Grenergy Renovables, S.A. (5GR.F) Earnings Call Transcript & Summary

Okay. I think all of us are connected. So good morning, and welcome to Grenergy's 9 Months 2025 Results Presentation. I am Ruben Gomez, Head of Investor Relations. The presentation is going to be led by David Ruiz, our Chairman and CEO; Daniel Lozano, our Chief of Strategy and Capital Markets Officer; and Rocio Fernandez, Head of Sustainability Department. They are going to take you through our business, financial and sustainability review. At the end of the presentation, there will be a Q&A session for sell-side analysts. [Operator Instructions]. David, the floor is yours.

Thank you very much, Ruben, and good morning, everyone. And let's start, as always, with the main highlights of our 9 months of this year, 2025, results on the Slide #3. And well, I'm just going to focus on the main messages, right? Well, business highlights. First of all, we don't stop on asset rotation, right? That's very important. We keep not only on track, but I think we are definitely over-delivering. We are now more than 55% on our target. Jose Cabrera and Tabernas, we will see the capital gains. We finally executed the deal in Q4 in October. So these this accounts will be next quarter with capital gains of EUR 25 million. And well, we're really happy, really on track and exceeding our expectations, right, in terms of the returns we are making on each transaction. Another very important point is our tolling agreements, new PPAs. These are complex negotiations, right? They need time, all with investment grade, means large organizations are counterparts. So they take time. But once again, we have to say we're very close to announcing new deals in mainly tolling agreements for our Greenbox platform in Germany, Spain, plenty of new PPAs coming from Chile, some from Peru, and our first PPAs in the U.S. And I'm very sure we will spend a lot of time in the next presentation in February, explaining all the new deals that we will be announcing in the next few weeks. Talking about operational highlights. Well, we're also very on track, 2.1 gigawatts of solar and 5.5 gigawatt hours of BESS in operation and under construction. And at the end of this year, we will be very close to reach 7 gigawatt hours of BESS connected. This is very remarkable. Once again, in terms of gigawatt hours, it's close to all installations in the U.K. combined. And U.K. is the most mature market for BESS in Europe. So I think it's something we are very, very proud of what we're achieving in Oasis of Atacama. Our pipeline, I think it's a very amazing figure, 75 gigawatt hours. We will give more details now. It's more or less 50-50, 50% stand-alone, 50% hybrid plants. And well, one of the most important messages of this presentation is that out of these 75 gigawatt hours, 8 gigawatts have been upgraded to advanced development in the main markets, in 6 markets, European markets that comprise the Greenbox platform. So we will make an effort to give more details on the platform in the next slides. Well, let's not forget, it's not here, but we are still a solar company. We have close to 12 gigawatt hours of solar. Most of these plants are already hybrid. And well, again, we are living a completely new reality with a massive introduction of BESS in our markets in both formats, whether it's stand-alone or whether it's hybridization with PV. Very proud of our road map of ESG. Rocio will give you many more details, right, later on in the presentation. And financial highlights, I will leave this to Daniel, but it's, I think, a very impressive set of results. We are really on track. New CapEx, EUR 300 million in the quarter. We are above EUR 700 million of new CapEx. That means we are going to be close or even a little bit more than EUR 1 billion for all the years. So it means we are really on track for one of the main KPIs that we outlined in our Capital Markets Day that we were about to invest EUR 3.5 billion in the period from 2025 to 2027. So I think considering it's only the first year, we are really on track. Net debt, Daniel will give you a lot more details. I think it's well below the sector, the industry average. Well, moving to Slide 4. This is just the, well then, beautiful picture of our platform overview for hybrid, BESS and stand-alone, and we'll give a lot more details in the next slides, but I think it's worth highlighting that there has been like a sharp increase in hybrid solar plants in Chile and Peru. And we strongly believe that there is a great cycle coming up in Chile with data centers, mining, new government. So we believe we need to have the right staff 2, 3, 4 years from now. So it means a great greenfield effort now on our side, right? So you will see a sharp increase in new developments in early stage and identified opportunities in these markets. And in Europe, once again, the fast evolution of the stand-alone pipeline from early stage to advanced development. And well, as you see in the right-hand side in the maps, you can see that in Europe, we are betting a lot more for stand-alone plants comprising our Greenbox platform, whereas in LatAm, mainly in Chile, we are betting a lot more in hybridization, right? So we are talking about best in both cases. But in one market, we are focusing a lot more in hybrid plants. And in Europe, we are focusing a lot more in stand-alone plants. Moving to Slide 6. Again, very happy to get more in detail in the Q&A in any particular market. But again, like every quarter, we give a lot of information about the situation of our pipeline, whether it's solar, whether it's hybrid. And well, moving to the next slide, Oasis of Atacama, we show here, and it's already becoming a classic in our presentation, right, the evolution of our Oasis of Atacama platform, then Central Oasis platform, and the platform in Spain, which for the moment is just Escuderos. We believe there are great opportunities for hybrid plants in Spain as well. So now we're talking about hybrid plants. Talking about Oasis of Atacama, well, as you know, the total platform is 2,000 megawatts, 11 gigawatt hours, right? Overall, we are executing really well. We are very happy, above expectations. Out of the 11 gigawatt hours, we have already, at the end of this year, executed close to 7 gigawatt hours, which is, I think, very remarkable. And we are normally doing it a few weeks and sometimes a few months ahead of what we are saying. Quillagua 1 and 2 is fully operational now. It's out of the pipeline. It's being