Good morning and welcome to Grenergy Renovables' first half 2025 results presentation. I am Rubén Gómez, Head of Investor Relations. The presentation is going to be led by David Ruiz de Andrés, our Chairman and CEO, Daniel Lozano, our Chief of Strategy and Capital Markets, and Rocío Fernández, Head of Sustainability. They are going to take you through our business, financial, and sustainability review. At the end of the presentation, as is usual, there will be a Q&A session for sell-side analysts. Please remind you to ask just one question per participant. Okay, please, David, the floor is yours.
Thank you very much, Rubén, and good morning, everyone. Let's start, as always, with the business highlights on slide number three, with the main highlights of our first half 2025 results. First of all, it's very important to remark that we keep turning, as we say here, rotation into value. We are very glad to see that there is a lot of appetite for our hybrid assets in Oasis of Atacama. We are bringing to the table big names like ContourGlobal, a KKR company, and more recently DIF, which is part of CBC. Early September, we announced the rotation of Gabriela. This is phase four of Oasis of Atacama. As you know, we sold all together 272 megawatts of solar and 1.1 gigawatt hours of BES to DIF for an enterprise value, including earnouts, of close to $475 million. The multiple transaction was 1.8 times invested capital.
The asset will be delivered in the first half of 2026. Hopefully, we believe it will be operational as early as Q1, and we will achieve COD in Q2 next year. The plan is performing well, the construction is performing really well, and we are very close to mechanical completion already. With this operation, as you know, we would have sold phases one to four of Oasis of Atacama for an enterprise value close to $1.4 billion, which, as we have stated, represents close to 33% to 34% of the total of the project size. Let me highlight once again that we are selling 100% interest in the projects, not a participation in all the projects. If we consider the projects we have rotated, they account for just 33% of the total amount of megawatts in the project.
With this transaction, and that's one of our main KPIs, we have achieved 55% of the target of asset rotation proceeds. Remember, we were talking about €800 million, as we outlined in the Capital Markets Day three months ago. It's a very important KPI for us. I would say that together with our CapEx targets, those are the most important KPIs we keep in mind now. It's very relevant for us that we are achieving more than 55% already two and a half years ahead of the target. We also, and this is a very important milestone, recently announced two weeks ago, we closed the financing for 3.5 gigawatt hours of BES. This is the largest BES plan we've made so far in one single location, and it's phase six of Oasis of Atacama, what we call Elena. We raised $270 million from a syndicate of four banks.
We are, as you know, we'll explain to you later, but we are expecting this plan to be operational in the first quarter of next year, which is at least two quarters earlier than initially expected. I think that's very important for us. You know, we introduced Greenbox in our Capital Markets Day. We are advancing very well. It's maybe the most exciting project we have ahead, right? As you know, it's going to be divided in six countries. It's our standalone division for Europe. As you know, we are developing one of the biggest standalone pipelines in Europe, currently with 32 gigawatt hours. We are advancing. You will see many of these projects, as I will explain now, in early stage. BES projects move faster than PV projects normally. In the next updates, you will see that some of these projects already move to advanced development.
As you know, we have our flagship project in Spain, which is Oviedo, with a capacity of 150 megawatts. We are aiming to install four hours. Altogether it will be 600 megawatt hours. We expect to announce very soon a tolling agreement. Also, we will announce which banks we are mandating for this project. Regarding our financial highlights, Daniel will give you a lot more information, right? I think we've got pretty good service results. It's impacted very positively by the M&A deals of Oasis of Atacama. In the first half of the year, revenues grew by 128% year on year. EBITDA reached €86 million. Out of this, €76 million came from the M&A deal. Net income reached €35 million. Gross CapEx reached €421 million. That's a very, very important KPI for us. It's nearly 127% higher than the same period last year.
We are close to half a billion in one semester, right? That gives you the idea that we are really reaching the cruise speed we are really targeting, like minimum €1 billion of new CapEx per year. If you remember, our target was €3.5 billion for the next three years, including 2025. I think we are nearly there. I guess that we will accelerate in the second semester. Going to the net debt, it's €815 million in line with the increase of net CapEx in the quarter. That's just what we basically expected. The total leverage is 3.8 times versus 6.6 in the same period last year. The corporate leverage was down to 1.3 times. Lastly, there was a redemption of 2.44% of share capital after the last share buyback we executed during the first part of this year.
