Good afternoon, everyone, and welcome to Solaria 2024 Annual Results Webcast. My name is David Guengant, the Head of IR of Solaria, and I'm joined today by Arturo Díaz-Tejeiro Larrañaga, our Chief Executive Officer. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. During this presentation, we'll begin with an overview of the result and the main development during this period given by our CEO, Arturo, and following this, we will move on to the Q&A session. I would also like to advise that you have to submit all your questions via the web. Thank you very much, and I will now hand over the word to Arturo.
Great, David, and thank you to everyone joining the conference call. We are going to start, like always, fast around the presentation and then Q&A session. Of course, we have the first slide, this new era of growth, because I think that Solaria, as you know, is moving the business model. Now we are involved not only in the generation business, in the solar and wind generation business. We are moving our business to other parts, other new developments, real estate business associated with renewables, energy and data center business. That is one of the key parts of our future strategy during the next five years. We are going to start, and we will explain. First, results, more than EUR 200 million of EBITDA, and I think that we accomplished with all the financial numbers that we mentioned to the market in previous results presentations.
We maintain and even increase some numbers like EBITDA. As you know, last year was extremely tough from the price of electricity point of view, and it's something that obviously has affected our numbers. But even with this hopeful situation from prices point of view, we have maintained and even increased revenues and EBITDA numbers. And we achieved more than EUR 200 million of EBITDA. That is a good number, and it's according with our projections. 2025, we reaffirm our EBITDA target for 2025, and we will try during this call to give more visibility to this EBITDA target. But we have established the EBITDA target for 2025 between 245-255. Generia, we continue constructing. We are living a rush hour around construction. As you know, we are involved now in the construction of more than 1.5 gigawatts of capacity, especially focusing in Spain.
And in the short term, during this quarter, we are going to add additionally other gigawatts. We have today more than 3.1 gigawatts of capacity ready to build, and we will start construction soon during this year, probably. It's like globally, Solaria, probably in one year and a half, we will have a completely different photo of the company, situation and photo of the company, with several gigawatts functioning connected to the grid. Probably we will be the leader globally in Europe from a solar perspective, and especially obviously in the Iberia region. We continue with our strategy of hybridization with wind and with batteries. Today in Iberia, from a wind perspective, we have a global portfolio of 2.2 gigawatts, and that we'll start construction in the next years, and that we are going to combine with the solar technology that we have constructed in these connection points.
And at the same time, we are investing money, and we are investing in the development of batteries and in the inclusion. We want to include in all of our projects, especially in Spain, batteries and wind. It's a global combination of technologies that will support a lot, especially supplying electricity to final customers. Business, new business that we have opened, and we have explained in previous conference call, Genergia. We have signed a pre-agreement with an infrastructure fund, a U.S. infrastructure fund that will cover an increase of capital inside of Genergia of EUR 125 million. It's something that secures completely the growth of this company. As you know, today the assets that we have inside Genergia are full equity. We are going to receive a cash position of EUR 125 million for the 50%, and we will combine with debt that we will add to Genergia.
We think that in the next two, three years, the growth of this part of the company will be incredible. We are extremely excited with this new company that we made two or three years ago, but finally we are obtaining results, and we'll see a strong growth during the next three years around energy. Data centers, you know, today in Europe, all the people are talking about data centers and the growth of data centers, the enormous demand that will generate the data center players. Probably Solaria is the leader, one of the leading companies in Europe associated with data centers. We have a lot of demand points, and we will explain during the presentation. Of course, numbers, as I have mentioned, we increased the production, we increased the sales. It's in an extremely hard and tough year from a price point of view.
As I have explained, we maintain numbers and even we increase. And the explosion from production and sales and EBITDA point of view will come probably in 2025, 2026, because we are going to add massively an enormous amount of megawatts. And it's something that will have a serious impact in our numbers in 2025 and in 2026. And all the efforts that we have made during the last three years for developing, for constructing, we will see the results during this year and next years. Of course, resilient EBITDA, we maintain and even increase the EBITDA if you compare with 2023, with two problems that have impacted seriously our numbers, especially the price of electricity, as I have mentioned before, and the new tax approved by the government, 7% of our revenues, that has affected our OPEX cost, but it's a serious impact.
