Eco Energy Connects UK Facility, Seeks Foreign Investment Amid Stock Slump

Eco Energy (אקונרג'י) is seeking foreign investors following positive coverage from a green energy research firm, aiming to recover from a 26% stock price drop since its late July peak. The company's share value fell from a high of 5.8 billion shekels on July 26 to 4.3 billion shekels, a loss of 1.5 billion shekels in just over two months. This decline was partly attributed to a negative sentiment in the renewable energy sector, driven by rising US yields and expectations of stable interest rates, which impact financing for such companies. Additionally, Eco Energy faced market backlash over its first-half 2026 financial results and a downward revision of its annual revenue forecast. The revenue forecast adjustment stemmed from delays in connecting several completed projects to the grid, which postponed expected income. The company's stock fell 6.7% on the day the results were released, its largest single-day drop since reaching its peak valuation.

Eco Energy announced it has successfully connected a 40 MW storage facility in England to the grid, a project previously contributing to the revenue forecast delay. This facility has a 120 MWh storage capacity and is expected to generate average annual revenues of 4.7 million euros and average annual EBITDA of 3.6 million euros. Full commercial operation is anticipated by December. This UK project joins another 50 MW, 100 MWh storage facility already operational in Britain. The company also has approximately 240 MW of storage projects under construction in the UK, with a combined capacity of 720 MWh, slated for grid connection in 2027 and 2028, alongside a 28 MW solar project.

Britain is a relatively new market for Eco Energy. The company also operates 531 MW of solar projects in Italy, Romania, and Poland, and 128 MW of wind projects in France since August. Concurrently, research group Longspur Research, part of the UK financial services firm Longspur Capital, issued a report with a target price of 105 shekels per share for Eco Energy, representing an 88% upside from its recent trading price and a 40% increase from its July high. The report highlighted the company's European operations, the significant role of energy storage in its development pipeline, and projected growth in financial results. The research, which was commissioned and funded by Eco Energy, indicated the company's intention to attract further foreign investment.

Eco Energy operates in the UK through its subsidiary, Eco Energy England. The parent company was established as an Israeli entity for its 2021 IPO. In November 2022, French investment fund Rgreen Invest acquired a 20% stake, increasing its holding to 28% by December 2024 with a total investment of 137.5 million euros. Following Eco Energy's own investments totaling 302 million euros in 2025 and the current year, its stake in the subsidiary is now 79.3%. The latest investment in June valued the subsidiary at 1.6 billion euros. The company has also raised 1.1 billion shekels from Israeli institutional investors for its parent company this year and secured a deal last month with The Phoenix for up to 160 million euros in its Romanian projects.