Solaria Energia Y Mdo Amb

Good afternoon, everyone, and welcome to Solaria 2024 first nine-month registered webcast. My name is David Guingon, the head of IR of Solaria. I am joined today with Arturo Díaz-Tejero Larrañaga, our chief executive officer. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. During this presentation, we'll begin with an overview of the results and the main development during the period given by our CEO, Arturo Díaz-Tejero Aranaga. Following this, we'll move on to the Q&A session. I would also like to highlight that you have to submit all your questions via the web. Thank you very much again, and I will now hand over the word to Arturo.

Thank you. Thank you, David, and thank you to everyone joining this conference call. As always, I will move extremely fast over the presentation, and we will pass to the Q&A session. And, of course, key highlights that we want to show in this nine-month presentation. Data centers. Data centers continues is the center of one of the important parts of our global strategy in Europe. We think that the data center business will grow a lot, especially in Spain, but not only in Spain, globally in all Europe. like in the United States, following the rhythm that we are seeing in the United States. And as you know, data centers will be one of the key customers for the electrical markets in the future. They are going to have strong consumption of electricity that they, theoretically, they should receive renewable electricity. And for us, it's one of the key customers for the future. We are bidding strongly for this business unit, and as you know, we are growing, increasing our consumption points in all the countries of Europe, especially focusing on Spain, but not only in Spain, in Italy, in Portugal, Germany, and now even United Kingdom, but especially focusing on Spain, no? We have today power land solutions for 1.7 gigawatts specially allocated in Iberia region for data centers. And today we are negotiating with different players from Europe and United States that are involved in data center business and they want to receive consumer points of electricity power and land, that we say, land options, and at the same time, PPA, renewable energy, electricity for the future. As you know, our data center business, we have decided to entry following two different ways. First is selling connection points and land. It's one of the options that we are developing and we are working with several groups. We will explain during this presentation. The other way is to establish joint ventures with key players, tier one players, with a long track record that wants to establish long-term business in Europe, especially in Spain, but focus in all Europe, with a strong experience in the data center business and that they want to establish joint ventures in the long term with renewable energy players, infrastructure players like Solaria. And we will try to explain during this presentation our business model of joint ventures in data center business. Of course, something new. We are entering in the United Kingdom. We have opened a branch, a new office in Birmingham in the United Kingdom. We think that, as we have explained, it's not a surprise because we have advanced to the market previously. United Kingdom and the new government is extremely bullish around renewable energy expansion. We think it's a good place to be and especially focus on wind technology, on short technologies. We think that the expansion of the data center business will be good and at the same time, renewable expansion will be good during the next years, you know, with... The intention of the government is to expand the wind capacity and the solar capacity in the country. Within our experience and our team is able to expand our activities there and we have decided to enter with all of our business. And we will report information quarterly about our advancements in the United Kingdom, in the country. company situation and where we are today. As you know, during this year, we have lived a tough year from price point of view. In the second quarter, especially price of electricity, we had a really low price of electricity. The good point today is that the price of electricity recovering the price and this is in a better situation than previously. You know that today, for example, in Spain we have price of electricity of 120 euros per megawatt hour. It's more than we have estimated previously. Probably November, December, January, February will continue the situation with the gas price situation. You know that today we are living a strong pressure on prices of gas and it's something that is affecting seriously price of electricity here in Spain and globally in Europe. But our results are affected by this small price of electricity during especially first half. We maintain really good levels of revenues, a bit associated especially with strong production, that we have grown more than 15%. But we have reduced our EBITDA in 14%. Hopefully, we will finish this year with an EBITDA better than previous year, better than 2023, with an estimation of 205-215 million euros of EBITDA that we maintain our estimation for the end of this year. Of course, we are going to talk shortly about the different important points of our business strategy for this year and for the next years. I have explained the concept of data center and our position in the business. At the end of the day, Solaria is a power land partner. We supply to the data center players power, electricity, connection points, infrastructure, substation and grid, ...and land. Obviously around our substation and grid we are contracting land because it's necessary. We are in contact with datacenter players and with the assumption of these guys we are contracting and renting land. That will be key for the development of the future datacenters in all Europe, no? Today our business model I have explained, two different ways, SAIL and joint venture. SAIL is opportunistic business, cash generation, PPA, good, in good conditions, joint venture, long term vision. We think that it's