2022 full year results webcast. My name is David Guengant. I am the Head of IR of Solaria. I am joined today by Arturo Díaz-Tejero Larrañaga, our Chief Executive Officer. During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectation as of today. During this presentation, we'll begin with an overview of the results and the main development during last year given by our CEO, Arturo. Following this, we'll move on to the Q&A session. I would also like to highlight that you have to submit all your question via the web. Thank you very much again. I will now hand over the word to Arturo.
Thank you, David, and thank to everyone joining this conference call. I hope that all of you and your families are keeping healthy and well. Of course, we will introduce our 2022 results presentation. We will move extremely fast, and then we will pass to the Q&A session, you know. Of course, Solaria, 2.8 gigawatts under operation and in construction process. I think that's, with this number, Solar, Solaria today is the global leader in Iberia region from photovoltaic point of view, no, from photovoltaic technology point of view, no. Full visibility, we have full visibility of our target for 2025, 6.2 gigawatts, no. We have installed 1.5 gigawatts, and we have operating 1.5 gigawatts.
Probably from operational point of view, we are the leader in Iberia, as I have explained, and we have 2.5 gigawatts of new environmental permits on site. That is a great successful that we achieve, as you know, on January of this year. It's an enormous amount that will be developed and construct during next two years, no. We will explain during this conference call. Of course, new connection points, 7.7 gigawatts of connection points. It's an enormous amount of connection points that give a strong level of security of our global target for 2025, 6.2 gigawatts, as you know, no. Of course, numbers, you know. I think that during the last five years, Solaria has demonstrated that we have really good capacity for growth and for having or for developing a healthy growth, no.
We are improving our numbers per year, not only revenue, EBITDA and net profits. From EBITDA point of view, we have achieved EUR 147 million. It's an strong number if you compare with 2021, more than 70% of growth. It's the same in net profit, EUR 90 million. Practically, we have double the number if you compare with 2021. We have demonstrated during last three years, and I could say during last five years, that our ROIC is a number that is growing per year more than 38%, if you analyze from a compound point of view. Of course, we have included in our presentation, like always, new flagship projects that will secure our growth for the next years.
We have achieved, we have announced to the market on November of last year, we have achieved a new flagship project in Álava in Basque Country, 1.3 gigawatts. We have secured, as you know, in the past years, large projects in Garoña, in Cifuentes, in Villaviciosa, in Trillo, of different sizes, 600, 700. This project of Basque Country that is split in units of 50 megawatts could be the largest solar project in Europe, 1.3 gigawatts. That is enormous. Advantage and this action in our CapEx. Of course, this is one of the key points of our presentation. As you know, we are raising during last year, we have raised an enormous amount of money of project finance, and one of our key partners was the European Investment Bank.
We have good news for the future. European Investment Bank is going to continue the way with us, no, and they have approved a pre-agreement of EUR 1.7 billion, you know. It's something extremely important for us because it's giving visibility to our pipeline for the future, our growth and our construction growth, no. They are going to cover 50% of the total amount of the project financed by deal, and it's a great deal based on merchant basis that could include PPA, and it's a great opportunity for us. We are extremely happy with this deal, and we are extremely happy with our collaboration with European Investment Bank. As we have include in the slide, this amount will be split in different countries, Spain, Italy, Portugal.
It's still early to explain, obviously, Spain is going to focus the main amount, the most important part of the amount, of close to 5 gigawatts. This global deal will include assets in Italy and in Portugal. Of course, we are outperforming the sector, I will move extremely fast around numbers, production, sales, EBITDA, net profit, we continue growing. It's important to say that we have achieved more than 1.4 teras of generation. It's an enormous production of energy. We have growth 63% if you compare with last year. This is extremely important. More assets generating. Probably the 2023 revenues will demonstrate our enormous capacity from generation point of view, no?
I think with that, with Trillo and with other assets that we are going to include in the first half of this year, the amount of generation that we will present at the end of 2023 will grow a lot, no? We will continue having significant exponential growth during next years, no? Revenues, EBITDA, net profit, I have given some light about this, net profit continues growing. That is extremely critical for us. As you know, it's not only an issue of growth, it's an issue of healthy growth with profits generating cash, no? We have grown from EUR 48 million to EUR 90 million, no? EBITDA margin is critical at the same time because we have improved few points from 85% to 88%.