Just to finish with this slide on ESG, I think Rocío will later explain in more detail. We are very proud to mention that we published our biodiversity policy. We achieved an A- in CDP 2024 Supply Engagement Assessment. We entered the EBEX ESG Index, which I think is great news. We are top ranked in our industry in most of the most relevant ESG ratings, such as S&P, MSCI, and Sustainalytics, as you know. Moving to slide number four, this is where we display our platform overview for solar, hybrid, and then in the next slide, standalone projects, what we unveiled in the last Capital Markets Day. Before diving into details, I'd like to start by sharing some context. You know, we have conducted a very in-depth review of our entire pipeline. This has led to some adjustments. As you know, we really want to optimize our investment allocation.
I think it's very essential that we focus on these projects where we really believe we have high chances of success, right? We have a high degree of confidence. We want to focus on developing projects which can achieve really ready to build in the next two to three years with good returns and real opportunities for securing PPAs, right? In parallel, we are relocating some resources, moving some development resources from purely solar PV to more hybrid and standalone storage projects where we are definitely making high returns at the moment, right? In September 2025, our platform is 12.5 gigawatts of solar and 72 gigawatt hours of BES. I think that's a very important figure, of which 35 gigawatt hours relate to hybrid projects, 40 gigawatt hours for standalone. Let me remark that that's a very impressive pipeline for BES in total of more than 70 gigawatt hours.
On the right-hand side of the slide, you can see our three main geographies. You can see Latin America, where Chile is a very high %, is the one that leads the power of solar and hybrid plants. Europe is leading the standalone with our Greenbox platform. Moving on to slide number five, we don't want to stop here very long. As you know, we are very transparent. We update the details by geography and by country. As you can see here, we keep advancing in our hybrid projects in Chile with Oasis of Atacama and Frontal Oasis, and in Spain with Escuderos. We really keep being very optimistic on Chile. We see very strong appetite from stakeholders to contract energy. I think there's room for further developments. There are fantastic money opportunities, as we showed with the project we purchased from Repsol and Ibereolica last year.
The market seems really, really good. I believe that Chile is starting a very, very good cycle with strong investment in new mining projects and a very promising data center industry booming in the country. They need plenty of energy, right? We see that the growth in energy consumption in the country is very, very promising. Moving to slide number six, just a very quick update. This is the pipeline I was announcing. You can see the 600 gigawatt hour, right? That belongs to the Oviedo project. Then we have the rest close to 40 gigawatts, and they're advancing in the six geographies in Europe, mainly where we are, right? As I anticipated, I think when we update the pipeline in November, you will see that some of these projects are ready to move to advanced development.
I think we're in a very consistent business plan for between 2026 and 2028 in standalone in our Greenbox platform. On slide number seven, we like to show the main data and planning of the total Oasis of Atacama. As you know, it's a total capacity of 2,000 megawatts, 2 gigawatts, and 11 gigawatt hours. Remember, when we first announced this project in the first Capital Markets Day we made nearly two years ago, it had initially a capacity of just 1 gigawatt and 4 gigawatt hours. Currently, the platform doubled the size to 2 gigawatts of solar and tripled the size of storage to close to 11 gigawatt hours. We are performing and executing very well. We've rotated phases one to four of the project. Kigawa one and two, the first two phases, are connected in operation, and both platforms are performing very well.
Pictor Hara is really well on track. All the batteries are already installed, and we expect the interconnection very, very soon and COD before the end of the year. Gabriela is advancing also above expectations. All the batteries, in this case from CATL, are already at the site, and we expect the connection in the first quarter of 2026. We're very happy. We are executing and arriving and reaching COD of these very large assets above initial expectations, right? If you compare to PMDDs, the type of projects that we were mainly doing before, we are executing earlier. Everything is on us. The problem we had before with the small distribution assets is that we had to rely on distribution companies for interconnection. In case of large projects, everything is on us. We are performing really well.
We are delivering ahead of estimated dates, at least in the first four phases. Regarding Elena, phase six, we will deploy it in two stages, right? You know, it's a plan that had an interconnection already built and substation interconnection line. There were 77 megawatts of solar already in operation. We are performing initially the capacity for batteries for 3 gigawatt hours in order to improve the time to market. That's, I think, very important. That's why we have signed this financing for $270 million. Let's call it this bridge to PPA. We have like a three-year financing. We are working very intensively on the PPAs. The moment we sign the final PPAs, I think during this year, we will approach the refinance of this project. We will build the depending PV part, right? That's the plan. I think it's the right strategy for this large asset.