a good idea to introduce the company in the data center business to obtain a bit down cash from the data center business in the long term. We are not going to use CAPEX because at the end of the day in these joint ventures we are going to supply the power and land and we will give valuation for in-charge for this power and land that we are going to supply to the joint venture. We have included several estimations and we will link then ...with the joint ventures that we are negotiating today, but approximately we have estimated... ...revenues of 30 to 45 million per year for 100 MW. It depends on the final shards inside the joint venture that we are going to maintain... ...but it's an estimation based between 30 to 50% of the shards. Of course, where we are today, we have several negotiations, something new that we are explaining. We are negotiating today with tier 1 players that I have said at the beginning of this presentation, tier 1 players from Europe and United States especially. And I think that we are in a... good situation today to say that probably for the annual results presentation we are going to close several of these joint ventures. With the European player we have a really good advancement, we are in a really good stage of the negotiations, and probably for December, January, we could announce something with these guys. With United States players, I think that we need to spend more time, but we will try to do an effort, to make an effort, and to try to sign before the results presentation of 2024. We continue with our sales or with our opportunity sales of connection points, and we are advancing with these other deals. UK, as I have mentioned, I'm not going to spend a lot of time because we are at the beginning in UK. It's a promising country for us for renewable energy concept. I think that wind especially, but solar included. We are in contact with the United Kingdom government. We think that it's a good and opportunistic market for renewables. We are going to stay there. It's our obligation. As we have explained during the last years, Europe is the center of our strategy. We are going to grow in Europe, in good countries, with good security, legal security, with serious countries that we call. And for us, United Kingdom, absolutely, it's a serious country with good situation and good for renewables. And it's the moment to attack. It's the moment to be there. And we are going to stay. For us, in our mind, it's a good combination to stay in different countries with different level of risk of Europe, including Europe and United Kingdom. Of course, wind technology. Solaria today, as you know, is a mature player in the solar business, absolutely. We can say that we are probably one of the platform leaders in solar, absolutely, with a lot of experience in all the countries. But wind is our key point for the future. You know that pipeline, to develop pipeline when you have solar developments, to develop wind pipeline is easy and we are doing, we are executing now. And hopefully in the next two, three years we are going to construct massively wind parts. Especially, as always, we are going to start in Spain. ...Iberia region, we have good, really good visibility of more than one gigawatt of pipeline of wind... ...in different locations that you know the locations because it's Garonia, in Trillo, in place that we have established... ...or that we are constructing solar plants and we are going to combine with wind, hybridization process... that we will complete during the next 2-3 years. It's exciting for us because the concept for us is a clear strategy for the future to combine solar, wind, batteries and data center consumption. It's a great idea in our view for the long-term vision of solaria, wind, solar, batteries, and data center consumption, obviously, and traditional PPAs. But it's a global infrastructure strategy, and I love it. And our projection for the future that is estimated is to achieve more than 3 gigawatts of wind in Europe, including Italy, Germany. In Italy, we are not extremely bullish about wind. We think that it's better for solar and wind. We think that Italy is not the place for different reasons, especially for political reasons. Germany is okay and UK obviously is okay. Of course, pure infrastructure player, more than 20 gigawatts, extremely diversified. Europe, we are not going to move out of Europe, not in the short term or medium term. We think that Europe gives to us high-level project IRR, high level of profitability, generation of gas, security, and capex under control. That is critical for us. We think that we are probably the most powerful platform of renewables in Europe. Generia is a good combination. It's something that we made a long time ago because, as you know, land is critical. You are seeing now, even with data center business, land is one of the key parts of the strategy of an infrastructure player. and the generia was a good idea made few years ago that is growing today is attracting interest of some partners but at the end of the day people that are looking for fixed interest long term 20 25 years and the generia offers this great opportunity this great opportunity to these guys. It's like they are going to warranty a good interest rate, close to 8% during the next 30 years. And a lot of interest from the market. We have contact banks, as you know. We are talking with different players, especially funds, insurance companies, but all kind of infra funds, pension funds that want to invest in long term business with good levels of profitability and low risk. And Generia accomplished with this business idea. Hopefully, for the full year's presentation 2024, we will give the name of the final partner that... We will be with them in Generia and the combination will be probably Solaria 51 this partner 49% and he's going to stay with us with cash like a financial investor and hopefully in 3-4 years this business will grow and we will see what we are going to do. It's probably we could sign an option to sell the company to this guy or other options but it's still too early