It's important because as I always explain, no, it's not only an issue of CapEx, it's extremely important the OpEx. This is not something that you do and you forget about it. You need to stay all the time over the assets, no? You could improve the photo if you improve the OpEx cost, no? In Solaria, with more volume, with more assets connected to the grid, we are going to improve more the OpEx in the next years, no? Of course, cash position. This is extremely important, no? Last year we did enormous effort. We made enormous efforts from investment point of view. We have invest enormous amount of cash. Here, more than EUR 300 million, we maintain and even we improve cash position inside the company, no?
It's like, as we always explain, we are covering all of our CapEx with project finance. We maintain a really good ratio, EBITDA, net debt/EBITDA, no? We will explain in next slides. Critical point for us, we have invest EUR 331 million, and we maintain a cash position of EUR 150 million. Hopefully this year, with more megawatts generating cash, probably even we could improve a lot the cash position at the end of the year of the company. 96% of our debt is non-recourse debt, critical. Project finance structure, as you know, our growth is based on this, and this is critical because no limitations associated with debt. We are not suffering limitations associated with debt because project finance give to us the opportunity to grow without limits.
The average cost of debt is reasonable, 3.1 fixed interest rate. As you know, today, interest rate are growing, but we maintain a extremely good and reasonable level of interest rate, no? This year, like past year, we have improved our rate, our ratio net financial debt versus EBITDA. This is critical, no? Because growing, adding new assets, increasing our investments, increasing our debt, we improve our ratio, no? It's something that we'll, we will do again in 2023, no? Of course, significant effort, no? I think that we are one of the companies in the renewables space that are not executing increase of capital or similar because we are extremely efficient from cost and CapEx point of view. This is the critical part of our business model.
If you are efficient on CapEx, obviously you are not going to increase capital or you need [equity], you know? This is the critical part of our business plan. We have invest close to EUR 800 million during last five years. We are improved our CapEx per year, even with inflation situation, the this moment that we are living with strong inflation in all the sectors. We are improving our CapEx, and we maintain a really good cash position. Hopefully, as I have explained, during 2023, we will improve more the cash position of the company because we will have more assets generating cash, no? This is the, one of the key points of our strategy, as you know, no? CapEx. All years we are extremely focused on this issue, no? That is critical for Solaria, no?
Today we have a CapEx of 0.42 EUR per watt. It's not bad. As, I think it's probably the most efficient CapEx in the market. Not a surprise because all years we have achieved the most efficient CapEx on the market. We want to improve. We want to improve, and in 2023, our goal, our target, is to improve this 0.42 EUR per watt, no? It's important to make efforts in order to improve the CapEx and in order to improve the OpEx inside the company, no? Of course, from OpEx perspective, the economies of scale that we are achieving is extremely important, no? More projects allocating same, these similar areas or around close areas is something that is giving some advantage from OpEx point of view, no?
Project IRR, as you know, we promised 12%. We have in all of our projects more than 12% of project IRR. Yet for 2030, to be carbon neutral, I'm completely sure we will achieve, no? In this point, we will be extremely ambitious for the future, no? Of course. Solaria, no, in Iberia region, no? We are the leader from number of megawatts connected to the grid, from construction point of view. We have installed new capacity. We have done an enormous effort, especially in the second half of this year. We have construct more than 700 megawatts. That it was an enormous effort. If you compare with previous year, the number was around 250. This year is 700. Hopefully, this 2023 we will do more than 1,000 megawatts.
It's like rhythm of construction, permitting is improving. I think that hopefully during 2023, 2024, 2025 especially, we will see a [gross order] from construction point of view, from new assets, for introducing new assets in our balance. It's like problems. We are solving problems of the past around license process. We are optimistic about the future, no? From global numbers point of view, we have today a lot of projects under construction, some of them acquiring materials, transformers, substation construction, substation, waiting for final approvals or final permitting process that will come in the next month. As you know, government approved two years ago a law associated with pipeline. First step of the pipeline was the approval of environmental permit. That was done on January. That was achieved on January.
