Grenergy Renovables, S.A. (GRE) Earnings Call Transcript & Summary

Okay. I think all of us are connected. So good morning, and welcome to Grenergy's Full Year 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 Maria Coimbra, Manager 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. Please, David, the floor is yours.

Thank you, Ruben, and good morning, everyone. And once again, thank you for joining us for our results presentation. Well, it's very clear that 2025 has been an exceptional year for us. I think another record-breaking performance. And well, first of all, I'd like to say that we are extremely proud of our team of what we have accomplished. And like -- we like to say, and we firmly believe that the best is still ahead of us, the best is yet to come. I'm going to structure the presentation in 4 parts, just keeping the presentation short so we can move straight to the M&A. First, we'll talk about the highlights and the evolution of the pipeline, as we always do. Secondly, we'll talk about our hybrid solar platforms, Oasis of Atacama and the like and Central Oasis and how we are now replicating this in Spain. And thirdly, we will discuss the new developments from Greenbox. I think plenty of good news and many more to come in the next couple of weeks and months in the 6 countries where we operate. And finally, I think we do this every year, we will cover what we consider the new developments in the 3 main pillars of our business, which is energy, energy management PPAs, financing and M&A asset rotation. Moving to Slide 3. We -- what we have to say, we strongly believe our strategic shift towards energy storage, I think, was the right move at the right time. And, well, we have to say, Oasis of Atacama is really a great success. And we are now working hard with full energy to replicate this achievement in Central Oasis and Escuderos in Spain and in our Greenbox platform, yes. Main figures on the left of the slide, for the first time in our history, revenue exceeded EUR 1 billion. This is close to 70% more from 2025. EBITDA exceeded EUR 200 million, with growth of 26% for the next -- up from next -- last year. Net profit, not far away from EUR 100 million at EUR 87 million, representing an increase of 46% over the previous year. I think these 3 figures are not just record numbers for us. They represent a turning point in the scale, profitability and I have to say, in financing maturity of the company. Our CapEx reached EUR 880 million. This is really on track on our expectations, and this will accelerate further during 2026, 2027. Our asset rotation proceeds are at 60% roughly EUR 0.5 billion from our target of EUR 0.8 billion for the 3 years. So in 1 single year, we're 60% on the target. And that's a very important KPI for us. From operational highlights, 2025 has been the busiest year in our history in terms of construction activity. We closed the year with 2.2 gigawatts and 8.3 gigawatt hours in operation and under construction, having added approximately 1 gigawatt and 7 gigawatt hours in 1 single year, and that's a very important point, quite impressive. Our total platform pipeline now lands to 72 gigawatt hours of total pipeline in BESS between hybrid and stand-alone and more than 9 gigawatt hours in the Greenbox platform in advanced development. This is a very important point. I mean, how our pipeline in Greenbox is maturing and moving to -- advancing to advanced development. In terms of ESG -- and Maria, I see Maria around here, so she will give you a little more information. But we are fully complied with ESG road map 2025, with the publication of the biodiversity report under the TNFD framework and our sustainability report 2025. We really are -- have consolidated our positions and reference in transparency and ESG management in the industry. From a business perspective, business highlights, our 3 pillars, again, M&A, we have demonstrated our ability to generate value in several geographies. We have rotated assets with an enterprise value of close to USD 1 billion, closing transactions in Chile, Spain and Colombia. In energy, we are very active. We will give more information about Greenbox. We've managed to sign our first tolling agreement with -- this is a very important milestone for us. It's -- and hopefully, I think it's going to be the first of many in Spain and the other markets. We obtained capacity payments for 2.1 gigawatt hours in Poland, that give us a lot of visibility for a road map in Poland. And several more PPAs in Chile, whether direct PPAs with SPVs as the one we closed for Central Oasis, or whether it's through our retail unit, GR Power. So very busy year, but again, many news coming in the next few months. And regarding finance, it's worth highlighting that more than $700 million in project financing closed during the year, of which, $355 million already for our Central Oasis new platform. So it's really a reality that we are raising plenty of interest from -- for international banks and the lenders community. Moving -- and again, I'm going to be very, very short on the -- on our platform. Over -- and just a quick overview, we -- again, we closed the year with 11.6 gigawatts in solar, 34.2 gigawatt hours in hybrid storage and 38 gigawatt hours in stand-alone. I think putting this together is one of the most important renewal energy and storage platforms globally. The pipeline reflects that we are really a company in full acceleration mode in -- already in BESS and with 3.5 gigawatts and 10 gigawatt hours either in backlog, operation or under construction. So plenty of visibility, and a very important figure of 2.4 gigawatt and 17 gigawatt hours (sic) [ 7.6 ] gigawatt hours of -- in advanced development. So that gives us a strong visibility for the next 2 years, '27 and '28, yes. By region, Latin America, which for us is mainly Chile as the company's -- keeps being the company's main driver, with 8 gigawatts of -- for solar, 26.8 gigawatt hours of hybrid BESS and 5.3 gigawatt hour sort of stand-alone. But Europe stands out particularly in stand-alone with reaching 30.4 gigawatt hours in our Greenbox pipeline. So I think it might be one of the largest stand-alone platforms in the continent. United States contributes to 1.2 gigawatts of solar and 1.7 gigawatt hours of hybrid and 2.3 gigawatt hours of stand-alone. So it's really a strategic market for us in the medium term. We will keep some time in the next presentation in May talking about this market. Moving to Page -- Slide 5. This is the -- well, our total platform. We're very transparent every month. I think Chile, we just want to mention here about -- a quick mention about Chile. We feel very optimistic with the market. There is a new government coming up, very business friendly, from where I understand, and with a strong focus on accelerating the energy transition and the permitting. And there's new copper super cycle in the country, plenty of new projects with large mining companies, also plenty of opportunities for large data centers. So we see a market where -- with very, very interesting years ahead and strong appetite from lenders and plenty of M&A opportunities. So we keep thinking that Chile is a fantastic market to be. And a great opportunity in Spain ahead to replicate with hybrid plants as long as we find the right plants in the secondary markets. You know, Spain has been closed for greenfield -- new greenfield developments for quite a while. So we need to focus on opportunities in the secondary market for growing. Business -- well, hybrid plants, it's very clear that hybridization of solar PV with storage is now the central focus -- central axis of our business model, along with Greenbox. And in this section, we like to update and give full details of 3 success stories already that demonstrate that this model is replicable and scalable, not just in Northern Chile, but Central Chile and in other markets. Oasis of Atacama, it's our pioneering project, and the largest hybrid project BESS in the Americas. And as you know, with the total capacity of 2 gigawatts and 11 gigawatt hours, and a total investment of nearly $2 billion. During 2025, we -- a lot