completely delivered to KKR, and it's performing really well. Victor Jara Phase 3, it's now already connected and also it's working pretty well now, at full speed. It will be completely delivered to KKR before the end of the year. And Gabriela is Phase 4, mechanical completion is completed, right? And we are ready to start injecting energy in early January and COD at the end of Q1, latest April. So we will transfer this plant to DIF, CVC, once it's fully operational in COD. We're estimating this to happen latest in April, May next year. All the revenues belong to us until that moment. Elena 1 is 3.3 -- well, 3 gigawatt hours in point of interconnection. This is the single largest plant in all the Americas in one single location, right? It was Moss Landing in California before, but now it's Elena. That's also all the battery packs are on site, and we're estimating also to start storing energy in early January. So all in all, we are very, very happy with the performance of the platform. We are about to start construction of Antofagasta and the second phase of Elena second or third quarter of next year. Moving to -- well, we give plenty of highlights of all the main milestones. Again, very happy to -- a lot of things are happening, financial closings, M&A execution. So very, very happy to get in more details in the Q&A. Moving to Central Oasis. You know the size of the plant is 1 gigawatt, 4 gigawatt hours. We are now very close to the Gran Teno, Tamango, and Planchón. This will be one single financial close. I think it might be announced even before the end of the year, and we will be executing at full speed during 2026, right? So these plants will be operational, I think, before 2026 ends, right? Then next step, next one will be Monte Águila. Monte Águila will have a similar approach with PPAs than Gran Teno, Tamango, and Planchón. I think it's next in the road map of financial closing. So we might even mandate very soon, and we are estimating to get the financial closing at the end of Q1. In any case, we have already ordered truckers, and we have started some preliminary works on site. So that's the situation of Central Oasis. Moving to Escuderos, it's our first large hybrid plant in Spain. And well, I think will be the starting point, really flagship for us. It will be one of the first large hybrid plants, hybridizing in Spain. So as early as July, August next year, we should be storing already energy from the first phase of Escuderos, right? And we are also in negotiation for hybrid PPAs or, as an alternative, with tolling agreements for the BESS. Remember, we have an existing PPA with GALP for the solar energy, but this is fully compatible with the tolling agreement. So it's something -- because it's a financial PPA and it's something that can coexist with the tolling agreement. The moment we have something closed, we will let you know. Moving to Greenbox. And I think it's important we spend more time explaining to you our strategy for every market on Slide #13. Well, here, the main message, as we already advanced, we are moving quite fast in the 6 markets, right, Spain, Italy, U.K., Poland, Germany and Romania. And well, I think time to market is very important. So we are exploring all opportunities to move as fast as possible, right? In the next slides, we are diving more in detail on Greenbox, and on each of the 6 European markets. We try to give more information, right, our estimations on each market, potential for BESS, the pipeline we have and well, the main dynamics of each market, upcoming auctions, capacity payments, government plans. For every market, basically, it's going to be, revenue stacks are going to be coming mainly from energy trading, ancillary services and capacity market. If there is a capacity market in place, like is the case of Italy, as we can see in this slide, and the U.K., they already have existing capacity market mechanism. But Spain has for a very long time announced, I think finally we will see the capacity auction in Spain in the first quarter of next year. And we believe and all the industry believes that Germany will have similar mechanism. But anyway, the IRRs we are giving in Spain and Germany are not considering any revenues coming from capacity payments. So whatever we get there will be an upside and will increase our IRRs. Once again, we have given here the number -- you know in Spain, we have Oviedo project. We will see in another slide that we will start construction very soon, I think as early as January next year, and mechanical completion will be completed in October, November 2026. And hopefully, the plant will be fully operational at the end of the year. So this is really our flagship stand-alone project in the Greenbox platform, but we are working in many other projects. We are also looking at many buy-side opportunities in all the 6 markets where we are, mainly in Spain, Germany, I would say, Italy. We are analyzing some MACSE granted projects to mix them with -- we are looking at opportunities in Germany. I think we will announce some buy-side deals in Spain. Again, we will do the best we can to accelerate the story. I'm very happy to speak in more details about any of the markets. Just before I hand over to Daniel, this last slide, we try to summarize a quick review of the latest, of the last deals we've closed and how successfully we are executing the road map. We are basically executing what we outlined in the Capital Markets Day, but I think with higher returns than expected. Remember, in Capital Markets Day, we estimated an average of 1.3x enterprise value invested capital. And well, we are now reaching 1.6x on average. So we just executed the deal in October of the transfer of close to 300 megawatts in Spain to Allianz for EUR 273 million. You know Gabriela, we announced this deal also very recently that will get executed in April, May, latest next year, which is a COD deal. And well, the deals you know very well of Quillagua and Victor Jara that we keep executing, right, and still has a strong impact in our P&L during this year and even next year with the earn-outs. Again, the main message is, right now, with the equity proceeds we are getting, we're exceeding 55% of our asset protection targets. We might expect to see new deals coming from now mainly nonstrategic assets like PMGDs in Chile or distribution assets in Colombia. So we might see some M&A coming very soon from these fronts. So thank you very much. I turn now the call to Daniel for the financial review.