Now they have six months for giving final permitting process. I'm completely sure we will achieve in all of our pipeline successful on this point. On six months, we will be ready for constructing a global volume of megawatts of 2.5 gigawatts. What does it mean? This is important when we talk about our business plan until 2025. We have today 1.5 gigawatts finished and connected to the grid. On the way for being connected close in the next month, more than 500 megawatts. We need to construct in the next two years, 2.5 gigawatts that will receive final approvals before June of this year. What does it mean? The company will have more than 4.5 gigawatts before the end of June 2025.
Of course, link with my comments, here you have the detail of the details of all the projects that are under construction or with permitting in different states. The key points is that all of them will receive final approvals in six months, before the end of June 2023, and we will have two years for constructing all of them, no? This is one of the reasons because we have raised with European Investment Bank this enormous deal of EUR 1.7 billion, no? Why? Because we need to be ready for constructing an enormous amount of gigawatts during the next two years, no? It's exciting. It's extremely... I think that it's one of the key parts of our business plan, and I'm completely sure we will accomplish, you know?
In this slide, we have include all the details of our projects. Obviously, we have a strong visibility of our global target of 6.2 GW until 2025. Points secure. Of course, this is the future. We are not thinking only in our target of 6.2 GW for 2025. We want to be more ambitious than this. Obviously, we need to secure connection points. On this point, I think that we made a really good job during 2022 with new projects secure, Basque Country, Catalonia, Castile and León, Portugal. It's like, as you know, it's extremely difficult today to find good location, good connection points, and good land, and we did during 2022.
It's something that give to us strong level of security that we will continue growing after these 6.2 gigawatts, no? This is critical. Hopefully, the projects could entry some of them before 2025, no? Now all of these projects are on the way or are on the developing way, and they will obtain permitting, environmental permits, and all the different permits during the next one year, one year and a half. Massive growth in European Union. This is extremely important, no? I think that you know that United States, they have approved a Inflation Reduction Act that it's extremely ambitious global project for United States. I think that European Union needs to give an answer for this, and they need to approve something, no?
We are talking with them, with authorities from European Union. They are completely convinced about this. They want to be ambitious. I think that they need to be. They have spent subsidizing the will of consumers, of European consumers during late last 18 months. They have spent EUR 750 billion subsidizing. It's incredible. The only solution for them is if you don't want to depend on third countries, sometimes out of European Union, you need to invest in industry, in renewables, and in solar, no? They are going to approve something that could be the answer to United States Inflation Reduction Act, no? First step probably is associate, as you know, with European Investment Bank. They are going to allocate EUR 45 billion for supporting the growth of renewables.
It's the first and initial step, no? We will see next movements, no? Of course, as you know, the ambitious plan of European Union includes 50 gigawatts per year for Europe, no, for European Union. We are allocating countries that are going to grow according with a reading of 30 gigawatts per year, no? In our view, we are allocating the most important countries from solar point of view, photovoltaic point of view for the next years, no? Spain, Italy, Portugal, Germany, no? These countries are betting seriously for solar, for renewables in general, but especially in solar. We have great position. We will give more information about our European Union expansion in the, in our presentation of June. I think that we have a comfortable position today in Europe.
We are focused on Europe, as you know, no? We think that is the place to be from price of electricity point of view, from expansion point of view, from supporting point of view, for reside from European Union, government from European Union, no? Of course, we have good experience, good roots inside these countries. Probably Solaria is the best in class from CapEx and OpEx globally in the solar world, no? Of course, last slide is for defining that on June we will explain our movement money, but we will give details of our pipeline, of our situation, and hopefully of our future successful on these countries, no? If you want, we could pass now to the Q&A. I will now hand over the word to David.
Thank you, Arturo. I will now open for Q&A session. Once again, thank you for time. Fortunately, there is a lot of interest, so we will try to answer to all the question. If not, please send to us an email. Just let us one minute. The first question come from Fernando Garcia from RBC. On the 25% of merchant exposure, does it include the assets to be commissioned in Trillo in early March and the PPA expiring with EDF? Second question, could we provide some details on the financing with the European Investment Bank, timing, rates? Finally, can we provide a strategy on PPAs?