of things happened around the platform. We closed the financing for Phase 4 for more than $300 million. We connected Phases 1 and 2. We have completed the Phase 3 and is already in operation, is now under commissioning, I think more than 80% of the plant is already delivering and storing energy. And we closed the financing for Phase 6 Elena for $270 million. And that also will be fully operational in the next couple of weeks. We have concluded this both Gabriela and Elena in record time in less than a year. And the project as a whole keeps progressing at a great pace, and I think consolidates Grenergy as a leader in large-scale storage in the world. We -- moving to Central Oasis. It's our second major project. We're replicating the model in Central Chile. It's now with a total capacity of 1.1 gigawatts and 3.8 gigawatt hours and a planned investment of $900 million. And we are looking, since we see that there is strong demand of energy and PPAs in Central Chile, we're looking at opportunities in the secondary market, and we might update this platform in our next presentation in May, and we might include some further plans in this platform. The project has already signed PPAs with investment-grade utility and we have signed a PPA with Codelco for 0.5 terawatt hours. So a very important milestone. A few weeks ago, we closed the financing for the first 3 phases together, Gran Teno, Tamango and Planchon. It's a very important milestone for us, it's the largest single financing agreement, $355 million with BNP, Rabobank and Santander as the banks. We really appreciate the support of this institution and all the lenders that are supporting our story in Chile. Gran Teno is scheduled to be connected before the end of the year. And we are now mandating Monte Aguila Phase 4. There is great interest from lenders, and we believe we might close this finance in a matter of 2, 3 months maximum. And well, the third platform, which is not a platform yet, but we believe it is our flagship hybrid project in Spain, and we believe the first plant in what might be an Iberian Oasis platform, right. I think, again, we will give plenty of information in May. But this is what we are aiming at, right, to replicate in Spain, what we have been doing in hybrid plants in Chile, yes. This is a 200-megawatt photovoltaic project. It's been in operation since December 2021. So it's been more than 5 -- more than 4 years already operational. It was our first large PV project in Spain. PPA signed with GALP, which was also our first -- the first PPA we closed for a solar plant in Spain, and is now ready to build and being converted to a hybrid project. And we will -- with the addition of 700 -- more than 700 megawatt hours of BESS. We have obtained environmental permits during 2025. We got a next-generation subsidy of EUR 7 million. And in 2026, we will refinance the project to incorporate all the CapEx, and there is a PPA in advanced negotiation for the battery. So both the existing PPA for solar and the PPA for the battery will coexist in the same project. It's a very similar approach to what we just closed in Central Oasis in Chile. And the conditions are very similar, right? Similar radiation, and we are approaching with a combination of a tolling agreement and the PPA. Well, these 3 platforms, Oasis Atacama, Central Oasis and Escuderos, my view is the best demonstration that our hybrid model is not just an isolated success in Northern Chile, but a standard that can be replicated in multiple geographies. Greenbox. Well, as you know, alongside hybridization, stand-alone storage is our second major growth driver. And under the Greenbox brand, we are building one of the largest stand-alone storage platforms in Europe with -- again, with nearly 40 gigawatt hours of total pipeline. And more importantly, more than 9 gigawatt hours in the advanced stage. And already out of this 9 gigawatt hours, we have secured capacity payments for 2 gigawatt hours, and we are in many processes for obtaining capacity payments. There is an auction in the U.K. next month. We -- there will be auctions in Romania, Italy, Poland, the U.K. and hopefully, Spain in the next few months. So it's a fantastic opportunity to secure capacity -- payments for capacity, and these are compatible with energy trading and ancillary services in the revenue [ stack ] of the project. And in this section, we'd like to highlight Oviedo in Asturias, our first flagship stand-alone BESS project in Spain, with a capacity of 150 and 600 megawatt hours. If you compare this to what we are doing in Chile, it might look not that big, but it's, I think at this moment, the largest stand-alone project in Spain, and many more will come with similar approaches, right? And we believe that this project will be operational 1 year from now at the beginning of 2027. And plenty of news coming up from Greenbox in the next few months, more tollings, more auctions, more -- our M&A teams are -- and the buy-side team are extremely active. Time to market is key. So we are exploring growth opportunities in our markets. And again, we will give a very important update in May. Wrapping up, yes, our 3 pillars, energy, finance, M&A, a lot of activity as we show in energy management and some milestones we have achieved in 2025 in Chile, 24/7 baseload PPA signed with Codelco through GR Power, retail unit for 15 years from January 2026 and a solar PPA of nearly 400 gigawatt hours in central -- for Central Oasis with global investment grade utility for 12 -- between 12 and 15 years, respectively. And these PPAs are the base for the offtakes for our 4 phases of Oasis of -- for Central Oasis: Teno, Tamango, Planchon and Monte Aguila. In Spain, the PPA, the tolling agreement we mentioned for Oviedo project. In the U.K., we just got -- 2 weeks ago, we got -- we obtained a 32 megawatts solar CFD. It's very important because the first one we achieved in the U.K. and it's indexed to the CPI and for a very long period for 20 years. So that gives a lot of visibility for this project. And again, it's a hybrid project. It can coexist with another tolling agreement for the battery or capacity payment. And in Poland, and that was very good news. We have won capacity payments auction for 434 (sic) [ 534 ] megawatts. That's more than 2 gigawatt hours. And again, this is indexed to CPI 17 years starting in 2030. Financing, it's very impressive what we have -- what we are achieving in Chile. I think only in the last 18, 20 months, we have secured USD 1.5 billion in project financing. If you consider the -- what we are expecting to secure for this year, which we are expecting to conclude the financing for Monte Aguila and Algarrobal, I think the total figure will be close to $2 billion of project finance raised in Chile. So that's really unprecedented. I think nobody has ever got this figure in one single market in Latin America. I -- and we are also very glad to have -- keep working with several international institutions that for them, it's been the first project finance in the market. We're extremely proud of bringing big names of U.S. banks to project financing in Latin America and in Chile, like Bank of America and JPMorgan. I think it's the first deals for both institutions of this type. And again, we see a lot of appetite for the upcoming deals. And finally, asset rotation, we have demonstrated in 2025 our -- once again our ability to generate value and liquidity through asset rotation in 3 key geographies. In Chile, as you know, the sale of Phases 1 to 4 of Oasis de Atacama was completed for an enterprise value of approximately USD 1.5 billion at a multiple of 1.6x enterprise value invested capital. And in Spain, the sale of Jose Cabrera and Tabernas was closed for EUR 273 million at 1.5x. And in Colombia, 7 plants, 7 distribution assets for a total of 88 megawatts were rotated on invested capital, 1x. And as a result, the equity, again, as we mentioned, already exceeds 60% of the rotation target for a 3-year period for 2025 to 2027. And this, I think, highlights the strength which Grenergy is executing its -- our strategic plan. So thank you very much. I give the floor to Daniel.

