Okay, I think all of us are connected. Good morning and welcome to Grenergy's 9 Months 2025 results presentation. I am Rubén Gómez, Head of Investor Relations. The presentation is going to be led by David Ruiz, our Chairman and CEO, Daniel Lozano, our Chief of Strategy and Capital Markets Officer, and Rocío Fernández, Head of Sustainability Department. They are going to take you through our business, financial, and sustainability review. At the end of the presentation, there will be a Q&A session for sell-side analysts. Please remind you to ask just one question per participant, please. Okay, David, the floor is yours.
Thank you very much, Rubén, and good morning, everyone. Let's start, as always, with the main highlights of our 9 months this year, 2025 results, on slide number three. I'm just going to focus on the main messages, right? Business highlights. First of all, we do not stop on asset rotation, right? That's very important. We keep not only on track, but I think we are definitely over-delivering. We are now more than 55% on our target. José Cabrera and Tabernas, we will see the capital gains. We finally executed the deal in Q4 in October. This will, it's not in these accounts, will be next mesporta with capital gains of EUR 25 million. We're really happy, really on track, and exceeding our expectations, right, in terms of the returns we are making on each transaction.
Another very important point is our tolling agreements, PPAs, new PPAs. You know, these are complex negotiations, right? They need time, all with investment grade, means large organizations are counterparts. It takes, they take time. Once again, we have to say we are very close to announcing new deals, mainly tolling agreements for our Greenbox platform in Germany, Spain, plenty of new PPAs coming from Chile, some from Peru, and our first PPAs in the U.S.. I am very sure we will spend a lot of time in the next presentation in February explaining all the new deals that we will be announcing in the next few weeks. Talking about operational highlights, we are also very on track. 2.1 GW of solar and 5.5 GW hours of BESS in operation and under construction.
At the end of this year, we will be very close to reach 7 GW hours of BESS connected. This is very remarkable. Once again, this is close to, in terms of GW hours, it is close to all installations in the U.K. combined. The U.K. is the most mature market for BESS in Europe. You know, I think it is something we are very, very proud of, what we are achieving in Oasis de Atacama. Our pipeline, I think it is a very amazing figure, 75 GW hours. We will give more details now. It is more or less 50%-50%, 50% standalone, 50% hybrid plants. One of the most important messages of this presentation is that out of these 75 GW hours, 8 GW are having upgraded to advanced development in the main markets, in six markets, European markets that comprise the Greenbox platform.
We will make an effort to give more details on the platform in the next slides. Let's not forget, it's not here, but we're still a solar company. We have close to 12 GW hours of solar. Most of these plants are already hybrid. Again, we are living a completely new reality with the massive introduction of BESS in our markets in both formats, whether it's standalone or whether it's hybridization with PV. Very proud of our roadmap of ESG. Rocío will give you many more details, right, later on in the presentation. Financial highlights, and I will leave this to Daniel, but it's, I think, a very impressive set of results. We are really on track. New CapEx, EUR 300 million in the quarter. We are above EUR 700 million of new CapEx.
That means we are going to be close or even a little bit more than EUR 1 billion for all the years. It means we are really on track for one of the main KPIs that we outlined in our Capital Markets Day that we were about to invest EUR 3.5 billion in the period from 2025 to 2027. I think considering it's only the first year, we are really on track. Net debt, Daniel will give you a lot more details. I think it's well below the sector, the industry average. Moving to slide 4, this is just the full picture of our platform overview for hybrid, BESS, and standalone. We'll give a lot more details in the next slides. I think it's worth highlighting that there has been like a sharp increase in hybrid solar plants in Chile and Peru.
We strongly believe that there is a great cycle coming up in Chile with data centers, mining, new government. We believe we need to have the right staff three, four, two, three, four years from now. It means a great greenfield effort now on our side, right? You will see a sharp increase in new developments in early stage and identified opportunities in these markets. In Europe, once again, the fast evolution of the standalone pipeline from early stage to advanced development. As you see in the right-hand side in the maps, you can see that in Europe, we are betting a lot more for standalone plants in comparison of Greenbox platform, whereas in LATAM, mainly in Chile, we are betting a lot more in hybridization, right?
The best, we are talking about BESS in both cases, but in one market, we're focusing a lot more in hybrid plants. In Europe, we are focusing a lot more in standalone plants. Moving to slide six, again, very happy to get more details in the Q&A in any particular market. Like every quarter, we give a lot of information about the situation of our pipeline, whether it's solar, whether it's hybrid. Moving to the next slide, Oasis de Atacama, we show here, and it's already becoming a classic in our presentation, right? The evolution of our Oasis de Atacama platform, then Central Oasis platform, and the platform in Spain, which for the moment is just, it's just Escuderos. We believe there are great opportunities for hybrid plants in Spain as well. Now we're talking about hybrid plants.
