Okay, let's start. Good morning, and welcome to our 9-month result presentation. I'm Daniel Lozano, Chief Strategy and Capital Markets Officer. Here I have with me David Ruiz de Andrés, that is the Grenergy CEO and Chairman, and María Rodríguez Gismero, our Sustainability Director. Well, as always, at the end of the presentation, there will be a Q&A session. Now I'll hand you over to David.
Okay. Thank you, Daniel. I guess you can hear me all right. Good morning, everyone. Thanks once again for being here with us today. As Daniel explained, we will start today talking about our strategy and giving you important updates, as we do every year in this quarter. It's really an exciting time to be working in the renewables sector. It's experiencing exponential growth in all aspects of the industry, not just in the traditional areas such as PV or wind, but also in emerging technologies like storage. We are living an unprecedented moment in history. I think climate change is unfortunately accelerating and the geopolitical situation is new powerful driver as well. This is causing acceleration of energy transition.
Well, I think we're very lucky to be in this sector at this moment. Moving to slide 4, we'd like to give, like, a quick overview of the industry. You know, Europe is willing to jump from less than 200 GW of PV operational now to what been estimated a hike of 740 GW in 2030. This is more than 3.5 times the present day installed capacity, right? In less than seven years. Germany alone will increase from 65 to 250 GW. This is more than 20,000 MW per year expected, right?
All this is quite incredible, but the U.S. will beat all records and will experience a jump from 67 GW at the end of last year to an estimated 1,000 GW by 2035, according to Biden Administration, right? I think more importantly, there are, being said, new mechanisms put in place to make it happen. I mean, in Europe, we have the REPower program, NextGen funds, there are new laws all around, accelerating permits, which we have all identified as now as the major constraint in the industry. I think things are getting better, at least in some countries. The Inflation Reduction Act in the U.S., it's been a long-awaited, very important milestone, which clarifies the tax credit mechanism to basically monetize tax credits in an easier way.
Well, we mentioned storage. It's definitely happening now. It's already present, will enable more renewables, more PPAs, will minimize curtailment of projects. It's finally here, storage, right? It's going to completely transform our industry. What is Grenergy doing about all this? Well, first of all, we have to say we have a fantastic team which is poised to make the most of this fantastic opportunity. Even if the opportunity is so huge, but you don't have the right team in place, you cannot really get the most of the opportunity. We have very ambitious development plan in Europe. Apart from Spain, we are now in Italy, U.K., Poland, and Germany as you know. These five markets comprise 80% of the total energy demand in Europe and 80% of the opportunity, right?
Germany may be the best opportunity we've ever had. We're talking about 20,000, again, MW per year. All regional governments are making things a bit easier with permits to develop new projects. I mean, we will keep updating you about this very promising market. In the U.S., as you know, we decided to purchase an existing developer earlier on this year, Sofos Harbert in Alabama. Now after the IRA, I think the timing of this deal look fantastic, right? Storage, well, our response to storage, you know, I'm very sure we have one of the most talented teams for batteries in the industry.
Our first projects are about to come, once again in Chile, which we always say is one of the most advanced renewable energy markets in the world. We're very excited about moving on with our first storage projects. Moving to the next slide, just a more visual overview of our platforms on slide 5. It's quite clear we're making a huge effort to diversify our presence and generation of revenues from being quite a successful player in Latin America, mainly Chile and in Spain. We are now expanding to other countries and new regions in Europe. Well, with our expansion into the U.S. and everything I mentioned, I think, well, the best is really yet to come. Yeah. We currently have 11.4 GW.
That's 45% LATAM, 38% Europe, 17% U.S. Our storage pipeline keeps growing and maturing. As early as 2024, we expect to deliver energy from our first projects. Well, I think this is great news. We are declaring now 7.7 GWh in the three regions with a major focus in Chile. We'll give more information in the pipeline section. Moving on to slide 6. Well, you might be very familiar with this slide. We're more convinced than ever on our integrated approach. I think it's the only way to achieve the lowest CapEx, development, and construction, right, and OpEx, in our case, operations, maintenance, and asset management. The only way is having the right teams, building a strong corporate structure.
In our case, you know, we are aiming to build more than 1 GW annually from certainly as 2023, we are nearly there. We need to make sure we have the right people to produce the right stuff at the right time in the right markets. That's, it also means having the best teams in energy origination, right, to secure the right PPAs. We have one of the best structured finance teams in the industry. We're now closing minimum four deals per year. This is one deal per quarter. Well, M&A is more important than ever in our industry, both in the buy side and sell side of the business. It provides us with the flexibility we need, fits our very unique and successful rotation asset program.
