Grenergy Renovables (GRE.MC) is a vertically integrated renewable energy developer focused on solar PV and battery storage in Spain and Latin America. The company has a 2.5 GW pipeline in Chile (including the world’s largest solar-plus-storage project, Oasis de Atacama), plus assets in Peru, Colombia, and Spain. After a period of heavy capex, Grenergy is now entering a phase of operational cash flow generation, with 2025 EBITDA guided to €180-200 million. At a current market cap of ~€1.2 billion, the stock trades at roughly 6x EV/EBITDA, a discount to European peers like Solaria (8x) and Acciona Energía (10x).
Thesis: Grenergy’s unique exposure to high-irradiance Latin American markets, combined with a disciplined capital allocation strategy (asset rotation, project sales to institutional investors), positions it for a re-rating as the market recognizes its earnings power. The Oasis de Atacama project alone (1 GW solar + 4.1 GWh storage) is expected to contribute significantly to EBITDA from 2026 onward. With a strong balance sheet (net debt/EBITDA ~2.5x) and a clear dividend policy, Grenergy offers a rare combination of growth and value in the renewable space.
12-Month Catalysts:
- Completion of Oasis de Atacama Phase 1 (1 GW solar + 1.1 GWh storage) by Q4 2025, with PPA revenues starting.
- Potential asset rotation or project sale of a minority stake in Oasis to a infrastructure fund, unlocking value.
- Continued expansion in Peru and Colombia, where Grenergy has secured PPAs with investment-grade off-takers.
- Possible inclusion in the IBEX 35 index, driving passive inflows.
Key Risks:
- Construction delays or cost overruns at Oasis de Atacama, given the project’s scale and remote location.
- Regulatory changes in Chile (e.g., grid curtailment, tax changes) that could impact project economics.
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