Talking about Oasis de Atacama, as you know, the total platform is 2,000 MW, 11 GW hours, right? Overall, we are executing really well. We are very happy, above expectations. Out of the 11 GW hours, we have already at the end of this year executed close to 7, which is, I think, very remarkable. We are normally doing it a few weeks and sometimes a few months ahead of what we are saying. Kiewa 1 and 2 is fully operational now. It is out of the pipeline. It is being completely delivered to KKR, and it is performing really well. Victor Jara is phase 3. It is now ready, connected, and also is working pretty well now at full speed. It will be completely delivered to KKR before the end of the year. Gabriela is phase 4. Mechanical completion is completed, right?
We are ready to start injecting energy in early January. COD at the end of Q1, latest April. You know, this plant, we will transfer this plant to DIF, DIF, CVC. Once it's fully operational, COD, we're estimating this to happen latest in April, April, May next year. All their revenues belong to us until that moment. Elena 1, which is 3.3, well, 3 GW hours in point of interconnection. This is the single largest plant in all the Americas in one single location, right? It was Moss Landing in California before, but now it's Elena. Also, all the battery packs are on site. We're estimating also to start storing energy in early January. All in all, we are very, very happy with the performance of the platform.
We are about to start construction of Antofagasta and the second phase of Elena, second or third quarter of next year. Moving to, you know, we give plenty of highlights of all the main milestones. Again, very happy to, a lot of things are happening, financial closings, M&A, executions. Very, very happy to get more details in the Q&A. Moving to Central Oasis, you know that the size of the plant is 1 GW 4 GW hours. We are now very close to, you know, the Gran Teno & Tamango. This will be one single financial close. I think it might be announced even before the end of the year. We will be executing at full speed during 2026, right? These plants will be operational, I think, before 2026 ends, right? Next step, next one will be Monte Águila.
Monte Águila will have a similar approach with PPAs than Gran Teno & Tamango. I think it's next in the roadmap of financial closing. We might even mandate very soon. We are estimating to get the financial closing at the end of Q1. In any case, we have already ordered trackers, and we have started some preliminary works on site. That's the situation of Central Oasis. Moving to Escuderos. It's our first large hybrid plant in Spain. I think it will be the starting point, really flagship for us. It will be the first, one of the first large hybrid plants hybridated in Spain. As early as July, August next year, we should be storing already energy from the first phase of Escuderos, right? We are also in negotiation for hybrid PPAs or as an alternative with tolling agreements for the BESS.
Remember, we have an existing PPA with [gal] for the solar energy, but this is fully compatible with a tolling agreement. It is something because it is a financial PPA, and it is something that can coexist with a tolling agreement. The moment we have something closed, we will let you know. Moving to Greenbox. I think it is important we spend more time explaining to you our strategy for every market. On slide number 13, here the main message, we know as we already advanced, we are moving quite fast in the six markets, right? Italy, Spain, Italy, U.K., Poland, Germany, and Romania. I think time to market is very important. We are exploring all opportunities to move as fast as possible, right? In the next slides, we are diving more in detail on Greenbox and on each of the six European markets.
We try to give more information, right? Our estimations on each market, potential for BESS, the pipeline we have, and, well, the main dynamics of each market, upcoming auctions, capacity payments, government plans. You know, for every market, basically, it's going to be revenue stacks are going to be coming mainly from energy trading, ancillary services, and capacity marketing. If there is a capacity market in place, like is the case of Italy, as we can see in this slide, and the U.K., they already have existing capacity market mechanisms. Spain has for a very long time announced, I think finally we will see the capacity auction in Spain in the first quarter of next year. We believe, and all the industry believes, that Germany will have similar mechanisms.
Anyway, the IRRs we are giving in Spain and Germany are not considering any revenues coming from capacity payments. So whatever we get there will be an upside and will increase our IRRs. I think once again, we are given here the number, you know, in Spain, we have Oviedo project. We will see in another slide that we will start construction very soon, I think as early as January next year. Mechanical completion will be completed in October, November 2026. Hopefully, the plan will be fully operational at the end of the year. This is really our flagship standalone project in the Greenbox platform. We are working in many other projects. We are also looking at many buy-side opportunities in all the six markets where we are, mainly in Spain, Germany, and I would say Italy.
We are analyzing some [Maxi Granted] projects to mix them with we are looking at opportunities in Germany. I think we will announce some buy-side deals in Spain. Again, we will do the best we can to accelerate the story. Yeah. I'm very happy to speak in more details about any of the markets. Just before I hand over to Daniel, this last slide, we try to summarize a quick review of the latest of the last deals we've closed and how successfully we are executing the roadmap. We are basically executing what we outlined in the capital markets day, but I think with higher returns than expected. Remember, in capital markets day, we estimate an average of 1.3x enterprise value invested capital. And, well, we are now reaching 1.6 on average.
We just executed the deal in October of the transfer of close to 300 MW in Spain to Allianz for EUR 273 million. You know, Gabriela, we announced this deal also very recently that will get executed in April, May, latest next year, which is a COD deal. The deals you know very well of Kiewa and Victor Jara that we keep executing, right? It still has a strong impact in our P&L during this year and even next year with their earnouts. Again, the main message is right now with the equity proceeds we are getting, we're exceeding 55% of our asset protection targets. We might expect to see new deals coming from now, mainly non-strategic assets like PMGDs in Chile or distribution assets in Colombia. We might see some M&A coming very soon from these funds. Thank you very much.
