Construction kicks off on 7 MWp in Puglia – here’s what Zenith just put in motion
Zenith Energy has moved its first Italian solar projects into the construction phase, selecting three ground-mounted plants in Puglia – Andria-1, Andria-3 and Andria-4 – totalling 7 MWp. Designs are done, grid-connection applications are in, and the tender process is underway ahead of a planned start to physical construction in July 2026.
This is a meaningful step for Zenith’s renewables strategy in Italy. It turns pipeline into near-term assets and sets up a path to both recurring electricity revenue and optionality to sell once producing.
Key build milestones and costs investors should note
- Layouts for all three plants are complete.
- All grid-connection applications have been submitted.
- Construction tender process has started; financing talks are “advanced”.
- Target start for physical build: July 2026.
| Total capacity (Under Construction Portfolio) | 7 MWp (Andria-1, Andria-3, Andria-4) |
| Panels and construction costs | EUR 3,150,000 |
| Land purchase | EUR 720,000 |
| Total expected cost | EUR 3,870,000 |
| Estimated gross proceeds (first 10 years) | EUR 14.8 million |
| Estimated plant life | About 30 years |
| Estimated sale value once producing | EUR 9.1 million |
Financing plan – 80% debt, 20% equity
Zenith expects construction financing to cover approximately 80% of total land and build costs, with the remaining approximately 20% funded by WESOLAR (its Italian subsidiary), subject to final approvals and customary conditions.
- Indicative debt portion (80% of EUR 3.87 million): approximately EUR 3.10 million.
- Indicative equity portion (20%): approximately EUR 0.77 million.
My take: if the debt closes on these terms, the equity cheque is relatively modest versus the project size. That keeps balance sheet strain down while moving meaningful megawatts into build.
Project economics – what the disclosed numbers hint at
- Cost per MWp: approximately EUR 0.55 million (EUR 3.87 million over 7 MWp).
- Estimated gross proceeds per year (first 10 years): approximately EUR 1.48 million total, or about EUR 0.21 million per MWp per year.
Important caveat: “gross proceeds” are not defined in the RNS and operating costs, debt service and taxation are not disclosed. Still, the gap between the total cost (EUR 3.87 million) and the 10-year gross proceeds (EUR 14.8 million) looks encouraging at face value.
The company also estimates a potential sale value of EUR 9.1 million once the three plants are in production. That is well above build cost, offering optionality to recycle capital if attractive offers appear. On the other hand, holding for 30 years could maximise long-term cash generation. Optionality is the real asset here.
Fresh Puglia acquisitions add 5 MWp – pipeline momentum maintained
To backfill the pipeline as projects roll into construction, Zenith has acquired two additional ground-mounted PV projects in Puglia with a combined expected capacity of approximately 5 MWp. The land parcels are around 4 hectares and 2 hectares.
- Consideration for the land: EUR 779,000, conditional on securing all permits to reach Ready-to-Build (RtB) status.
- Status: development-stage; capacity figures are approximate.
This is a classic develop-and-advance strategy: convert near-term RtB assets into builds, and replace them with earlier-stage acquisitions to keep future optionality alive.
Italian solar portfolio now 125.5 MWp – where things stand
Zenith’s Italian portfolio has grown to approximately 125.5 MWp across multiple regions, mixing agrivoltaic (dual-use land for agriculture and solar) and ground-mounted PV projects. Highlights from the table included in the RNS:
- Liguria Solar Asset: 0.5 MWp (currently producing 0.2 MWp), with an upgrade planned.
- Puglia – the focus of near-term build: Andria-1 (3.0 MWp) and Andria-3/4 (4.0 MWp) are at tendering/financing stage with construction targeted for July 2026.
- Lazio and Piedmont: several agrivoltaic and PV developments spanning 10 MWp, 8 MWp, 30 MWp, 10 MWp, 19 MWp and 10 MWp at various stages of development.
- Two new Puglia ground-mounted PV sites: approximately 5.0 MWp added today.
Notable adjustments disclosed:
- Lazio Agrivoltaic Project 2 increased from 7 MWp to 8 MWp.
- Piedmont Agrivoltaic Development Project increased from 18 MWp to 19 MWp.
- Puglia PV Development reduced from 12 MWp to 10 MWp to speed permitting.
As of 4 December 2025, an independent valuation placed the 110.5 MWp pipeline at EUR 27,500,000. With the portfolio now approximately 125.5 MWp, Zenith notes that no updated independent valuation has been published for the enlarged portfolio.
Why this matters for shareholders
Progressing to construction is the inflection point. It shifts value from paper plans to tangible assets, supports future cash flow visibility, and can catalyse third-party interest in asset sales once producing. The disclosed 10-year gross proceeds number and a potential EUR 9.1 million sale value for the three Puglia plants underline that there are multiple ways to realise value.
Positives:
- Clear milestones achieved – designs done, grid applications in, financing process active.
- Leverage expected at around 80% reduces upfront equity outlay.
- Pipeline replenished with 5 MWp of new Puglia projects to sustain momentum.
- Optionality to hold for revenue or sell for an apparent premium to build cost.
Watchouts:
- Financing is not yet closed – it remains “subject to final approvals and customary conditions”.
- “Gross proceeds” are not defined, and no operating cost or tariff assumptions are disclosed.
- Permitting risks persist, especially for the new 5 MWp where land consideration is conditional on RtB.
- Grid-connection timing and EPC delivery are always critical path items in Italy.
What I’m watching next
- Debt financing terms and financial close for the 7 MWp Under Construction Portfolio.
- EPC tender outcome and any capex refinements from the tender process.
- Permits and RtB status for the new 5 MWp Puglia acquisitions.
- Confirmation of July 2026 construction start and progress updates on site.
- Any updated independent valuation for the now 125.5 MWp portfolio.
- Decisions on build-and-hold versus partial monetisation once the assets are producing.
Bottom line – steady execution with real optionality
This RNS shows steady, practical execution in Italy. The move to construction on 7 MWp, backed by an 80-20 financing plan and a disclosed 10-year gross proceeds estimate, is a solid step. Layer in the 5 MWp of fresh Puglia projects and the 125.5 MWp portfolio, and Zenith is shaping a platform with both recurring revenue potential and asset sale optionality. Delivery on financing and permits will be the near-term swing factors.
