Enlight Renewable Energy Ltd. has finalised financing agreements totalling $310mn to convert its already operational Gecama wind farm into a hybrid energy complex integrating photovoltaic solar and large-scale battery storage. Located in Castilla-La Mancha, the facility will become Spain’s largest hybrid power plant upon completion, with a combined capacity of 554 MW and 220 MWh.
A strategy of source diversification and production optimisation
The project involves the addition of solar panels and an on-site electricity storage system, designed to smooth production throughout the day and optimise response to demand. The hybrid technology allows continuous electricity delivery, including during peak hours, while benefiting from price volatility in European spot markets.
The Gecama site is already Spain’s largest wind farm, with 329 MW operational since 2022. According to Enlight, full commissioning of the hybrid complex is expected in the second half of 2026. The group forecasts annual revenues between $95mn and $105mn once all three components are operational, with EBITDA estimated between $75mn and $80mn.
A financing structure based on merchant market model
The financing is structured in two tranches: one refinancing the existing wind project debt and the other funding the new components. Both tranches carry a fixed interest rate of approximately 5.1% and will be fully amortised by 2045 and 2046 respectively. More than $150mn will be allocated to constructing the hybrid complex, whose total cost is estimated between $195mn and $205mn, with the remainder funded by equity.
The model is based on a merchant structure, without a long-term Power Purchase Agreement (PPA), allowing Enlight full discretion to sell electricity on the market. The company considers this flexibility essential to maximise returns amid elevated electricity prices in Europe.
A technical response to Spain’s grid needs
The integration of large-scale storage at the Gecama complex also responds to major blackouts that occurred in Spain in April 2025. The system will provide ancillary services to the grid, such as frequency regulation and peak shifting, reinforcing the national grid’s stability.
The financing is led by MEAG, the asset management arm of Munich Re, acting as sole arranger and manager of institutional funds. Other institutional investors are involved in the transaction. BNP Paribas acted as Enlight’s exclusive financial advisor, while DLA Piper provided legal counsel.
Enlight indirectly holds approximately 72% of the Gecama project through its subsidiary, with the remaining interest held by several Israeli institutional investors.