Moving to slide 7, as we can see, and it's one of the main updates of the day, we have a new target of 5 GW for 2025 and 1 GWh of storage for the same year. We are very happy to, let's say, shed light for the first time on a target for batteries. We are definitely early arrivals in this field. We are creating a very attractive pipeline in key markets and some projects with COD as early as 2024. As we always say, and the massive introduction of batteries represent an extraordinary revolution and opportunity in our sector. Well, it's fantastic to have the pipeline on time. Big transformation also in our geographical presence, right?
Right now in 2022, we have 1.4 GW in operation or under construction. This is mostly Latin America, 75%, and 25% in Spain, basically in Cuenca, Escuderos and Belinchón plants. Here in the pie chart to the right, we see a huge transformation with Europe. Only three years from now, we'll represent 45% of predicted operational or under construction. 45% will be LATAM and already 10% in the U.S. This represent a very important transformation. In slide 8, here we show you how we're gonna make it, where we take a look at project by project, strategic and operational targets for next year deployment, which will be led by Spain and LATAM still, right? There is full visibility on the projects we have under construction.
Those in backlog will very shortly we will start construction, in particular, some large projects in Spain. In some cases before the end of this year, we will reach 2.0 GW considering projects operational and under construction. Well, how are we gonna make it from 2023 until 2025 to reach the 5 GW target? We are aiming to start building 1 GW per year. They will come from our three platforms. Most of these projects are already in our advanced development list, right? I think 90% of what we need. We estimate 1.4 GW will be coming from Europe.
I really believe it could be more, right, if the permitting process gets somehow better than it is now. We are estimating 1.1 GW from Latin America in this three years and half a GW already from the U.S. This will be more at the end of 2024 or during 2025. Most of these projects are already identified in the advanced development list. It might look for some ambitious, right? For us, it's completely achievable. There are gonna be projects, PPAs, markets to do this and a lot more. I think the potential is huge, and it's, well, I think we might need some help maybe with acceleration of permitting in some countries.
We believe we have the right people and we are correctly financed to achieve this, right? Moving to slide 10. This is the slide of ESG ratings. I'm particularly proud about Greenergy's remarkable position as one of the ESG leaders by the most relevant global ESG ratings. In 2022, our results were further upgraded from a very good place that we had in the previous year, right? I have to say in Sustainalytics, for example, our score improved from 13.6 in 2021 to 10.2. Our company is ranked six out of the 680 companies. We're in percentile 1% right in the entire utilities group.
The agency once again consider our management of all ESG material aspects, governance, business ethics, human capital, land use, biodiversity, among others, as quite strong. Our Morgan Stanley MSCI ESG rating was also upgraded, and Grenergy achieved the highest rating, AAA, and an overall industry-adjusted score of 9.8 out of 10. According to MSCI, we lead our industry peers on areas like capturing opportunities in renewable energy, talent attraction initiatives, and governance structure, right, among other factors. ISS ESG, well, initiated co-coverage of our company last quarter. It resulted in a very positive score, again, ahead of all our peers. Finally, just very recently, we were also covered by one more agency, Refinitiv, who rank our company in second position within the entire renewable energy group.
As you know, ESG ratings are, I believe, quite important to inform our stakeholders about ESG performance. This consistency, I believe, is very positive. It's a very clear sign that we are working in the right direction. Moving to key highlights, I think it's been a long introduction. I will be brief with the key highlights, and Daniel will give you plenty more information. I think it's been a transition quarter. Not much build to sell activity, which again, like normally traditionally every year, is expected to increase exponentially in the Q4, right? Well, we've had an important increase in our metrics compared to the same period last year, EUR 172 million revenues.
no, 27.2 EBITDA, and an end profit of EUR 13 million , which is, uh, being benefited from the FX, right? I think in the next quarter, we will not have that, that positive effect, but on the other hand, we will have plenty of build to sell activity that somehow will, will offset this, um, this effect. Uh, looking, uh, g-going to the composition of the EBITDA, we generated the bulk of it from our energy division. This is EUR 28.4 m illion of contribution, right? Uh, and just 4.7 from our build, build to sell. We, we will, Da-Daniel will give you more, more information.
On the capital market, after having launched quite successfully and with great demand our capital increase of EUR 90 million in June, we remain a bit more quiet, and the main highlight of this period has been the renewal of our green commercial paper program this quarter in a more difficult environment. I think it's been a good success. I think moving to operational execution, I spoke a lot in the introduction. I'll give you more information in the pipeline section. Just a quick summary, 11.4 GW total pipeline. We have reduced this, the figure of identified opportunities. We will explain to you later why. 1.4 GW either operational or under construction, 760 in backlog, right?
