23rd Mar 2026 12:30
(Alliance News) - Zenith Energy Ltd on Monday said it aims to begin construction of its renewable energy project in the Puglia region of southern Italy in the first week of July.
The Calgary, Canada-based energy production and development company said grid connectivity has been fully secured, and construction financing for the 7 megawatt solar plant is now in place.
Zenith Energy shares were up 7.1% to 7.50 pence each on Monday afternoon in London.
Zenith said securing grid connectivity and construction financing de-risks the development phase of the project, which comprises three solar plants expected to cost EUR3.2 million to build, in addition to EUR720,000 in land acquisition costs. The company will contribute EUR580,500, or 15%, of the total EUR3.9 million, with the remainder to be financed externally.
The Puglia solar project under construction is expected to generate approximately 11.2 gigawatts-hour of annual electricity, for EUR14.8 million of revenue in the first ten years based on a price around 13 euro cents per kilowatt-hour. The electricity sale price will be subject on either market conditions or power purchase agreement terms.
The project will also have a an estimated sale value of EUR9.1 million, the company said, once fully operational. USD103.99
Chief Executive Officer Andrea Cattaneo said: "The [project] demonstrates the strength and scalability of the platform we have built...expected to generate around EUR1.5 million in gross annual revenue, supporting a compelling payback profile and attractive long-term returns".
"Zenith has secured exposure to an asset with an estimated resale value of approximately EUR9.1 million, supported by an initial capital contribution of only EUR580,500. This highlights the capital efficiency of our strategy and the strong appetite in the market to finance our solar growth. We also retain the flexibility to monetise part or all of the portfolio at a premium, enabling us to recycle capital into further high-return opportunities across our solar pipeline," he added.
By Martin Miraglia, Alliance News reporter
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