to talk. Probably in the full year's presentation we will give all the visibility. Of course, CAPEX continuous is incredible, but not a surprise. CAPEX falls all quarters. Module price is suffering an awful evolution for module manufacturing companies, because the reduction is crazy per quarter. and continues not only module inverters all the components of the installation and in my mind it's going to continue it's not something opportunistic it's a continuous line that we are going to see during the next 10 years it's incredible the development of the technology and we are the leader from CAPEX perspective in Europe and especially in Spain obviously and we continue decreasing our CAPEX Of course, where we are now from construction point of view, we have 1.7 gigawatts already functioning and under construction close to 1.5 gigawatts. Hopefully during the next year we are going to connect progressively a lot of installations and we will finish 2025 with more than 3 gigawatts, being the leader in Iberia region and probably one of the leader platforms in Europe. and hopefully we will add some construction associated with Italy that we have a good state of development and probably we will start construction in Italy and we haven't included here but I think that following an optimistic view probably during 2025 we will add a good volume under construction in Italy. But we continue constructing, not complicate construction. I think that progressively we will connect. Of course, PPA, where we are, is something that always we receive questions about the PPA market. You know, during the last month, price of electricity suffered a lot. Solar price, but not only solar, global price of electricity, talking about Spain especially, suffered a lot. Today, recovering price. We are in a better situation, and I think that ...that PPA price is in a better situation. Today we have three terms sheet agreements signed. We have three terms sheet agreements signed with tier one players. Oil and utilities, like always, are new partners. Some of them are new and it will be a good new... we have thought to include even in this presentation but probably will be announced in the next weeks good prices and especially the schedule no because they are thinking to start the con the contract after 2026 no that gives to us a lot of time it's comfortable to us and and mid 30s no that is good price good conditions good long-term view for us no Today we are negotiating 0.6 gigawatts, but probably we could increase if we want. But we are booking some power for our data center business. Why? Because we think that the data center customer will be better. Better is not a correct word to use. All the customers are great. But in our view, data center business could pay more. Why? Because they use connection points, demand connection points. It's self-consumption concept. They are going to save some regulated cost. They are going to save taxes and retail margins. At the end of the day, they are going to save around 20 euros per megawatt hour that a utility or oil company should pay. Obviously, at the end of the day, they are able to pay more on PPA prices. And it's an enormous advantage of these guys. At the same time, they need electricity as soon as possible, and they have some advantage. I think that PPA price that we could sign is much better than the traditional prices that we are announcing to the market. But we will see. We will see, especially with a joint venture, because... Probably it will be a combination. We are going to obtain shards inside the joint venture based on power and land and power and PPA is combined. We will report information. Of course, results, as I have mentioned, we increase production, we reduce sales according with price of electricity. This quarter goes good because price of electricity is growing a lot, especially in November. We will see December probably will follow the same way because I have talked gas situation and gas prices of gas in Europe that in my mind is not going to change, especially with Russia situation that we will see the evolution of the war, but I think that it's not positive from gas prices point of view. And you know that Gazprom has cut the supply of gas. It's not a surprise to Austria, but it's something that increase the inflation over prices. But we will see. Of course, we continue with our EBITDA. It's impacted seriously by tax. The government of Spain approved the Spanish 7% generation tax, you know. It was approved at the beginning of this year, hopefully, and I think I'm positive here. I think that At the end of this year, we'll finish. It's my view. After a lot of conversation with the Spanish government, in my mind and in my view, this tax is going to be cancelled at the end of this year. But we will see. We will see if it's true or not. But it's significant for us because it's something that is affecting seriously our EBITDA. Of course, cash recuperation. We have advanced in the previous results presentation. We are recuperating cash and we are receiving payments from project finance players, suppliers and banks. I think that our construction rhythm continues. We are investing enormous amount of money and we continue maintaining our cash. We are improving our pipeline. We are improving in countries, quality of our pipeline, more wind, more solar, more countries, data centers. And at the same time, we maintain our cash and the discipline inside the company to maintain the cost. It's good. As you know, all of our debt is project debt. And the average cost of debt is not bad, 3.7. Probably with a reduction on interest rate, we will improve this average cost of debt. We will see in the next quarters. Of course, as I have mentioned at the beginning, we reiterate our EBITDA targets and we haven't included here nothing special associated with generia. We haven't included here nothing special associated with data centers. It's like the standard business. We will see the evolution, but we think that that probably will be better than we have estimated, especially associated with price of electricity.

