Enlight Renewable Energy Ltd ($ENLT)

Good morning, and thank you for joining us. We're used to meeting you throughout the year, in update calls, conferences and around quarterly results. But today's presentation is a little bit different. We operate in a dynamic fascinating market, a market undergoing structural change and full of opportunities. Our goal today is to pause for a moment from the routine and broaden the discussion beyond just the recent results. We want to share with you not only what we are doing but also how we think, where we're aiming to take in light in the long term, and the company's operational excellence. I hope today's meeting will give you another perspective on Enlight and the people behind it. So thank you again for joining us this morning. I invite you to review the safe harbor language in the presentation. And I'm now pleased to hand over the discussion to Adi, Enlight CEO.

Thank you, Itay. Thank you for joining us for our 2026 Investor Day of Enlight Renewable Energy. We will be talking today about Enlight's execution excellence, and of corn. Three primary areas. I want to talk about the market that we're playing in, which is basically the market for electricity, electricity. Electricity has been undergoing significant change, very fast growth acceleration, and it's a great market to have as our market here at Enlight Renewable Energy. I also want to talk about how Enlight, specifically, plays in this market. Enlight, we like to call ourselves the execution machine, and we want to talk today about that execution machine, what makes it so successful in our results. And finally, I want to take us through a new growth engine for Enlight, which is the data center development and operations. So starting from the era of electricity. In the markets that Enlight is active in the U.S. and Europe, there has been, for years, a stagnation in electricity, generation and electricity demand growth. That has all changed in the past 5 years and this growth acceleration will continue going forward at a very significant pace. This is the market. that Enlight Renewable Energy is active in. We are, of course, developers and IPPs, and this is the demand for our product, that is experiencing unprecedented growth, unprecedented for the 21st century. The demand in electricity is also shifting the composition of how this electricity is generated. The demand is here and now, and it needs to be answered quickly. Renewable energy is the fastest way to deliver and meet this demand. We develop projects in solar, in wind, battery storage. Solar, wind and battery storage are the projects that can come online relatively quickly to answer this very fast demand and this acceleration in demand. Essentially, with the rates at which we see electricity demand growing, really, we need all sources of power generation. But the power generation that can be most quickly brought online is the kind of power generation that Enlight is engaged in developing, constructing and bringing commissioning online. But this electric power that is from renewable sources is not only the fastest way to meet demand, it's also the lowest cost power generation available to us. It's been now 10 years that the levelized cost of electricity from renewable sources, solar and wind have dropped under the fossil fuel and the nuclear power generation sources. And this has been a very significant trend for our industry, where renewable energy, you can like it because it is really green, good for our planet, for emissions, for future generations. You can like it because it's quick to come online and it can answer the demand and the accelerating demand in our markets, and it's also the most cost-effective solution. So it's really all of those things together. And countries around the world have all noticed, market forces do their work and already now in 2025, power generation from renewable sources makes up around 40% of global power generation. And that is expected to rise to 60% by 2040 and towards the 70% by 2050. This is something that really crosses geographies. In the United States, power generation from renewable sources has crossed recently the 35% threshold. In Europe, for the continent as a whole, the average stands at 50%, in some of the Nordic countries, that percent is 70% and 80%. So this is not a fad or something that is going to go away like a trend. This is the way that power generation is going. Power generation is shifting for 2 decades now towards renewable sources, and we have crossed the point where it's going to become the largest source of electricity as we see just the numbers and scales of the projects that are under development and the composition of the new power coming online each year, it is, in some geographies, 80% and 90% of the new power coming online is from renewable sources. Now that I've talked about the market in which we play, which is the power market. I want to talk about why Enlight is the execution machine and is the company that can really take advantage to the fullest extent of this market that we are very happy to make our own. Enlight has already delivered over the last decade, a significant exceptional performance, both growth of our revenues as well as the profitability as measured in EBITDA to the same rate of 40% annual -- compounded annual growth rate and at the same time, also delivering growth in the mature portfolio and also in the total portfolio. Our total portfolio stands as of the last quarter at 42 factored gigawatts. And we continue to enlarge also the total portfolio, so we can see this growth of revenues and EBITDA also to the forthcoming years. This has come -- I'm starting the story here in 2018, but the story really started in 2008. And since 2008 and until now, 2026, we have seen the same levels of growth. The chart was just not long enough to afford the whole story. But if I look at just these past 10 years, we have seen Enlight pursue a consistent strategy that has taken us across geographies and across technologies. From the first, we started, of course, in our core market of Israel, and we entered Europe first in 2012. Since 2019, when we started the first wave of European wind projects, through the acquisition of Clenera, and I have Clenera CEO, Jared McKee with me in the room, sitting to my right, and he will be talking with us also later. Through the acquisition of Clenera to the initiation of our energy storage business, which we entered very early in 2022 and started specializing in energy storage through our IPO in NASDAQ in 2023, through our second -- our first first operational projects that were connected in the U.S. in 2024. And as of this moment, we have 4 projects that are connected in the U.S. and many more that will be connected in 2026, 2027 and 2028 through to the recent expansion also in Europe to an additional wave of strategic countries, where there's a great need for storage solutions in this case, in Germany, Poland, Romania and Finland, and this story continues into the future. As I, of course, mentioned, our portfolio -- the total portfolio is at around 42 factored gigawatt. That is what creates those next horizons of growth for Enlight. In the foreseeable future, we already know projects that are in our mature portfolio are going to be all connected by the end of 2028 and additional projects