Energix CEO: "In Two Years, We’ll Be a Different Company"

Energix’s stock tumbled about 7% yesterday, bringing its market cap to 5.93 billion shekels, after the company issued a disappointing 2025 forecast. Back in 2022, Energix secured pricing agreements in Poland that locked in high electricity rates, which benefited the company as prices later declined. Now that those agreements have expired, the company is facing a revenue shortfall of 150 million shekels in 2025—130 million shekels directly from the agreements and another 20 million due to the Polish zloty’s exchange rate. While this development was known, as Levinger puts it, "it still caught some people off guard."

The forecast has weighed on investors to the point that they’ve largely overlooked Energix’s latest acquisition and additional growth projections. Alongside its earnings report, the company announced its entry into Lithuania with the purchase of a large-scale hybrid wind and solar project totaling approximately 470 MW. "I see a lot of similarities to what we saw in Poland early on. It’s an exciting market for us," says Levinger, emphasizing the potential in the region.

The company also stated that it expects to double its connected capacity by the end of 2026. By the end of 2025, Energix plans to connect projects totaling around 2 GW and expects to reach 4 GW by the end of 2026. "About 1.5 GW is already in advanced development, and the remaining 500 MW will come through acquisitions and new projects," Levinger notes. "We’re already in negotiations to acquire 180 MW in Ohio, U.S." This expansion is projected to translate into approximately 2.2 billion shekels in revenue by 2027, compared to an expected mid-range revenue of 825 million shekels in 2025.

Levinger also discussed the company’s operations in the U.S. under the new administration, highlighting two key strategic partnerships. The first is with First Solar, which aligns Energix with the administration’s "Made in America" push, and the second is with Google. The tech giant isn’t just purchasing electricity from Energix—it’s also serving as a tax equity partner, making it easier for the company to secure financing for its projects.

What will 2025 look like? Can you elaborate on the slowdown in Poland?

"The fourth quarter played out as we expected. We closed the year with approximately 898 million shekels in revenue. Our 2025 guidance reflects continued growth in Israel and, of course, in the U.S., which remains a major growth engine. At the same time, we’re facing a roughly 150 million shekel revenue decline in Poland, including currency effects. This is primarily due to our 2022 decision to hedge electricity prices at peak levels in Europe. That move allowed us to lock in electricity rates above market prices for 2022-2024, leading to excess revenue during those years. However, those agreements expire in 2025, and we’ll revert to lower market prices. We had hoped that increased installations in 2024 would offset this decline, but overall, it was expected—though it still surprised some investors."

You announced a major acquisition in Lithuania. What’s your perspective on this market?

"We’re very disciplined in our approach and don’t make opportunistic deals—we carefully select our markets. For us, entering Lithuania is an extension of our Polish operations. This project is actually closer to our Warsaw office than our existing wind project in Poland. We’ve been evaluating the Baltic states for some time and were fortunate to acquire the largest renewable project in Lithuania, which combines our two main areas of expertise: solar and wind. Our team in Poland conducted the entire due diligence process, and they’ll also lead the construction alongside contractors from Lithuania and Poland.

When analyzing Lithuania’s electricity market, I see several parallels to our Polish investment. It’s a significant addition to our revenue portfolio. While Lithuania isn’t a large country, it has been a NATO member since 2004, is relatively developed, and in 2009, it shut down its nuclear power plant, which had supplied 80% of the country’s electricity.

Since then, Lithuania has struggled with energy shortages. Today, about 50% of its electricity is imported from neighboring Baltic, Nordic, and Polish markets. Demand for electricity in Lithuania is currently very strong, and this project is expected to benefit from that. Additionally, Lithuania initially tried to address its electricity shortfall with gas-fired combined cycle power plants, but in February, it disconnected from Russian gas, further straining supply. We anticipate that electricity prices there will rise in the coming years."

Will you expand further in Lithuania?

"I wouldn’t rule it out. From our perspective, it’s an extension of our Polish operations, and we expect to acquire additional projects in various development stages."

How is the new U.S. administration affecting your business?

"There’s definitely uncertainty regarding the new administration—not just in renewables, but across the board. On one hand, uncertainty presents challenges, but on the other, it creates opportunities. One thing is clear: the administration wants to boost American manufacturing. That plays to our advantage because of our strategic partnership with First Solar. We believe that having access to U.S.-made panels will give us a competitive edge. We’re already seeing this in action—projects without American equipment face major hurdles. No bank wants to take on the risk of buying panels from Asia, for example. The financial institutions set the tone, and when they’re fully backing us, it’s a sign that despite market uncertainties, projects with American-made components can move forward."

What’s a bigger factor for you—government policy or interest rates?

"I think interest rates have a bigger impact because they determine project economics."

What gives you an edge in the U.S. market?

"We entered Virginia in 2016, making us one of the earliest players connected to the PJM grid, one of the largest in the U.S. We handle everything from A to Z—we develop, construct, and operate our projects. We have deep relationships with key financial institutions like Morgan Stanley, Bank of America, and Santander. And, of course, our partnership with Google is a major advantage."

What does the Google agreement include, and why is it so important?

"It’s a one-of-a-kind deal in the U.S. Google committed to purchasing our green electricity and its associated renewable energy certificates for over 15 years. On top of that, they’re our tax equity partner, which accelerates our ability to execute projects.

Essentially, Google is buying the tax credits associated with our projects. For example, if a $100 project qualifies for a $40 tax credit, a tax equity partner like Google steps in and purchases those credits—at a slight discount, of course, since they need to profit—but this provides us with immediate capital to reinvest in new projects."

Your project pipeline is expected to double by the end of 2026 to 4 GW and 1.3 GWh of storage. Will this come from acquisitions or organic growth?

"Currently, we have about 1.35 GW connected to the grid and another 650 MW under construction. That means we’ll close 2025 with 2 GW online. Our goal is to start building an additional 2 GW by the end of 2025—essentially doubling our capacity. This will include 1 GW in the U.S., 0.5 GW in Lithuania, and another 0.5 GW spread across Lithuania, Poland, and Israel.

Out of that 2 GW, about 1.5 GW is already in advanced stages. We’re also negotiating acquisitions, including 180 MW of ready-to-build projects in Ohio. It’s an ambitious plan, but most of our pipeline is already in motion."

What’s your message to investors?

"We’re executing a strong plan that will position us to achieve our targets. We have challenges ahead, but we’re actively tackling them. The Lithuania deal is a testament to our ability to think outside the box and pursue bold opportunities. The next two years will be transformative for Energix—by the end of it, we’ll be an entirely different company."