This year, this 2024, was EUR 7 million, and probably in this year will be much more. Investments, we have done an enormous amount of investment. We have invested an enormous amount of CapEx, and we maintain the level of cash. We continue using project finance structure. We have increased the project finance, and we will increase during the next years according with our construction reading. Our financial debt, as you know, is 93% project finance, fixed interest rate, 13 years of tenor project finance, residual tenor lifetime. Of course, EBITDA, the EBITDA of 2025, especially focus on 2025. We have estimated that during this year we will have an approximately average price of electricity of 45. As you know, we combine fixed price under PPAs and merchant price, that is around 35-65 approximately, and we have estimated 45 of merchant prices, average price.
I think that sounds good today because we will talk about the evolution of the price of electricity, but today we are satisfied with the situation of the price of electricity, solar price of electricity, and at the same time, our infrastructure business continues growing, and the combination of both results gives to us the number of 245-255. We haven't included nothing extraordinary here, nothing associated with energy and nothing associated with data center. Of course, evolution of capacity, this is the key point. As you know, after a lot of delays during the last years, we are now involved in a massive construction period, and hopefully during this year we are going to incorporate to our balance sheet more than 1.4 gigawatts connected to the grid, that it will be an enormous complete change.
We are going to change completely the face of the company from 1.6 to more than 3 gigawatts, and only in a few months, and we have included here a quarterly connection report, and it's something approximately, but we will try to advance, but this is an approximation to the quarter connection of megawatts that we will execute. Of course, we have included 2026. As I have mentioned, we have received, especially during last year, an enormous volume of ready-to-build permitting process. Today we have a lot of projects that could start with the construction. I have mentioned that in the short term we will start with 1 gigawatt of new capacity that we will start with the construction, and probably for the second half we will add additionally more than 2 gigawatts of new construction capacity.
It's an enormous effort that we are making for achieving the position of leader in renewables in Europe, because what does it mean at the end of 2026? We are going to have more than six gigawatts connected to the grid. Power price, you know that second Q, especially first Q of last year, second Q was hopeful from a price of electricity point of view. Last quarter of 2024 was good with really good price of electricity. First quarter is in a great situation. We have included here the average price in the market, not the final price that we received, but it's the average price in the market. In January it was EUR 85, in February EUR 78. It sounds like if you compare with 2024, it's completely different the situation. Our March forward is positive.
I think that even could be better than the number that we have included here in this slide, 48. Sounds like this year probably price of electricity will stay in a better position and a better situation, and it's something that obviously affects seriously our accounts. Batteries, you know that the Spanish government has changed the law. Now we are able to include batteries. It's a good step, an important step, because you know that in the past to establish batteries, it wasn't forbidden, but at the end of the day, from a technical point of view, you weren't able to connect batteries for different reasons, for technical law. They have changed the law. Today it's possible to install batteries, and the good point is that at the same time, government is going to establish a new capacity market.
I think that we will see globally in Spain installations, massive installations of batteries in different PV assets, and we will participate, obviously, and it's something that will extend hours of sun radiation at the end of the day, because we are going to be able to sell electricity more hours than in the sun hours only. Wind, we continue thinking that the perfect hybridization is with wind, and we have today permitting process on site for 2.2 gigawatts, that it's a lot, and probably we will receive ready-to-build permitting process during this year and next year, and we will start with the construction of wind parks. That is extremely important in our global strategy. Genergia, you know that one year ago approximately, or one year and a half, we showed to the market Genergia ID and business plan.
Honestly, I think that it wasn't including any analysis report or valuations. But we believe strongly in this business area. We think that this real estate is a combination of real estate and renewables. It has a lot of sense with really good levels of project IRRs. We started with a process to attract a partner around six months ago approximately. We have received, it was a great surprise, because we have received strong interest from the market. I don't remember if it was nine or 10 proposals from funds, serious funds globally from all over the world showing strong interest to entry in Genergia, like partner with 50% of the shares of the company. In the last part of the process, we decided to work with two players, and finally we have decided to sign with one infrastructure player from the United States.