that are not in our mature portfolio, but will still be connected by the end of 2028 to the extent of over $2.1 billion, which will be our annual revenue rates. And that corresponds to global operating capacity of 12 to 13 factored gigawatt. This continues to represent the same compounded annual growth rate on our revenues of around 40%. And now really to the question of how do we do it? We think of ourselves as being really execution powerhouse with 2 key components to that: on the one side, we're still the entrepreneurs that established the company in 2008 in Israel. And also Clenera with its entrepreneurs that established it in the late -- in 2012 in the United States. We still have that entrepreneurial mindset that keeps us one step ahead. On the other hand, we are not a small company anymore. We -- it was always important for us to develop corporate level capabilities. And we have developed corporate level capabilities really from the inception of the company, growing them at pace with the size of the business. If I start with the entrepreneurial mindset, we're ahead of the curve. In Israel, we were the first to operate along the entire value chain, both as developer and as IPP. We're still one of the few players in -- globally that is a pure renewable IPP and developer. We were a pioneer in Israel in developing and building and operating wind, solar and storage assets. Globally, we are the first Israeli company to enter Europe, the largest Israeli player in the United States and the only Israeli player to be listed on NASDAQ. We're very creative in our problem solving. The work of the developer is the work of grit, resilience, just not giving up, perseverance and that is what we have, which we bring to the project development process. We take projects and we overcome very many challenges in the project development process, and we always find a way. Our projects -- the conversion rate of our projects is very high. Projects that we put into the -- we call it our iceberg, but our total portfolio of projects, these are projects that we have already scrutinized to a degree that we know that we can push them through and get them with a very high likelihood to the other end as mature projects and eventually as operating projects. And we do this by being relentless in project development, by doing effective risk management and hedging and our strategy of diversification across geographies, across technologies, our procurement strategy, which is also diversified, our safe harboring strategy, which we brought in order to enjoy tax benefits in the U.S. until regulatory changes are in place. All those are part of our creative problem solving. Ziv, who is sitting to my left is our Vice President of Project Execution and Asset Management. He will talk later also about that continuous yield uplift that we do during the operations of the project through hybridization, repowering, expansions, all of those are part of our creative problem solving that enables us to really deliver the best project outcomes. Last, in the entrepreneurial mindset, I want to talk about our continuous ability to identify and pursue successfully new growth engines for the company. We entered energy storage relatively early in 2022. Just in the last year, we expanded into new strategic markets when we identify -- excuse me -- when we identify that there's no opportunities, for example, in Germany, Poland, Finland for energy storage systems that need to come online, ASAP we're in there. Jared will talk about our expansion in the U.S., well beyond WAC into PJM and SPP, which did not start recently, but we've made significant expansions there recently. And in the Middle East and North Africa, our move beyond Israel into Morocco. In another area of our innovation, the agrivoltaic solutions that we're bringing into field crops is a very interesting new growth engine for our business in Israel, which we actually talk about in more depth in the materials that we uploaded to the webinar website, and we're not going to touch upon them today in this presentation. And finally, what we are going to be talking about in this presentation, is our entry into data centers, development and construction and operations. And specifically in that area, AI level, AI scale data center projects that are co-located or are near generation. That's the entrepreneurial side of the business. In addition to that, along the way, we always made sure that we are also keeping a very well-run company with very good management infrastructure, starting with a consistent strategy that I already talked about with being a pure-play renewable but then developer and IPP through the geographic and technological diversification and the strong access to capital, those are our strategic fundamentals. We -- everywhere we play, we have -- we ensure operational excellence. We're an excellent developer with greenfield and brownfield capabilities, we're also an excellent IPP, and we operate and manage dozens of cash-generating assets across 3 continents. We are also active in trade and being a supplier of electricity, especially in Israel, commercial and industrial customers and we have both a utility scale business and in Israel specifically, we also have a distributed grid business. And everywhere we play, we make sure that we are a top player in the industry. And finally, of robust management infrastructure, disciplined processes, corporate -- strong corporate governance and our people. Our people are basically -- it's everything that we do. We ensure that our people not only come to us with that right DNA that we talk about. But it's also individuals that are high caliber, but also eager to learn. Because we believe that we need to continue developing our talent and continue acquiring capabilities, and that goes for all of us, for the executive team and for all layers of management. And finally, in this part about the corporate and business discipline, we've also shown our ability to create successful partnerships and to acquire companies and to successfully integrate them into Enlight. And through all these, we are an execution powerhouse that has delivered consistently year-on-year throughout the 17 years of our existence, and we have the visibility into the size of our portfolio and what's coming in the future to tell you that this is how we will also to continue operating successfully the company going forward. I now want to talk about a new growth driver for Enlight, which is data centers. Data centers are definitely -- I mean, we hear about them very much in the AI world and that demand that comes from the computing needs of AI. AI uses and data centers, first and foremost, create for us the basis for the demand for our product. So beyond anything else or at the basis of it, electricity demand is growing and has been accelerating in its growth, thanks to the uses of AI and those expanding uses. And this is true across the board. But where you see this projection of 22% per annum actually has proved to be an underestimate. If we look at the projections over time, we see that they actually are consistently adapted, revised upwards just in the 6 months between the projection on the left between April and December of 2025, projection for the capacity demand for data centers in the U.S. has grown by 32%. And and when we look at