Thank you, David. Now let's take a look at the company operational performance for the year 2025. Total production increased by 37% year-on-year to 1.7 terawatt hour. This strong growth was mainly driven by Gran Teno, Elena,Escuderos and to lesser extent to PMGDs Tamango as well Jose Cabrera and Tabernas before being transferred to Allianz. In terms of capacity, there was a strong growth in BESS, where Elena drove net addition up to 3 gigawatt hour. In PV, net capacity grew just 79 megawatts because of the asset rotation we had in Chile mainly and in Spain with, as I said, Jose Cabrera and Tabernas. Contracted volumes grew by 61% year-on-year and represented 90% of total electricity production. This reflects a more predictable revenue profile supported by higher hedging levels and larger contracted base. Realized price, even though during Q4 has been pretty good, but year-on-year decreased slightly, 9% from EUR 50.1 megawatt hour to EUR 45.7 megawatt hour, partially affected by FX movement dollar versus euro. However, there will be an increase as soon as batteries start moving the energy to the night to peak hours prices. On the right-hand side, you can see a summary of the financial KPI, which we will review in detail later. Then moving to Slide 20. Total revenue in full year '25 surpassed first time EUR 1 billion, representing an impressive increase of 66% year-on-year. Again, this strong performance was primarily driven by successful M&A transaction in LatAm, Spain, which resulted a 70% year-on-year growth in the Development and Construction division. Regarding Energy, we keep increasing it 25% year-on-year, mainly driven by Chilean asset and again, the Spanish assets that were transferred. GR Power, our utility division there in Chile increased 101% revenue. Organic growth, we have 1.5 terawatt hour yearly of energy contracted, and this is getting bigger and bigger. Finally, Services increased by 18%. Full year '25 EBITDA amounted to EUR 201.4 million, first time above EUR 200 million, 26% increase year-on-year, pushed by asset rotation, but as well by Energy. Development and Construction, as you know, was mainly driven by the disposal of the platform in Oasis of Atacama, Jose Cabrera and Tabernas in Spain. And Energy division especially because of the same reason of revenue, Chilean asset mainly versus full year '24. This underscores, of course, the company capacity to rotate assets efficiently with very good EV to ICE while maintaining strong operating profitability that is getting bigger as soon as we are connecting more projects. Then moving to Slide 21, CapEx. Total CapEx during the period reached EUR 880 million compared to EUR 566 million in 2024, representing 36% year-on-year increase. The performance explained by hybrid project in LatAm, not a surprise, that amounted half of total CapEx, EUR 519 million. CapEx in Spain totaled close to EUR 90 million. There will be more CapEx in Europe coming soon, especially with the hybrid and stand-alone project we are going to connect and as well in the rest of Europe. EUR 230 million belong to the first 3 phases of Oasis Atacama project already sold. That's why we have separated. Development and other early-stage investments amounted to EUR 41 million, okay? Then regarding the CapEx evolution in both PV and storage. There has been a moderate increase in the total CapEx in PV to USD 0.47 million per megawatt as panel prices have increased from $0.08, $0.09 per watt to $0.10, $0.12. That is what we are now negotiating, partially driven by pricing of silver or the reduction tax rebate from 9% to 0% to panels. So because of that, we are guiding to USD 0.47 million per megawatt for solar PV. In the meantime, storage CapEx, both BESS stand-alone and in hybrid, we expect to remain flat, even though there has been a small pickup on battery pack, we expect it to be offset by more efficiency and future deflation coming. Reduction tax rebate has been less in batteries moving from 9% to 6%. Then cash flow, next slide, Slide 22. Well, we ended with a very solid cash position of EUR 305 million. This -- well, CapEx was main outflows coming from the CapEx, EUR 880 million. Regarding the change in working capital, minus EUR 75 million is mainly explained by supplier payments. Remember, in full year '24, this figure was very positive, EUR 222 million, and now it is reverting partially. CapEx has partially been self-funded through asset rotation. And then, of course, with project financing. Divestments EUR 201 million related to the asset rotation in Spain, Jose Cabrera and Tabernas. We have had an increase in financial debt of EUR 431 million and other debt, minus EUR 72 million related to payment to vendor financing because of the acquisition to Repsol and Ibereolica that we made last year. So reaching EUR 305 million. Then finally, on Slide 23, Net debt closed full year '25 at EUR 993 million, reflecting the impact of the significant CapEx program executed during the year. As a result, net debt-to-EBITDA stood at 5x, 1.4x considering just corporate debt. But it is important to let you know that on pro forma basis, including the asset rotation that we have already agreed pending to be reflected in our P&L and cash flows, the net debt will fall to EUR 501 million. That will mean a total leverage total, including corporate and noncorporate of 1.5x and the corporate leverage of 0x, okay? So this is demonstrating how rapidly leverage can normalize post divestments, reinforcing the company's disciplined capital recycling strategy and its commitment to further strengthen in the liquidity position, okay? Debt structure remains sound with 74% classified as nonrecourse project finance and 26% corporate debt. That's all from my side. Now Maria is going to explain the main messages about ESG.