For us, backlog is mostly a pre-construction phase, right? I will give information about this thing. We have received the DIA expected environmental permit in all the projects except Tabernas in Almería, where we have positive reports, and we're expecting to get the DIA before the end of the year. As you know, there is a deadline on the 25th of January. We really expect that, and this is what we have informed, that we will get the DIAs before the end of the year, latest in very, very early January for this project. On the ESG front, well, we continue to make good progress in the implementation of our ESG action plan 2022, and our team took actions to fulfill four objectives, right? As María will comment on later.
These actions taken strengthen our current systems to ensure the implementation of our policies and the closer monitoring of key ESG KPIs by the Management Committee. We completed the full assessment of gender pay gap with very positive results, and virtually no gender-related pay gap was found, as María will explain. Again, we obtained very good results in new ESG rating coverage, and this time by Refinitiv, as I explained before. Well, I think I give the floor to Daniel for the financials. Thank you.
Thank you, David. I'm gonna try to do it shorter as we have many slides, and many sell-side analysts waiting to ask. Revenue, well, plus 14% year-on-year, EUR 171.7 million. The big increase compared with the previous year is coming from the energy saving division as we have a much bigger portfolio and that is producing more energy sales. Moving to the next slide, EBITDA, that is the way revenue is reflected, increased almost 50% to EUR 27.2 million. As it is happening revenue, energy division is the main driver within the EBITDA, EUR 28.4 million. Well, it is also quite important to mention that development and construction, that as you may know, it is mainly build to sell activity.
During the third quarter, there weren't any sale of projects. The EBITDA in that quarter was slightly negative. As we are advancing in farm-downs negotiation, hopefully we are gonna close it before the year-end, and that figure should increase. Also, quite important to mention, the corporate expenses is increasing as the company is increasing the footprint worldwide within the three platform where we are located. It means that to hire talent and to keep this growth path. Moving into next slide, which is number 15, this is split of the CapEx that was EUR 102.9 million.
Within the period, there was EUR 4.5 million in the minority investment in the purchase of the U.S. developer, Sofos Harbert. We have EUR 8.6 million in development CapEx. That is the key driver to constantly grow our pipeline that will feed our portfolio. In constructions, we have EUR 10.6 million in utility scale projects, mainly the projects we are building Planchón, Gran Teno in Chile. This figure will grow in the next quarters. We have distribution projects that are PMGDs project in Chile and some projects under construction in Colombia, EUR 79.3 million.
In slide number 16, we started with a cash balance position of EUR 68.7 million, that it is positively affected by the EBITDA, EUR 27.2. We have a negative working capital impact of EUR 34.1 million that is produced mainly for the collection expected to be received in coming quarter from the rotation of assets, mainly in Chile. We have more than EUR 50 million expected to be collected in the coming months. We have EUR 14.7 million of negative financial and taxes cash out, and some non-cash exchange rate differences.
We have the CapEx, I've just explained, and that is financed mainly with the issue of the Green Bond, EUR 52.5 million and some commercial paper. The financial debt that will grow, and the share capital increase, EUR 90 million, that we could do in June, to arrive to EUR 117.8 million of cash balance position at the end of the period. In next slide, which is number 17, you can see the evolution of the net debt and the total leverage. The evolution of net debt is mainly affected by the growth CapEx and the share capital increase, arriving to a final position of EUR 318.4 million. There is a non-cash out exchange rate difference.
As you may know, we have a lot of activity in Latin, and debt is mainly in dollar, and there has been an important appreciation of that currency. That is impacting, well, the increasing in growth CapEx. That negative non-cash out exchange rate difference is impacting in leverage that is slightly higher than the period before, moving to 6.3x EBITDA net debt. Okay, I'll hand you back again to David.
Thank you, Daniel. I'm gonna try to be brief. Well, in the pipeline, well, I mentioned earlier on, there is an important decrease in identified opportunities. Why is this? Well, because you already know we only start to invest development CapEx when, well, our development committee approves those projects and they move to early stage. At that point, it means that we start spending, basically investing money in the projects. We have decided to write off some of the projects that earlier on were identified opportunities, mainly in Peru and in Colombia. Why is that? I think we're gonna see a big expansion of opportunities in the new markets, mainly the U.S. and some countries in Europe.
Obviously, the resources are limited, and we want to make sure we move to early stage the right project. We are always very transparent about this. Well, we going down again, 600 operational. We will keep updating this, even if we give now a guidance for 2025, but we will keep updating the information every quarter of how we are performing. 780 under construction, 760 backlog. Three categories together, 2.2 GW. In the next slide, which we update every quarter, as you know, we show by region, market, technology, status. We can see how the new markets are maturing, right? We can see that, like, Chile is our largest market in terms of development, 2.6 GW solar, 600 wind.
