Zenith Energy Ltd. (“Zenith” or the “Company”) announced on Tuesday, October 9, 2025, that its wholly owned Italian subsidiary, WESOLAR S.R.L., has signed an agreement to acquire a new solar energy development project in the Puglia region of Italy. The acquisition includes a planned solar capacity of approximately 10 MWp, alongside two hectares of land allocated for the development of Zenith’s first Battery Energy Storage System (BESS).
The project is currently classified as development stage, with a targeted timeline of 12–16 months to reach “Ready-to-Build” status. The total consideration amounts to EUR 875,000, which includes land and is conditional upon successful permitting.
With this addition, Zenith’s total solar portfolio expands to 74.5 MWp, comprising operational, ready-to-build, and development-stage assets across Italy.
Analyst Group’s View on the Puglia Acquisition
Analyst Group views the newly announced Puglia Acquisition as a strategic and forward-looking addition to Zenith’s fast-growing solar development portfolio. With a planned installed capacity of 10 MWp, the project increases Zenith’s total portfolio capacity to 74.5 MWp and strengthens the Company’s regional cluster strategy in Puglia. More notably, this acquisition marks Zenith’s entry into battery energy storage, a move we view as materially enhancing the Company’s commercial positioning in the evolving renewable energy landscape. By deploying a Battery Energy Storage System (BESS), Zenith aims to capture intraday electricity price spreads in the Italian market, particularly between off-peak and peak tariff periods (so-called fasce orarie di punta), which often exhibit significant volatility. While BESS solutions typically involve higher upfront CAPEX, they are increasingly seen as an important tool for improving project profitability and energy market flexibility.
With this transaction, Zenith now holds three solar projects in Puglia, totaling 19 MWp in installed capacity. Of these, 3 MWp is currently classified as Ready-to-Build, while 16 MWp remains in development stage, underscoring the Company’s long-term commitment to this high-potential region. Zenith’s solar strategy continues to be underpinned by favorable structural conditions, where Puglia remains one of Italy’s most favorable regions for solar development, benefiting from high solar irradiation (GHI) levels of approximately 1,800–2,000 kWh/m²/year. These conditions support higher capacity factors (typically 17–20%), contributing to strong project economics.
In conclusion, based on current assumptions and estimated energy yields, Zenith’s total solar energy portfolio, once operational, is expected to generate annual revenues of approximately EUR 12M. The integration of BESS is expected to enhance revenue per MWh by enabling more strategic timing of energy dispatch. The Puglia acquisition reinforces Zenith’s operational focus on building a scalable and diversified renewable energy portfolio. With 74.5 MWp across multiple stages and regions, the Company continues to demonstrate disciplined execution in line with its communicated growth strategy. Analyst Group maintains the view that Zenith’s solar portfolio will exceed 100 MWp by year-end 2025, assuming continued deal flow and permitting progress.
Analyst Group’s view on Zenith Energy as an investment
Zenith has a long history of well-timed acquisitions at attractive valuations, as demonstrated by the acquisition of oil assets in Tunisia during the COVID-19 period. Core operations remain resilient, supported by profitable gas-to-electricity and solar production in Italy, where Zenith has been active since the year 2010. The Company currently holds a diversified solar pipeline totaling 74.5 MWp, and Analyst Group maintains the view that the portfolio will exceed 100 MWp before year-end 2025, supported by ongoing acquisitions.
Beyond core operations, the Company remains engaged in legal processes that could materially impact long-term valuation. The ICC-1 arbitration concluded successfully in December 2024 with a USD 9.7M award. While ICC-2 resulted in a full dismissal of USD 130M in claims, Zenith has now submitted an annulment application, citing serious procedural irregularities and newly discovered connections between tribunal members and the Tunisian state. The broader and most strategically significant legal process remains the ICSID arbitration, where Zenith is pursuing USD 503M in damages under the UK–Tunisia Bilateral Investment Treaty. The case is now entering its final phase, with hearings scheduled for April 2026. Analyst Group estimates a 68% probability of a favorable outcome based on historical data and legal precedent.
With a stable operational base in Italy combined with legal arbitration processes that could unlock substantial upside, Zenith presents a risk–reward profile where litigation outcomes may act as significant value catalysts.