the hyperscalers CapEx estimates for the last 3 years, we see that at the beginning of the year, there's always an underestimate for just how much that CapEx will grow. And we've seen that those numbers are actually turning out to be 50% and 60% year-on-year. And that, of course, corresponds to their electricity needs, which we provide. And when you look at the large -- I mean, the Magnificent Seven or the large tech companies that are really working on these AI applications and these AI data centers as the place to enable these AI applications, they're talking about electricity all the time. Electricity and access to power is the bottleneck for data center market growth. It's a shortage, and it means that when these companies and other hyperscalers and co-locators are establishing data centers, they're actually looking for energy sources for power sources as one of the first things that they look for and where they're going to be establishing their new data centers. So this is not similar so much to the data centers of the cloud era, which were maybe 5, 10, 20, 25-megawatt, 30 megawatt, and they were located in city centers. These data centers of the AI era are very large consumers of electricity, and they're increasingly moving to be near generation because that is the bottleneck. And you can understand why when you look at just how the power transmission networks, how they face tier constraints and the ability to add this transmission capacity is actually -- it is a slow process, and it's a very expensive process. So electricity transmission costs, and this is in terms -- this is the metric system, excuse our U.S. audience. But when you transmit electricity, you're paying about $1,500 to $2,500 per meter of transmission of electricity. And that's if you're able to even build these transmission networks that take sometimes a decade or more decades to build. But when you're transmitting data, you can transmit data over optical fiber for a fraction of that price for $25 to $150 per meter. And every each 1,000 kilometers of additional distance in fiber optics, only creates 10 milliseconds of delay. So with most AI workloads not being as sensitive to distance and the data transport costs being a fraction of electricity transmission, it just makes sense to build large data centers for AI use, the ones that are 100-megawatt and up, build them near power generation sources. And actually, it's not -- it doesn't only make sense. We also see it happening in practice. So data centers in Europe, they have an acronym that's called FLAP-D to represent Frankfurt, London, Amsterdam, Paris and Dublin. In the U.S., I don't think there's a very nifty acronym. But nevertheless, you know the locations of the data centers, mostly Virginia is -- not probably. It is the data center alley of the world, and there's also additional hubs in Phoenix and Dallas in other parts, Northern California. But now what we're seeing is that beyond these key markets that used to be -- I mean, the only markets, the primary markets, we're seeing that data centers are being developed and constructed and in secondary markets that are in different locations. Sometimes in the same countries or states but not in the urban areas, but further into the periphery. Other times, they're moving into really the hinterland and states and countries that I don't think we thought would have this much data center development just a few years ago. And so when we talk about Enlight and how Enlight is going to play in this data center market, we start with the fact that this is power supply is our core business. To enjoy this growth and acceleration in demand by hyperscalers and co-locators, we're already in that business. Our core business is to supply power. And in the U.S. and in Europe, we're already providing power to hyperscalers through PPAs. But we want to do much more than that. When you look at the value chain, we want to play also in the following parts of the value chain here: to be a provider of powered land is also something that is basically our core business. What is powered land? I mean people talk about powered landers, powered land brokers, there's people running around marketing powered land. Powered land is what we do. It is sites that we develop and we also are able to secure that interconnection and that load. And that is, again, our core business. So that's not very different than what we do today. We have that real ability to secure grid connections and to work with the grid to identify the right lands and the places where we're -- where we're more likely to get a large load. We want to do more than that as well. And our strategy for Enlight is going to be to play in the powered shell and eventually and through partnerships, also to be a DC operator. Powered shell is essentially also very close to our natural capabilities, and we can be a natural owner of a powered shell data center. We know how to obtain and secure the land, the grid connection or expert and utility scale developments of high-technology projects. We know how to do electrical system and to optimize the energy supply into infrastructure, and we know how to operate them with a very high energy efficiency. Beyond that, in order to also play in the areas of designing the white space, securing customers, tenants for the longer term and being able to really understand the offtake of the DC operator, we do plan to enter into partnerships and to develop capabilities organically and inorganically and that will be done gradually and in a risk-managed way. But Enlight has proven our ability to acquire companies and to integrate them into the Enlight group of companies and to be able to, along the way, unlock value. And that is what we also intend to do in the case of data center, development, building and operations. We now want to talk about a few specific projects. We are, of course, a company that is headquartered and the core of our business and our start was in Israel. And in Israel, we have our first flagship data center project that is in advanced development, expected to be commissioned in 2029. It is located on 50 acres in the south of Israel. And along the lines of our discussion earlier, about the data centers migrating out of the urban centers and to the power generation rich areas and into the generation near, near generation areas, it is located in an area with abundant green power that is being generated and that is best consumed right there near the power generation and with not enough transmission capacity to take it further up north to some of Israel's more densely populated areas. We acquired the land very competitively. We plan to invest $1.5 billion to $2 billion for a plant capacity of 160-megawatt IT. And we plan to have on-site, co-located energy generation and storage. Ashalim for us is our flagship data center project in Israel, but we have in Israel also additional developments, additional options that we have on land. And we are looking very carefully again, at the capabilities that we need and the partnerships that we need in order to make this data center project a success. From Israel, I will move to the U.S. Our U.S. investor base is no doubt aware. But in the U.S., in certain states, and here we highlight SPP, the Southern Power Pool and PJM Pennsylvania, Jersey and Massachusetts. Is that PJM?