I turn now the call to Daniel for the financial review.
Thank you. Okay, thank you, David. Let's take a look at the company operational performance. That, again, are excellent results. We will keep with this trend in the coming period. First of all, in the key operating data, there is a decrease in total installed capacity by 4% because of the split asset rotation in Chile. You will see that the gross addition in megawatt hour now is 2.5 GW hour. That will be moved to close to 8 GW hour by year-end, thanks to Victor Jara and Elena that will be there. Regarding production, there is an increase of 32%, mainly driven by the Chilean asset, as well as Escuderos. There was some contribution from Tabernas and José Cabreras that were sold in Q4.
We expect a positive EBITDA contribution and net debt reduction in that period. Contracted volumes increased by 55% and represented 88% of our total electricity production. That is clear. We have a conservative approach to the energy say we have. Realized price decreased slightly to EUR 43 per megawatt hour from EUR 44 per megawatt hour, impacted by Forex dollar-euro difference. On the right-hand side, you can see a summary of the key financial KPIs, which we will review in coming slides. Moving to next slide, total revenue September 2025 amounted to EUR 687 million, representing an impressive increase of +147% year-on-year. This growth was largely fueled by M&A transaction and as well the energy production we had. GR Power Division showed an increase of 103% driven by organic growth. Finally, services increased by 20%.
The asset rotation we are having are also producing operation and maintenance and contracts to the place we are selling the asset. This is also moving up. The EBITDA for nine months 2025 was EUR 111 million, representing two times the amount we had last year and was mainly boosted by M&A activity. Remember that in Q4, we are going to have around EUR 75 million impact coming from the deal we have just closed with Allianz regarding Tabernas and José Cabrera. Moving to the next slide, CapEx. This is impressive. We are doing EUR 713 million in nine months. This is driven by, as you can see, Oasis de Atacama, some project that has been sold, an hybrid project that we are building for ourselves, like Elena. The remaining CapEx is invested mainly in projects in Spain, like Ayora.
There was another EUR 28 million coming from development initiative in our three regions where we are creating pipeline. In slide 20, again, we ended with a very solid cash position of EUR 346 million. Even though we had our record CapEx figure till now of EUR 713 million, that is the main outflow in the cash flow. There has been some financial cost and taxes, EUR 40 million, changing networking capital, EUR 34 million, and impact of Forex of around EUR 45 million. Financial debt was mainly project financing coming from the announced project financing of Elena and rest of hybrid asset in Chile. Other debt is referring to vendor financing related to the acquisition of Elena to Repsol and Iberdrola. We ended with a very solid cash position that will allow us to keep investing during the coming periods. Moving to next slide, leverage and liquidity.
Our net debt stood at EUR 1.047 billion because of the CapEx increase that we had. However, our net debt to EBITDA stood at a level of 4.9 times and corporate 1.4 times. If we include the two projects, José Cabrera Tabernas already delivered pending proceeds from Oasis de Atacama. The last announcement we had about the sale of phase 4, Gabriela, net debt will stand at EUR 322 million. On a pro forma basis, this ratio will drop to 0.7 and corporate even positive to minus 0.5x . This shows how quickly we can reduce this ratio after asset rotation that we keep self-financing growth by doing that. That is all for my side. Now, Rocío is going to explain the main messages about sustainability.
Thank you, Daniel. Good morning, everyone.
I invite you all to follow the details of the progress in sustainability matters during the third quarter of 2025. We are immersed in the second phase of the ESG Roadmap 2024-2026, and I am pleased to announce the important goal that we successfully accomplished in this quarter. The climate transition plan within the climate change dimension was updated and approved by the management committee. This plan, now considering our business model of PB++, includes several decarbonization actions to be implemented in all our projects and offices. What is more, it details the inversion needs in accordance with the requirements of the CCRP. Apart from that, do not forget some other achievements during the past quarters, such as the elaboration of the climate change and biodiversity policies, as well as the corporate social management plan.
Moving on to the next slide, regarding our position in ESG ratings, I would like to remark the fact that Grenergy keeps on leading the ESG performance according to the most prestigious ESG ratings. Okay, excuse me. I would like to remark the fact that Grenergy keeps on leading the ESG performance according to the most prestigious ESG ratings. During the third 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 Effy Finance. Also, remember the greatest scores that we got this year in S&P and Sustainalytics updated in the past quarters. Sustainalytics keeps on considering us in its low-risk area, and S&P recognizes us as the top 16% global in the electric utility sector, above sector average.
Moreover, we were listed in the IBEX ESG index, and we got an I- in CDP Supplier Engagement Assessment. Last but not least, just mentioned some other ratings such as CDP Climate and MSCI that have not been updated yet, so we will give you further information about them at the end of the year. That concludes my update. Thank you very much for your attention.
Thank you very much, Rocío. We are now moving to the Q&A session. Please, if you have any question, raise your hand. First question from Fernando García, RBC. Please go ahead.
Good morning. I think that you can listen to me. Thank you for the presentation and for taking my questions. David, it looks like with the 3 GW hour of Elena, we will contribute significantly to most of 2026 results.