Phase number five, Algarroal, we are advancing on the PPAs. I think we might announce them very soon. We believe it will be a basket of two or three PPAs. I think definitely before the end of the year, we will announce the PPAs for this plan. We are mandating the project finance. Only phase seven will remain not mandated at the end of this year. Moving to slide number eight, we saw main achievements. I think you're very familiar with most of them. I don't want to spend a lot of time. Again, as I mentioned, Kigawa one and two are connected. They're selling energy at night. We sold Gabriela. We closed the financing for phase six. We are advancing on PPAs for phases five and six. We are very soon mandating financing for phase five. Everything is running pretty well. Slide number nine. We're very proud of this.
We raised already, considering Elena, we have already raised $1.2 billion in project financing with 12 top international banks. I think the big names are there. The latest news was the incorporation in the syndicate of more banks for Gabriela for phase four. Those include Rabobank, EIB, Bank of America, BBVA, JP Morgan, KFW. I think we're very proud of what we are achieving. We are bringing most international banks active in project finance are already in Oasis of Atacama. There is a very high interest from most of these lenders to work with Greenergy in new projects. I think it's very good news. Slide number 10. We included, I think, what's relevant. It's the newest slide, and we include more details of the asset rotations we have accomplished for phases one to four, bringing an enterprise value of $1.4 billion.
Altogether, they implied 723 megawatts of solar and 3.6 gigawatt hours of BES, right? The latest sale implied a ratio of 1.8 enterprise value with invested capital. In Kigawa, we achieved 1.5. Victor had a 1.7. This is way higher than our guidance of 1.3 we gave for the Capital Markets Day, which we believe was conservative. It was good, but it was conservative. We are proving that we are getting way higher ratios. Just a quick review on Central Oasis. It's like a new, well, it's not new, but it's the platform we outlined in the Capital Markets Day. The size is similar to the size that had initially Oasis of Atacama at the beginning. We are looking at M&A opportunities to make it even bigger.
There is a very high demand of energy in central Chile, and we believe it has to be approached with projects in the center, right? We show here the main data, and most of the platform is already contracted. I think the next mandate after Elena is already ongoing, and it's Gran Teno Tamango, where we are hybridating these plants, plus Planchon, which is a next door plant to Gran Teno. The next mandate right after will be Algarroal in Oasis of Atacama and Monte Aguila phase four here, right? It's an ongoing process, as you can see. Again, we are raising, there's a lot of appetite from lenders, and these projects are already contracted. It's going very well. Just wrapping up. Again, we show, I don't want to stop here a lot, but we've covered all the points about the main achievements of Oasis of Atacama.
The next slide, and to conclude, we display our first flagship Greenbox project in Oviedo. It's a region in the north of Spain for all those that are not familiar, and it has a capacity of 150 megawatts and 600 megawatt hours. It will be, we believe, the first large standalone project in Spain. Again, we are expecting to announce the tolling agreement very soon, and we are about to mandate with a syndicate of banks. There is a very high interest in financing this first large project in Spain. I think we will be once again pioneers in signing a tolling agreement for standalone batteries in a country like Spain. Regarding construction, we are expecting to start construction as early as Q1 next year. We are already securing some of the main components on traffos.
This is something we do very often, that before the official MTP, we already secure some of the longest delivery materials, right? Thank you very much. I turn the call to Daniel for the financial review. Thank you.
Thank you, David. Now let's take a look at the company's operational performance for Q1 2025. The decrease in total installed capacity was 4% from 950 megawatts to 914 megawatts, explained by the assets that were rotated in Chile. Regarding production, we experienced a 36% increase in total output. This increase was mainly driven by Gran Teno Elena, 77 megawatts, and to a lesser extent to PMGDs and Tamango. Contracted volumes increased by 62% and represented 87% of our total electricity production. We have a conservative business model approach by closing PPAs for most of our production. Realized prices decreased slightly to €44 per megawatt hour from €45 per megawatt hour, impacted a little bit by Forex dollar euro difference. On the right-hand side, you can see the summary of the key financial KPIs, which we will review in the next slide.
Moving to slide 15, total revenue in the first half of 2025 amounted to €438 million, representing an impressive increase of 128% year on year. This growth was largely fueled by the successful M&A transaction through asset rotation in Latin America, as you know, which significantly contributed to a plus 149% growth in the development and construction division. Regarding energy revenue, it grew plus 33%, mainly driven by Chilean assets. The power division showed an increase of 103% organic growth and a small decrease in service division of 8%. The EBITDA for the first half of 2025 was €86 million, reflecting an impressive growth of 176%, demonstrating our ability to successfully rotate assets while we keep growing our portfolio. Moving on to slide 16, CapEx. As David said, this is impressive. Last year, we had €186 million in the first semester.