Thank you for the question. Yes, Trillo includes PPA, and the EDF has expired during 2022 and is not functioning in 2023, no? Trillo is under PPA agreements, no? The European Investment Bank, its lifetime of the debt is 10 years. Basically, it's based on merchant concept, but we could include PPA, and it's something that could modify conditions, no? It's still too early to talk about conditions because are for projects that will be developed and construct during next quarters, even in next years, no? Conditions could change, no? PPAs, our strategy, difficult to say, you know, because market is changing all the time. As you know, last tender process of the Spanish government was done using prices limit of cap, limit of EUR 45 per megawatt hour. Nobody entry on this deal.
Today price of PPA is around EUR 50 per megawatt hour, we have the possibility to sign and of course, as I have explained always, we have a comfortable position, we will decide. We could sign, we are negotiating, we don't have emergencies around this. It's like with the correct price, with the correct payer, we could sign. As I have explained, the financing that we are raising is merchant basis, that could be improved with PPAs. We will see, no? Of course, merchant exposure, no, the % of merchant channel exposure. I think that is reasonable to maintain our ratio of 30%: 30% merchant, 70% under PPA. This is something that sounds reasonable for us, no?
Obviously, we are flexible, and it could be some years 35 or 32 or 33, but 37 is reasonable for us.
The second question is coming from Alberto Gandolfi from Goldman Sachs. First question is regarding construction. Of the 1.3 gigawatts under construction, how much could arrive by year-end, and how much next year? Next question is, what is the permitting pass on the 1.7 gigawatts that have already received environmental approval? How long do you expect this to be? The last question is regarding Europe RIA. How much is this Europe RIA driving your European vision? Quantify market share and how will you fund it?
Of course, 1.3 gigawatts, probably 500 megawatts or 0.5 gigawatts will be done during the second, third quarter of this year. We will add 200 at the final part of this year. Garoña, the 600 megawatts will come probably for the first quarter of 2024. No? What does it mean? It's like approximately between 600, 700 will come during this year, and the other part will come for the end of the first quarter of 2024, no, approximately. Permitting situation of the 1.7 gigawatts. As you know, we have received environmental permits. In six months, maximum period of six months, we should receive all the different permitting process that will allow us to starting with the construction. We have two years for connecting. No?
I'm completely sure that government is going to accomplish with this period, with this schedule. We will receive the approval for all of this pipeline in the next six months. It's like we will be ready to start with the civil works, with the civil construction works in a maximum period of time of six months, June of this year. What does it mean? We will start with the construction after June of this year, of this global volume of 1.7 gigawatts. We will have two years for connecting. Obviously, we will try to connect as soon as possible, no? two years is the maximum limit that we have for connecting to the grid before the end of June 2025, no? Europe, the ERA, no, of Europe.
It's difficult to say because today is still under study, no, and we are receiving a lot of messages from European Union. Germany is the most ambitious country from new laws and new tax credits that they could include, new bank warranties that they could include for supporting the growth of the renewable market, especially solar market, no? Industrial support for developing solar panel companies inside solar panel factories and solar cell factories and silicon inside Europe, no? Europe, I'm completely sure they are going to approve something extremely ambitious that will include industrial part and development part. I think that we will give a global presentation to the market, focused on Germany and Italy on June in London. No?
Next question is coming from Fernando Lafuente from Redburn. The first one is, what was the install capacity at the end of 2022? So 1 GW. The second question is coming from the 2023 installation guidance. I think that Arturo already answered to this question. Maybe the question to clarify is the status of Garoña and Volans 1 and 2. Why Garoña and Volans 1 and 2 and Juno are already under construction but have not received the administrative authorization. Next question is coming from the 300 MW in Italy. What is happening with that? Merchant exposure, I think we already answered.
I think about the Garoña, Volans 1 and 2, we have explained in our presentation. When we say that it's under construction, it's because we are acquiring substation or we are acquiring transformer equipments. We are receiving project finance associated with these projects. Obviously, we are not developing civil works because we haven't received the final permitting, no, from local authorities, or cities or village, no? It will come in the next month. Maximum limit, six months. Hopefully, we will obtain before, in two, one, three months, no? In all cases, because we need to advance, we need to accelerate, we usually acquire components and materials that are the bottleneck typically and that could delay our connection process, no?