Could you provide us with an estimate of this asset's contribution to its first year of operation in terms of revenues and EBITDA, along with the main assumptions behind these numbers? Linked to that question, could you remind us in terms of asset rotation gains that have already been committed for 2026? Joining the two answers, I would like to follow up. Current consensus for 2026 for EBITDA stands at around EUR 240 million based on potential asset rotations in 2026 already committed, plus the operating performance of the company. It is safe to say that this figure is achievable even before including any additional asset rotation gain. Many thanks.
One second because we are going to unmute David.
Okay. Is it good now?
Yes. All right. Now perfect.
Okay. Thank you. Thank you, Fernando.
Thanks again for your questions.
We don't give guidance year after year. I leave that maybe to Daniel. We've given guidance for the three years. Anyway, I can give you some information about Elena. Elena is a game-changing plan for us, obviously. Just let's keep in mind that the EBITDA we can get from this plan is maybe close to two times what we are currently getting for all the legacy projects, right? It is a completely different asset, right? We might estimate, considering from January, let's say from February, we may be able to transfer 1.1 GW of energy from day to night. Now we are expecting to charge the batteries using energy that is currently in most of the months of the year. It is a zero level. We are even curtailed in that part that the moment there are more batteries, this will eventually change.
I think from 2026, we will be charging at very low prices, and we will deliver the energy in 70s, 80s, or even 90s, right? We see plus capacity payments, right? I think we can see EBITDA between 70-80, even close to 90 for 2026, right? We will be full merchant 2026. We are securing PPAs from second semester of 2027. We will refinance. We will build the remaining PV. I think this plan from 2028 will be a different animal where we will charge and we will be delivering both solar and now there is only an existing 77 MW plan. That's the case for Elena, and we are very excited. We are really reinforcing our energy management team now in Chile because after all, from February, we are handling the largest battery in America.
We need to be ready, right? Because every day counts, right? I think there are also promising ancillary services markets in Chile that are only starting. If we manage to get there earlier first, we can get very interesting upsides, right? Ancillary services, pre-consumer regulation, the new markets that we are going to be able to approach with batteries in Chile. About the total figure for 2026, I think the estimations you are giving above 200 are in a sense correct because only considering our new energy EBITDA with Elena and the legacy projects, we are going to have three or four months of Gabriela revenues and other plants that are getting operational at the end of the year. I think the EBITDA of our energy division will be maybe three times bigger than 2025.
Plus the build-to-sell activity that for sure we already have in second quarter at Gabriela, that I think it's going to be still get to be close, but 120-130. This is just from Gabriela, and we might expect other M&A activity. I think your estimations are correct. We will try our best to overdeliver. Yeah. Many thanks.
Thank you.
Okay. Next question from [Anna], UBS. Please go ahead.
Yes. Hi. Can you hear me okay?
Yes. Hi, [Anna]. Hi. Thank you for taking my questions. Two from me. Can I ask you firstly on you've moved this almost 8 GW hours of standalone BESS into advanced development, and you give quite a helpful indication of the returns by country, but a decent proportion of this is in Poland and Romania, where you haven't given any guidance on returns.
Is there anything you can kind of say as what you expect there? Is it better or worse than some of the other countries or kind of in line with the, I guess, 8-12 is kind of the broad range for the others? That's the first question. Secondly, can you give a bit more detail on the developments in the U.S.? I know this kind of at the time of the CMD was still a bit of a question mark, but you've moved quite a substantial number of the projects into the backlog, and you've got the first kind of trial standalone projects under construction already. Can you talk about how the market's developing there and why you've kind of or how you've been able to progress those projects, I guess maybe a little bit more quickly than we expected? Thank you.
Okay.
Thank you very much, Anna, for your questions. The six markets where we are for the moment considering for a Greenbox platform, we are in different, we have always said that, well, obviously, we are starting in Spain, where we have a local market. We have plenty of visibility. We are about to start, I think, in the next call. We already, albeit on plan, will be under construction. That is a very important milestone for us. I think many more standalone plants will come in Spain. We have outlined here in the presentation in Germany the most advanced projects that we have developed in-house. You will see these three projects, [Renton, Summer, and Klein]. We are looking at buy-side opportunities very actively, right? I think it is, and again, in Spain and Germany, it is complex negotiations again, but we are in a very, very advanced stage.
I think we will announce first tolling agreements definitely before next call, but I believe that some of them even before the end of the year, right? We are currently advancing into negotiations in Spain and in two, three in Germany. We have plenty of visibility on the IRRs, most of the inputs, and we are very confident in giving these IRRs. Moving to U.K. and Italy, we are in a different stage, but while the U.K. market is very mature, there is very important action for capacity in first quarter that we will participate with several projects. This will give us visibility on this input, right? It is not enough in the U.K. You need to combine many other revenue stacks. I think we are working on it, but we are confident giving these. We are talking about project IRRs in any case.