Maryland.

Maryland. Maryland. No offense to our investors, Maryland investors. In these geographies, but also in additional -- there's additional states and additional countries also in Europe that are looking at similar regulations. There's new regulations around bringing your own generation for data centers. So with data centers consuming so much electricity, there is, of course, a very valid concern that the prices of electricity for the individual consumers for the households will go up because the product -- this product is a very high demand. And President Trump has spoken also about the need for any data centers that are going to be connecting to not create an additional burden on the grid, but to find the ways to infuse the grid with power to offset this additional demand that they are creating for electricity. And this is why there's such a high level of synergy between being a, energy power generation developer and IPP and being a data center developer. If I just give an example, If, as an example, one has a 600-megawatt PV project in PJM with 2,000 megawatt hours of storage. And you infuse the energy developer is infusing the grid with that amount of power. You get an accreditation as the energy developer and accreditation of 200, 300, some of the regulation is still developing. Up to 400 of megawatt IT of large load that you jump to the top of the queue in getting that large load request approved. So this is the essence why energy developers have a very built-in natural synergy with being data center developers. We get priority for our large load requests for data centers, priority in the interconnection, which is really the most valuable choke hold asset of data center development. And not incidentally, we are developing in SPP and in PJM 4.7 and 4, respectively factored gigawatt of generation and storage projects. And we do intend to leverage these synergies between development of our generation and storage sites and the development of data centers. And if I just drill down and get a little more specific on the U.S. and then I'll also talk about Finland and Germany. In the U.S., we do have 4 data centers that are currently under development adjacent to generation and storage sites, with a total capacity of 1,000 megawatt IT or 1 gigawatt IT. And these projects are actually not -- none of the projects actually on this page are in our portfolio as we presented as the iceberg. These are projects that will be connected 2029, 2030 and onwards. 2029 was Ashalim, actually, just as an example, and onwards, and they're creating the next wave of our business. In addition to that, we have in Finland, I'm happy to share that we have a collaboration with a local developer to develop and establish 2 data centers with a total capacity of close to 500-megawatt IT. We talked about Ashalim and there are several additional options on land with grid connections that we have in Israel. And then finally, in Germany, adjacent to one of our very large storage -- energy storage project in Germany. We have the option to develop a data center with a capacity of 400-megawatt IT. Across all these developments, we are looking at developing data center projects with billions of dollars in planned investment. We will not do that alone. But we have also shown that we have an ability to raise capital at really very attractive prices, and we have very good access to capital. But we will be also managing our risks and making sure that we involve the right partners with us and make the right kinds of inorganic and organic capability building to ensure that we are developing these projects to success. And as I was talking about the U.S., it is really my honor and pleasure to introduce Jared McKee, who is the CEO of Cleanera, who is sitting next to me. Jared is joining us here in Israel. And he will talk with us a lot more about the U.S. business. Jared has been for 10 years with Clenera and entered the row of CEO at Clenera around the same time that I entered the role of CEO of Enlight. So we sometimes call ourselves DNA twins in a sense that the DNAs of the 2 companies are very similar and Jared will talk about that, and it could not have been successful without that. And I think success is a good word to describe the acquisition of Clenera, the integration of Clenera and the great partnership and the great work that we do together at Enlight and Clenera. And with that, I will hand it over to my colleague, Jared McKee.