Okay. Thank you, David. Let's take a look at the company operational performance that, again, are excellent results. We will keep with this trend in coming periods. So first of all, in the key operating data, there is a decrease in total installed capacity by 4% because of the explained asset rotation in Chile. You will see that the gross addition in megawatt hour now is 2.5 gigawatt hour that will be moved to close to 8 gigawatt hour by year-end, thanks to Victor Jara and Elena that will be there. Then, regarding production, there is an increase of 32%, mainly driven by the Chilean asset, but as well Escuderos, and there was some contribution from Tabernas and Jose Cabrera that were sold in Q4. We expect a positive EBITDA contribution and net debt reduction in the period. Then, contracted volumes increased by 55% and represented 88% of our total electricity production. That is, here we have a conservative approach to the energy sale we have. Then, realized price decreased slightly to EUR 43 per megawatt hour from EUR 44 per megawatt hour, impacted by ForEx dollar-euro difference. On the right-hand side, you can see a summary of the key financial KPIs, which we will review in coming slides. Then moving to next slide. Total revenue, September 2025, amounted to EUR 687 million, representing an impressive increase of plus 147% year-on-year. And this growth was largely fueled by M&A transaction and as well the energy production we had. GR Power division showed an increase of 103%, driven by organic growth. And finally, services increased by 20%. The asset rotation we are having are also producing operational maintenance and contracts to the place we are selling the asset. So this is also moving up. Then the EBITDA for 9 months 2025 was EUR 111 million, representing 2x the amount we had last year and was mainly boosted by M&A activity. Remember that in Q4, we are going to have around EUR 75 million impact coming from the deal we have just closed with Allianz regarding Tabernas and Jose Cabrera. Then moving to the next slide, CapEx. This is impressive. We are doing EUR 713 million in 9 months, and this is driven by, as you can see, Oasis of Atacama, some project that has been sold, and hybrid project that we are building for ourselves like Elena. The remaining CapEx is invested mainly in project in Spain, like Ayora, and there was another EUR 28 million coming from development initiative in our 3 regions where we are creating pipeline. Then in Slide 20, again, we ended with a very solid cash position of EUR 346 million. Even though we had our record CapEx figure until now of EUR 713 million, that is the main outflow in the cash flow. Then there has been some financial costs and taxes, EUR 40 million; change in working capital, EUR 34 million; an impact of ForEx of around EUR 45 million. Financial debt was mainly project financing coming from the announced project financing of Elena and rest of hybrid asset in Chile, and other debt is referring to vendor financing related to the acquisition of Elena to Repsol and Ibereólica. So we ended with a very solid cash position that will allow us to keep investing during coming periods. Then moving to next slide, leverage and liquidity. Our net debt stood at EUR 1.047 billion because of the CapEx increase that we had. However, our net debt-to-EBITDA stood at a level of 4.9x and corporate 1.4x. If we include the 2 projects Jose Cabrera and Tabernas already delivered, pending proceeds from Oasis of Atacama, and the last announcement we had about the sale of Phase 4 Gabriela, net debt will stand at EUR 322 million. And on pro forma basis, this ratio will drop to 0.7x and corporate even positive to minus 0.5x. This shows how quickly we can reduce this ratio after asset rotation that we keep self-financing growth by doing that. That's all from my side. Now Rocio is going to explain the main messages about sustainability.

Thank you, Daniel. Good morning, everyone. I invite you all to follow the details of the progress in sustainability matters during the third quarter of 2025. We are immersed in the second phase of the ESG Roadmap 2024-2026, and I am pleased to announce the important goal that we successfully accomplished in this quarter. The climate transition plan within the climate change dimension was updated and approved by the management committee. This plan, now considering our business model of PV + BESS includes several decarbonization actions to be implemented in all our projects and offices. And what's more, details the inversion needs in accordance with the requirements of the CSRD. Apart from that, do not forget some other achievements during the past quarter such as the elaboration of the climate change and biodiversity policies as well as the corporate social management plan. Moving on to the next slide. Regarding our position in ESG ratings, I would like to remark the fact that Grenergy keeps on leading the ESG performance according to the most prestigious ESG ratings. During the third quarter of 2025, some scores were updated, providing us with better results than our peers and also than ourselves last year, which is the case of EthiFinance. Also remember the greatest scores that we got this year in S&P and Sustainalytics updated in the past quarters. Sustainalytics keep on considering us in its low-risk area and S&P recognized us as a top 16% global in the electric utility sector, above sector average. Moreover, we were listed in the IBEX ESG Index, and we got an A minus in CDP supplier engagement assessment. Last but not least, just mentioned some other ratings such as CDP Climate and MSCI that have not been updated yet. So we will give you further information about them at the end of the year. So that concludes my update. Thank you very much for your attention.