That was almost the same amount we did in 2023. In this first half of the year, we are reaching €421 million. That is more than double and mainly driven by the construction of hybrid projects in Chile, proving that the execution is well on track to achieve the business plan we presented in May. As you can see in the chart, almost half of the amount invested belonged to Oasis of Atacama, first three phases, already sold, and another €155 million in hybrid projects in Latin America. The remaining CapEx is invested mainly in Spain, in the project we are building. An additional €18 million was dedicated to development initiatives in our three main geographies. In slide 17, cash flow, as of June 2025, our cash position reached €283 million. We have a solid cash balance position while we are increasing the CapEx, doubling it compared with last year.
CapEx, as you can see, has been the main outflow, $421 million. However, there was some CapEx that we are investing that has been previously agreed to be sold for phase one, two, three of Oasis of Atacama. We have more financial debt, mainly project financing coming from the deals we are successfully closing and some corporate minor impact in Forex impact of $42 million. With the current cash position, together with the expected project finance that should come, M&A deals already signed, such as Tabernas, Jose Cabrera, that should come in the coming months, and the sale of Gabriela, we have enough cash to keep self-funding our business plan. Finally, in slide 18, total leverage, net debt stood at $815 million. As a result, reported leverage ratio of net debt/EBITDA remained at a level of 3.8 times and corporate leverage at just 1.3 times.
However, considering the deal we have already agreed and pending to have an impact in the cash flow, on a pro forma basis, this ratio will drop to 0.2 times and corporate even positive to minus 0.3 times. This shows how quickly we can reduce this ratio after good asset rotation we are doing, while we are increasing our pipeline, more opportunities, more projects to come, providing good news every time. That's all from my side. Rocío is going to explain the main messages about ESG.
Thank you, Daniel. Good morning, everyone. I invite you all to follow the details of the progress in sustainability matters during the first semester of 2025. We are immersed in the second phase of the ESG roadmap 24-26, and I am pleased to announce the goals that we have successfully accomplished so far. Regarding both climate change and environmental dimensions, the climate change and biodiversity policies were elaborated and approved by the Board of Directors, consisting of a holistic framework where objectives, key principles, as well as implementation and monitoring mechanisms were established. Regarding the governance dimension, the annual sustainability report, according to TCRD, was published earlier this year. Apart from that, I would like to mention an important milestone achieved.
A corporate sustainability social management plan was approved by the Management Board, establishing the guidelines to be followed when any voluntary social or environmental initiative is implemented with the communities near our projects. In this context, we are proud to mention that during this year, we invest approximately €200,000 so far in vulnerable communities in Chile. Now, moving on to the next slide, regarding our position in ESG ratings, I would like to emphasize the fact that Greenergy consolidates once again its leadership position in the most prestigious ESG ratings.
During the second quarter of 2025, some scores were updated, providing us with better results than our peers and also than ourselves last year, which is the case of Sustainalytics that keeps on considering us in its low-risk area and also S&P that, after half an improved score this year, recognizes us at the top 16% global in the electric utility sector, above sector average. Moreover, it's also highly remarkable that this year we were recently listed in the EBEX ESG Index. Additionally, Greenergy got an A- score in CDP 2024 Supplier Engagement Assessment. Last but not least, just mention that some other ratings, such as ETI Finance, CDP Climate, and MSCI, have not been updated yet. We will give you further information about them along this year. That's all from my side. Thank you very much all for your attention.
Okay, thank you very much, Rocío. Now we are moving to the Q&A session. If you have any questions, please raise your hand. First question from Alexandre Roncier, Bank of America. Please go ahead.
Good morning and thanks for the question. I think what I'm perhaps a little bit puzzled this morning and some of the conversation with investors regarding the stock reaction is ultimately some expectations perhaps that we would have some announcements regarding tolling agreements today. I know you guys have been obviously working very hard to accelerate the pipeline, move things into advanced development. Everyone is kind of waiting for those to happen. I think any color on progress there, in some of the mentions that you made regarding the pool of PPAs for some of the other hybrid projects before year-end. In the market before year-end is a long time, actually. I know you guys are working really hard.
Any color on that end regarding tolling agreements, if you think any kind of new structure could be struck, if you're already thinking about geographies beyond Spain on standalone, would be super interesting. Thank you.