Awesome. Thank you. I couldn't agree more. When we think and we talk about the acquisition of Clenera through Enlight, the best word I can use is success, to think through the start of 2 businesses that are on very different continents, the cofounders of Enlight, Gilad, Zafrir, Amit, the co-founders of Clenera on the U.S. side, Jason and Adam, these very different groups of people started companies decades ago, and they had a different focus. On the Clenera side, it was very much development focused. We focused on large projects, utility scale, 20-year busbar PPAs, very specific. But then on the Enlight side, it was starting through the public markets, having ownership being an IPP really working that operations muscle to where you could become an operations machine. And what form was when Enlight was looking to enter into the U.S., a relationship was formed between Gilad and Jason. And it wasn't just the numbers of we're going to grow this much. It was also very important for both founders that it was done in a certain way, that it was done with a commitment and courage that they could do it in the right way, a commitment to their children, their grandchildren, the generations that would come after them to where there would be a stewardship to the land and a stewardship to what we've been given. And so from that, really, we've seen this success, and we'll talk a little bit about it, and we'll look at some of these numbers. Because when you look at the numbers that define the success. So the first one that we'll focus on is in orange, you can see it's 0.1. So there's 0.1, and that 0.1 is really referring to the operating portfolio in 2023, of what Clenera was in the U.S. It was 100 megawatts. In 5 years, we've gone from 100 megawatts in 2023 to by the end of 2028, we will have 7 factored gigawatts that are operating with recurring revenues. It's a lot of growth, but the growth is not just in megawatts. Really, these need to be good projects, need to be high returning projects, quality projects. And so when you look at the $20 million of recurring revenue that was operating in 2023, to $280 million that will be operating now in 2025 to $1.3 billion to $1.4 billion by 2028. If this isn't a success, I don't know what that word means. Unequivocally, the success story has been this acquisition has been every step of the way of success. And so now we've defined and talked about how the acquisition has been successful. Let's dive in a little bit into the house and the whys. And Adi, as mentioned, a combined strength, a shared DNA. That's something that I can't express more. What Enlight brought to the table was access to capital, operational excellence, as Adi mentioned, Enlight has been very successful at raising capital at a very good rate. Clenera was very focused. So very deep in the development in WAC and other areas in the U.S. really had a best-in-class development. We've been defining and operating on our ready to finance in our RTX process. But with these 2 kind of combined strength, we were able to unlock value. And so together, we truly do have the shared DNA, and it's very important to talk about this entrepreneurial spirit. Gilad and Jason are founders that are still here in both in-person and also through the leadership that continues through Clenera. The entrepreneurial spirit knowing that every dollar we spend needs to be used and shared as a dollar is my dollar because this is a dollar that was founded from the very first dollar of the first projects when we were doing 100-kilowatt projects on top of rooftops to today where we're doing gigawatt projects over 9,000 acres in Northern Arizona. That same mindset has to be in place. And what we can see is through that shared DNA, we continue to have the leadership at the Clenera side. You can see each of the members here, 10 years, 8 years, 6 years, 9 years, 14 years. The leadership at Clenera continues to be here today because we have a shared goal, a shared vision where the relationship from Gilad and Jason has grown. It's no longer just a relationship between founders and CEOs. It's a relationship between companies that have come together and as one shared DNA, we are able to unlock this value and to continue to grow our pipeline and grow our portfolio. And so from a leadership perspective, how do we look at what we're doing in the U.S.? We see it as really having 3 key foundational pieces, financial strength, which we'll talk about, execution excellence, which Ziv will talk about later on and a robust pipeline. So starting off with the financial strength to highlight, between 2022 and 2026, in the U.S., Clenera and Enlight has raised $6.8 billion of project finance as well as tax equity. This is supporting 5.9 factored gigawatts of projects, both from -- that will COD and some of it is already operating through 2027. We will continue to be able to raise the capital that is needed for our projects. One thing to note, and I know Tai likes to mention this, and it's very true is that from the sponsor equity side, we have all the funds that are needed and required to fund the business through 2028. So when we look and we show some of these projects that are going to be coming online and all the factored gigawatts. It's important to note that we have fully funded and all the equity that we need all the way through 2028. So we have that financial strength. Next, operational excellence. And I'm not going to dive too deep into it because I don't want to take away what Ziv is going to present and but what I do want to talk through is the 4 pillars of development: Site control, interconnection permitting, offtake. These are the things that Clenera is very deep. When we talk -- every project really starts with land. That's stewardship of the land. And so when we go and talk to ranchers, farmers, timber harvesters, there is a shared bond. Many of the folks that work in Clenera, as you may know, we are based in Boise, Idaho. It's not the highest population place, but many of the folks that work at Clenera, we come from an agricultural background. On my side, my dad was a dairy farmer. My mom started the family was a dry wheat farmer in Eastern Idaho. And so when we sit in front of someone who's owned that land for 4 generations, there's a shared understanding and a shared stewardship of what it means to own family land. What it means to trust someone that's sitting across the table from them that we are going to do what we say we are going to do. that relationship that we build with the landowner is the same as the relationship that we built with Gilad and the Enlight team. It's a shared trust is that when we say we do something, we do it. And so that goes from the interconnection to the permitting when we're standing in front of a county permit and we're saying what we're going to do, how much we're going to give into the county, they have to believe and trust that we are going to do what we say we're going to do. One of the areas that I've been personally involved with is the commercial offtake for a long time at Clenera, I was the lead negotiator of many of our power purchase agreements, which in WEC is the most challenging and difficult portion of the 4 pillars to obtain. Again, going back to the relationship to the trust. It's exciting, it's exhilarating to get new offtake, it can be challenging when you have to go back to a utility or to someone that you signed an agreement and you have to renegotiate that contract. Sometimes you have to renegotiate it 2, 3, 4, 5x. That is the moment when the person across the table from you need to look into your eyes and know that what you say is what you mean and what you do and what you say you're going to do is what you're actually going to do. And so as you build these 4 pillars, we have to make sure that they are advancing at the same time frame. If we get too far along on the interconnection, but yet, we're