Okay. Thank you very much, Rocio. We are now moving to the Q&A session. [Operator Instructions]. First question from Fernando Garcia, RBC.

So David, it looks like, with the 3 gigawatt hour of Elena will contribute significantly to most of 2026 results. So could you provide us with an estimate of this asset's contribution to its first year of operation in terms of revenues and EBITDA, along with the main assumptions behind these numbers. And linked to that question, could you remind us in terms of asset rotation gains that have already been committed for 2026? And joining the 2 answers, I would like to follow up. Current consensus for 2026 for EBITDA stands at around EUR 240 million. Based on potential asset rotations in 2026 already committed plus the operating performance of the company, is it safe to say that this figure is achievable even before including any additional asset rotation gain?

Thank you, Fernando. Thanks again for your questions. We don't give guidance year after year. I leave that maybe to Daniel. We've given a guidance for the 3 years. But anyway, I can give you some information about Elena. Elena, it's a game-changing plant for us, obviously, just keep in mind that the EBITDA we can get from this plant is maybe close to 2x what we are currently getting from all the legacy projects, right? So it's a completely different asset, right? We might estimate, considering from January -- let's say, from February, we may be able to transfer 1.1 gigawatt of energy from day to night. And now we are expecting to charge the batteries using energy that is currently, in most of the months of the year, it's a 0 level. So we are -- even we are curtailed in that part. That the moment there are more batteries, this will eventually change. But I think from 2026, we will be charging at very low prices, and we will be delivering the energy in 70s, 80s or even 90s, right? So we see like plus capacity payments, right? I think we can see EBITDA between EUR 70 million, EUR 80 million, even close to EUR 90 million for 2026, right? We will be full merchant 2026. And then we are securing PPAs from second semester of 2027. So we will refinance. We will build the remaining PV. And I think this plant, from 2028, will be a different animal, where we will charge and we will be delivering both solar and -- now there is only an existing 77 megawatts plant. So that's the case for Elena, and we are very excited. We are really reinforcing our energy management team now in Chile, because after all, from February, we are handling the largest battery in the Americas. So we need to be ready, right, because every day counts, right? And I think there are also promising ancillary services market in Chile that are only starting. If we manage to get there earlier first, we can get very interesting upsides, right? And like ancillary services, frequency regulation, the new markets that we are going to be able to approach with batteries in Chile. And about the total figure for 2026, I think the estimations you are giving above 200 are, in a sense, correct, because only considering our new energy EBITDA with Elena and the legacy projects, we're going to have 3, 4 months of Gabriela revenues and other plants that are getting operational at the end of the year. So I think the EBITDA of our Energy division will be maybe 3x bigger than 2025, plus the build-to-sell activity that, for sure, we already have in second quarter in Gabriela that I think it's going to still get to be close by EUR 120 million, EUR 130 million. This is just from Gabriela, and we might expect other M&A activity. So I think your estimations are correct. We will try our best to overdeliver.

Okay. Next question from Anna, UBS.

Two from me. Can I ask you firstly on, you've moved this almost 8 gigawatt hours of stand-alone BESS into advanced development and you give quite a helpful indication of the returns by country. But a decent proportion of this is in Poland and Romania, where you haven't given any guidance on returns. So is there anything you can kind of say as what you expect there? Is it better or worse than some of the other countries, or kind of in line with the, I guess, 8% to 12% is kind of the broad range for the others? That's the first question. And then secondly, can you give a bit more detail on the developments in the U.S.? I know this kind of at the time of the CMD was still a bit of a question mark, but you've moved quite a substantial number of the projects into the backlog and you've got the first kind of trial stand-alone projects under construction already. So can you talk about how the market is developing there and why you've kind of -- or how you've been able to progress those projects, I guess, maybe a little bit more quickly than we expected?