In Garoña, in Volans, and not only in Volans, in all the projects that are under construction, we are acquiring today materials, substation, transformers, modules, all the different components of the PV asset, of the PV plant, no? Hopefully, civil works will start in the short term, no? 300 megawatts in Italy, yes, of course, we have included in our presentation, and we have mentioned because it's linked with the deal of European Investment Bank. It's true. In Italy, I think that we have a healthy business. It's extremely interesting for us, exciting, because in our view, Italy is a promising country with, unfortunately for consumers, high level of price on tariff, on electricity prices, no? They need to develop, they are obligated to develop, they must develop renewables, and especially solar.
We see a great opportunity. It's nothing new for us. We opened a brand, a company in Italy few years ago. We have a team of more than 25 people working there, developing pipeline, securing land and good locations. Our intention in June is to explain all details of our pipeline, all details of our pipeline in Italy and Germany, no? It's nothing new. During last three years, we made a stronger force, and hopefully we could announce something interesting in June associated with both countries, no?
Next questions are coming from Eduardo González Martín from Banco Santander. The first question is that if we register some revenue coming from infra in 2022, I will answer to this one. We register EUR 8.5 million in 2022, a little bit more than EUR 3 million in the first quarter and a little bit more than EUR 5 million in the fourth quarters. It's more or less in line with what we mentioned in the past, no, that more or less EUR 10 million from infra business per year. In the fourth quarter, we also recognize, as you mentioned, other incomes, no? Other incomes in 2022 have been around EUR 28 million, sorry.
From these EUR 28 million, 20 are coming from activation cost, the other EUR 8 million are coming from penalties, mainly penalties paid from providers. Next question is coming from European Investment Bank. Can we give maybe some more detail about financial cost or something a little bit more detail about this deal with European Investment Bank?
David has explained perfectly the infrastructure issue and the numbers associated with penalties and... I want to mention that for us, the infrastructure business is critical because it's something that could give to us enormous benefits, not only this year, 2022, in the future, no? One is something that we explained three years ago or four years ago, that it's extremely important to invest on the grid if you are going to develop a global business of renewables, no? We have invest on the grid, we have secure substations, we have secure connection points with more capacity than we are using.
We are obtaining profits and benefits because obviously we are receiving the call from competitors, colleagues, I could say, or friends that needs to be connected to our substation or to our infrastructure, and they need to use our infrastructure, and obviously they need to pay for using it, no? The European Investment Bank, I think that terms, is associated project by project. Why? Because it depends of the quarter that we will connect or that we are going to execute, no? From price point of view, we haven't include any detail. Why, no? Why we are not including any detail? Because as I have explained, 50% of the deal associated with the European Investment Bank is going to cover the 50% of our project finance in all of our deal. We need to cover the other 50%.
Now we have a global tender with a lot of players trying to be part of this global deal. We have infrastructure funds. We have banks, extremely good banks, global banks that wants to be partner with European Investment Bank in the global deal. The global deal is for EUR 3.4 billion. It's significant. It's an ambitious number that will include even more deals that we have announced, that include even a support of European Investment Bank for banks, for players that will enter in the deal, no? We haven't announced the conditions of the deal because today we are on the tender process, we are receiving interest and proposals from a number of entities. I don't know, 10 or 11 entities that wants to enter there.
Of course, we will report the global numbers of the deal after to select, to choose the players that are going to stay with the European Investment Bank.
Next question is coming from Naish Cui from Barclays. Two question. First one is if we can provide some update on asset rotation plan. Do you think you could still achieve above EUR 1.2 million per megawatt? The second question is regarding our pipeline, large pipeline, how do we ensure that we have a large enough workforce on the ground to keep the large installation rate planned?
I think that rotation plan, no, was announced a few months ago, and we have received a strong interest, paying really good prices. We are extremely focused today in the construction, in the financing, adding new assets, and of course, we will see. It's like we don't have a strong pressure to close or not, no? It's like, I know that probably if we close something and if we rotate, probably something that could give Strong benefits to our shareholders, no? Our vision is a long-term vision, and I think today, price on this kind of assets is extremely good. We always move extremely carefully, with a strong pacing, and it's something that could happen, but next quarter, in two quarters, or whenever.
