SunFlower Energy Eyes Ambitious Growth, Targeting $100M EBITDA by 2029

Renewable energy firm SunFlower is charting an aggressive growth strategy, aiming to significantly expand its operational capacity and financial performance by 2029. The company projects reaching approximately 585 megawatts (MW) of capacity, generating revenues of around 500 million shekels, and achieving an EBITDA of approximately 400 million shekels. The majority of this projected EBITDA is expected to come from projects in Poland and Spain.

SunFlower's CEO, Shahar Ben Moyal, stated that the 2029 targets are based on identified assets currently under development, emphasizing that these goals are a foundation for future expansion rather than the endpoint. The company is transitioning from a primarily income-generating asset model to a more growth-oriented development approach, aiming to increase its total capacity from 100 MW to 1,000 MW.

A key element of this strategy is the recent acquisition of three solar projects in Spain, totaling about 137 MW for approximately 90 million euros. SunFlower plans to integrate energy storage solutions into these projects, which they believe could quintuple the expected EBITDA from these assets, potentially boosting it from 5-8 million euros to 25-35 million euros annually. This expansion requires significant capital investment, estimated between 2 to 2.5 billion shekels, to be funded through a combination of debt and equity.

Ben Moyal acknowledged potential risks to the plan, including rising interest rates, regulatory hurdles, and grid connection limitations. However, he expressed confidence in the company's execution capabilities, citing its track record and the strategic support from its owners. SunFlower aims to leverage its experienced teams on the ground in Europe to drive project development and capitalize on the growing demand for renewable energy, particularly with the rise of data centers and AI.