We are today under due diligence, and hopefully in two, three weeks or four weeks, we will close the deal, and of course we will start with the business plan of Genergia. Our intention in Genergia is to develop, to acquire massively land in an extremely short term, to grow the company, and probably in a normal and logical period of time, that could be three, four years, to sell the company and to obtain strong profits associated with Genergia. Data centers, we have included several slides. I'm not going to lose too much time explaining this. I think it's interesting to understand the situation of data centers, especially in Spain, especially the concept of self-consumption, because players that use self-consumption data centers point, they are going to save money in the PPA price. They are going to obtain electricity with lower price. It's extremely interesting.
I think it's an important advantage for players of data centers. It's something that we saw a long time ago. A long time ago, it was 18, 24 months. We started to work over there, and the good point today, Solaria is the global leader from connection points or consumer points for data centers. We have today more than 600 megawatts. Probably in the short term, during March or April, we will confirm additionally more megawatts. Probably we will pass one gigawatt, and we will achieve 1.5 gigawatts of data center connection points. It's really good because we see a lot of value inside this company, this new brand, this new business plan, this Solaria Data Center. In order to explain correctly, Solaria in the data center field, in the data center business, is the power and land supplier to data center players.
We are the energy company that will supply power, land, and PPA to the data center companies. We are not going to stay involved in the data center technology. We are going to be the supplier of connection point, consumer point, land, and the PPA. It's a business that doesn't require CAPEX. It's a business that will generate cash. Today we are in the market, talking with all the players of the market with strong interest, and we have five agreements signed that are under negotiation and under due diligence with some of them, executing due diligence, and we are satisfied. We have obtained, as you know, because we have announced in the last weeks, we have obtained two important points in the last weeks in two locations, in Madrid and in Basque Country.
I think that in the short term we will report more connection points, more consumption points for data centers, and we think data center strategy will give a lot of cash to Solaria and will give a lot of positive news in the short and medium term. I think that we are starting two options, two business model options, because we have received strong interest from infrastructure players, infrastructure funds that want to enter directly in the shares of the Solaria company, in the Solaria Data Center company with 50%, and we are receiving strong interest from specific players involving the data center business that want to acquire assets of this company, and we will report to the market as soon as we close firm agreements, and hopefully I think that during 2025, first half, second half, we will report a lot of good news around data center business.
Of course, we have included several slides that it's interesting to see and to understand that when you are using self-consumption points, you are going to save money in your PPA. As I have mentioned, today we have a good volume of capacity secure ready to be sold, and hopefully in the short term we will add more. And I think that I have explained. I think it's timing for delivery, and we are on it. Of course, the growth of data centers, you know perfectly. Probably Europe, as always, they are moving with delay around this business. In the United States, we are living a crazy hour around data centers, and we'll continue. And in Europe, we are in a significant lower position if you compare with the United States. But we are obligated. We are obligated to establish data center.
At the end of the day, the European Union knows that if you want to manage data from the citizens of the European Union, you are obligated to establish the data center in Europe. And I think that has a lot of sense with this obligation to establish in Spain. Spain is a really good hub from a price of electricity point of view, because we have a really good price of electricity. We have a lot of renewables installed, and we have really good grid, exceptional grid and connection capacity. It has a lot of sense for Spain and for Iberia region to establish massively data centers. And we will see the evolution in the short term, but we are extremely positive about the growth of this business. And Solaria today is probably the leading company around data centers from provider of solutions, energy solutions.
We are the key guide, the key platform in Europe. We are going to continue growing, and not only in Spain, globally in Spain, in Italy, in Germany, in all the countries that we are involved. And our portfolio request, as you know, is 2.4 gigawatts. And as I have mentioned, March, April, we will report more new connection points, and you will see. Of course, I have mentioned we have today under negotiation a lot of deals associated with connection points that are today inside our balance that are confirmed. Probably these connection points will grow, will grow a lot, but today we are negotiating around these connection points with different players. Always tier one, always the same concept, power, land, and PPA. We go to the Q&A session.
So thank you, Arturo. We will now open for Q&A session, and once again, thank you for your time.
Just let us stay one minute, so the first question comes from Fernando Garcia from RBC.