Maybe the U.K. will be the lowest, the market with the lowest IRR, but still we see a consistent 8%-9% considering our CapEx levels, right? In Italy, again, we are looking at our we are advancing. We have plenty of projects coming up to advanced development during 2026. Most of our portfolio will be ready to build at the end of 2026. We expect Italy to be a very active market from 2026 onwards, right? I think we are looking at Italy more through tolling agreements than through MACSE awarded projects, right? The reason we are not giving an IRR for Poland and Romania are the less mature projects, less mature markets, sorry. We want to make sure we have all the inputs before we give you an estimate for the IRR. In Romania, we are expecting a higher.
Should it be double-digit or we will not go ahead in Romania. I mean, we see that this market has a higher risk than the others. Poland is a very stable market, even if it's not in euros. At the end of the year, there's this option for capacity payments. I think it's on the 5th of December. There is also the CapEx plan that we have submitted some plans. I think considering these two inputs plus some tolling agreements conversations we are having, in some cases in euros, in some cases in zlotys, I think in the next call, we might be able to give a guidance on IRR in Poland. In Romania, I think it's a more, I don't want to say exotic, but we need to make very, very sure before we give an IRR, and it definitely needs to be double-digit. Yeah.
About the U.S., we've been working very hard the last year. It's been kind of a roller coaster, right? The U.S. market. I don't think it's been that bad at all at the end. I mean, we have been able to safe-hover all our portfolio, all our projects. We have moved the first three projects to backlog, meaning that we are ready to invest these projects. I think these projects will be executed starting second semester of 2026 and mainly 2028. Whenever we give the guidance for 2028, I think the U.S. will be an important and in particular, we have moved to backlog three projects, Beaver Creek, Shubura, and Creek. Yeah. In Beaver Creek and Shubura, we already signed PPAs agreements. In most cases, they still are pending approval. One case by Mississippi Public Service Commission and Georgia Public Service.
All in all, they're effective, completely binding PPAs. We are very optimistic now with the U.S. market. If you had asked me a few months ago, I would say, "I think the projects are safe-hover. I think we can approach 40% IPC levels." The market is very active, but we want to make sure we do things right in the U.S. I mean, we rather prefer to go step by step. Whenever we have more information, we will. Right now, we are securing, we're closing, mandating the banks for the tax credit. We are also for the construction loans. We are closing all the, we've closed already trafos and inverters for the safe-hovering. We are also closing the EPC agreements. In this case, we're working with external counterparts. We also decided to execute two small distribution projects in the U.S.
It's been just a couple of months, and we have successfully executed. I think those projects will be placed in service before the end of the year. Altogether, each project is only 25 megawatt hours. I think total CapEx is around $14 million-$15 million. It was very important for us to develop construction capabilities, transferability for tax equity, and that's it. Those projects will be initially merchant, and eventually, we will move them to a tolling agreement.
Okay. Next question from Bank of America. [Blake Alexander], go ahead.
Hi, good morning, and thanks for the question. A couple of ones from me, please. The first one is just on the phasing of PPAs and also tolling agreements.
You're very confident about signing some tolling agreements in Germany and Spain before year-end or in the next few weeks, which a few weeks might be actually into next year, more than year-end. I just wanted some clarification on that. Are you thinking about tolling agreements? I suppose maybe on Oviedo, we can have one before year-end, but then moving into 2026, perhaps for your wider platform. Are you thinking about tolling agreements being project-specific or being platform-specific? I mean, are you thinking about something perhaps wider with a partner across Europe or across an entire country, across many countries? Interesting in that idea. The second one about PPA and in particular, the [L&R] phasing, I think perhaps a year or so ago, we would be thinking about trying to close PPA quite early and then executing with a very de-risked profile.
Are you delaying or perhaps having those PPAs being signed later than COD, a function of the market being not necessarily the right one right now to sign PPAs, not getting the right prices in Chile? Are you thinking that the opportunities are so great right now in the market that you'd rather be merchant and earn a lot right now and then secure a PPA and perhaps an asset sale later on? The third one, it's not going to surprise you that I need to ask something about data center because everyone is talking about it. I cannot make but notice that I haven't seen a slide about data center in your presentation.
Any kind of assets, I think, in Spain that we can think of, I suppose there are some market expectations that you could have similar grid consumption, self-ride consumption in Spain as some other player, at least. Or if you're already working on the pipeline there, are you thinking more about partnering? Are you thinking about selling energy? Are you thinking about power and sale? Any kind of color on that would be super helpful. Thank you.
Okay. Thank you, [Alexander]. Gracias. Okay. Try to be very specific. Your first question is about PPAs and tolling. First of all, we love announcing deals as early as possible, right? Normally, on the other side of the table, we have larger investment-grade organizations that need to go through many committees. We only announce one deal whenever it's fully executed and whenever it's binding. I don't know.
I still believe we are 27th of November. I still believe that we might announce something before the end of the year, right? Because there are one or two deals that are really, really in the final execution phase. If it's not the end of the year, it will be definitely before next call in February, right? I think the more important thing is that we get the right tolling agreements, the right PPAs, because a bad executed PPA is not an easy thing to deal with, right? According to our experience, we want to make very, very, very sure. We've been closing PPAs for more than 10 years now. We want to make sure we make as few mistakes as possible, right? About the approach, you are right. Greenbox, you might think more as a platform tolling agreement.