Thank you, Daniel, and good morning, everyone. Let me briefly update you on our sustainability work in 2025. Last year, we strengthened our -- the core of our ESG strategy by deepening our commitment to climate change and biodiversity. We updated our decarbonization road map to reflect the growing role of storage, including concrete actions and also the financial planning required for their implementation. We also reduced our Scope 2 market-based emissions to 0 by offsetting our electricity consumption with our own production. We also began assessing impacts, risks and opportunities at the asset level through TNFD aligned analysis of our plants in Chile, which helped -- will help us integrate things related to considerations alongside climate criteria in our decision-making. On the social side, we have set up a corporate volunteering plan and scaled our investment and donations to initiatives supporting local communities near our projects. All of this and more is captured in our 2025 sustainability report published just today in line with the requirements of the CSRD. These efforts continue to be positively reflected in internationally recognized ESG ratings. S&P, for example, has increased our score by 4 points compared to the previous year, and we maintained strong ratings across the rest. As we move into 2026, our focus will be on rolling out further impact initiatives with measurable environmental and social outcomes across our projects, building on the progress we have already made. That's everything on my side. Thank you for your attention, and have a good day.

Okay. Thank you very much, Maria. We are now moving to the Q&A session. [Operator Instructions]. So okay. First question from Anna Webb, UBS.

Can you hear me?

Yes.

Perfect. I've got 2. The first one is just on Oasis Atacama. You talked through kind of the development of the pipeline. And obviously, you've moved a lot of projects up to advanced development or construction. But I think there was a small delay -- around sort of 6 months delay to Oasis Atacama Phase 5 versus what you had at 9 months. So I was just wondering if you could give a bit more color on why you now think that project is going to be into 2027? Is it on the construction side, financing PPAs what's the story there? And then secondly, a kind of broader question on the tolling agreement you signed last week. It seems you keep operational control of the asset rather than hand that over to the offtaker, which maybe was a bit of a surprise. So how do you think about your kind of capability as an asset optimizer? And I guess, more broadly, how you balance fixed contracted returns and also the -- sorry, fixed contracted revenues and also the ability to generate good returns. It seems with this first tolling agreement, you're kind of striking a balance between both. So how do you see that more broadly going forward?