Followed by, I think, Spain and the U.S. We have probably a very similar figure under development. Obviously, in Spain, it's more mature than the U.S., but we are around 2 GW. We have Colombia, Italy in the range of 1 GW. I think particularly Italy will grow quite a lot in the next few quarters. This is our intention. You can see that U.K. and Poland are in the region of 0.5 GW , right? I think it's giving you an indication to where we are going. Great news that we have more advanced development projects now from many more markets, and hopefully our backlog will grow exponentially, right, in the next quarters. Well, in page 21, we give full visibility on the situation.
We are now showing more information from this quarter on the off-takers, right? Because this is a very recurrent question, we're giving more information on the agreements we have for selling the energy project by project, projects under construction, and projects in backlog that, for us, again, we could be talking about pre-construction maybe. Okay. Well, advanced development projects, 2.6 GW. You can see that apart from Spain, Clara Campoamor, this is divided in two phases. We hope that the first one of 275 could be moved quite soon to backlog. You know, to backlog, we need to have full visibility on permits and full visibility on the PPA, right?
If you don't have the two things, we don't move projects to backlog, right? I believe for the first phase of Clara Campoamor, we might move it to backlog in, you know, next update or latest quarters from now. We have now advanced development from other European countries like U.K., Italy, Poland, and this is a good indication that the pipeline is maturing. Our first two projects that we believe will be operational in the States, right? We're talking about projects at the end of 2024, deliveries in 2025. Well, business as usual in Latin America, where we have in especially Chile, more pipeline that we need to meet the target of we've given of 1.1 GW.
Going to storage, right? I think, well, as we announced, 7.7 GW is mostly Chile. First, projects backlog, right? This is great news. For the first time, we're showing some projects in backlog. This is concentrated in Quillagua, 50 MW, 250 MWh. I think it's could be our flagship project in for storage. Also some PMGDs incorporating storage are already here. This is brand new. For the first time, we're showing some backlog storage projects, right? In, I think this is something especially remarkable. Well, moving to evolution of CapEx.
I think when we reflect this 2021, 2022, this is the reality on average during the year, and this is our expectation for 2023. Well, you can see that we believe that the price of panels is getting relaxed. The main reason is, I think it's just gonna be oversupply. Yes, if you look on the right-hand side of this slide, the forecast of new installed capacity is increasing, right, from 135, 2020 to 230-240 this year. This is 150% more. The supply, the installed capacity of main manufacturers is multiplying by 2.5.
I believe that the main reason that panels are going down is because even if there's a very high demand, the supply is growing exponentially, right? Other things like trackers are more linked to steel prices, are going down. Some other components are going up. Main inverters, maybe everything related to labor, right? All in all, I think we are below EUR 0.5 million per megawatt. This is again for a large plant in Spain, where if we are talking about the smaller distribution plant, this figure will be slightly higher. I'm more than glad to give more information in the Q&A. Thank you very much. I give the floor to María for the ESG.
Thank you, David. Well, as most of you know, at this part of the presentation, we provide always an update on the progress of our ESG action plan. There was quite a lot of progress in this quarter. We were able to fulfill four of the objectives, and I will explain just very briefly each of them. First, we have strengthened our governance by defining a control system for the implementation of our policies. As David mentioned before, the system is going to be led by the Compliance Executive Committee, who will use a combination of questionnaires and interviews with each of the policy owners to monitor its implementation and also will submit an annual report with all findings and action plans to the Audit Committee. It's also planned to provide internal training prior to launching this system.
The company also put together a procedure for regular reporting of a selection of key ESG KPIs to the executive management committee and audit committee too. We selected these KPIs, and there is a detailed list of the earnings report on these KPIs based on a double criteria. Between finance and materiality, and also finding a direct connection with the commitments of our sustainability policy. Through this frequent reporting of ESG KPIs, our top management and board-level committees will be able to better monitor and oversee the evolution of key ESG aspects like talent attraction, retention, emissions, local development, health and safety, biodiversity, among many others. Our employee training plan was also approved and restructured by our HR department in four dimensions.
With this plan, the plan aims to continuously improve our team's skill set in areas like efficiency, leadership of communication, also to support professional development of our people in specific needs that we identified, to strengthen skills that facilitate internal collaboration and overall performance, as well as to continue building Grenergy culture and employee commitment through frequent talks by key personnel. Just finally, to meet an objective that was pending from a previous quarter, our team was able to complete a remuneration analysis of Grenergy's workforce at a global level in all business lines, categories and positions, taking into consideration unbiased variables such as level of training, experience and responsibilities. We obtain a very positive result of 0.27% of gender pay gap for 2021, meaning that our company doesn't have a significant pay gap related to gender.