Okay. Thank you very much, Anna, for your questions. The 6 markets where we are, for the moment, considering for a Greenbox platform. We are in different -- we have always said that -- well, obviously, we are starting in Spain, where we have -- it's a local market. We have plenty of visibility. We are about to start. I think in the next call, already Oviedo plant will be under construction. So that's a very important milestone for us. And I think many more stand-alone plants will come in Spain. We have outlined here in the presentation, in Germany, the most advanced projects that we have developed in-house, like you will see these 3 projects, Rempten, Samern, and Klein. But we are looking at buy-side opportunities very actively, right? And again, in Spain and Germany, it's complex negotiations again, but we are in a very, very advanced stage. So I think we will announce first tolling agreements definitely before next call, but I believe that some of them even before the end of the year, right? We are currently advancing in 2 negotiations in Spain and in 2, 3 in Germany. So we have plenty of visibility on the IRRs, most of the inputs, and we are very confident in giving these IRRs. Moving to U.K. and Italy, we are in a different stage, but well, the U.K. market is very mature. There's very important auction for capacity in first quarter that we will participate in several projects. So this will give us visibility on this input, right? But it's not enough in the U.K. You need to combine many other revenue stacks, and I think we are working on it, but we are confident in getting this -- we're talking about project IRRs in any case. Maybe the U.K. will be the market with the lowest IRR, but still, we see a consistent 8%, 9%, considering our CapEx levels, right? And in Italy, again, we are advancing. We have plenty of projects coming up to advance development during 2026. Most of our portfolio will be ready at the end of 2026. So we expect Italy to be a very active market from 2026 onwards, right? And I think we are looking at Italy more through tolling agreements than through MACSE awarded projects, right? The reason we are not giving an IRR for Poland and Romania, they are less mature markets, and we want to make sure we have all the inputs before we give you an estimate for the IRR. In Romania, we are expecting a higher, should be double digit or we will not go ahead in Romania. I mean, we see that this market has a higher risk than the others. Poland is a very stable market, even if it's not in euros. So at the end of the year, there's this option for capacity payments. I think it's on the 5th of December. And then there is also the CapEx plan that we have submitted some plans. So I think considering these 2 inputs plus some tolling agreements, conversations we are having, in some cases, in euros, in some cases in zlotys. But I think in the next call, we might be able to give a guidance of IRR in Poland. In Romania, I think it's more, I don't want to say exotic, but we need to make very, very sure before we give an IRR, and definitely needs to be double digit, yes. About the U.S., we've been working very hard the last year. It's been kind of a roller coaster, right, the U.S. market. I don't think it's been that bad at all at the end. I mean, we have been able to safe harbor all our portfolio, all our projects. And we have moved the first 3 projects to backlog, meaning that we are ready to invest in these projects. I think these projects will be executed starting in second semester of 2026 and mainly 2028. So whenever we give the guidance for 2028, I think the U.S. will be an important -- and in particular, we have moved to backlog 3 projects, Beaver Creek, Shubuta, and Creed, yes. And in Beaver Creek and Shubuta, we already signed PPA agreements. In most cases, they still are pending approval, in one case by Mississippi Public Service Commission and Georgia Public Service. But all in all, they're effective completely binding PPAs. And well, we are very optimistic now with the U.S. market. If you had asked me like a few months ago, I would say, but I think the products are safe harbor. I think we can approach 40% ITC levels. And the market is very active. But we want to make sure we do things right in the U.S. I mean, we rather prefer to go step by step. And whenever we have more information, we will reveal. Right now, we're securing -- we're closing the -- mandating banks for the tax credit. Also for the construction loans. We've closed already transformers and inverters for safe harboring. And we are also closing the EPC agreements. And in this case, we're working with external counterparties. We also decided to execute 2 small distribution projects in the U.S. It's been just a couple of months, and we have successfully executed. I think those projects will be placed in service before the end of the year. But altogether, each project is only 25 megawatt hours, and I think total CapEx is around $14 million, $15 million. But it was very important for us to develop construction capabilities, transferability for tax equity, and that's there. Those projects will be initially merchant and eventually, we will move them to a tolling agreement.

Next question from Bank of America, Alexandre.

A couple of ones from me, please. The first one is just on the phasing of PPAs and also tolling agreements. So you're very confident about signing some tolling agreements in Germany and Spain before year-end or in the next few weeks, which a few weeks might be actually into next year, more than year-end. So just wanted some clarification on that. And are you thinking about tolling agreements? I suppose maybe on Oviedo, we can have one before year-end, but then moving into 2026, perhaps for your wider platform. Are you thinking about tolling agreement being project-specific or being platform specific? I mean, are you thinking about something perhaps wider with a partner across Europe or across an entire country, across many countries. So interesting in that idea. The second one about PPA and in particular, the Elena phasing. I think perhaps a year or so ago, we would be thinking about trying to close PPA quite early and then executing with a very derisked profile. Are you delaying or perhaps having those PPAs being signed later than COD a function of the market being not necessarily the right one right now to sign PPAs, not getting the right prices in Chile? Or are you thinking that the opportunities are so great right now in the market that you'd rather be merchant and earn a lot right now and then secure a PPA and perhaps like an asset sale later on? And then the third one, it's not going to surprise you that I need to ask something about data center, because everyone is talking about it. I cannot make but notice that I haven't seen a slide about data center in your presentation. So any kind of assets, I think, in Spain that we can think of. I suppose there are some market expectations that you could have similar grid consumption, self-right consumption in Spain as some other player at least? Or if you're already working on the pipeline there? Are you thinking more about partnering? Are you thinking about selling energy? Are you thinking about power and sell? Any kind of color on that would be super helpful.

