Zenith Energy

Zenith Energy Ltd. (“Zenith” or the “Company”) announced on August 12, 2026, that the Company has acquired a 10 MWp photovoltaic development project in the Province of Foggia, in the Puglia region of Italy, taking its total Italian solar development pipeline to approximately 203 MWp. The acquisition carries the Company past its previously stated target of 200 MWp for the end of 2026 ahead of schedule, and Zenith has concurrently raised its solar development target to 240 MWp by the end of 2026.

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Conclusion

In Analyst Group’s view, exceeding the 200 MWp target ahead of schedule and immediately raising its target to 240 MWp represents a clear demonstration of the execution momentum behind Zenith’s Italian solar strategy, measured not only in the headline size of the pipeline but in the speed and capital discipline with which it has been built in approximately 15 months. Analyst Group considers this growing scale to be value-accretive. With a first portfolio divestment in progress at approximately 2.4x cost, the initial Puglia plants approaching commissioning, and a supportive regulatory environment in place, Zenith is well positioned to convert its development pipeline into realizable, non-dilutive value for shareholders. The continued advancement of these projects through Ready-to-Build status, construction, operation and selective monetization should progressively translate the scale now assembled into tangible value over the coming quarters.

Analyst Group’s View on the Milestone and Raised Target

In Analyst Group’s assessment, the significance of today’s announcement extends beyond the individual Foggia acquisition to the trajectory it confirms. Zenith has surpassed the 200 MWp threshold roughly four and a half months ahead of a target set for the full year, and has done so in approximately 15 months since establishing its Italian solar development business in 2025. Building a development pipeline of more than 200 MWp effectively from a standing start in solar development represents an important milestone and a considerable achievement, reflecting both the Company’s ability to source and secure projects rapidly and a capital-efficient acquisition model, under which consideration, EUR 96,000 in the case of Foggia, is typically payable only on the securing of permits and the achievement of Ready-to-Build status. That the Company has responded by immediately raising its ambition to 240 MWp reflects, in Analyst Group’s view, confidence supported by a well-supplied acquisition pipeline.

Consistent with the Company’s own framing, Analyst Group regards this growing scale as directly value-driving. Zenith is executing a build-and-sell model across the full development cycle, acquiring assets at low entry cost, advancing them toward Ready-to-Build status and then selectively monetizing or constructing them. The July 2026 memorandum of understanding for the proposed EUR 12m sale of the approximately 50 MWp South Piedmont portfolio, equivalent to around 2.4x its acquisition and development cost and a gross uplift of approximately 140 %, provides tangible market validation of the value embedded in the wider pipeline and, if completed, would recycle capital into further growth on a non-dilutive basis. In parallel, construction is underway across the first 7 MWp of Puglia capacity, with commissioning and grid connection targeted before year-end, marking Zenith’s transition toward recurring operating revenue. As the portfolio scales and initial monetizations begin to release capital for reinvestment, the strategy takes on the self-reinforcing character the Company has described, whereby realized proceeds can fund further acquisitions and development.

This is further supported by a constructive regulatory backdrop, notably the recently approved EUR 23bn Italian State aid scheme for renewable electricity, which offers long-term price contracts to eligible projects and strengthens the revenue visibility of the portfolio Zenith is assembling. Combined with the high solar irradiation of the Company’s core regions, of approximately 1,800 to 2,000 kWh/m² per year in Puglia, the fundamentals underpinning the portfolio remain favorable.