That will be all on my side, David, if you want to take it from here. Thank you.
Thank you. Thank you very much, María. I think we can move to Q&A. Thank you.
Thank you very much. Now we are moving to Q&A for sell-side analysts. If you have a question, please send a message to the administrator, and we will pass you through. Okay, I think we have José Ruiz from Barclays. José, can you hear me? Okay, he is having some technical issues. He would like to understand, he sent to me a message, if it is improving the environmental permits in Spain and the permitting process bureaucracy is improving.
Well, it's kind of a hot topic right now. I think things are improving a little bit. I have to be honest with that. It was very difficult to be worse, right? Well, the main reason we are, and we can be more explicit about that, we're gonna miss our target. We said, like, two and a half years of 1.4 GW of full operation at the end of this year. We're gonna be, like, maybe 900 or close to 1 GW. It's mainly because the delay in the permitting process and the delay in the DIAs of our Ayora and Escuderos projects, right?
If you remember those, the government had an initial deadline for April 2022, and they gave nine months extension. You know, some regional government are taking these extra nine months. In our case, we have received all the expected DIAs. We got them for Ayora, we got them for José Cabrera, and we're still waiting for Tabernas. We know the reports are positive, at least for five of the six plants we have already received. This is something, a procedure you get before they issue the DIAs. Last time, they said before the end of the year at least. I really hope that we will get them before the deadline of the 25th of January. Some people is talking about a new extension.
I really hope they don't do it, because if they do it, some regional governments will take the extension, and the problem will get worse. That's situation in Spain. The problem with permitting is on top of the agenda in most of the countries in continental Europe, and I've seen in the U.S. as well. I think we are seeing some positive effects, but still there is a long way to go.
Okay, perfect. Thank you. Let's move to RBC, Fernando Garcia. Hi, Fernando.
Good morning, and thank you for taking my questions. I have two.
First one, could you elaborate on your balance farm-down negotiations for Q4 in terms of assets involved, countries, and there, if you might just sell minority stakes? This mean that maybe you are going to change your traditional build to sell model? That is my first question. The second one, can you tell us more or less what capacity you expect to complete or to have in operation by the end of 2022, and as well in 2023? Some clarification here about the 2 GW under construction or in operation. I think that I heard that this is going to happen all under construction by the end of 2022, no? I wanted to clarify this, no.
These are my two questions. Thank you.
Thanks for your question, Fernando. Well, it's true that we are exploring new options for our build to sell and our asset rotation strategy, which has been very important for us, and it will keep being important. We feel comfortable with the guidance we gave between EUR 100 and EUR 200. We gave that guidance, I think two years ago, and last year we made EUR 103. It was a guidance more thinking in the transfer of, let's say majority shares of transfer the full ownership of plants or more thinking in distribution projects.
Now we are exploring also other options that will be, I believe, the lion's share in the future, like transferring minority interest in larger parks, right? That's why I believe at one point we will give a guidance on that, like large utilities or other companies do. So far in Q4, we are exploring more transfers in the traditional way. I mean, we will transfer, we have a very advanced deal for transferring three-four PMGDs in Chile. It will be very similar to the deals we have accomplished in the last few years. We have an ongoing project, an ongoing deal in Peru. We are talking about majority deals. We have nothing advanced in minority.
We are exploring the market in countries like Spain. I believe there is a good window of opportunity to capture value in the short term selling a minority interest. That's not going to happen this year. I think if it happens, it will happen the first semester next year. Right. About the capacities for 2022, well, you have that information project by project. We are 600 now. We have some ongoing construction, but some of the large plants in Latin America are scheduled for Q2, Q3 next year. Right? We have Belinchón really advanced now. We are already installing panels, right? I think it might get on time for the next update. Right?
Obviously, we have a great incentive for connecting Belinchón as soon as possible, right? Because the PPA starts in early 2025. The earlier we connect, obviously this is all an upside for us. We have a fantastic incentive there, and we are trying to go as quick as possible. I think we have one plant of 12 MW in Colombia that will be connected very soon. That's the situation. At the end of 2023, I think we feel we will be more in the region of 2 GW. I think we are about to start construction in the next few weeks for Ayora and, I mean, José Cabrera.
Most of the backlog, we are expecting to be under construction very soon. Right. The only thing I cannot say 100% is Tabernas, because we still don't have the environmental permits. If we get the environmental permits, we are ready to start. Everything's been negotiated. We have the book slot with Siemens because it's what takes longer for the substation. I think that if we manage to start construction, it means that we could deliver this plant during 2023 or very early 2024. I think the total figure at the end of 2023 should be in the region of 2 GW. I'm talking about operational plants, not operational. Under construction, the figure will be much higher.
Thank you.
Thank you, Fernando.