First question, I think we already answered, was it? What is our power price assumption for 2025 guidance? It's 45 for merchant prices. Second question from Fernando is, do we expect all the 455 megawatts with construction completed starting to feed to the grid during 2025? If we can disclose maybe more info regarding this completed 455 megawatts and when they will be connected, and then the last question is maybe how we will finance all this plan of PV hybridization and DC with a cash position of EUR 54 million. About the connection schedule, I think that we have included a slide with the exact connection schedule of all the PV assets. I think that it's public information, and I think that it includes a lot of details.
About the situation from a cash point of view and if we are going to be able to finance, I think that we have exactly the same cash position than probably last seven years. Unfortunately or fortunately, I don't know. But today the cash position is better. We have received a lot of project finance payments, especially in January, February, but it's not significant. Nothing strange. It's according with the schedule. But you know that we are covering our CAPEX with project finance. It's something that we have done in the past and we continue doing today. And I'm not including here nothing exceptional from a cash point of view. If we receive, we will see. If we receive exceptional cash, we will use, but not for the construction process. Next question coming from Daniel Rodriguez from Bestinver.
Have you signed any PPAs for the 1.4 gigawatts currently under construction? How are we funding the construction? As you know, we have today agreements with our banks that cover all of our construction phase project finance based on merchant prices. But as we announced approximately two years ago, and we continue with the support of European Investment Bank following the same principles. But about PPAs and if we are going to cover, you will see in the short term. I think that as we have repeated in all of our conference call, we think that it's reasonable to maintain 70% under PPA, 30% in merchant basis, and it's something that we are going to maintain in the short term. But today I think that we have a lot of good news over the table, good results, good new agreements. Next days we will give more positive news.
On PPAs we will give more positive news with new customers and in good conditions. But I think that we are not obligated by the banks today to sign PPAs. It's something that we decide to do. Next question coming from Manuel Palomo from BNP Paribas. Part of the question I think we already answered. What we expect in energy sales for 2025, I think Arturo just mentioned that it's 200 megawatts and with a merchant price of 45 EUR, so you can do by yourself. And next question from Manuel coming from the rationale behind the impairment reversal for the Puertollano factory. Is there any specific signed deal backing such a reversal in Puertollano? Answer is yes. But we are talking about results 2024, and in 2025, first quarter, we will report information associated with 2025. And yes. And the other question was around the merchant.
Okay. Next question from Manuel, maybe the last one, is, can we share some view about financing? Are banks for the new financing? Are banks keen to finance merchant assets? I think today, obviously, banks, and I think it's reasonable. I completely agree with them. If you work with merchant, they are obligated to be extremely efficient on CAPEX. What does it mean? They are comfortable on merchant basis, but you need to include more equity. This is the key point, and in the past, I saw some project finance covering 0.8, 0.9, even 1 EUR per watt. Today we are not on this page. Today banks are covering close to 0.4, 0.45, sometimes 0.35. If you are not efficient from a CAPEX point of view, you need to allocate more equity. This is the key point.
At the end of the day, merchant basis or PPA is more equity or less. With PPA, if you have correct prices on PPA, obviously, you have to include in your deal less equity, theoretically. But in our case, as you know, the actual situation with our banks and with our lenders around project finance, they are covering 100% of our CAPEX. Next question coming from Jorge Alonso from Bestinver. First, can we give some color regarding new PPA in Spain, volumes and prices? Second is battery, as a standalone or co-located? Third one is, can we give maybe some economics regarding the battery, or is it trading? If we expect some PPA with solar and batteries, and in this case, what could be the PPA price level? Curtailment, curtailment in 2025 or expected in 2026. And maybe your last one from Jorge, wind.
Pipeline, timeline, when we expect to see some wind turbine in our project? New PPAs, I have in previous question, I have answered, probably in the short term we will give color with the signature of new PPA and new PPAs. And we are negotiating big volumes with new players, exciting new customers that trust in ourselves, and I think that it will be exciting deals. But we will see. It's 2025, first quarter, and second quarter. Prices, we are talking about PPAs that could start depending on the player, but 2027 sometimes, first day of January of 2027, talking about 36. And batteries, if we are working with standalone or co-located, in order to answer fast, in Spain, we are going to use our solar capacity, our merchant capacity. What does it mean? In order to answer your question, it's co-located. Okay?