Okay. Thank you, Alexandre. Okay. I'll try to be very specific. Your first question is about PPAs and turning -- well, first of all, we love announcing deals as early as possible, right? But normally, on the other side of the table, we have larger investment-grade organizations that they need to go through many committees. And we only announce one deal whenever it's fully executed and whenever it's binding. So I don't know. I still believe we are -- 27th of November, I still believe that we might announce something before the end of the year, right, because there are 1 or 2 deals that are really, really in the final execution phase. If it's not in the beginning of the year, it will be definitely before next call in February, right? But I think the more important thing is that we get the right tolling agreements, the right PPAs, because a badly executed PPA is not an easy thing to deal with, right, according to our experience. So we want to make very, very, very sure, and we've been closing PPAs for more than 10 years now, and we want to make sure we make as few mistakes as possible, right? About the approach, you are right, Greenbox, you might think more as a platform tolling agreement. So we might reach an agreement between us and offtaker, right? And we have some flexibility on the projects, right? So I don't know. I can give you an example. In Germany, we might close a tolling agreement for 500 megawatts per hour, and then we can nominate some projects. But we are always going to have the flexibility to change. If there is any issue or any delay with one of the projects, we can exchange and use some other project, because normally, the offtaker doesn't really care about any specific project. They do care about us delivering what we have promised in the deadline, right? So it will be more a platform approach. And I think we will do the same for financing. We will not approach the financing project by project, but as a package, right, maybe country by country. And even with offtakers, we are talking now 4 different markets. It's the case of Germany and Spain, at least 2 of the large offtakers we are working with, we are having conversations in 2 markets, Spain and Germany now. Okay, about PPAs in Chile, I think we will also announce several PPAs before the end of the year or in the next few weeks. And many of these PPAs will relate to Elena and to Algarrobal, okay? And then we are very confident. We believe there's an upside being merchant for the first year. But we also believe that -- keep in mind that some of these PPAs are getting close to our retail unit. And then there will be a PPA between a retail unit, GR Power, and Elena eventually, right, together with other external PPAs. Elena is quite a large project. So when we approach the refinance of this project, we have 3 years to do it, but I think we will do it earlier, I think we'll put together a large PPA with our retail unit and it is already closing PPAs with delivery in Elena plus external PPAs at investment grade as we have done. So we are working on it. We are very confident. We are closing smaller PPAs with our retail unit. And I think whenever we close something larger, we will make it public. And again, as I said in the presentation, I think in February, we will spend a lot of time explaining the new PPAs coming from Chile, which will be mostly for hybrid plant, and the new PPAs coming for our Greenbox platform, mostly tolling agreements in Europe. Data centers, we have been working 5 years in storage, and we only announced to the market our strategy 2 years ago in our first Capital Markets Day. So it doesn't mean that we are not into data centers. We see a great opportunity in data centers, but we like to keep it more quiet. And we will include some slides on data centers eventually at one point. But I think Chile is a fantastic place for data centers, right? And it's less mature than other markets like Spain. And I think there's a great opportunity for data centers in colocation, you said, both in Santiago and I think the real deal might be in the north of Chile, where you get the most competitive energy in the world, right? And 24/7 energy for $40, or even more than $40, you can do self-consumption. And I think it's a fantastic place. And there are many services that AI needs that they can be located in remote areas, not just training AI, but many other services. So I think we're working on it. Whenever we have more visibility, we will give you more information, right? I also have to say that countries like Spain, I see kind of a bubble in data centers, right? I don't think -- there may be 14,000, 15,000 gigawatts of data center supply, and I don't think it's going to happen really, maybe maximum 4,000, 5,000 gigawatts from here till 2032. So we also see some bubbles in some particular markets, right? That's my point of view.

[Operator Instructions] Next question from JB Capital, Ignacio.

I was wondering on the platform upgrade on Greenbox, okay? What drove you to upgrade the platform materially? So what are like the, let's say, tangible points or the performance that you've seen in the last couple of months that led you to increase this number. And still here in Greenbox, I'm looking at the returns that you're expecting in Spain, which are well above all of the other geographies. So I'm wondering why there are not more projects in this country. Is there anything that's preventing you from developing more projects in Spain, either permitting or you're just waiting to have a better view on regulation? And just a quick question regarding CapEx, okay? I haven't seen any slide on the presentation on the evolution of CapEx. So if you could give us a bit a quick update on where you're seeing now the prices for storage?

Okay. Well, moving to why you can see more advanced development projects? Well, it's a natural way of things. We always say that -- and where in countries like Spain, you traditionally needed like 4, 5 years from identifying opportunity to advanced development, I think in BESS, it's faster period of time. Anyway, in some cases, we've been working 3 years, like Italy, and worked for the projects of advanced development now. What does it really mean advanced development? Just to make it simple, you basically need to make sure you have the grid. That's normally the most difficult thing. You've got land, secure, lean, and you want to make sure you have no issues with environment and communities. So basically, we are very demanding, and it's something that -- a project that is advanced is a project that will get to ready to build in the next 12 months, right? So this is when we can take a decision of moving that project to backlog, right? We moved one project to backlog whenever we are fully sure that we can execute this project. And I think we are giving 90% probability, but traditionally, it's been more than that. But in very, very few projects that we've moved to backlog, it hasn't happened, right? So why no more in Spain? Well, we love to have more projects. We look at the early stage and identify the potential figure, and there are more -- this is in megawatt hours, so you have to divide by 4 if you want to look at megawatts. This is everything we could grab in Spain. We roughly got 1.2, 1.3 gigawatts of stand-alone projects. In Spain so far, 8 gigawatts have been granted for stand-alone projects. And we've got a good share, I think, around 15%. But keep in mind that the problem in Spain is that most areas, most nodes were completely saturated. So we had to apply in very specific regions like Asturias or the islands or some parts of Catalonia and Basque country or Galicia, where there was some capacity, right? And that's the reason we are very active in the buy side. So I think we will announce some new -- I don't think we'll make a press release for every project we buy, but you will see more in advanced development and next press release maybe will be from third parties. In fact, if you look at the Oviedo project, it's 150 megawatts. We originally had only 100 megawatts. We purchased 50 megawatts from another developer next door, and we are negotiating some extra 100 megawatts and another one. So we try to create those clusters in the places where we are working, yes. And your last question about CapEx, I think it remains stable right now. I think it remains stable. It's not -- slightly going up, but I want to think that it remains stable. We saw very sharp decreases. I think we see stable price. But at the same time, there are gains of efficiency announced, mainly from CATL and BYD. And I believe that eventually 2026 will be a pretty stable year. And from 2027, my expectation is the prices of BEV will go down again. That's my expectation, right? You never know. It's a supply and demand market. Now demand is way higher, right, in many markets, but production capacity is huge. And I think we're very, very surprised about how fast, especially the main players, mainly CATL and BYD are announcing new -- we are using now containers for 6.5 megawatt hour per container, where only when we were starting it was only 4. In a matter of 24 months, 50% more efficiency. And we're very surprised about that. It never happened that fast in solar. It took pretty longer, these gains of efficiency.

