Zenith Energy Ltd. (“Zenith” or the “Company”) announced on October 21, 2025, that its wholly owned Italian subsidiary, WESOLAR S.R.L., has signed two new agreements to acquire solar development projects in Piedmont and Puglia, with a combined capacity of 22 MWp. The Piedmont project (18 MWp) is based on agrivoltaic technology and includes land purchase, with a total consideration of EUR 2.1 million. The Puglia project (4 MWp) includes land for Zenith’s second Battery Energy Storage System (BESS) and is valued at EUR 440,000. Both transactions are structured with milestone-based payments, conditional upon permitting and grid connection progress.
Following these acquisitions, Zenith’s solar development pipeline now totals 98.5 MWp, comprising operational, ready-to-build, and development-stage assets across Italy’s most solar-favorable regions.
Analyst Group’s View on the Acquisitions and Strategic Outlook
The acquisitions reflect continued execution on Zenith’s regional cluster strategy. The Piedmont asset, located on flat terrain, is expected to benefit from reduced construction costs. The Puglia project, meanwhile, includes BESS infrastructure, allowing for price arbitrage between low-price and peak-price hours, a capability that can enhance per-MWh revenue but comes with higher initial CAPEX. From an energy yield perspective, solar irradiation in Puglia typically ranges from 1,800 to 2,000 kWh/m²/year, compared to approximately 1,600 to 1,750 kWh/m²/year in Piedmont. This supports higher capacity factors and more attractive project economics, especially when combined with storage capabilities. Italy remains one of Europe’s most attractive markets for solar energy development, underpinned by a favorable regulatory framework, a robust grid infrastructure, and high solar irradiation, particularly in southern regions. In addition, Italy has committed to increasing its renewable capacity under the EU’s REPowerEU initiative, offering both policy stability and long-term growth incentives for utility-scale solar projects.
In a Nordic context, particularly compared to Sweden and Norway, Italy offers structurally more favorable conditions for large-scale solar development. While southern Italian regions such as Puglia average between 1,800–2,000 kWh/m²/year in solar irradiation, Nordic markets (such as Norway or Sweden) typically sees only 900–1,100 kWh/m²/year depending on latitude and cloud coverage. This translates into capacity factors of 17–20% in Italy versus 10–12% in Nordic markets, meaning Italian solar assets can generate nearly double the electricity per installed megawatt.
Additionally, market dynamics further differentiate the two. The Italian power market features higher average spot prices and pronounced intraday pricing spreads, particularly in southern zones, which increase the economic rationale for BESS deployment. In contrast, for example, Sweden’s electricity market is characterized by lower volatility, greater seasonal imbalances, and downward pressure on wholesale prices due to a high penetration of hydro and wind. As a result, solar assets in Italy typically reaches higher revenues per MWh and shorter payback periods, especially when enhanced by storage technologies.
While specific transaction terms are not always publicly disclosed, recent indicative transactions support the view that the Italian solar market is both mature and liquid. Ready-to-Build (RTB) projects in regions like Puglia and Sicily have recently transacted in the range of EUR 0.27–0.33 per watt, underscoring strong institutional demand for well-located assets with grid access. Sweden, by comparison, remains a less active secondary market with lower deal volumes and scalability.
Zenith’s development pipeline represents tangible market value, which increases as projects progress toward “Ready-to-Build” (RTB) status. The Company has communicated its intention to divest selected assets to institutional buyers, thereby realising near-term profits while retaining strategic flexibility. This is particularly relevant as Zenith is now nearing its 100 MWp target and is expected to surpass this threshold in the near term and moves beyond its 100 MWp target and into a new growth phase. To support transparency, the Company has commissioned an independent valuation of its development portfolio. Capital for future build-out is expected to be sourced through a combination of non-dilutive project finance from renewable energy lenders and partial sales of development assets. This dual-track approach balances cash flow optimisation with long-term asset ownership and scalability.
In conclusion, Analyst Group views the two acquisitions and updated strategy as reinforcing Zenith’s positioning as a disciplined, opportunity-driven solar developer. The Company’s ability to combine regional clustering, diversified project stages, and new technologies (e.g., BESS) suggests a growing maturity in its execution capabilities and strengthens the investment case ahead of further scale-up in 2026.