It's not exactly co-located, but I understand your question. It's co-located. In other countries, like for example, Germany or Italy, we are working with a standalone concept. Not only, I think that even United Kingdom, it's interesting for batteries with a standalone concept. In Spain, I think it's not necessary, at least in our case, we have a lot of sun capacity, solar capacity, and we have merchant exposure because we are going to maintain always at least 30% of merchant exposure, and it has sense to use our co-located batteries with our solar plants and trading new PPAs for energy, solar, and batteries. Unfortunately, today the problem, like always, is license and permitting process for batteries. It's extremely simple, but even being extremely simple, we need to receive the positive answer from the authorities for our batteries.
Hopefully, I think that during the next quarter, we will report information about ready-to-build concept around batteries. But it's still too early in our view to sign PPAs because we don't have visibility about this ready-to-build concept on batteries. Curtailments, as you know, the situation I think it's improving. Obviously, if we increase demand, especially that could come from hydrogen, from data center, is something that could reduce in some points the curtailment effect. As you know, in our power plants, it's not one of the key problems because it's something that is affecting especially Andalucía and Extremadura regions. Unfortunately, we don't have plants in Andalucía, and we have not too much capacity in Extremadura. In the place that we have massively volume of solar plants, Castilla y León, Castilla-La Mancha, we don't have curtailments. Wind, I have explained, 2.2 gigawatts on the hands of the ministry.
They decide the reading because we are ready to start with the construction or whatever. We want to start now, but we need to pass through the Ready-to-Build process. What does it mean? One year, one month, six months, one year, we need approximately this period of time for receiving Ready-to-Build concept. Next question coming from Philippe Ourpatian from Oddo. First question is, is our EBITDA 2025 guidance still integrated EUR 25 million of capital gain? The second question from Philippe is, what are we thinking about Solaria valuation between becoming private or remaining listed, looking at the trend of the stock price? Of course, it's complicated, not always from a legal point of view to talk about these kinds of things. It's complicated.
But in order to mix both, I think that today we are in a blackout period, as I have explained in the last conference call, and it's difficult to start with a capital gain in the extremely short term. And this link with your second question, to become private. The company is always receiving unsolicited proposals from third parties. And I appreciate a lot the interest inside in the company. I think that it's extremely interesting because the stock market is not recognizing the value of the company. Honestly, I think that to stay today in the stock market hasn't got sense. It's stupid because people are not focused on valuation or if data center is going to go. They are focused on global issues. And you know that our colleagues, especially renewable energy companies, they are extremely affected by the U.S. new government.
You know that there are a lot of impairments that come from the offshore wind in the United States. But unfortunately or fortunately, solar is not involving the United States. Solar is not involving offshore applications, wind applications. And unfortunately, because I think the United States is a great country, but unfortunately, we don't have business in the United States. Europe continues supporting the growth of renewable energies in all the countries, I think, and the growth will continue. But obviously, the stock market doesn't differentiate too much, and we are all in the same box. And my view is today public markets are not recognizing value to the renewable energy companies. What could happen? We will see. We will see. And we will see. Next question is coming from Henry Tarr from Berenberg.
Are we seeing any barriers to connect the 1 GW of capacity that is under construction today this year? The second question is how we will finance the 3 gigawatts target for new 3 gigawatts target for 2026. The last question of Henry is, do we think that the introduction of storage into the Spanish power will help to push average capture solar price higher? 1.4 gigawatts of capacity depends on ourselves. We are constructing today, and we are trying to push all the subcontractors in order to advance the connection because the price of electricity is really good. I think that this year we will see a really good price of electricity, especially in the summer. We are pushing all the people in order to connect as soon as possible. It depends on solar today, not barriers, not third parties. It's our work.
We are constructing all together, and I think that we have achieved a good reading, and we are trying to improve. But during this year, we will try to make all of our efforts in order to connect as soon as possible, as soon as possible. We have given a strict schedule, and we are going to accomplish, and we'll try to improve. About the financing of the three gigawatts, I think that probably April, we are going to announce a global deal with project finance banks that will support this new construction process. I think that, as you know, we have global agreements or master agreements with some entities like European Investment Bank and other players.
