Enlight Renewable Energy has announced the signing of an agreement to sell 44% of its partnership holding the Sunlight cluster, a set of renewable energy projects in Israel. This portfolio includes 69 MW of solar production capacity and 448 MWh of energy storage. The investors Harel Insurance Investments & Financial Services Ltd. and Amitim Senior Pension Funds will acquire a 25% and 19% stake, respectively, for a total investment of $50 million.
The transaction is structured around an immediate payment of $45 million, with an additional $5 million in deferred payment, which will be paid under certain conditions specified in the sale agreement. The total valuation of the cluster is estimated at $114 million, with $102 million as the base and $12 million tied to the deferred payment conditions.
Once the transaction is finalized, expected in the first quarter of 2025, Enlight will cease consolidating the financial results of this partnership in its financial statements. The group will recognize a gain of $94 million, once the conditions of the deferred payment are met.
The investors will benefit from exposure to a stable renewable energy infrastructure, with the potential for high long-term returns, while diversifying their investment portfolios. This acquisition marks a strengthening of their position in renewable energy and additional support for the Israeli economy, while continuing efforts toward the energy transition.
A Structured Deal to Maximize Long-Term Returns
The agreement signed between Enlight, Harel, and Amitim is part of a strategic dynamic aimed at capitalizing on the rapid growth of the renewable energy sector. In addition to the acquisition, the transaction includes opportunities for ongoing collaboration, with Enlight continuing to manage and develop the projects within the cluster. This offers investors not only access to existing assets but also to future large-scale projects.
Impact on the Israeli Renewable Energy Market
This sale reflects the growing appeal of solar energy and energy storage projects in Israel, a rapidly expanding market. Supporting the local energy transition and enhancing storage capacity strengthens the stability of the electricity grid and enables better management of solar energy production fluctuations. As such, this transaction offers an investment opportunity in a high-potential sector.
A Positive Dynamic for Investors and the Israeli Economy
For investors, acquiring stakes in renewable energy projects represents a strategic diversification of investment portfolios while aligning with a global trend favoring green energy infrastructure. The sale will allow Harel and Amitim to increase their exposure to a growing sector while contributing to the country’s energy stability.