Thank you, Fernando. Now we have Flora from CaixaBank BPI. Hi, Flora.
Hi. Good morning. Hello. Hi.
Good morning.
Two question on my side. The first one is a clarification. You mentioned Belinchón might get on time. When you mention get on time, is until year-end or for the presentation of the full year results? Because I think I heard during the call you mentioned you could get closer to 900 MW installed or something, but maybe you were referring to something else, or just to clarify if 900 included Belinchón. Just the timing for Belinchón year-end or February presentation. Second question is if you could share the percentage of debt you have currently at variable rates, and also what is your average cost of debt blended for the group? Thank you.
Okay. Thanks very much, Flora. Replying to your first question, it's very clear. No, we are not gonna make it. Belinchón is not going to be fully operational at the end of December, right? When we update, I mean, that will be third or fourth week of February. Normally we give the updated situation of the pipeline. What I mean is that Belinchón, we believe when we say we can make it on time, I mean in time for the next update, right? Not for the 31st of December. When we say on time, also, let's say that, well, the PPA for Belinchón starts, first of January 2025.
You know, the earlier we connect, the better for us because we will have a very important upside from being full merchant, right? For nearly 2 years. This is why we are rushing a lot because we have a great incentive there. About the variable debt, the structure of our debt, I think, well, it's mostly fixed. I mean, if you look at the bonds, we have, I think, correct me if I'm wrong, Daniel, in any of this, because I'm just saying, but we have 4% bullet for the bond we issued earlier on this year. I think it was 4.75% for the one we issued 3 years ago, right?
Yes.
This is fixed, this is bullet, this is five years. The lion's share of our debt is project finance. This is obviously changing, right? Well, compared to Escuderos, which is at the lowest, we had a swap of, I think, 0.3% plus the spread, all in, like, 2.5%. Belinchón was, well, the swap, when we closed the swap was already 2.5% plus the spread. The spread is lower, 1.75%. All in, like, 4.2%-4.3%. This Belinchón.
If we were up for our next close in Spain now, you know, the price of the swap maybe was like 3.2%, 3.1% , 3.3%, plus the spread, we are talking about 5% maximum in Spain. If you consider Latin America, you have to increase 100 basis points, basically. I mean, we're mandating the banks for Gran Teno, Tamango and the plant in Peru that we recently signed off paper. We are mandating the banks, and we are expecting all-in, in the region of 6%, slightly lower than 6%. That's the situation, right? Considering, well, we have, let's say, open positions.
Well, the commercial paper, I think, which was close to 0% at one point, I think is 1.5%, right, Daniel, now, approximately.
Yes.
In the last update. I think it's still quite competitive. Well, we might be affected in our corporate debt with banks, which is not very high, but this is definitely affected by high interest rates. This is more or less the structure of our debt, yeah, whether it's with or without recourse.
Okay. Thank you, Flora.
Thank you.
Now we have Jorge Guimarães from JB Capital.
Good morning, everyone. I have 3 questions. The first is related to the PPAs that you are about to sign. If you can give us some indication about the price ranges, both in Spain and in Chile? If the evolution until final terms, how related is it to with the evolution of forward curves in the meantime? The second one is on storage. You are giving us some indication that of your interest in the storage. Can you provide some type of CapEx guidance for storage? The final one is, there was some news today, I believe, in Spanish press about or inking about potential landscape tax or something. I mean, I don't know exactly how to translate from Spanish to English.
Do you see over the long run that any possibility of this in Spain? I know that you are also focused on LATAM, and I imagine LATAM, this is not an issue, but at least in Spain, as the ground occupation by solar panels increases, do you fear that over the long run, regions may start to impose some type of taxes or restrictions? Thank you very much.
Thank you. Thank you, Jorge. Thank you very much. Well, about the PPAs, I think, as I mentioned, we are giving more information project by project on our strategy. Well, Belinchón, as you know, we closed the PPA for 65% of the estimated revenues. We are now in Spain targeting to secure 75% 15 years. We are working with different off-takers. We expect to announce some of them even before the end of the year or very early next year. Well, you know, the market is now in some cases in the high 40s. We're talking about PPAs starting in mid-2025, late 2025.
Again, we want to have a buffer time, security buffer time, let's say, to make sure we have enough time, plenty of time. We, again, believe there is an important upside being full merchant for the first quarters, right? That's CIFs in Spain. In Chile, you know, we just announced the PPA for Tamango plant. We are working now very hard. I'm flying to Chile tonight myself, right? We have very advanced negotiations for this batch of large plants. In many cases, they include PV profile plus storage. It is, you know, it is how the industry will be in the future, right? You will be negotiating a PPA for solar profile, but also will include some hours in the peak hours.
