Renta 4 | According to press reports, Grenergy has signed an agreement with the Chinese supplier CATL for the supply of 1.25 GWh of battery storage, thus covering Phase 4 of the Oasis Atacama project (out of a total of 1.25 GWh).
Assessment: Positive news. Currently, Grenergy only has BYD as its exclusive battery supplier (Phases 1, 2 and 3 of Oasis Atacama). The introduction of new suppliers should increase competition and help to further reduce the cost of batteries, whose latest guide stands at 0.12 M€/MWh.
We recall that following the acquisition of 1,000 MW in Chile from Repsol and Ibereólica, Oasis Atacama was expanded from five to seven phases, making it the largest storage project in Latin America upon completion (2026-2027). For Phases 1 and 2, which are currently under construction (COD expected in 4Q24 and 4Q25 respectively), a project finance financing of $345 million was successfully closed. Regarding phase 3, Grenergy announced on 13 September the extension of the agreement with BYD for the supply of batteries (who also supplies phases 1 and 2).
We reiterate our HOLD recommendation, with a P.O. of €35.20/share.