not in the right spot, and we actually can't get a permit. That is where projects fail. is if you can't advance or it gets too expensive to advance one your pillars and the other ones haven't followed along. And so it's very important that we use stages and gates stages and gates that allow us to advance and unlock new investment, new capital requirements into the project, but making sure that all the pillars and the foundations of our projects are where they need to be. Because when we get to the next phase, when we get to our financing and our execution, it has to be built on these 4 pillars. We have to have all things complete. Because then when we go to our bank and we have our 20-year bus bar PPA that everybody in the marketplace loves. It makes it a rather smooth process to go and to complete our financing and then really hands it over to the execution team, where they can operate and build our project and operate it for the next 35 years. So we've talked about financial strength. We've talked about operational excellence. Let's talk about our pipeline. Let's talk about a robust pipeline. So in the U.S., we have 27.5 factor gigawatts of portfolio. On the top end, above the surface the 1.6 gigawatts of operating portfolio, which are many of the projects that you already know the names of. And sitting underneath that is another 5 factored gigawatts of projects that are in our mature portfolio, again, names that you would have heard before. What we haven't named are the 5.3 and the 15.6 factor gigawatts of projects that sit pretty far underneath the surface. But this is the funnel. This is the exciting part about Clenera and Enlight what we're doing in the U.S. is this continues to grow. You may have heard about the additional interconnection applications that we made into PJM. The additional projects that were also into SVP and to MISO and to CAISO into all the other markets in the U.S. There's also another subcomponent of projects that's not listed here. A good portion of our development team's time is spent on new projects that haven't met the business requirements for us to share in the iceberg. These are the new projects. The projects that we're looking at obtaining more site control. Every year, every year, it is a mandate on the cloner side that we add 1 to 2 additional gigawatt projects into our pipeline because of the success that we've had PAUSE we need to continue looking at new gigawatt projects to enter into this funnel because as all of these projects move up, we need to continually having new projects at the beginning of the funnel. I don't want to just talk about just megawatts and factor gigawatts and all the -- sometimes we need to actually talk about the specific project. And so I want to talk shortly about our CO Bar project. The CO Bar project is a personification of who we are at Clenera. As Adi mentioned, that entrepreneurial spirit when in front of you, you see hurdles, you see obstacles that in the immediate future, you don't actually know how to overcome them. So CO Bar, as I think many of you know, is a 2.3 fact gigawatt project base in Northern Arizona. It has a healthy return. It's 1 of our flagship projects. But I can share with you that it was not without challenges. The project was started back in 2018. And so what we're going to go through here is I'd like to call it the winding road of CO Bar because as you can see, our first major milestone is we signed our site control with the landowner. That was back in 2018. We then submitted our interconnection application later in 2018. We then had our draft system impact study sometime in 2020. We thought we were on this path. We were on a wonderful path. And then we were able to change the purple laws in the state of Arizona and be able to sign purple contracts and PPAs with several different utilities in the state of Arizona. COVID happened. Supply chain restrictions happened, inflation happened. We then had to go back and reengage with our utility partners to resign. In fact, we terminated the PPAs and had to resign them and had to go out and win RFPs. And then we signed additional power purchase agreements, and then we had to renegotiate those. Then we had a FERC order reform in the interconnection, which delayed our interconnection, again furthering and again, renegotiations. And then we had a Department of Interior memo that allowed for us that we had to delay the signing of our LGIA, so many obstacles. Every project has a moment where you have to look into the dark abyss and you have to ask yourself how is this project going to make it over this obstacle. There may not be a current answer that we know right now. But that is where the entrepreneurial steroid comes where we can find a way and always find a way to do what needs to be done. And so here we are today on the straight path. We're on the path now where all of these obstacles, the winding road of CO Bar is behind us or in construction. We're on our way to financing. We can see the next phase of this project, which is completing our construction and execution and transitioning to the operation. It's a challenge, but it's absolutely worth it. I'd like to tell people that CO Bar is actually older than my 2 living children. We -- I have a 6- and 8-year old and CO Bar is 9 years old. It's a challenge. But not every project in our portfolio is the big swing, the decade-long project, that's 1,000 gigawatts or 2.3 factor gigawatts. There are -- we have to have other projects in our portfolio that can be done in an expedited time frame. So I present to you the Roadrunner project. The Roadrunner project is in operations. It's 567 factored megawatts. So it's not nearly the size of CO Bar, but it's also very, very healthy and equally important. Because we have to balance our portfolio with the big projects, the gigawatt projects with those then that can be done in 3 or 4 years. It wasn't without its challenges. We had to sign very complex negotiations with the local military base that was there. We had to go through a very strenuous permitting regime. We had to win an RFP with offtake to be able to have the opportunity to joint venture with them. But through it all, here we are now. The project is operating. It's fully deliverable. And this is that balance. It's having a portfolio that has new gigawatt projects every year and then balancing that in with other projects that we can do on a shorter time frame and then kind of fill in those gaps as the gigawatt projects take a little bit longer. So what I'm excited about as the CEO of Clenera and being a part of Enlight together is you may have known us as wet players. So we have a a pipeline that's 21 fact gigawatts that is our advanced and early-stage projects. Half of that -- roughly half of that is in the West Coast. We understand WEC, we like WEC, not only is it where we live, where we do business, it's what we understand. We have the 20-year bus bar PPAs. We have high barriers of entries that we have a very unique relationship and a very unique experience that allows us to be successful in WEC. But we're not just a Wec player. We are throughout the U.S. As Adi mentioned, we have 4.7 factor gigawatts in SPP, almost 4 gigawatts in PJM and other markets. We are a well-diversified development pipeline that is moving and advancing all of our projects to where they will not just be numbers in a spreadsheet, but they will be projects that are unique and meaningful to the local communities that they serve. And a transition to an operations of recurring revenue that we can all be very, very proud of. And so with that, as we talk about the operations, it's my honor to be able to introduce Ziv that he will then inherit all of these projects and get to operate the 7 gigawatts in the U.S. and 28 and hopefully many, many, many more factory gigawatts of projects as we look beyond 2028. So with that, I hand the time over to you, Ziv.