Next question from Mediobanca, Beatrice.

I have a more general question, let's say, or a follow-up, if you want, on CapEx and stand-alone. I was wondering, looking at the European markets, and particularly on the level of prices, I was wondering what level of CapEx flexibility does the company have if somehow stand-alone project returns came out not satisfactory. So in other words, to what extent is the company prepared to adjust or eventually slow down investments to maintain return discipline and reallocate capital toward possibly initiatives with more attractive risk return profiles.

Thank you, Beatrice. I think it's a very interesting question now. We do have plenty of flexibility. And I think considering how fast this is happening and how BESS is transforming the industry at such a pace and now everybody is recognizing that we are in complete new scenario, I think we need to remain flexible. Because things are changing a lot from one market to another, we want to make sure we have the right menu, so we can pick up the right capital allocation. And it's great that we have plenty of options, right? But I would say that for us, hybrid plants in Chile, it's one market by itself. It's the most important market. It's the market where everything has happened earlier than others, right? It will not remain forever at this speed. But again, in Chile, we are becoming utility, and we have other sources of revenue. So that's going to remain a very important market for us. Then we have Spain, where we believe that there is very good opportunity for hybrid plants. There is a business case, and we're working very hard. Our first one will be Escuderos. But if numbers work, we will try to buy more projects and to hybridize, same as we have done in Chile with Elena, yes. And then we've got 6 markets for Greenbox. We might eventually include some other markets in the future. But for the moment, I think we are fine. And we believe that considering our pipeline and the tolling agreement negotiations in Spain and Germany, we get better returns now and quicker. The U.K. is more mature, but I think now numbers are working again with the lower CapEx capacity auctions plus all the other revenues you can make from the battery, especially considering we are reaching a pretty low CapEx, maybe GBP 100,000, all included. So that's really a new scenario compared to previous BESS projects in the U.K. So we are very flexible. We want to make sure we get the right returns, and we can update our strategy or adjust our strategy previously, right? So flexibility, I think, is the key right now. And a company like ours, even if we get bigger, we need to make sure we remain flexible, because I think it's one of our key advantages.

I would like to add, Beatrice that we are not going to invest just for investing more. Investment allocation is a key element for us. We have very good returns in all the markets where we are. In Europe, we are now targeting double-digit returns. It's more than what you need, and the cost of capital is lower, but 100% investment allocation. We'll look for just a profitable project. We are going to just invest on that.

Okay. Next question from ODDO, Anis.

So first one on Greenbox. And could you explain the main drivers behind the lower BESS IRRs you are expecting in Italy? And also, could you give us some details about the nature of the offtakers you are discussing with? And second one is on U.S. I have just a follow-up question. What makes you now more optimistic on the U.S. market? Is it related to good level of prices we are seeing in the U.S., and high demand from data centers that could compensate for tariffs, which heavily impact CapEx?