So well, um, we are negotiating PPAs this way for the plants in the north, and we are also seeing some opportunities for pure solar profile, uh, best produced in the cen-- in central Chile, right? And the conditions there are... Well, we are more in the mid-thirties, which might seem lower, but in, in Chile, like in most of America, the PPAs are linked to inflation. So, so you have, uh, it's-- and you get capacity payments. So all in all, will be, will be similar, uh, remuneration similar, uh, to, to Spain, right? So that's more or less. We also have advanced, very advanced negotiations for Matarani plant. Uh, we will use the same off-taker that we've used in Chile. And, uh, and we are working in, in many options in Colombia and Peru as well.
It's a bit early in Europe, right? I think next year this time, we will be fully involved in negotiations of our first PPAs in Italy, the U.K., and Poland. I feel we will follow a very similar strategy than the one we're following with Spain, depending on market conditions, finding the right blend and the right mix between merchant and PPAs. Your second question about storage. We always say we're gonna be looking at the price per megawatt-hour all in for storage. I think it's gonna be a lot more important in our business than the price of panels, right?
I think same way we are giving this guidance of CapEx for solar PV, I think in this slide, we will try to give a guidance of the cost of storage, right? Because I think it's gonna be lot more relevant than the price of just panels, right? Because it's really important KPI right now. We have CapEx now in the region of between EUR 200,000 and EUR 225,000 per MWh, right? You know, you pay for capacity, and this is a very important KPI. We believe in our first projects in Chile where we are targeting five hours per MWh, we are roughly willing to invest around $1 million for a system of five hours.
Means that you can move 5 hours between day and night, but the PPA at night is close to $100 compared to the PPA during the solar profile of 30-something. Really, really, you're creating a very different animal. I think anyway, the moment we announce our first project and the first project moves from backlog to under construction, it might happen even before February. We will try to give you more information and explain you how it really works. Okay? The guidance for the future, for 2023, we are expecting reductions in CapEx, but maybe to EUR 175, hopefully EUR 150 during 2024.
There are many projects of mining. You know, the project for storage is really dependent on lithium. I think it always depend on the situation with the car industry, right? Because they have like 70% of total consumption, right? For this lithium-ion. We believe the prices will go down during 2023 and especially in 2024. Sorry, Jorge, your last question was.
Sorry, David.
Yeah.
How do you see the environment here in Spain? Because you were just mentioning that permitting is improving, but at the same time, in some more developed or more advanced regions.
Oh.
There starts to be some noise about limits or taxes or whatever we would call it.
Well, I'm not sure. I hope this is not first news you are hearing today in the press. So far, we have not heard anything about a landscape tax or anything in Spain, right? It rings a bell of some other problems. I don't think. I think it's a bit enough in Spain. We're not expecting a lot more regulatory changes affecting us during this year. This is my expectation, right? It remains to be seen whether the cap of EUR 180 substitutes the clawback system they have in Spain. That's, I think, one of the key points.
We are not expecting any new taxes in Spain related to land. Anyway, it's hard to say anything on this, right?
Okay. Thank you, Jorge.
Thank you, Jorge. Yeah.
It is almost the time, and we have still three analysts willing to ask. I will request, please, just to ask one question. We have Daniel Rodríguez from Bestinver. Hi, Daniel.
Yeah. Hi. Good morning.
Hi.
Yes. Good morning. Yes, just one question. I stick with one question. We are hearing some noise in Chile regarding power prices, especially the difference between the different areas of the electricity system, and that some operators are struggling with their operations there. My question is if you could give us some color of what is going on in Chile and whether your operations are being affected by this situation. Thank you.
Yeah. Thank you. Yeah. Well, it's true that there is a bit of a turmoil in Chile now with the PPAs that some generators close with some ADP companies, close with the distribution companies. We never participated. We participated in some of these auctions long time ago, but we never really like these PPAs because the problem with these PPAs, and this is why some companies, I think it's public information, Solarpack announced that their plan, they couldn't meet the commitments. Some other companies like Iberdrola are making similar announcement. Because the problem is that, you know, in Chile, with these PPAs, if you generate in the north, and there are some nodal differences, right?
This is what I think many people didn't understand that well. This is why we never liked these PPAs. You have to sell your energy in the north at one price, and then you have to buy energy in 14 nodes all around Chile to meet the requirements of your PPA. If there is a gap, as there's always been, but now this gap with the high prices of energy has widened. If there is a gap between nodal one nodes and others, right? You might have a problem, right? This is what is happening. This is not really affecting us. Okay. Because on one side, PMGDs are not affected by that because they are stabilized price. It's a different regime.
