Enlight Renewable Energy (“Enlight”, NASDAQ: ENLT, TASE: ENLT.TA) is pleased to announce that it has been awarded a 15-year inflation-linked power purchase agreement (“PPA”) for the Company’s Pupin wind farm in Serbia. Under the PPA, the state-owned utility Elektroprivreda Srbije will purchase 72% of the project’s output at a price of EUR 69 per MWh linked to Eurostat's Consumer Price Index. The remainder of the electricity produced will be sold on a merchant basis.
With a total generation capacity of 94 megawatts, the Pupin project will cost USD$149-157 million, and is expected to generate revenues of USD$22-24 million and EBITDA of USD$13-15 million in its first full year of operation. Enlight has recently signed a binding agreement to acquire a 66% stake in the project from its partners, which is subject to approval by the Serbian regulator. The Company will own 100% of the project after completion of the acquisition.
Construction of the Pupin wind farm began in the second quarter of 2023, post the realization of a turbine supply agreement with Nordex. Upon execution of the PPA, Enlight will have completed all development milestones of the project. Pupin is expected to reach commercial operation in the second half of 2025.
Pupin is located adjacent to Blacksmith, Enlight’s first wind farm located in Serbia with a capacity of 105 megawatts and operational since July 2019. Both projects will share the same connection point to the national grid. This highlights yet again Enlight’s ability to execute on its “Land and Expand” strategy, utilizing the Company’s deep understanding of interconnection infrastructure to deliver high conversion of its development portfolio.