Okay. Thank you, Anna, for your questions. Okay. Talking about Phase 5, I think it's Algarrobal. I -- yes, I think it's at least been maybe delayed 1 quarter from our previous estimation. And I would say it's -- well, on one side, it's been about permitting. Now it's fully permitted, but some local permits took slightly longer than expected, so we couldn't really start construction works. We -- you also need to keep in mind that we cannot be -- nobody even -- not even us we have the capacity to build 5 large projects at the same time. So for us, it was about doing Quillagua, then Victor Jara,, then we've been building Gabriela and Elena at the same time. I'm talking about Oasis Atacama. Then we have started construction now of Central Oasis. Gran Teno, Tamango, Planchon, which is the plant which we closed. Now we have started the construction of Monte Aguila. That will be our next financing close. And right after, we will start construction. Well, I think in the meantime, I think in the next couple of weeks, we will also start the construction of Phase 5. And we will announce the PPA, which will be a similar strategy to the one we followed in Central Oasis. So it's around 50% of the energy will be purchased by an investment grade offtaker and the other 50% will be purchased by a retail unit. So nothing really -- but that's going to be the pace. I mean it's going to be -- we are now full execution mode. We have concluded phases 4 and 6 Elena and Gabriela. We are now in full execution mode with Central Oasis Phases 1, 2, 3 and 4, and we will announce the PPA and the financing of Algarrobal I think before -- around second quarter. That's Algarrobal. Your question about tolling agreements, it's very interesting. It's not that -- first of all, we have -- we are still 1 year away of having this project of -- in Oviedo operation. So we have time. We are recruiting a lot of talent in our energy management team, both in Santiago, Chile, and I think we have recruited already a team of 5. And we have recruited a lot of talent also in Madrid. We will announce some of these recruits in -- I think very important, our new energy management Global Director will be announced next week. So in our core markets, we have the aspiration of optimizing our batteries ourselves, right? It doesn't mean that we cannot cooperate with some external optimizers, right? That's completely compatible. We can have a hedge with the offtaker in Oviedo, we can still work with an optimizer for the rest of the -- on the markets. That's totally fine. And in other markets like -- it might be the case of Germany, Poland when the time comes, the U.K., we might work with external optimizers or in some cases like Germany, the offtaker will optimize the battery themselves. So that's really our approach. But we believe that in our core larger markets like Santiago and Madrid, it might make sense to have the capabilities to optimize our own staff ourselves.

Okay. Next question from Alexandre, Bank of America.

Just a follow-up first, perhaps on the comments you just made regarding your tolling and optimizing yourself. I think previously, you were perhaps expecting or wanting to have a broader tolling framework perhaps across Europe for GreenBox and-- which kind of comes like maybe a bit more critical now that you've got close to 10 gigawatt hour of near-term projects. So is that something you're still thinking? Or are you perhaps thinking more of a local and country-by-country partnership is my first question or follow-up question. And then my question is actually just on 2026 for the buildup of EBITDA. I don't think you provided guidance, but just from your previous comments. I think we've got around [ $50 ] million from existing projects. You had perhaps indicated $70 million to $80 million from Elena at Q3 results. We maybe have $130 million from the sale of Phase 4, maybe $30 million of central cost. I don't think retail margin should be seen as massively expanding into this year despite some of the progress you're making with GR Power in Chile, maybe a bit of pipeline. So [ Oviedo that's $140 ] million. Is that a fair assessment for EBITDA into 2026, which we've seen consensus actually quite above that. So just wondering here if I'm missing anything on the bridge?

Thank you, Alex. Well, to continue talking about the tolling, We see Greenbox as a platform. And I think there are many similarities market by market. But we also need to keep a local approach of every market. If you look at the first PPA, we -- the first tolling we've closed in Spain, it is a global utility. So we might -- it is way easier to replicate with that same offtaker in a different market. In particular, this utility is operating at least in 4 of the 6 markets where we are. So we might -- we will always try to replicate with the same teams and contracts. But anyway, we will always try to look for the formula that creates more value in every market, yes? So -- and every market has some differences. So it's really global, but we need to keep local in many, many times. And that applies to offtakes, that applies to financing, and in the future, might apply to bringing in like a partner to the platform as a whole. So obviously, we love the bigger, the better agreements, but I think we need to go a step by step, yes. About EBITDA and the guidance, I think I might leave this one to Daniel. We give no guidance. And I think he can -- Daniel?