Our PPAs, the ones we just announced, are pay-as-produced PPAs, where the off-taker is buying the energy right from where the energy is generated. It's a completely different animal, right? I think it's an opportunity for us because if you have now the right pipeline in central Chile at the right time, there's very high demand of energy being produced there instead of being produced in Atacama. I think Atacama, the future for Atacama plant, is storage, right? That's why we believe that Chile is gonna be the first market in the world where we're gonna see like a boom in storage without any subsidies, just because of energy arbitrage.
You have the lowest LCOE in the world and you have a gap between day and night prices, so it's perfect for storage, right? In utility, I'm talking about utility-scale plants, you know. It's a very interesting situation we're living in Chile. We always say that we're very lucky to be in Chile because many things really happen there first.
Okay. Thank you, Daniel. We have now Anis Zgaya from ODDO. Hi, Anis.
Hi, Daniel. Thank you. Hi, David, and hi, María.
Hi.
Only one question. It's regarding the financing and I would like to know, beyond the rise in rates, do you see increasing scarcity of funding that could be problematic for you? Thanks.
Thank you. I think there's still a very liquid market in terms of financing. I mean, we are really not feeling anything. Interest rates are going up. Some banks might be a bit more selective. I think we're feeling that more in Chile, right? Than in Spain, where we have plenty of options for local players, international players, direct lending options, project bonds. Maybe in Latin America, in Chile, some banks are being more selective. I think that from the previous questions, I don't think they're going to finance any PPA.
They're looking more in detail at the terms of the PPAs, whether it's really a pay-as-produced, whether you have some profile risk, whether you have some nodal risk, and I think that's why. This is something we might be feeling apart from the obvious increase in interest costs. That's more the situation in Latin America than in Spain. You need more than ever strong PPAs. I think at one point last year, some banks were even in Europe, more happy with the full merchant. We've never really followed that policy. We believe it could be an upside, the full merchant, in the first quarters. Definitely you need high quality PPAs with real off-takers.
I think I've always said that hedging 70%-75% is the perfect balance. Yeah.
Okay, Anis. Thank you. Okay, now finally we have Paul Chabran from Kempen. Hi, Paul.
Hi. Good morning, everyone. Thank you. I just had one question regarding the decrease of identified opportunities. That's about 2 GW less than previously. Following your comment, I understand that it's mostly project in Latin America because you are focusing a little bit more in Europe and in U.S. Tell me if I'm wrong. I don't really understand why this shift implies to take out such a large amount of projects of your pipeline. It'd be great if you could help me understand a bit more here. Thanks.
Okay, thank you for your very interesting question. Yeah. Well, sometimes we are, you know, we're very transparent, right, on our identified opportunities. In this category, we didn't even make it public only 2-3 quarters ago, right? You know, it's sometimes very internal, right? Identified opportunities, it sometimes means we still have not started investing, so it's a lot more flexible than other categories, right? When we move into early stage, you really have to be worried if there's a sharp decrease because it means that we have been spending time and money in the development of projects and for some reason we write them off. You know, identified opportunities, the shifts are larger.
Look at this slide. This is where we are now. This is where we wanna be, right? We want more Europe, we want more U.S., we want more storage, right? We need to really dedicate all our resources to this goal, right? This is what we're expecting. You have to consider that apart from that, we will have the requirements of CapEx for storage, right? This is what we are expecting. 1.1 GW, this is our target for LatAm, and we have a lot more, right? Sometimes these are fantastic opportunities for build to sell, but identified opportunities means that, you know, we still have not even started to invest in the projects.
If you look at this slide and you compare that to the previous one in September, the big change comes from Colombia that, you know, we are now showing 0.5 GW of identified opportunities. We could have more, but we are focusing on those that we really believe that they could happen, could move to early stage in the next semester. We had previously 1.5 GW, I think. The other major write-off is the wind in Peru, right? Because some of the projects that we had identified, they were good projects, but very long-term, 5-6 years of development. Long, very expensive developments because you have to measure with the mast in many.
So we believe that it was, uh, not worth it to move to early stage, so we write them off. Uh, it's still 11 GW . It's a lot more than a year ago, right? So y-you know, you have to l-l-look at that in the long term. And you, as I mentioned earlier on, we are expecting an important increase in the U.S., we are expecting an important increase in the L.A., we are expecting mm... might resume our development efforts in, in countries like Mexico, because we believe there is a very good opportunity there two, three years from now. And we will bring in to the table more opportunities in, in other European markets and, uh, hopefully in, in Peru and, and Colombia as well. So that's more or less the, the explanation. Yeah.
Thank you, Paul. I think that was the last question. Well, yes. Thank you very much for being at the presentation. If you have more question, you can always ask us.
Thank you. Thank you very much. Have a great day.
Bye.