Thank you. Thank you, Alessandro. Yeah, I was looking at the screen. Yes, somebody maybe might be expecting a big announcement. I don't know. I think we are really on track. For us, once again, it's extremely important to be on track to what we promised concerning CapEx figures, execution, and asset rotation. That's mostly linked to Oasis of Atacama. Let's not forget that, and correct me if I'm wrong, Daniel, but I think out of the $3.5 billion, more than 60% or even 70% would be coming from the large Chilean platforms. We are really focused executing there and rotating the assets. I think this is being great news. We have made these two very important announcements in the last few weeks. Believe me, we will make announcements concerning tolling agreements. We are working very hard. We have several options, but some of them are very advanced.
Unfortunately, sometimes, when you have on the other side of the table large utilities or large corporations, they cannot move as fast as we can move. We only make announcements when we have something really binding. Even if we have a term sheet signed, if we don't feel that that's fully binding, we don't announce that to the market. Asking me about other geographies, I think we have already stated that together with Spain, Germany will be the next market. We also have been working for a very long time in negotiations for large tolling agreements. I think before the end of the year, at least one of these announcements will be made in Germany. It will be like a large framework where we could later allocate projects.
We will make the announcement for Oviedo, for Asturias, and also for the first hybrid project in Spain, which will be the Escuderos plan. As we have explained, we have several possibilities there because we are talking to the current staker, which is GAL. They have seven years remaining of PPA. They're interested. They might be interested in converting that, extending that, and converting to a hybrid PPA. We could close a tolling that will coexist with the current PPA, financial PPA for solar. That's all. We're working very hard. I'm sure that in our next presentation in November, we will announce something. If not, for sure, before the end of the year.
Okay. Thank you very much. Next question from Fernando García, RBC.
Good morning. Thank you for taking my questions. I noticed that you are separating Atacama phase six Elena project, with the batteries part expected to start one quarter earlier, and the remaining solar, the late three quarters, for an asset that you are still in advanced negotiation for the PPA. It looks like you are going to operate this asset in a probably quasi-standalone battery for around one year. I wanted to check here what is the strategy that you have for this asset specifically. David, let me ask you on your asset rotation strategy. After the agreement to sell Elena, as you say, you are exceeding your asset rotation targets. I guess you have here two main options for higher gains and have lower debt at the end of the plan, or use this stack of proceeds and invest more. I wanted to check here.
I know that it's just four months since the CND, but I would like to check here what and listen to your thoughts about it. Thank you.
Okay. Thank you, Fernando. It's true that, okay, in Elena, we could have gone to different strategies. We could have waited until the PPA. It's a very large project, right? Let's keep in mind, it's Elena alone. It's an Elena alone. It's more than two times bigger than any of the previous projects like Gabriela. It's like putting together Kigawa, Victor Jara, and slightly more, right? We're talking about a big project. It will not be a single PPA. I mean, there will be a large anchor PPA. That's the way we're approaching that we have been negotiating for very long with a big name. It will be a basket of several PPAs. Also, a retail unit will buy part of the energy. It's a more complex deal, right? It will take a few months.
We spoke to the banks and we say, okay, well, there is the opportunity of executing a fast track with the BES because there is a great opportunity if we connect the BES earlier. We have like a year of upside having the plan connected and benefiting from high prices at night, right? They offer us this product like, okay, let's close a project finance instead of a mini-perm that normally is five years. In this case, it's been three years. We have a lower leverage level, but still, we have borrowed more than $250 million, which is what we basically needed. We have three years. We are not going to need three years, but to bring in the PPAs and refinance. At that time, we will build the PV plant.
Currently, the prices are very low during the day, or even there is cool payment at the north of Chile. With the introduction of many more batteries, we are expecting those prices to go up also during the day. I think eventually, it's wise to have your generation, you know, your factory of energy next to your battery as early as 2027. In the long term, in countries like Chile, we definitely prefer hybrid PV BES instead of being just standalone. That's kind of the strategy for Elena. I think we can start getting revenues as early as February next year. The sooner the better, right? There is a big incentive. It's only this plan by itself will be close to $100 million EBITDA, just Elena, once it's operational PV BES. The sooner it gets connected, you know, every month really counts.
About your question, after the rotation of Gabriela, it's true that we are getting really on track on the target of rotations, right? Let's see. Yeah, there are more projects, there are more rotations to be announced, not as big as Gabriela, but it's true that we might reach this target earlier than expected. Next year, eventually, if it's not in February, it will be May. We will give visibility on our targets for 2028, right, as we do every year. If we have met this financial target of rotation before, there is a possibility that we, if we see the right opportunities, we accelerate CapEx. As long as we believe that the other alternative is what you say, okay, we reduce debt and we take a more conservative approach and we keep investing what we said we were investing.
