexander Paz: Strategy.

Gilad Yavetz: Yeah, thanks for the question, David. So first, to begin with, we continue to advance the PGM portfolio. It's advanced well. We have more than five projects there, but with five projects, we are on the fast track. And with network upgrade costs of less than $5 million per project, which I think is fantastic for PGM. I think that I understand that on the fast track, Enlight holds 40% of the projects right now that are on the fast track at PGM. I think it's amazing.

Speaker Change: Yeah. Thanks for the question David So first to begin with we continue to advance the PJM portfolio.

Speaker Change: Advanced where we have more than five projects there, but with five project we are on a fast track.

Speaker Change: And with network upgrade cost of less than $5 million per project, which I think is.

Speaker Change: Fantastic.

Speaker Change:

Speaker Change: For PJM.

David Alexander Paz: I think that.

David Alexander Paz: I understand that on the fast track.

David Alexander Paz: In light holds 40% of the project right now.

David Alexander Paz: Our on the fast track when PJM I think it's amazing.

Gilad Yavetz: And then to your question, yes, we believe that PGM is potential for our strategy on the sell-down. There are some elements in PGM that I think maybe position this project as a good, I would say, option, for doing this kind of equity recycle we mentioned in the previous quarter when the projects finally mature, completely mature, and get to their optimal value. We believe that the high PPA prices in PGM derived from the data center's demand and, I would say, multiple players that are interested in projects there may create a very high upside for us in this.

David Alexander Paz: And then.

Speaker Change: To your question, Yes, we believe that PJM is a potential for our strategy on the sell downs.

Speaker Change: There are some elements in PJM.

Speaker Change: I think maybe positions. These project is.

Speaker Change: Good I would say options.

Speaker Change: For doing these kind of equity recycle we mentioned in previous quarter when the projects finally mature completely mature and get to their optimal value.

Speaker Change: We believe that the high PPA prices in PJM derived by.

Speaker Change: By the data centers.

Speaker Change: Uh huh.

Speaker Change: Demand.

Speaker Change: And.

Speaker Change: I would say mulch.

Speaker Change: Multiple players that are interested in project there may create.

Speaker Change: Very.

Speaker Change: Hi upside for us in this market.

Speaker Change: Okay.

David Alexander Paz: Thank you for that. And then just on your unlevered return targets for your 24 to 26 portfolio. Obviously, that was great to see if there's any basic coin improvement. How locked in? From here, are those returns, do you anticipate more movement, again, just for those sets of projects on your returns, or if you've locked in the pricing and so forth, that we should probably kind of think of that in a steady state?

Speaker Change: Thank you on that.

Speaker Change: And then just on your Unlevered return targets for 2014 six portfolio.

Speaker Change: Obviously demonstrates your 50 basis point improvement.

Speaker Change: Yeah.

Speaker Change: The locked in.

Speaker Change: From here or are those returns do you anticipate more movement.

Speaker Change: Again, just about that simple set of projects.

Speaker Change: On your returns or if he walked in the price and so forth that we should call. It kind of think about steady state.

Yosef Lefkovitz: So thanks, David. So PPAs are signed for over 90% of that block, right? So on the revenue side, obviously, we feel, you know, a great degree of confidence. On the cost side, we're naturally going to be going to procurement in a significant way. And that's on everything we're going to obviously start building this year. So we're in negotiations, in advanced negotiations on procurement decisions, for example, on the three big projects in the U.S. that we're going to commence construction on this year.

Speaker Change: So thanks David.

Speaker Change: Ppas are signed for over 90% of that block right. So the revenue side, obviously, we feel great.

Speaker Change: A great degree of confidence on the cost side, we're naturally going to be going to procurement.

Speaker Change: Significant way on everything we're going to obviously start building. This year. So we're in negotiations and advanced negotiations on procurement decisions. For example on the three big projects in the U S that we're going to commence construction. This year naturally we have the <unk> project with procurement is obviously all done and that's locked in so.

Yosef Lefkovitz: Naturally, we have the Atrisco project where procurement is obviously all done, and that's locked in. Yeah, so we feel pretty good. I think their CO bar, which is obviously a big project, we hope to make some procurement decisions by the end of this year.

Speaker Change: So we feel we feel pretty good I.

Speaker Change: I think the <unk> bar, which is obviously, a big project, which we hope to make some procurement decisions by the end of this year early next.

Operator: All right. Thank you.

Speaker Change: Okay alright, thank you.

Yosef Lefkovitz: That concludes our question and answer session, and I will now turn the call back over to Yosef for closing remarks.

Speaker Change: That concludes our question and answer session and I will now turn the call back over to you Sir.

Speaker Change: For closing remarks.

Operator: Thank you, Operator. Thank you everyone for joining us today. We will be at the JPMorgan Energy Conference in New York as well as Roth's Sustainability Conference in London, and we look forward to catching you up.

Speaker Change: Thank you operator thanks.

Speaker Change: Thanks, everyone for joining today, we will be at the Jpmorgan Energy Conference in New York as well as Ross.

Speaker Change: Sustainability conference in London, and we look forward to catching up there. Thank you.

Operator: This concludes today's conference call. Thank you for your participation, and you may now disconnect.

Speaker Change: This concludes today's conference call. Thank you for your participation and you may now disconnect.

unknown: Thanks for watching!

Speaker Change: Yes.

unknown: [inaudible]

Speaker Change: [music].

Speaker Change: Sure.

Speaker Change: [music].