We might reach an agreement between us and the staker, right? We have some flexibility on the projects, right? I don't know. I can give you an example. In Germany, we might close a tolling agreement for 500 MWt hours. Then we can nominate some projects. We are always going to have the flexibility to change if there's any issue or any delay with one of the projects. We can exchange and use another project because normally, the staker doesn't really care about any specific project. They do care about us delivering when we have promised in the deadline, right? It will be more a platform approach. I think we'll do the same for financing. We will not approach the financing project by project, but as a package, right? Maybe country by country.
Even with some stakers, we are talking now four different markets. It is the case of Germany and Spain. At least two of the large stakers we are working with, we are having conversations in the two markets, Spain and Germany now.
Okay. About PPAs in Chile, I think we will also announce several PPAs before the end of the year or in the next few weeks as well. Many of these PPAs will relate to Elena and to Algarrobal. Okay. We are very confident. We believe there is an upside being merchant for the first year. We also believe that, keep in mind, some of these PPAs are getting close to our retail unit. There will be a PPA between a retail unit, your power, and Elena, eventually, right? Together with other external PPAs. Elena is quite a large project.
When we approach the refinance of this project, we have three years to do it, but I think we will do it earlier. I think we'll put together a large PPA with our retail unit that is already closing PPAs with delivery in Elena, plus external PPAs at investment grade as we have done. We are working with very confident. We are closing smaller PPAs with our retail unit. I think whenever we close something larger, we will make it public. As I said in the presentation, I think in February, we will spend a lot of time explaining the new PPAs coming from Chile and the new will be mostly for hybrid plant and the new PPAs coming from our Greenbox platform, mostly tolling agreements in Europe.
Data centers, we have been working five years in storage, and we only announced to the market our strategy two years ago in our first capital markets day. It does not mean that we are not into data centers. We see great opportunity in data centers, but we like to keep it more quiet. We will include some slides on data centers eventually at one point. I think Chile is a fantastic place for data centers, right? It is less mature than other markets like Spain. I think there is a great opportunity for data centers in colocations, you said, both in Santiago, and I think the real deal might be the north of Chile where you get the most competitive energy in the world, right? 24/7 energy for $40 or even more than $40, you can do self-consumption. I think it is a fantastic place.
There are many services that AI needs that they can be located in remote areas, not just training AI, but many other services. I think we're working on it. Whenever we have more visibility, we will give you more information, right? I also have to say that countries like Spain, I see kind of a bubble in data centers, right? I don't think there may be 14,000-15,000 GW of data centers applied. I don't think it's going to happen, really. Maybe maximum 4,000-5,000 till from here to 2032. We also see some bubbles in some particular markets, right? That's my point of view.
Thank you very much. Please remind you to ask, yes, one question per participant, if you don't mind, okay? Next question from JB Capital, [Nacho]. Please go ahead.
Hi, David.
Daniel, thank you for the presentation and for taking my questions. I was wondering on the platform upgrade on Greenbox, okay? What drove you to upgrade the platform materially? What are the, let's say, tangible points or the performance that you've seen in the last couple of months that led you to increase this number? Still here in Greenbox, I'm looking at the returns that you are seeing or expecting in Spain, which are well above all of the other geographies. I am wondering why there are not more projects in this country. Is there anything that's preventing you from developing more projects in Spain, either permitting or you're just waiting to have a better view on regulation? Just a quick question regarding CapEx, okay? I haven't seen any slide on the presentation on the evolution of CapEx.
If you could give us, David, a quick update on where you're seeing now the prices for storage.
Okay. Thank you. Thank you so much. Moving to the, I mean, why you can see more advanced development projects. It's a natural way of things. We always say that and where in countries like Spain, you traditionally needed like four or five years from identifying opportunity to advanced development. I think invest is a faster period of time. Anyway, in some cases, we've been working three years like Italy for the projects that are advanced development now. What does it really mean, advanced development? Just to make it simple, you basically need to make sure you have the grid. That's normally the most difficult thing. You've got land, secure, lean. And you want to make sure you have no issues with environment and communities.
Basically, we are very demanding. It's something that a project that is advanced development is a project that we'll get ready to build in the next 12 months, right? This is when we can take a decision of moving that project to backlog, right? We move one project to backlog whenever we are fully sure that we can execute this project. I think we are giving a 90% probability, but traditionally, it's been more than that. In very, very few projects that we've moved to backlog, it hasn't happened, right? Why no more in Spain? We love to have more projects. Look at the early stage and identify the opportunity figure. This is in megawatt-hours. You have to divide by four if you want to look at MW. This is everything we could grab in Spain.
We roughly got 1.2 GW, 1.3 GW of standalone projects. In Spain, so far, 8 GW have been granted for standalone projects. And we've got a good share, I think, around 15%. But keep in mind that the problem in Spain is that most areas, most nodes were completely saturated. So we had to apply in very specific regions like Asturias or the islands or some parts of Catalonia and Basque Country or Galicia where there was some capacity, right? And so that's the reason we are looking. But we are very active in the buy side. So I think we will announce some new I don't think we'll make a press release for every project we buy. But you will see more in advanced development next person. And maybe it will be from third parties. In fact, if you look at the Oviedo project, it's 150.
