GlobalData
3 min read
Enlight Renewable Energy has signed financing agreements totalling $310m for the hybridisation of the Gecama project in Spain.
The project will integrate a solar array and utility-scale energy storage system with the existing Gecama facility, Spain's largest wind farm, which has a capacity of 329MW.
The integrated facility, with a total capacity of 554MW and 220 megawatt hours, aims to deliver clean electricity around the clock at a competitive cost of generation, yielding high returns.
The Gecama hybrid project will be Spain's largest renewable energy complex of its kind and contribute significantly to the country's storage infrastructure, aligning with the national plan to combat climate change and enhance energy supply stability.
The development is timely, considering the widespread power blackouts Spain experienced in April 2025.
The battery system will support peak shifting and provide essential grid services, such as frequency response, to help stabilise the power system.
Enlight CEO Gilad Yavetz stated: “With the financial close at Gecama, Enlight marks another significant milestone in its European activity, by expanding one of its core assets into Spain’s first hybrid complex of its kind. This move is groundbreaking on two levels – establishing the country’s largest renewable energy complex and demonstrating technological leadership through the integration of utility-scale battery storage.
“The project reflects our 'Connect & Expand' strategy – maximising the potential of existing interconnection infrastructure to scale projects – reducing investment costs, minimising risk, lowering the levelised cost of electricity and optimising financial returns.”
The solar and storage components are expected to reach commercial operation in the second half of 2026.
Their addition could increase the Gecama project’s annual revenues by between $38 and $40m and earnings before interest, taxation, depreciation and amortisation (EBITDA) by $31 to $33m in the first full year of operation. With all three components, the integrated project could generate annual revenues of $95 to $105m and EBITDA of $75 to $80m.
The financing comes in two tranches: the first for refinancing the Gecama wind project and the second for constructing the hybrid project, both bearing a fixed interest rate of 5.1% and fully amortising by 2045 and 2046 respectively.
After repaying existing debt, funding reserves and transaction costs, more than $150m will be allocated to the hybrid project's construction, with total estimated costs of between $195 and $205m, while the balance will be funded through equity.