Yes, Alex, well, you made a good addition. I think the key element during 2026 is going to be Elena. And if there are further M&A deals that we can register during 2026, okay? So Elena, remember, the model right now is merchant till we get a PPA. In case we get a PPA, we have to see when it is activated and the spread we are going to get. But it's quite simple to modelize it in the sense that you can move to the night around 1.1 terawatt hour of energy. So if you are using price of previous year, you're going to chart it at a very low cost, almost $0. And at night, the price right now is around $70, okay? But then merchant prices during the day might increase, in case there is more storage getting into the system. So we will need to see what are the charging cost and the selling cost at night that will depend mostly on the gas prices, okay? On top of that, remember, we have around $25 million coming from capacity payment. Those capacity payments are activated in the moment we have the COD. That means that in March, early March, even though we are going to have the plan upon running selling, then the COD that depend on some final permits and trial and everything, we're assuming are going to be around June. So we are not going to have that full capacity payment during the year, okay? So Elena is the main driver, then the rest of what you said is right. Be reminded, Elena, we are talking about dollars, not euros. And then if we can make more good M&A deals that are reflected during this year, that is our intention, always that to happen.

Okay. Next question from Fernando Garcia from RBC.

So there was -- there has been a significant increase in lithium carbonate prices over the last 2 months, which is probably reflected in your assumption of flat CapEx cost for batteries in 2026 versus 2025. So I would like to know how is this commodity price movement affecting Grenergy's 2026 installation? Or maybe did you contract some of your supplies before this increase? And as a follow-up question, with CapEx not falling in 2026 and spreads potentially suffering from declining power prices, how do you see battery returns comparing in 2026 versus 2025? And I wanted to make a question on one of your comment a bit about how business-friendly the new Chilean government is with good opportunities among other things for data centers. In terms of data centers, what is the opportunity for Grenergy there, just selling electricity to the data center providers or you might participate as well in the development of these data center projects as well?

Thank you, Fernando. Okay. About lithium, yes, it's true that the price of lithium has been going up. I think recently, we are not in levels of 2023 that reached [ 400 ]. It's really [ 140 ], I think, now. It's really -- it does affect the price of the battery packs, right? But it's not -- does not affect as dramatically as many people think. I think it affects to roughly 15%, 20%, that range of the battery. So it means that the lithium was at record low levels a year ago, and that meant a reduction of maybe 5%, 10% of the battery pack for that -- for this reason, right? In my opinion, there are other factors that are affecting more the price of the battery pack and in particular, is the gains in efficiency, right? I think we are looking at the announcements made by the large players in the industry, mainly CATL, BYD, and where we were buying containers for 4 megawatt hours only 2 years ago, and now we're buying 6. They have just announced 7. They are announcing new solutions for 1 year from now, putting together into layers like even 14 megawatt hours or 12 megawatt hours putting together. So we are in this race of efficiency. So keep in mind that even if the battery pack might go up due to lithium, they need less space, and we also need less space for the balance of plant. So that's why we have -- and I think we are conservatively leaving the total price per megawatt hour flat. And if you ask me, I believe the price will go down in 2027. That's the expectation we have. Unlike the panels, the PV CapEx, we believe it's going slightly up, we have really reached rock bottom. I think there is plenty of room for CapEx reduction in BESS. So that's -- and also, there is a case for -- a strong case for sodium as an alternative to lithium. And now the larger players are also investing very strongly in sodium. And I think there's a lot of efficiency gains. So we might -- that might be the big surprise from the end of 2027 onwards, right? -- sodium is real alternative to lithium. They need more space, but durability is way better. So it's a very interesting situation where we live in. I strongly -- we are really keeping a very close contact with the large players. About the opportunity in Chile, well, the new government, we -- it's coming with strong messages on being a very business-friendly government, less permitting, let's do it. So I think it's a great opportunity for mining, for copper and that comes with copper at record high levels. And there is a great opportunity for data centers. And we want to make the most out of that opportunity, right? But -- right now, all we can say is that we have secured some of the best grid and land for data centers in the country, right? Whether we will just focus on selling and becoming the largest provider of energy to AI offtakers or whether we take a step forward and we try to do something more like we are seeing examples in Spain with some companies that are getting sponsored, well, remains to be seen. But we want to make sure, first, we have the best locations in Central Chile, and we believe there's a great opportunity in for -- especially for AI data centers -- for AI training data centers in Northern Chile.

Okay. Next question from Beatrice from Mediobanca.

I've got one question, which is more about the context, let's say. Since there is an ongoing political debate in the European Union around still high electricity prices and the potential need to revise the ETS mechanism. We understand Grenergy's current exposure to the merchant prices is limited, especially in Europe. But I was interested in how do you see the potential long-term implications of these discussions for your strategy in Europe and particularly regarding the development of the stand-alone battery projects. And then probably a second one, which is a very quick one. You mentioned before new announcements on the tolling agreement part may be announced in May. I guess you were probably referring to a Capital Market Day. So just wanted to be sure you are planning to update the strategy in May or if not, when?