We originally had only 100. We purchased 50 from another developer next door. We are negotiating some extra 100 and another one. We try to create those clusters in the places where we are working, yeah? Your last question about CapEx, I think remains stable right now. I think it remains stable. It is not slightly going up. I want to think that it remains stable. We saw very sharp decreases. I think we see stable price. At the same time, there are gains of efficiency announced, mainly from CATL and BYD. I believe that eventually, 2026 will be a pretty stable year. From 2027, my expectation is the prices of BESS will go down again. That is my expectation, right? You never know. It is a supply and demand market. Now, demand is way higher, right, in many markets. Production capacity is huge.
I think we're very, very surprised about how fast, especially the main players, mainly CATL and BYD, are announcing new. We are using now containers for 6.5 MW hour per container, where only when we were starting this was only 4. In a matter of 24 months, 50% more efficiency. We're very surprised about that. It never happened that fast in solar. It took pretty longer to these gains of efficiency.
Okay. Next question from Mediobanca. [Beatrice], please go ahead.
Yes. Good morning. Thank you for the presentation. I have a more general question, let's say, or follow-up if you want on CapEx and standalone. I was wondering, looking at the European markets, and particularly on the level of prices, I was wondering what level of CapEx flexibility does the company have if somehow standalone project returns came out not satisfactory?
In other words, to what extent is the company prepared to adjust or eventually slow down investments to maintain return discipline and reallocate capital to possibly initiatives with more attractive risk-return profiles? Thank you so much.
Thank you, Beatrice. I think it's a very interesting question now. We do have plenty of flexibility. I think considering how fast this is happening and how BESS is transforming the industry at such a pace, and now everybody's recognizing that we're in a completely new scenario, I think we need to remain flexible because things are changing a lot from one market to another. We want to make sure we have the right menu so we can pick up the right capital allocation. It's great that we have plenty of options, right? I would say that for us, hybrid plants in Chile, it's one market by itself.
It's the most important market. It's the market where everything has happened earlier than others, right? It will not remain forever at this speed. Again, in Chile, we are becoming a utility, and we have other sources of revenue. That's going to remain a very important market for us. We have Spain, where we believe that there is very good opportunity for hybrid plants. There is a business case, and we're working very hard. Our first one will be Escuderos. If numbers work, we will try to buy more projects and to hybridize, same as we have done in Chile with Elena, yeah? We've got six markets for Greenbox. We might eventually include some other market in the future, but for the moment, I think we are fine.
We believe that considering our pipeline and the tolling agreement negotiations in Spain and Germany, we get better returns now and quicker. The U.K. is more mature, but I think now numbers are working again with the lower CapEx capacity options, plus all the other revenues you can make from the battery, especially considering we are reaching a pretty low CapEx, maybe GBP 100,000 all included. That is really a new scenario compared to previous best projects in the U.K. We are very flexible. We want to make sure we get the right returns, and we can update our strategy or adjust our strategy pretty easily, right? Flexibility, I think, is the key right now. A company like ours, even if we get bigger, we need to make sure we remain flexible because I think it is one of our key advantages.
I would like to add, Beatrice, that we are not going to invest just for investing more. Investment allocation is a key element for us. We have very good returns in all the markets where we are in Europe. We are now targeting double-digit returns. It's more than what you need, and the cost of capital is lower. But 100% investment allocation, we'll look for just a profitable project, and we are going to just invest on that.
Okay. Next question from Oddo. [Anis], please go ahead. We're unmuting, Anis.
Yes. Do you hear me?
Yes. Now perfect.
Yeah. Thank you very much for taking my questions.
One and one. Okay. You may take two. No problem.
Okay. Thank you. First one on Greenbox. And could you explain the main drivers behind the lower BESS IRRs you are seeing in expecting in Italy?
Could you give us some details about the nature of the takers you are discussing with? The second one is on the U.S.. I have just a follow-up question. What makes you now more optimistic on the U.S. market? Is it related to good level of prices we are seeing in the U.S. and high demand from data centers that could compensate for tariffs, which heavily impact CapEx? Thank you.
Thank you, Anis, for your two questions. We give in IRR, we are talking about project IRRs. We give a wide margin, and that changes with time. In Italy, we are waiting for most of our pipeline to be ready to build at the end of 2026. It is quite a lot. Most of the pipeline now is still in early stage. Some have been moved to advanced development. We are getting ready for it.
Italy has been more a Maxi or auction-driven market, mainly based on, well, Maxi is kind of a tolling but given by Turner. There is some outside. We saw the results of the auction, and the returns were not as high as some expected, right, or previous auctions. It also depends a lot on each one's CapEx, right? I think keeping a very competitive CapEx is now the key, yeah, because the market is getting more mature. In Italy, we are getting also mainly for another project in the north, several tolling agreements and very similar to the approach we will do in Spain. From that, we get this range of IRR between 9%-11%, whereas in Spain, it's above 12%. It's also that we are considering a slightly higher interconnection on CapEx cost in Italy compared to Spain. We've been slightly more conservative there.