I'm sorry if I don't give too much details, but we needn't the cash, we needn't the money, of course, we are playing with time, no? You have a lot of players today trying to sell assets that they need to receive money as soon as possible. It's not our case. Of course, we are generating strong visibility for our assets because we are connecting, we are finishing, we are adding really good project finance in really good conditions. The value of the assets probably could improve in the next month or in the next month. We have a comfortable position, no? About the pipeline and the construction, yes, it's an enormous effort. In my view, not all the people that has received environmental permits are going to connect these assets.
They want to sell permits, they don't have capacity for constructing, even from financial point of view and even from construction point of view. It's not our case. Today, we have a really good construction team. As you know, we develop, even we construct the asset with our own team. We subcontract basic works, we have a strong construction team. It's not easy to construct practically in six months more than 500 megawatts. It's not easy, we have done. Today, in the different places, we have more than 1,000 people working on different works on the construction site. It's like, you need experience. It's not easy. All the players that has received environmental permits are not going to be able to connect or to construct. If they do, they will suffer from CapEx point of view.
hopefully, it's not our case, no? in this point, it's extremely important, expertise and experience and of course, the [devil's in] the details, no?
The next question are coming from, Manuel Palomo from Exane BNP. First question is 6.2 gigawatts 2025 target is still valid?
Yes.
The second question is coming from.
Yes. Yes.
The second question is coming from PPA. Just to make it clear, regarding this 2.8 gigawatts in operation is a construction. As we already mentioned in the past, 2 gigawatts are already associated to PPA or merchant and already all finance. As Manuel says, as the other 0.8 gigawatts are still not today associated to any PPA. Next question is, how many megawatts we expect to be contributing to the EBITDA by the end of 2023? I think I've already mentioned this aspect, at least 2 gigawatts by the end of 2023 and then much more in the first quarter. Maybe, if we can provide some more detail about our view in PPA, evolution of price in the coming years, if we want to sign more or not.
Yes. we have start construction or basically, we are acquiring equipments from projects for projects that we haven't signed PPA. We know, no? As I have explained, I think patient is extremely important on this business. We have good merchant conditions, good project finance conditions, and we will show, hopefully, global conditions as I have explained in the short term. We have a comfortable situation. We are investing money, and we have a good cash position, and we are investing money. Yes, projects without PPA. We will see. In the short term, we could announce something or not. Today, we have a number of projects without PPA, and we are acquiring components associated with these projects, no?
The evolution of PPA, of course, as you know, no, we have a lot of rumors and noises of modifications of the regulation, of the marginal cost system. European Union is studying modifications. Honestly, I think that is something that will need a lot of time, probably more than one year. Price is shaking all the time, but obviously, as you know, as I have mentioned, 45, that was the cap. The limitation of the government in the last tender process was a big failure because nobody entry in this number. Today, the number that all the people is touching is around 15, no, and I think it's reasonable, this EUR 50 per megawatt-hour. I think it's reasonable. We could sign PPA using this number, and we could stay comfortable with this number. Time and period is associated with 10 years.
10 years of period with investment-grade players, no? I think that we will need to wait. It's wise to wait few weeks because European Union is going to approve new laws. If they are going to approve, as I have explained, the answer of European Union could be extremely powerful to the Inflation Reduction Act of United States. It could include some facilities, some support for PPA players. I think that it's reasonable and wise to wait and to see, no? This market is changing all the time. To take decision extremely fast, it's a mistake in our view, no?
Next question are coming from Jorge Alonso from Société Générale. I think we already mentioned some answer, but I think there is more question. Maybe this one: Are we afraid of the huge amount of capacity approved by the government on 25th of January? Would this project go ahead? Why not financing PPA? This is the first question. The second question is, now, EBITDA and net profit are maybe more important in the equity story. Can we provide some range for EBITDA or net profit for 2023?
I understand that you are afraid with this huge amount of capacity, you know, because it's a lot, a lot of things could happen during next two years, no. I could say that, first of all, the environmental permits includes limitation of capacity. It's like, probably, not all the projects that has received environmental permit are able to connect the full amount, the full capacity because environmental permit includes some limitations, no. It's like the global number that all the people is saying is not the exact number. Second, we know that a lot of projects are for being sold because it's impossible to be construct because they don't have good connection conditions, or they have other kind of problems.