It will depend a lot on how quick we can execute in Greenbox. Let's not forget that the figures for Greenbox are very demanding in CapEx. I mean, and for us, it will be very interesting to diversify in other European markets.
Okay. Next question from Anna Webb, UBS. Please, Anna, go ahead.
Yeah, thank you. Hi, thanks for taking my question. I've got a question on the overall pipeline. I think there was a kind of smallish reduction, particularly in the standalone BES pipeline. I'm just wondering what the key driver is there. I know you said that you're keen to take a kind of conservative approach and only have projects in the pipeline you think have a realistic, a real good chance of being realized. What are the specific challenges you're seeing with some of the projects you're taking out? Or not challenges, but where do you see what makes you think those projects are less likely? Is it grid connections, the market outlook, prices, what is it that's driving those projects coming out of the pipeline? Thank you.
Thank you, Anna. It's a very good question indeed. It's because I think the profile of the company is changing a little bit, right? Because we were only a few years ago, we were targeting 90% on our own staff. Our projects developed greenfield from scratch by us. I think now that we've moved a lot to the BES space, in particular, standalone space, time to market is everything, right? We want to make sure we have the right staff, but even more important at the right time. That's something that, you know, we want to be, so whatever we develop, we would love to be sure that it's really going to make it, but it's really going to make it at the right time. Because if, you know, and in PV, I believe we could wait four, five, six years.
Some plants we're building in Spain took us more than six years to develop. Like a Jora plant, it's been seven years. I don't think we like that with BES. The opportunity is huge and it's great, but the next three, four years, we have visibility in the next three, four years. What we are doing is we are recycling some of the projects that we don't foresee that will happen. Our buy side, our M&A team is working very hard also to find opportunities to increase. Yes, just an example, our flagship project Asturias, Oviedo, it's 150. 100 was developed by us and the 50 extra that was a neighbor that had these 50. We put it together with 100 and we made 150. We're doing something similar now for our first large project in Germany. There will be a lot of buy-side components in our pipeline coming ahead.
That's been the case also in Chile. Some of the large, our largest project now, Elena, as you know, was initially developed and built as a purely PV project by Repsol and Ibereolica Renovables. It's just the, don't think that where we will be executing is just coming from what we have in our pipeline. Some projects will come from external sources as well.
Okay. Next question from Beatriz at Mediobanca. Please go ahead.
Yes, thank you. Good morning all. Thanks for taking my question. I wanted to have an update on the Oasis of Atacama platform. You discussed about the PPAs that you have more or less negotiated all over there, but wanted to understand a bit more about the realization of the platform. How is that proceeding and the timing about that? Thank you.
Thank you, Beatriz. Let me jump to Central Oasis. I think it's quite simple to explain. Central Oasis was born like it's already with the first phases one and two, where two projects that are operational, Gran Teno and Tamango, as purely PV projects, right? They were financed slightly more than two years ago by BNP and SocGen, the French banks. Like everywhere else, we believe there's a business case for hybridization. That's the first mandate. We have already mandated, right? You know, we normally don't give, we don't, when we mandate, we don't really make it public, only when we close the financing. I think after Elena, the next large financing we are working in will be the hybridization of Gran Teno and Tamango and Planchon. Planchon is a new plant, but it's next door to Gran Teno. Altogether, these three are under a single mandate.
I think it should be, it should get closed in Q4 before the year ends, right? Phase four will be following. It's very, very similar. It's farther south. It's quite a large plant. In fact, we are starting construction very, very soon. We have already ordered the traffos. It will have a similar PPA structure, right? Phases one, two, four, they have PV PPAs that we signed some time ago, right, with a large utility. Let's say that around 40%, between 30% and 40% of revenues are coming from those PPAs, investment grade, just solar. Then we have capacity payments, which is like 25% approx here. We are considering four, five hours of BES. All the night energy will be purchased by our retail unit, which is GR Power, and mostly to serve the energy we need for Cobelco and other large PPAs we have. That's the approach.
Monte Aguila, I don't want to call it a copy-paste, but it's a very, very similar approach to phases one and three. We are mandating, we have already mandated phases one and three. That's the first closing, Q4. Monte Aguila will follow. We are expecting financial close in Q1. It doesn't mean we don't start some work of construction. Soldecano is more end of 2026, 2027 project. We are working on several off-take opportunities. There are many processes now in Chile with mining. There are very important opportunities with data center. We are approaching through our retail unit. I think there are a lot of opportunities for off-take opportunities in Chile, especially in central Chile. I would expect that if we find the right projects and we are analyzing some projects, this platform might grow slightly farther.