That might explain a little bit because the tolling and the hedge agreements we are getting for both Italy and Spain for standalone projects are pretty similar in the same range, yeah? We are also analyzing some Maxi awarded projects in the market, but that is like a separate range. There are some projects from developers that got the Maxi agreement in the auction that happened last month. That is what we are given in Italy, this range, yeah? The U.K. is more mature. Some people would say, "No, we are looking at IRRs of 6%, 5%." We are more optimistic. It all depends on what you definitely need capacity payments to make it happen in the U.K. It is not like Spain and Germany where we are considering it as an upside. In the U.K., we do need it. You do need it in similar services. You need to do trading.
We are not targeting four hours. Putting all together an optimal level of CapEx, we can get that high single digit, which is what we expect in the U.K. Talking about the U.S., why the U.S.? They need plenty of energy, right? That's very clear. I think even if the current administration was really against renewables and energy transition and all that stuff, the truth is that, according to some estimations, the U.S. needs like 100,000 MW per year of new energy just for the AI, just for the data center industry. It has to be solar. It has to be solar and BESS. That's very clear because wind projects, they have their own problems. New gas turbines, they're going to need—they're giving delivery dates for five, six years from now. Still, in many cases, are not competitive against.
That is why whether the administration likes it or not, it is happening. Finally, the tariffs, they have not been that bad. It is okay. We are now proceeding with 25% of tariffs for some components we are bringing from Europe that we did not have before, mainly trafos from Siemens or inverters, converters from Power Electronics in Spain or in the team. We are using a lot of European—the rest of components are made in the U.S., so no tariffs at all. There is an impact. Again, we are seeing higher PPA prices that are compensating, like $10-$15 higher than before. I do not know. All in all, I think it is a market with its own dynamics, but I think we are a lot more optimistic with the market. Again, we want to make sure we make no mistakes and we do the things at the right time.
We have moved these three projects, only these three projects on the pipeline to backlog. We think it's more than enough to meet our expectations for this market for 2028, maybe.
Okay. Next question, and the last from Alantra, Fernando Lafuente. Please go ahead.
Buenos días. Good morning, everyone. Just two quick ones from my side. The first one is on CapEx. David, what is your outlook of CapEx for this year in absolute terms and also for 2026? How heavy should look the year in terms of investments? The second one, it's a follow-up on capital allocation and your comments you made before. You are a buyer in certain markets. Could you consider also disposals at some point, and what would be the main candidates to be sold? In that strategy, potentially similarly like other players, could you consider adding partners to the development?
I'm thinking of probably Greenbox, but in any other of your asset portfolios. Thank you so much.
Thank you, Fernando. Okay. When you say CapEx, it is the end of September. We are above EUR 700 million. I think at the end of the year, we will be close to EUR 1 billion, if not more. It really depends on the execution speed now of Elena and Gabriela, right? That is, and I think next year, we will be above EUR 1 billion. The guidance we are giving is EUR 3.5 billion for three years. I think we will somehow accelerate from this year. I think eventually, there are opportunities for acceleration. I think whenever we give the guidance for 2028, we will give you the figure. We are so happy at the speed of execution.
I think very few companies are executing more than EUR 1 billion of new CapEx per year. We are on the level of a different league, yeah? I don't think you can compare Grenergy with some peers in the slide, but you have to compare this with larger companies that are investing in generation. If you are not considering networks, very few companies are investing above EUR 1 billion. I think we might be one of the companies in the world which is investing more in storage, right? Because more than two-thirds are either standalone or hybrid plants, the storage part of the plants. Disposals, well, we've got, again, very clear opportunities in countries that are not that strategic, like Colombia, and type of assets that are distribution assets. We might see a deal in Colombia soon.
We might see a deal in PMGDs in Chile where we still have 200. We are working on it. There might be—our team keeps bringing opportunities in Chile. We might see if any of the platforms, whether it is the northern platform, Oasis, or Central Oasis, increases, might be an opportunity for more disposals. I am not expecting anything in the very short term, but we might see also opportunities for disposal there, right? We also have in Spain a Jara plant, which is the last PV plant. We transferred all the others. We have Scuderos, but we are hybridizing that one. A Jara might be potentially a project that we might either hybridize and keep it in a balance sheet, or if there is good opportunity for rotation, we might also go ahead.
Bringing partners and investors to Greenbox, I do not think it is necessary at the moment. We have EUR 350 million in cash in our balance sheet plus all the rotations that we are getting. That is more than enough to remain independent, approaching our Greenbox platform and go at full speed. If at one point we do see that it brings real value, bringing in a partner for 49% or whatever for one particular market or all the platform, that is always a possibility. I think we are going to see how the—we are going to execute. We are going to execute first and talk later, right? I think it is something that we have always been doing pretty well. I do not think it makes any sense for us to close a partnership when we have plenty of cash to do it ourselves.
Thank you very much, all of you, for attending.
See you in late February with our full year results presentation. Thank you very much. Thank you very much. Have a great day. Thank you.