Honestly, today, I think that practically 70% of the total environmental permits that government has given is for being sold to third parties. From construction point of view, I don't see too much players constructing. You have few players, serious players, large utility companies that are executing the projects, but you have a lot of speculating companies trying to sell paperwork, no? Probably in the next two years, we will see a clarification about the Spanish market, the real Spanish market, and the real capacity that we are going to connect, no? You have companies of one or two employees that have received approval for 300 megawatts or even 400 megawatts, one or two employees. They are going to construct something? I don't think so, no? I think that is not serious.
They are going to sell paperwork, no? Government knows the situation, no? About EBITDA net profit, it was a long discussion, internal long discussion, no? I think that we have decided not to give, not yet. Why? Because electricity prices are shaking all the time. It's extremely difficult to know exactly the price of electricity, and as you know, we have talked about merchant. We will have a percentage or a significant percentage of merchant that could change a lot our EBITDA and our net profit for the end of the year. Difficult to say, no? We have decided finally not to give this interval. We don't reject the possibility if we have more visibility in the next quarter to give an interval of EBITDA, no?
Because today, the numbers of Solaria are more serious, let me use this word, are more serious than previously. I could say that our intention basically for 2023, basically, this is a global, is to double the numbers. This is not a guideline, not an official guideline, but our intention is to continue growing at least with double-digit numbers. Hopefully, if electricity prices continue the same situation than today, as I have explained, we are going to generate a lot of cash, and we are going to generate really good results.
I'm sorry, maybe we cannot answer towards the question. Maybe the last two question from investor, institutional investor. There is some question coming from European Investment Bank. Just to mention that, to give some details, the EUR 1.7 billion is a total. Direct participation would be EUR 1.3 billion, and they will fund other entities with EUR 0.4 billion. The direct participation for the 50% of the deal is EUR 1.3 billion. For the 5.6 gigawatts is totally in line with our CapEx of EUR 0.4 something. The second question is coming from the Basque Country project. Can we give maybe some more detail about this project, the new flagship project, and maybe more detail about the tax credit?
What could be the amount of this tax credit in the Basque Country project?
Yes. As David has mentioned, European Investment Bank is extremely important for us because it's not going only to give a direct line for giving financing to our projects. Is going to give other line that will support banks that will entry in the deal, and this is extremely important. Is the reason because we are not giving the prices. The banks that will entry will receive some support from European Investment Bank, no? Extremely important for us, I think that great job from European Union point of view because they are supporting the growth of renewables. We are extremely excited with the support of European Union. They are extremely positive about solar. Germany, I think that Germany is doing an enormous effort, not only Germany, all the countries, no?
They have understood the situation, and they want to be the leaders in solar, no? They are approving enormous amount of money. I have mentioned EUR 45 billion of European Investment Bank will go to renewables, especially to solar. It's not only Germany, all the countries, no? We receive positive message and calls from all the countries of European Union, no? It's the correct moment and a lot of money, billions of EUR, will come to solar, no? This is one of the results of this enormous amount of money that will come from European Union, no? The collaboration with European Investment Bank. In my view, it's the beginning, no? Is the reason because Solaria is vetting strongly for European Union, like, the correct place for being, no?
Tax credit in Basque Country. It's extremely difficult to say the global number, no? 30% of the CapEx recognized by authorities is the tax credit that we are going to receive, no? It's important this detail, no? 30% of the CapEx recognized by authorities, no? It's like an important support if you invest there in solar assets, no? We are extremely exciting with this new flagship project. Probably will be the largest project in a region in Europe, no? Of course, from tax credit point of view, we are going to receive several hundred million EUR. This is important for us.
Thank you very much for all your question and your time. If you have more question, please let us know. Thank you very much for joining to the call, and I let Arturo just to finish this call.
Thank you very much for being part of this conference call. Only to give a final detail. We are extremely happy with the support of European Union to solar. I think it's timing for solar. It's timing for solar in European Union, not only in Spain has support our growth and will support our growth in the next years. Italy, Spain, Germany, all the countries want to stay there, European Union has decided to bet strongly for this technology, no? U.S. approval this Inflation Reduction Act of United States, that is great for United States, needs strong answer from Europe, I'm completely sure they are going to do, no? As always, our Investor Relations, David Guengant especially, will be available for any additional information that you may require, no?
Thank you very much, and have a great afternoon.