Okay. Thank you, Beatrice. I -- about the news coming from Italy, well, we are obviously analyzing whether this might have an impact. We still -- it reminds me of some measures taken by governments, if you remember in 2022 after the huge increase due to the Ukrainian war, the aftermath of the Ukrainian war in merchant prices, and some governments took some similar measures. Honestly, we need to keep working. We -- in our case, we secure normally 75%, 80% through tolling agreements or agreements. So we don't think it might be replicable in every other country. Obviously, is not going to help in Italy now. There is some uncertainty, but we still see appetite from offtakers in -- for tolling agreements. Let's keep in mind, in Italy, still, we don't have that cannibalization of solar as strong as we have in Spain. So the gap is not as wide. And I think still the main driver in Italy has been [indiscernible] and auction capacities and other drivers, more than tolling agreements, but it will eventually be tolling agreements, what will keep -- what will become the largest driver of the market, yes. About May, yes, we plan to update our strategy. I don't think we will make a Capital Markets Day. I think we will -- it will be an important day. I think maybe the same day we announce the first quarter results, we will take the opportunity to upgrade the strategy and make some important announcements and especially give visibility on 2028. So it will be like our plan '26 '28 announced. We've already given figures including 2028. And I think we will give some news in the next couple of months. So we will try to put all pieces together in this presentation, but it will not be a Capital Markets Day.

Okay. Please, we remind to ask just one question per participant. Next question from JB Capital, Ignacio Domenech.

So I'll stick to one question and it's on the announcement you've made, David, on the replicating either Oasis Atacama or Central Oasis in Spain. So I appreciate more detail will be provided during the M&A strategic update. But if you could give us some color, how do you expect to move forward? What would be the size of this project? Because in the past, I have also -- you also mentioned that you were planning to -- or looking for some opportunities in Spain to buy some capacity ready-to-build here in Spain. So any detail you can provide would be extremely helpful.

One second, please, because David is on mute. We're going to unmute him.

Okay.

Now it's okay.

Okay, about Spain, yes, it is a key aspect of our strategy to replicate in Spain, the platforms, we have -- we are executing in Chile, and it's a key element, and we're going to do it, right? So I think it's the most obvious opportunity we have in the space in Spain right now. There are some challenges, right? As you know, not every park -- not every solar park has -- is getting the interconnection, the point to be able to charge the batteries from the grid right now. So that is a challenge. Permitting it's -- even if the government has done some efforts, right, it's not -- now we can hybrid the parks at the community level [indiscernible] level. And you don't need to do environmental permits again. Those are fantastic steps. But let's not forget, we are in Europe, we are in Spain, everything takes all the permitting longer, right? So in Chile, we hybrided one park in a matter of 2, 3 months, and in Spain is going to be a minimum 1 year, right? We have Escuderos, we started that 2 years ago, right? So that's a challenge. But on the other side, there are great opportunities in Spain in the secondary market, right? Parks that were not built or existing parks that we can follow a similar approach than the one we did in Elena and buying that and hybridate. So I think it's the big opportunity in Spain. And we're going to make it, right? And we will give more visibility, for sure, in May.

Okay. Next question from ODDO, Anis.

Yes. So maybe I have one question to David. So David, you mentioned the potential partnerships with Greenbox. So what type of collaboration were you referring to? Is it mainly about securing financing for merchant projects? So possibility with the financial partners rather than utilities?

Thank you. I think we are just -- for the moment, we are doing it all school, let's say, we are securing our project finance. We see strong appetite from lenders, even up to 70%, 75% of our CapEx. So that's fine for us. We -- for the moment, we are keeping on the portfolio, in our balance sheet. But whenever -- if we ever explore M&A, I think it's a very good case for minority interest, right, as a portfolio. And obviously, I would love to bring in like a single investor for all Greenbox, right, at the holy level -- at the Greenbox level, right? That would be fantastic. But again, if -- what creates more value, it's going country by country or cluster of project by cluster of projects, we will always keep that interest, right? So it's -- so everything is now opening. But for the moment, we feel very well hedging the day ahead in some markets, wider tolling agreements like it will be the case of Germany in some other markets. So we need to take a specific approach -- approaches depending on which market, but there are many similarities, right, and synergies have in several countries at the same time.

Okay. Next question from Caixa Bank, Flora.

I have one regarding the comments you made throughout the presentation around secondary market opportunities. I think you mentioned more than once and you repeated it with Spain. I was just wondering if you have a budget for these opportunities because I was trying to understand how does this balance with the targets you have announced at the Capital Markets Day in terms of balance sheet? And if -- when you look into the secondary market opportunities, this will depend on new asset rotation, for instance, in Oasis Central or if this is just for pipeline and therefore, within the budget. I was just trying to understand the size of this because we have other players in the market also mentioning -- looking into secondary opportunities. So understanding how does this -- is consistent with your balance sheet management?

Thank you, Flora. Well, it's a very interesting question. Well, first, let's be clear for -- to meet our Capital Markets Day targets, we already have the necessary stuff, right? So -- and it's mainly concentrated in Oasis of Atacama, Central Oasis and whatever we have in Spain and in GreenBox. So that's enough for the EUR 3.5 billion of CapEx we have provided in the Capital Markets Day. But we are ready in 2026. We got to start thinking about 2028, 2029 and beyond. And it's very important we have the right projects, right? Or if we decide at one point to accelerate, let's say, 2027, right? And that's the case of Spain. So there are several markets that you are too late if you want to start developing projects, greenfield projects and 4, 5 years from now, and then the opportunity is gone because time to market has always been very important in the industry, but it's even more important than ever now in storage, right? So it's a process of finding the right opportunity. If -- we are already 60% there in our asset rotation, we might be eventually close to 100% at one point at the end of this year. That gives us opportunity for acceleration, and we need to make sure we get the right projects in the right market. And for GreenBox, it's also very clear, right? I think we have all the stuff we need, maybe in Poland, Romania, but not in Spain, Germany, and I would say the U.K. So we're looking at projects from other developers that might be closer to ready to build and COD and might give us an opportunity to go faster. So that's basically our job, right?