Thank you very much, Jared. Hello, everyone. Historically, we've been growing our portfolio or tripling our portfolio every 2 years. And if we look on where we started in 2019 or basically, we've started before, but even we look from 2019 with about 0.3 gigawatt by 2025, we have today about 3.9 fact gigawatts. And by end of 2028, we're going to have anywhere between 12 to 13 gigawatts in our mature portfolio. When we deep dive into that, not only that more of half of it is already in construction by the end of the year, more than 90% of under construction or already yielding. PAUSE When we look on it on the numbers side, so basically, if today, we have a portfolio of about $77 million in recurring revenue in the next 2 years, we're going to invest about $8.4 billion of CapEx into our new assets, which in results are going to end with a portfolio that's going to yield us about $2.1 billion as recurring revenue for the long term. Not only that, one of our strategical decision throughout the years was that we want to be diversified geographically and technologically. Today, we are operating 53 sites across 11 territories with about 3.9 factor gigawatts between wind, solar and storage. In the next 2 years, we're going to be basically delivering 50 additional projects moving into 3 new markets, operating or construction in about 14 new countries and states. And as I said, with a total spend of about $8.4 billion. And by end of 2028, that means that we're going to have about 103 operating sites across the world in 19 countries with a total factor at the gigawatt of 11.6%. In order to do that, basically, we built an allied, an integrated end-to-end platform because of our unique structure of both the developer and IPP, we believe that our team needs to be engaged from day 1 and be there throughout the entire life cycle of the project to ensure not just the short term, but also the long-term results of our projects. This is why our execution division is involved from the early stages. We have an engineering and pre and construction teams, which work simultaneously together. We're leveraging our economies of scale. We're focused always on the long-term assets and optimization of our sites in order to increase our yields, and we're always looking even within our existing sites for expanding our operational sites and increasing our EBITDA. Our core competencies are on the engineering team. We have an in-house engineering team, which holds most of our knowledge and know-how that we can throughout the years. But on the other hand, because we work across so many multiple territories where we have gained the capabilities to manage engineering frame across operational markets in order to also get the local know-how and basically be able to combine the 2 in order to get the best project. Of course, compliance regulation and innovation are also part of those -- those engineering teams do. And today, because these guys are involved from day 1, okay? This is an engineering team that today manages almost 30 factor gigawatt under its growth, I would say. Our procurement and supply chain because of our scale and because we realized that for us, we are able today to manage it in such a way that we are able to buy the main equipment ourselves, manage our supplier relationship and leverage our scale for long-term relationships. But that means that in a very turbulent world today and very volatile supply chain, we are able to maintain good prices and good control on our costs and meet our financial models. We have an in-house project execution team with project managers that, again, now know how we deliver our projects and insight scheduling, budget control, our quality control and of course, our EHS teams, which are all internal. And probably the most important part of our execution division is our asset management team. They manage our portfolio. They are responsible for the production and our revenues optimization. They are responsible for the availability. And what we've seen, especially in the last 2 years is the issue of big data and analytics. More and more data is flowing into our systems. So if historically, an asset management team was responsible for the maintenance and still is -- but also data is now becoming very important. As an example, from a single site today, we get more than 140 million data points a year from a single site. And now we're talking about 50 sites today and over 102 years. That means that when we look on how or we deep dive into our asset management core capabilities and how we maximize the performance, we developed several capabilities. The first one is our EMS, our energy management system. We developed our own EMS system with our own algorithm, which is designed in order to maximize our revenues, especially on our storage sites both utilizing external and internal parameters. Maintenance is still -- we are still dealing with mechanical sites and maintenance preventive maintenance and scheduled maintenance is still a core capability of our asset management team. But we also get more and more reliable insights. We have data, dashboards and basically, which we use them because having the data is not enough. We want to also be able to take informed decisions based on their data. So that means that not just standard maintenance, but also predictive maintenance is part of our day-to-day work today, which enables us fast responses in order to deal with our assets. But most and foremost is the EBITDA announcement. Our asset management team is focused on 2 things today when we look on how it can basically enhance our EBITDA. The first is basically using operational and financial data analysis and through our systems, and I'll dip dive into that in a second. And the second one is what our team calls adding -- moving the famous clash here that we always talk about from not just pushing it up, but adding also 3D dimension, adding a depth into it, which means we've taken the operational sites, which we now see on the tip of the glass here, but then we enhance those and basically extend those or what we call Connect and expand. So I'll dive dive into these 2. The first one when it comes to data. Today, we consolidate all our data into a single SQL data system, supervisory control and data system, which basically enables us to consolidate everything into a single source get insights, get the reports, do our analytics in-house with our specific analytical team and utilize that in order to improve and squeeze more and more kilowatts out of our existing sites. When we go and how we basically add debt or do connect and expand to our assets. So 2 examples here. The first one is Gecama. Gecama is the largest wind farm in Spain owned by Enlight. It's a 329-megawatt wind farm. By end of this year, we'll be adding to that wind farm 27 megawatts of solar and 220-megawatt hour of BESS. So we have a total installed capacity of 619 factored megawatt. Another example is Baron project in Israel, a floating PV site of 21 megawatts with 160-megawatt hour of BESS. In the next 2 months, we're going to be adding 80-megawatt hour into that site, which basically means that we will be moving from 4 hours duration to a 6-hour duration storage at the same side, increasing our revenues. Now these are just 2 examples. But today, when we look on our portfolio, we're seeing 1.4 gigawatt of additional production capacity and 8.5 gigawatt hour of storage capacity, just by utilizing our capability of basically overcoming the -- what's today probably the bottleneck of development of renewable energy, which is the connection to the grid. And basically, the fact that we are -- we already have that connection, and now we're just able to build on that and increase our capacity in our production and usually through shorter development time, that's something that really helps us further develop our sites and increase our EBITDA. Now before I'm going to hand back to you, Adi to finish the presentation, I would like to show a short 2 minutes movie that I believe summarizes what we do today on the project execution and asset management division at Enlight. [Presentation]