That's something that we will inform as soon as we have something in hand.
Next question from Henry Tarr, Vandenberg. Please go ahead.
Hi there, and thanks for taking my questions. I had a couple. One was just, could you talk a little bit more about the economics of the Greenbox BES projects that you're looking at and how that would break down? What do you see as the main risk for you looking at these tolling agreements? I guess, is it just the physical usage of the batteries or are there other risks that we should be thinking about? Just sticking on pricing, I guess, looking at the PPA pricing and environment. Obviously, you're going through the discussions now with further phases of Atacama, etc. How is the appetite and how are the pricing and returns that you're seeing on those projects as we sit here today? Thanks.
Thank you. I think I will reply here on the basis of Atacama, and I might leave Daniel to reply on the economics of Greenbox, right? Because I think you're very familiar. I have to say, every tolling agreement is different, and the revenue stacks from one market to another are slightly different, right? We might take a different approach, let's say, in Germany from what we might take in Spain or definitely the UK. Anyway, there are many things in common. I'm sure Daniel can give you more visibility. About Chile, again, I'm pretty optimistic. We don't expect similar IRRs in Central Oasis compared to Oasis of Atacama, mainly because the yield of the northern plants is close to 3,000 hours. It means you have a perfect cycling, and we managed to get some PPAs at the right time. CapEx went down quite a lot.
I think the CapEx, and we might talk in other questions about, we feel that the CapEx for BES is currently kind of reached some bottom at the moment, right? We are not expecting to go up, but we are not expecting to go farther down, at least now in the next couple of months. I think the CapEx for solar is going slightly higher, 10% to 15% up. Yeah. Putting these two things together, we still are getting definitely double-digit returns in the Central Oasis projects, right? In the new PPAs in the north, even if the PPA prices will not be in mid-80s like they were at the beginning, even if they're in high 60s, low 70s, CapEx has gone down quite a lot. We are pretty happy with the returns, right? We will be getting.
I leave you, Daniel, with the economics of Greenbox, and just some visibility on the economics.
Okay, thank you, David. I mean, Henry, the revenue stream for a standalone business model depends on every single market, regulated revenue, ancillary services, capacity payment, and the spread day and night. The reality is that for us, and we try to make it simple, especially banks are requesting us to make it simple to have it financed. We, as you know, we are going to try to sign tolling agreements for 8 to 10 years. Remember, be in mind that for Oasis of Atacama, Central Oasis, as we are doing just one cycle per day, charging, discharging, lifetime of the asset might be 25 years. If you are doing 1.5 cycles, two cycles, if you are doing two cycles, lifetime will be half of it, so 12 years.
If you are closing in Germany, a tolling agreement of, let's say, 8 to 10 years, and starting, you know, first year, normally we like to have it merchant. Starting one year after the merchant period while you are connecting in order to avoid any production risk, that means that you are going to have a fixed payment during 90% or even more of the lifetime of the battery. It's going to be really easy to modelize it. We are guiding to more than 12% project IRR in Spain, even capacity payments are not regulated. That is an upside. Whenever we close the tolling agreement, that hopefully is going to be soon, before the year-end, we are going to let you know the way to modelize it. Remember, it's a fixed payment. They are operating the battery. We are selling not energy.
We are selling the service of that battery to our customer that might be a utility, prescalier trading company.
Okay, thanks very much, guys.
Okay. Next question from Flora, Kaisa Bank. Please, Flora, go ahead.
Yes, hi. Good morning. Thanks for taking my questions. On the CapEx you've just mentioned, I was just wondering if you have had any negotiations post-customer increase in lithium. The CapEx in BES, you mentioned that we're probably at a bottom. Can you just explain to us how you see this evolving considering this volatility in lithium prices? To manage expectations, to be clear, do you expect to announce anything on tolling agreements in November release? Secondly, do you have any range of potential level of these tolling agreements? I think that in some discussions, we do mention some numbers that I'm not sure are within the investor base. Just to manage expectations when this is up. Thank you.
