Enlight Energy and Electra Power to Establish Joint Venture Supplying Clean Energy Directly to Residential Customers in Israel
06 September 2023 - 2:30PM
Enlight Renewable Energy (“Enlight”, NASDAQ: ENLT, TASE: ENLT.TA)
and Electra Power (TASE: ELCP.TA) are pleased to announce the
execution of a memorandum of understanding (“MOU”), outlining the
formation of a joint venture to market and supply clean energy to
residential consumers and small businesses in Israel.
Electra Power is a leading company in the residential Israeli
gas market, possessing a well-established marketing, distribution,
and customer service infrastructure that serves approximately
400,000 residential and commercial customers across the country.
Enlight is a leading Israeli renewable energy producer with a
strong local and global presence across solar, wind and battery
energy storage projects.
The Israeli electricity market will open to competition in
January 2024, allowing independent suppliers and distributors of
energy to compete for the first time with the incumbent Israeli
Electricity Company. Electra Power and Enlight are poised to
leverage each of their competitive advantages in the Israeli market
to establish a leading supplier of clean energy to residential
customers.
Electra Power has been pioneering the initial commercial launch
of electricity supply to households since early 2023. Tens of
thousands of new residential customers have embraced this change,
benefiting from diverse and cost-effective power options. With full
market liberalization beginning at the start of 2024, Enlight’s
partnership with Electra Power will enable both companies to expand
the demand base for cheap and clean electricity amongst Israeli
consumers.
As per the MOU, Electra Power will hold a 65% stake in the joint
venture, with Enlight owning the remaining 35%. The JV will be
jointly managed by both companies. Enlight will also have the
option to increase its ownership by an additional 5%, contingent
upon achieving certain future investment objectives. The parties
have also committed to a minimum of renewable energy generation
volume that each will contribute to marketing to the JV’s clients.
The establishment of the partnership is subject to completion of
definitive agreements and regulatory approval from the Israel
Competition Authority.
Chen Melamed, CEO of Electra Power:"The signing
of this memorandum of understanding marks a significant milestone
in our journey to supply clean energy to residential consumers in
Israel. We are also pleased to partner with Enlight, a leading
player in the renewable energy sector in Israel, which will enable
us to deliver clean energy to tens of thousands of households in
Israel. In just a few months, we've secured substantial renewable
generation from key industry players, showcasing confidence in
Electra Power's electricity supply platform. These agreements align
with our strategic plan to establish ourselves as an innovative and
customer-centric energy and electricity supply company."
Gilad Yavetz, CEO of Enlight:"The Israeli
electricity market is evolving, ushering in a new era of
competition with the Israel Electricity Company for the direct
supply of electricity to consumers. This move empowers Israeli
households to access the country’s abundant solar resources and
choose cheaper and greenhouse gas-free electricity. Enlight has
decided to enter this strategic market, which generates an annual
turnover of approximately NIS 10 billion in the residential sector
alone, and Electra Power was the natural choice as our partner for
this venture given their extensive reach to hundreds of thousands
of households, billing capabilities, and a strong track record of
delivery in customer service. Both companies share a common vision
of revolutionizing competition in the Israeli electricity sector.
In the realm of supply to industrial and large corporate customers,
which accounts for around NIS 20 billion annually, Enlight will
continue its independent operations, complementing our
comprehensive supply strategy in the Israeli market."
About Enlight Renewable EnergyFounded in 2008,
Enlight develops, finances, constructs, owns, and operates
utility-scale renewable energy projects. Enlight operates across
the three largest renewable segments today: solar, wind and energy
storage. A global platform, Enlight operates in the United States,
Israel and 9 European countries. Enlight has been traded on the Tel
Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its US
IPO (NASDAQ: ENLT) in 2023. Learn more
at enlightenergy.co.il.
About Electa Power Electra Power (formerly
Supergas) was established in 1953 and acquired by the Elco group in
2019. The company markets and distributes natural gas to
approximately 400,000 private customers and 5,000 businesses. In
the past two years, Electra has initiated small natural gas-powered
cogeneration plants. In 2023, Electra Power began providing
electricity at affordable prices to the domestic market, attracting
tens of thousands of new customers.
Forward-Looking StatementsInformation provided
in this press release may contain statements relating to current
expectations, estimates, forecasts, and projections about future
events that are "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that we
expect or anticipate will or may occur in the future, including
such matters as our projections of annual revenues, expenses and
debt service coverage with respect to our debt securities, future
capital expenditures, business strategy, competitive strengths,
goals, development or operation of generation assets, market and
industry developments and the growth of our business and
operations, are forward-looking statements. When used in this press
release, the words “may”, “will”, “could”, “should”, “expects”,
“plans”, “anticipates”, “believes”, “estimates”, “predicts”,
“projects”, “potential”, or “contemplate” or the negative of these
terms or other comparable terminology are intended to identify
forward-looking statements, although not all forward-looking
statements contain such words or expressions. These forward-looking
statements generally relate to Enlight's plans, objectives and
expectations for future operations and are based upon its
management's current estimates and projections of future results or
trends. Although we believe that our plans and objectives reflected
in or suggested by these forward-looking statements are reasonable,
we may not achieve these plans or objectives. Actual future results
may differ materially from those projected as a result of certain
risks and uncertainties and other risks described under "Risk
Factors" as described in Enlight’s annual report on Form 20-F filed
with the Securities and Exchange Commission (“SEC”) on March 30,
2023, and in Enlight’s subsequent quarterly reports on Form 6-K and
annual reports on Form 10-K that are filed from time to time with
the SEC and TASE. These forward-looking statements are made only as
of the date hereof, and, except as legally required, we undertake
no obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or
otherwise.
ContactsMedia Contact Rachel
Kahnrachel@blueshirtgroup.com
Investor Contact Alex
Wellinsalex@blueshirtgroup.com
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