Zenith Energy Ltd. (”Zenith” or the ”Company”) announced on Friday, March 20, 2026, that the Company has acquired an additional agrivoltaic development project with an expected installed capacity of approximately 10 MWp, located in the Lazio region of Italy (”Rieti-2”). The total consideration amounts to EUR 1,020,000, payable upon securing all required permits and achieving Ready-to-Build (”RtB”) status. Following the acquisition, Zenith’s solar development pipeline has increased to approximately 173.5 MWp, all secured in less than 12 months, representing approximately 87% of the Company’s stated 200 MWp target by the end of 2026. The Company also provided an update on electricity production at the Torrente Cigno concession, with gross revenues expected to reach approximately EUR 370t for the first quarter of 2026. On March 23, 2026, Zenith further announced that construction of its 7 MWp Under Construction Portfolio (”UCP”) in Puglia is now scheduled to commence in early July 2026, with grid connectivity fully secured and construction financing covering 85% of total land acquisition and construction costs confirmed as fully arranged.
Conclusion
The pace of portfolio expansion during the opening months of 2026 has been a defining feature of Zenith’s investment case, with the solar pipeline expanding from 110.5 MWp to 173.5 MWp since December 2025 alone, supported by a high cadence of disciplined, milestone-contingent acquisitions across multiple Italian regions. The expected near-term surpassing of the 200 MWp target and the announcement of a new, more ambitious growth objective signal that Zenith is entering a new phase of its development, with the scale and commercial potential of the solar platform continuing to expand. The confirmation that the 7 MWp Puglia UCP is fully financed and scheduled for construction in July 2026, with Zenith’s equity contribution limited to approximately EUR 580,500 against an estimated operational sale value of EUR 9.1m, provides tangible evidence of the capital efficiency and value creation potential embedded in the Company’s solar model. The Torrente Cigno production update further reinforces the attractiveness of the Italian electricity market as the backdrop for Zenith’s accelerated build-out. Beyond solar, the ICSID final hearing scheduled for April 2026 remains the most financially significant catalyst in Zenith’s overall investment case, and Analyst Group views the convergence of these events as an unusually catalyst-rich period for the Company.
Analyst Group’s View on the Acquisition, Pipeline Update and Puglia Construction Milestone
The acquisition of Rieti-2 represents continued execution on Zenith’s solar expansion strategy, bringing the total pipeline to 173.5 MWp in less than 12 months. Notably, Zenith’s CEO, Andrea Cattaneo, has indicated that the Company expects to surpass the 200 MWp target before the end of the first half of 2026, at which point a new and more ambitious target will be communicated. In Analyst Group’s view, this represents a strategically significant signal: the 200 MWp objective, which has served as the defining growth milestone for Zenith’s solar platform, is being repositioned as a near-term floor rather than a long-term ceiling. This implies a material upward revision to the long-term scale of the solar business and supports a more ambitious valuation framework as the pipeline continues to expand. Rieti-2 also strengthens Zenith’s geographic diversification, reinforcing Lazio as the Company’s second regional cluster alongside the approximately 100 MWp Piedmont concentration.
The electricity production update from the Torrente Cigno concession provides a concrete illustration of the revenue dynamics underpinning Zenith’s Italian operations in the current price environment. With average monthly production of approximately 1,000 MWh and Italian wholesale spot prices as measured by the PUN index averaging EUR 132/MWh in January, EUR 114/MWh in February, and tracking approximately EUR 142/MWh in March, the concession is on track to generate gross revenues of approximately EUR 370,000 for the first quarter of 2026. Italy has historically ranked among the highest-priced major wholesale electricity markets in Europe, underpinned by its structural dependence on gas-fired generation and its role as a net electricity importer, and the current geopolitical risk environment has driven prices toward the upper end of the EUR 120–150/MWh range observed year-to-date. This price range directly strengthens the commercial rationale for Zenith’s accelerated solar build-out, as each MWp brought to production generates materially higher revenues than in lower-priced European markets.
The March 23 announcement that the 7 MWp Puglia UCP is now fully financed and scheduled for construction commencement in early July 2026 represents, in Analyst Group’s view, a meaningful de-risking event and the clearest evidence to date of Zenith’s ability to advance projects from development through to execution. Total project costs, comprising land acquisition of EUR 720,000 and expected construction costs of approximately EUR 3.15m, amount to approximately EUR 3.87m, of which Zenith’s equity contribution is limited to 15%, or approximately EUR 580,500, with the remaining 85% covered by external financing. This capital-efficient structure limits near-term capital requirements while enabling the Company to retain full economic exposure to the completed assets. The Company estimates that the UCP will generate approximately 11.2 GWh of electricity per year, based on a southern Italy yield assumption of approximately 1,600 kWh/kWp/year, and projects gross revenues of approximately EUR 1.48m per annum, or approximately EUR 14.8m over the first ten years, based on an implied electricity price of approximately EUR 0.13/kWh. Furthermore, the estimated sale value of the UCP upon completion is approximately EUR 9.1m, equivalent to EUR 1.3m per MWp, which, if realized, would represent a significant multiple on the Company’s initial equity outlay and provide a concrete benchmark for the broader portfolio’s monetization potential. The retention of optionality to either hold the assets for recurring cash flow generation or divest at a premium is consistent with Zenith’s stated dual-track strategy and reinforces the flexibility of the platform.
The pending independent valuation of the full 173.5 MWp portfolio represents the most significant near-term catalyst within the solar segment. Importantly, the valuation will for the first time cover not only RtB value but also the fully operational portfolio value, providing investors with an independent assessment of the long-term earnings potential of the platform as a whole. This is a qualitative step beyond the EUR 27.5m RtB valuation established for the 110.5 MWp portfolio in December 2025, and Analyst Group views the release of this valuation as a potentially material communication event.