Probably they will be or not, but probably they will be involved in this new deal, and we will continue with the same players' banks that have supported solar during all of this period. I'm not nervous around this. The batteries that could affect the price, we need to see. We need to see. Obviously, it's like today we are able to sell electricity six, seven, depending on the timing, winter or summer, six, seven, between 10 to six, seven hours per day. And with batteries, we are going to extend this period. Obviously, it's serious. It's something that could affect not only solar PV technology. It will affect wind, will affect nuclear, will affect gas, will affect all the players because with batteries, we are going to be more efficient, and we are going to be able to sell electricity more hours per day.
Next question is coming from Victor Peiro from GVC Gaesco. Can we elaborate a little bit more regarding the batteries project and how we are already signing procurement of batteries? Yes. I think that we are going to start with one project of 50 megawatts. Probably in the next weeks, we are going to announce with a supplier a new deal of batteries and the destiny of these batteries that will be allocated in the first half of this year. It will be construct, allocate, and connect in the first half of this year. It's not too much because it's 50 megawatts, but it's not that. It's the beginning. It's the beginning of this new revolution associated with batteries, and it will happen in the first half of this year. Next question is coming from Marina Garcia for Morgan Stanley. Capacity addition.
How many megawatts have already received all permits from the administration? And the second question is, what level of production do we expect to have in 2025 to reach EUR 245-255 million? I think we already answered this question. It's roughly an average capacity of 2,000, and the load factor is above 1,800 hours. And for the first question, if we can give more color about permitting for this 2025, 2026. Permitting except wind is on site. We have a permitting process ready to build except wind that I have explained that probably during this year we will receive positive answers. And the other part is ready to build.
It's something that depends on the announcement that I have mentioned of project finance structure, new project finance structure that we are negotiating now with really good interest rates if you compare with last deal signed by Solaria, and that we will probably report to the market. It depends, but April could sound reasonable. Maybe your last question from Fernando Lafuente from Alantra. In addition to Generia and this subsidiary, are you planning asset sales related to the pipeline as we did in 2024? And the second question is, can we refinance merchant project finance once the asset is in operation? No. We are not planning to sell assets, not at least today. We think that we will receive strong cash from our data center business. It's a revolution inside the company. I think that Generia, with this deal, it's in a well-financed situation for the growth.
And Solaria, with all the project finance and all the situation, it's in a well-financed situation. I think that it's not necessary to rotate assets or similar. We will see if the price evolution of the assets has sense. It could have sense if the price is good. If we obtain really good prices, it could happen. But today, honestly, we are completely focused on growth. Growth is Generia. Growth is data center business. Growth is new generation. Growth is new countries. People that stay at the same time in different fields at the same time usually make a lot of mistakes. And probably next CEO in this company in some years will start to sell a lot of assets, and he will be an expert on the money, and he will rotate a lot.
My job here is to grow, to grow using not too much cash because we are poor, as I always explain. And my job is to consume not too much cash and to grow. It's a difficult combination, but this is my job today. And the refinancing process, it has a lot of sense because interest rate is in a different situation today. It has sense to make or to execute a refinance process for some assets, especially because some of them, they have repaid a lot of debt, and they have a really good situation from volume of debt, but not rushing this. It will happen. We follow the message of ECB, the European Central Bank. We think that in the next quarter, we will see a positive evolution of interest rate reductions, additional reductions, probably slower pace than predicted, but positive reduction of interest rates.
It could make sense to make a global refinancing process. We are not extremely worried about this. It's something that could happen in the future, but honestly, it's not something critical for us today or in the next quarter. It could happen if it has sense from a price point of view. Thank you for joining today's call, and I will hand over the word to Arturo to close this call. Thank you very much.
Thank you. I think that thank you very much for being part of this conference call. As I have mentioned, it's a really tough time for renewable energy companies globally. It's not sexy today, renewable energy technology, especially in the United States. I don't care too much about this. At the end of the day, I care about generation of cash, good business with good project IRRs.
It doesn't matter if it's this or this other or if it's exciting the market with this or this other. I think that if you are able to generate good cash and good project IRR, it's a good business. Around renewables today, you have a lot of new business that are burning, like data center business or this real estate business. And generation, it's in a better situation than one year ago, I think, new countries. And as I always have explained, I don't see as negative as the market the price of electricity for the future. And we will see the evolution. So thank you very much.