Thank you, Flora. I think about the, I'm not sure if we have made an update on, I'm fine with this presentation. You know, lithium prices, they do have obviously an impact on the price of battery packs, right? That's not, I think it's not higher than 50%, 15%, 1%. Even if the price of lithium skyrockets, I don't think it will happen, right? We have seen some increases. I think even the Chinese government directly or through CATL or other players, they were shutting down temporarily some mining activity, right? That's not by chance. I mean, they're looking at increasing the price of lithium because it was so depressed. It's happening, but even if the lithium goes up by 10%, 20%, 30%, the impact is quite limited on the price of battery packs. Let's say between 5% and 10%. There are other factors.
It's basically supply and demand that could move the price of batteries higher. I think EV, electric vehicles, the demand is surging, and that's a factor. Finally, and mainly in Europe and China, other regions, not as quick as they were expected, but we see a lot of oversupply or overcapacity in many factors in China. Also, the gains in productivity are quite impressive. Only, I think the day before yesterday, BYD announced their new product that will be a battery of altogether 14 megawatt hours, like putting two containers together. I think CATL is more betting on the two layers, that it will be a product of 12 megawatt hours. Remember, the first battery is only a year and a half ago were batteries of six megawatt hours. Everything is happening very fast.
They're putting more and more capacity in the same space, and that drives the price down as well. We have seen a sharp decrease in price. I believe the prices will be stable or even could go slightly farther up. I think we will see a farther decline. I think it's a similar story to what we lived in PV, right? It's a bumpy road. It's been going down, but it's been going up, down again. Look, at the same panels, we were paying $3. Now we're paying $0.08, right? Only 15 years later. I think it's a similar story. About the tolling agreements, Flora, we are working, the sooner we have a binding agreement, and we are, I think, quite close, we will announce. I think the first one will be definitely Elena. We are advancing very well in one of, we have three large negotiations in Germany.
I think also we might expect that at least one of these will be announced before the end of the year, right? We will definitely give them visibility. I will try to make an effort to explain to you guys how the economics works. Again, every tolling will be slightly different, geography by geography and project by project. We will really make an effort to explain you.
Next question from JB Capital. Ignacio, please go ahead.
Yes, Daniel and the rest of the team, thank you for the presentation. I have two questions. The first one is on the tolling agreement in Spain. Daniel was mentioning that capacity payments in Oviedo would be on top of that 12% project IRR, which I would assume would be quite a significant upside. I don't know if you could quantify this. If you can give us some color on any regulatory developments that we or that you are expecting in Spain in order for this technology to take off. The second question is just related with the evolution of power prices in Chile. We saw a decline in the second quarter, I believe mostly related with the PMGDs. If you can also give us some color on what's the latest situation there and maybe how are we heading into the second half of the year. Thank you very much.
Thank you. Thank you, Ignacio. Sorry, your second question about Chile, were you asking about PMGDs in particular?
No, the prices. Maybe if you want, I can jump on it.
Okay.
There has been an effect on Chilean prices, both because, first of all, we have a more diversified solar PV matrix. That portfolio means that PMGDs that in the past were more important, now it's not as important as it was before. You know that PMGD, they have a pretty high price of around $65, $70 on average. Now, with more projects selling energy output price or PPA, that means lower on average price in Chile.
I guess the FX, yeah, Daniel?
Exactly. You know we have agreements in dollar and our accountancy is in euro. Our investments are in dollars, but the accountancy currency we have is euro. There has been an impact of forex exchange.
Okay. Thank you. About the tolling agreements, the capacity market, I think some of the large utilities in particular are saying that there's no regulation in Spain for BES and they're waiting on capacity payments. I don't think that's a good way of approaching, in my opinion. The guidance we've given on IRR is completely excluding any capacity payments. I think finally we will see that mechanism published in the next few weeks. At least, I don't know, I think our regulation team is telling me every time I find her, and our regulation manager, she's telling me that, okay, next week, next week. Finally, it seems that we're nearly there. There will be an option at the end of the year, we believe. Don't expect very great upside coming from capacity. That's
Our expectation, right? We'll be lower than many people think. For us, it might be like 10%, maximum 15% upside, right? That's similar to what we are going to see in other markets like Italy and Poland, and nothing to do with the auctions two years ago and a year and a half ago for storage where most of the revenues were coming from capacity payments. Now it's going to be a lot more contenders. I think the auction, the prices offered will be way lower. We believe that capacity should account for 10%, 15%. In Chile, in some cases, it's in the north, it's 15%. It's an automatic mechanism, but it's 15% north, 20% maximum in centralized. This is the way we see it.
Okay, thank you very much. There are no more questions. Thank you very much for attending, and see you in a couple of months in our Q3 results presentation. Thank you very much.
Thank you. Have a great week. Bye.
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