Adi, Maybe before I hand it over to you, it's important to mention for those of you who didn't recognize all the sites in that movie are Enlight site.

Every single turbine blade every solar panel, every float and every battery storage system.

Exaclty.

Very impressive.

I think my favorite part of that is the every single day. I just like that line.

Yes.

So I want to bring us to a close. And before I hand it back to Itai to facilitate your questions. Enlight is really -- we see ourselves as an execution machine. It has there as many COGS in this machine. And we are excellent at PAUSE every single one of them. It starts with our entrepreneurial DNA and our core values. Through our corporate capabilities, strong management infrastructure. The entire value chain from greenfield development through all the way into construction management, asset management, continuing to improve the EBITDA, getting the best financing terms, delivering to you the highest return on capital and doing this all through our creative and mindset through our capabilities and also through partnerships that we build, and we know how to acquire capabilities and integrate them into the company. And so with that, I will hand it back to Itay, our Chief Corporate Development Officer, who will facilitate questions and answers.

Thank you, Jared. Thank you, Ziv. With that, we're going to summarize and we have some time for questions. So if you want to ask a question, please raise your hand on the Zoom and then we'll open the mic for you to ask a question. Okay. So we are handing the mic to Justin Clare from ROTH.

You hear me okay?

Yes, we hear you perfect. Good to hear.

Okay. Perfect. Yes, I appreciate the presentation. Thank you. And then just wanted to start on the data center opportunity here. So I was looking at, I think, Slide 22 and just totaling up the projects you have visibility into. So it's a little over 2 gigawatts of data center capacity there. So just wondering if you could provide a little bit more detail on the status of those projects in terms of link control, interconnection permitting. Just kind of a sense of where you are in the development phase of that. And then if you could share maybe early here, but how much capacity could be added in 2029? How much in 2030? And how we should be thinking about that at this stage?

Thank you, Justin, Adi do you want to?

Sure. So Justin, thank you for the question. As I mentioned, these projects are actually not -- we have not actually yet formally added them into the iceberg that we present to you as our total portfolio. They are all in phases of early development with some that, like we mentioned, Ashalim, that is already slated to be commissioned and connected in 2029. And and the rest of them in the years after that. It is quite a few gigawatts and investment of our capital. At the same time, we have different models with which we will be going at them. I mentioned, for example, in Finland that we are working in collaboration and partnership with a local developer. In, for example, in Germany. This is a project -- a data center project that is adjacent to our storage site where we have as well a partner with us in the data center -- in the storage side and also we will have the same partner in the data center. So is these projects are not only in various stages of development. But they're also not entirely all 100% owned by in life. And we have not added them again formally into our account. In all the cases, though, of all these projects. These are -- the projects that we put on the page are projects where we have acquired already certain rights to the land or optionality and we have a good view of their interconnection or their large load stats. So in that sense, they are -- there are projects that we have a certain amount of information about, but we're not ready to share more than that at this point.

Okay. Got it. I appreciate that, yes. It's -- so I guess just following up on curious, at this stage, how should we think about the amount of capital that could be allocated to the data center opportunity and how that might phase in. It sounds like through 2028, you have all the capital you need for your renewable energy pipeline. Could you start meaningful investments in data centers over the next couple of years? How do you anticipate that phasing in? And then just curious on the potential returns for the data center projects and how those might compare to your traditional renewable energy pipeline here?

Justin, I'll say something about the capital, and then I'll hand over to Adi to discuss the returns on the various models. But it is important to say and to mention that, as we mentioned before, we have more on our balance sheet in hand sources to support growth of Enlight beyond 2028 and significantly beyond the mature portfolio that is important to mention. And also these projects in the nature of the phase of the development, which is relatively early. It's a little bit -- you know that are hesitant to go deep into numbers of projects in the early phases because there can be still lots of moving parts. But -- it is important to say that they are not on the iceberg as we know the iceberg today. So these are new projects that we are presenting to the market and new opportunities. Adi do you want to say something about the potential returns?

So the returns on data center projects very much depend on what role Enlight will play in the value chain. We talked about the range from powered land through powered shell to being a data center operator. And in the powered shell, business model. Again, this varies greatly by geography and by project. But we do understand the rates of return that are between 10% to 15% to 20% IRR, therefore, making them on par and slightly on the higher end of their IRR, the returns that we get from our renewable energy developments. There's -- nevertheless, there's still like a wide range here. And beyond power cell, when companies get into the data center operations and also take on the risks of tenancy and design of the white space. And with the changes that can happen to that design over the years. Again, this is something that we are looking into in subsequent stages of our strategy with partnerships, through partnerships. And those returns can go also 25% and more, but that's not right now immediately on the table.

So it seems like there are no more questions. Again, thank you for joining us. We believe that Enlight is in its best position in the history of the company, and we're meeting today a market that is in the best fundamentals that we've seen in some time, and there are exciting days ahead of us, and we look forward to speaking with you in the future. Thank you.

Thank you very much for joining us.