Well, in IRR, we give -- we're talking about project IRRs, we give like a wide margin, and that changes with time. And in Italy, we are waiting most of our pipeline to be ready to build at the end of 2026, and it's quite a lot. Most of the pipeline now is still in early stage, some have been moved to advance development. We are getting ready for it. Italy has been more a MACSE or auction-driven market, mainly based on -- well, MACSE is kind of a tolling, but given by Turner. There is some upside. We saw the results of the auction and the returns were not as high as some expected, right, or previous auctions. It also depends a lot on each one's CapEx, right? I think keeping a very competitive CapEx is now the key, yes, because the market is getting more mature. In Italy, we are getting also, mainly for other projects in the north, several tolling agreements and very similar to the approach we will do in Spain. And from that, we get this range of IRR between 9% and 11%, whereas in Spain, it's above 12%. But it's also that we are considering a slightly higher interconnection on CapEx cost in Italy compared to Spain. We've been slightly more conservative there. So that might explain a little bit, because the tolling and the hedge agreements we are getting for both Italy and Spain for stand-alone projects are pretty similar, in the same range, yes. We're also analyzing some MACSE awarded projects in the market, but that's like a separate rate, some projects from developers that got the MACSE agreement in the auction that happened last month, and that's what we are given in Italy, this range. The U.K. is more mature. Some people would say, no, we are looking at IRRs of 6%, 5%. Well, we are more optimistic. It all depends on what -- you definitely need capacity payments to make it happen in the U.K. It's not like Spain and Germany, where we are considering as an upside. In the U.K., we do need it. And you do need ancillary services, you do need trading. We are not targeting 4 hours. Putting all together on an optimal level of CapEx, we can get that high single digit, which is what we expect in the U.K. Talking about the U.S., why the U.S.? Well, daily plenty of energy, right? That's very clear. So I think even if the current administration was really against renewables and energy transition and all that stuff, the truth is that they -- according to some estimations, the U.S. needs like 100,000 megawatts per year of new energy just for the AI, just for the data center industry, and it has to be solar. And it has to be solar and BESS. That's very clear, because wind projects, they have their own problems. New gas turbines, they're going to need -- they've given delivery dates for 5, 6 years from now and still, in many cases, are not competitive to be against. So that's why, whether the administration likes or not, it's happening. And finally, the tariffs, they have not been that bad. Okay, we are now exceeding 25% of tariffs for some components we're bringing from Europe that we didn't have before, mainly transformers from Siemens, or inverters, converters from Power Electronics in Spain or in the team or we're using a lot of European -- the rest of components are made in the U.S., so no tariffs at all. So there is an impact, but again, we are seeing like higher PPA prices that it's compensating like $10, $15 higher than before. So I don't know, all in all, I think it's a market with its own dynamics, but I think we are a lot more optimistic with the market. But again, we want to make sure we make no mistakes and we do the things at the right time. So we have moved these 3 projects, only these 3 projects on the pipeline to backlog. And we think it's more than enough to meet our expectations from this market for 2028 mainly.

Okay. Next question and the last from Alantra, Fernando Lafuente.

Just 2 quick ones from my side. The first one is on CapEx. I mean what is your outlook of CapEx for this year in absolute terms? And also for '26, how heavy should look the year in terms of investments? And the second one is a follow-up on capital allocation and your comments you made before, you are a buyer in certain markets. Could you consider also disposals at some point? And what would be the main candidates to be sold? And in that strategy, potentially similarly like other players, could you consider adding partners to the development? I'm thinking of probably Greenbox, but in any other of your asset portfolios?

Thank you, Fernando. Okay. When you say CapEx, well, in the end of September, we are above EUR 700 million. I think at the end of the year, we will be close to EUR 1 billion, if not more. It really depends on the execution speed now of Elena and Gabriela, right? And I think next year, we will be above EUR 1 billion. So the guidance we've given is EUR 3.5 billion for 3 years, and I think we will somehow accelerate from this year. And I think eventually, there are opportunities for acceleration. But I think whenever we give the guidance for 2028, we will give you the figure. But well, we are so happy at the speed of execution. I think very few companies are executing more than EUR 1 billion of new CapEx per year. We are on the level of a different league, yes. I don't think you can compare Grenergy with some peers, understood, but you have to compare this with larger companies that are investing in generation. If you are not considering networks, very few companies are investing above EUR 1 billion. And I think we might be one of the companies in the world which is investing more in storage, right, because more than 2/3 are either stand-alone or hybrid plants, storage part of the plants. Disposals, well, we've got, again, very clear opportunities in countries that are not that strategic like Colombia and type of assets that are in distribution assets. And so we might see a deal in Colombia soon. We might see a deal in PMGDs in Chile, where we still have 200. So we are working on it. And well, if there might be -- our team keeps bringing opportunities in Chile. So we might see, if any of the platforms, whether it's the northern platform, Oasis or Central Oasis, increases, might be an opportunity for more disposals. I'm not expecting anything in the very short term, but we might see also opportunities for disposal there, right? We also have, in Spain, Ayora plant, which is the last PV plant. We transferred all the others. Well, we have Escuderos, but we are hybridizing that one. But Ayora might be potentially a project that we might either hybridize and keep it in the balance sheet, or if there's good opportunity for rotation, we might also go ahead. And bringing partners and investors to Greenbox, I don't think it's necessary at the moment. We have EUR 350 million in cash in our balance sheet plus other rotations that we're getting. So that's more than enough to remain independent, approaching our Greenbox platform and go at full speed. If at one point we do see that it brings really value, bringing in like a partner for 49% or whatever for one particular market or all the platform, that's always a possibility. But I think we're going to see how the -- we're going to execute first and talk later, right? I think it's something that we've always been doing pretty well. So I don't think it makes any sense for us to plan to close a partnership where we have plenty of cash to do it ourselves.

Okay. Thank you very much all of you for attending, and see you in late February with our full year results presentation. Thank you very much.

Thank you very much. Have a great day.

Thank you.