Okay. Next question from Barclays, Temi.

Just checking, you hear me okay?

Yes.

I had a question on Greenbox economics. Essentially, it feels to me, you've now closed a couple of PPAs or tolling agreements, Poland, Oviedo and in Spain. I just wanted to ask, what are your seeing? Could you comment on the pricing today versus your expectations a year ago? Are you kind of seeing prices kind of better in line or slightly lower than expected? I ask because it seems you're sort of reshaping the revenue stack a little bit from sort of more secured sort of capacity market type revenues to a bit more ancillary services, a bit more energy arbitrage. Just -- if you can comment and provide clarity on that, that would be helpful. And if it's okay, I'll just add a second tiny question to that, which is on the size of your pipeline. David, you talked about the 6 countries for Greenbox. So my question is beyond these -- when I look at your pipeline, that roughly 70 or so gigawatts. So rather the 30 gigawatts in Europe, in particular, is it limited to just those 6 countries or other countries beyond these that you've just not yet sort of individually identified within that broader pipeline?

Okay. Thank you, Temi, for your questions. I think it's -- we -- when we announced Greenbox platform in May, it's been only 7, 8 months. So I think our basic approach, even if it's a very dynamic industry, our basic approach remains the same. But every market is in a different cycle. The U.K. has been more cannibalized in ancillary services in particular. But there is a wider opportunity, we believe, for arbitrage, for energy trading, especially considering how low the CapEx is now. It's basically 1/3 compared to the CapEx of that some players going merchant in the U.K. 3 years ago where we're having. So that gives us an opportunity -- great opportunity for arbitrage. Ancillary services is lower -- definitely lower than before. But then there is the capacity auction next month. So it's a combination of the 3. But this revenue tax distribution changes from one market to another. I think in Spain, it's going to be more -- except the first 2 years -- 2, 3 years, where there's a great opportunity with ancillary services in Spain, and there will be capacity auctions as well. We see this as an upside in countries like Spain. The big thing comes from energy trading, right? And then you've got -- so every market, we could spend hours talking about the different -- so you need a different approach market by market. And that approach changes with time also depending on many factors, right? So it's again, very interesting. So we need to invest a lot in our energy, in management, talent and market intelligence, and we need to keep all options open at the moment. I think the U.K. now, if you're talking about the U.K., we need a capacity payment, otherwise, numbers don't work. But some markets like Spain, even without capacity payments, just with energy trading and the upsides on ancillary services, we are fine. About more countries, there's been a lot of debate in our house about bringing in more markets. Netherlands has been a very interesting market for storage. And I think after the U.K. or together with [ U.K. ] they're most mature. But every market requires a lot of regulation and dedicated team. So I think the combination we have is -- I think it's pretty good, except for France, we are in the largest market in Europe. Well, 3 of them euro-denominated like Spain, Italy and Germany. Then we have Poland, which is a very interesting market for storage for obvious reasons, right? But it's not euro denominated. But -- and then we have -- that's -- I don't want to call it more exotic, but a different more emerging markets like Romania. And I think it's a good combination, right? So we are happy with the exposure we have. But if we have a very obvious opportunity, we will look at it in, I don't know, places like Portugal or Netherlands or -- but it has to -- right now, we want to keep the teams focused on what we have.

Okay. And last question from Alantra, Alvaro.

Just a quick one, which sales processes or specific asset divestments are more advanced heading into 2026? I wonder if some of those disposals could come from the U.S., with some projects subject to be -- sell -- us ready to build without developing them. If you can elaborate on that one, please?

I think our teams -- our M&A team, and I think you know the team, Fernando, they're very active all the time. I don't want to say everything is on sale, but the hybrid plants, we are always ready to -- for opportunities because this gives us an opportunity to accelerate, right? And that -- well, we have a very obvious opportunity in Chile, but don't expect anything in the short term, but maybe third or fourth quarter, right, at the end of the year. But again, as long as we can accelerate the PPAs and the execution, we can enlarge the platforms. So Chile, there are opportunities. I think in Spain, we're a different cycle now. We are in earlier stage, so don't expect might be a possibility [indiscernible] leaving it single solar, but let's say. I think in Colombia, we made a big deal with [ Ecopetrol ], but we still have 4 or 6 small distribution assets, right? We obviously -- we're looking for opportunities there. And again, we will talk a lot about the U.S. in May. And all opportunities are open then in the states. Our primary option has always been bringing a minority investors to all the platform. If that's not a possibility, we will look at other alternatives, and we're working on it, yes.

So okay. With this, we have finished our full year conference call presentation. So thank you very much for attending, and see you in May. Thank you very much.

Thank you.

Thank you. Have a great day.