Thank you, Arturo. We will now open for Q&A session. And once again, thank you for your time. So the first question comes from Fernando Garcia from RBC. First question is when the revenue will start in our JVDC deals. Second question is if we can provide some timing to sign the agreement with data section. And third, if we can explain the delay of the capacity under construction from summer 2025 to most of it in the second half of 2025.

About when we are going to have revenues of data center, it's a good question. Probably at the end of 2026, before it's difficult. Why? Because we are going to announce joint ventures probably before the February's presentation, results presentation. At least one, probably two, but at least one. And we will define all the terms of the joint venture with exactly the participation in charge of Solaria, the power and the land that we are going to supply, all the details. The key point is that we will start with the construction physically of the data center. It's not easy and probably we will spend time. Spend time is one year and a half. It's something reasonable at least. We are not extremely focused on the revenues and EBITDA of this business. It's not the key point for us. It's the global valuation, because we are going to enter a new business with key players, with partnership of key tier 1 players. that are going to give to us important knowledge about this business. Solaris is going to be an energy partner that works in technology and I love it because it's like we are changing globally our strategy easily, not easily, sounds easy but it's not easy, but easily. It's like we will introduce a company in a new world with new enormous customers, exciting customers, ...with an enormous capacity. It's a new business that needs a lot of things, not only power and land. It needs services. And we will enter with partnership with the key players in the world. I'm extremely excited. From valuation, in my mind it's unlimited valuation. I'm extremely comfortable today because... In my mind, what does it mean? I can't say. I think it's a new business, it's a new company. We are going to change completely our face and the valuation is... I understand the concept of revenues and EBITDA. After 20 years, believe me, I understand perfectly the concept of EBITDA and revenues. But it's a new company and it's going to transform completely Solaria. It's the energy partner of the technology world. And I'm excited with this. In Europe is something new, not in United States. You know that in United States is not new because there are a lot of energy players that are supporting the growth of these key guys, enormous guys. ...country guys, because they are larger than countries. But here in Europe is something new. We still don't understand. We don't understand because we are not following the market in my view. But we will be the key player. We will be one of the partners of these guys. And I'm extremely excited with this. But in order to answer your question, probably in the second part of 2026 is reasonable. 2027, no? It's the same data section you have mentioned. It's the same. We are working on it. It's difficult deals that needs to do due diligence. They need to understand perfectly the situation of the connection points, the regulation connection points or regulation in Spain. I think that, as I have mentioned before, the results presentation of February, we will report deals close and all the details. under construction summer 2025 second half where we why we have delay it's not sometimes people ask to myself no why you delay your construction process the the answer is not because solar is delaying because for any reason we are ready to construct tomorrow all the capacity we have Permitting on site, we have all on site, and we have the financing terms, we have the money, we have the modules, so it's why you delay sometimes. Unfortunately in Spain we are living in a strange situation, not strange, it was something predicted by ourselves a long time ago. A lot of small players that share infrastructure with us. ...and unfortunately they are in an extremely difficult situation. They are not answering to the Ministry about the installation that they should construct. They should start with the construction. Some of them share positions with ourselves... ...and unfortunately they have delayed sometimes projects of solarium. Not significant delay, but a few months. Some of them are being eliminated by the market because they don't have money, they don't have project finance capacity, they are not serious. In the Spanish market, in global, in the renewable energy market, you have a lot of speculators, but serious companies, only few, not significant serious players. It's our life, bubble effect of renewable energy, but it's something that we knew in the past and they are delaying some of our projects. The good point is that it's not significant, a few months, but it's something that has happened.

Next question comes from Fernando Garcia from RBC. How many megawatts of DC with grid connection you have at the moment and how many megawatts pending answer? As we update in the last quarters, we had at this moment 270 megawatts secured and 730 megawatts pending answer. As you can see, pending answer, we have much more than this 730 megawatts, but today we won't update the market. Next question is coming from Philippe from Odo. Good morning. May we have the amount of capital gain included in the EBITDA? Is there any change versus H124? No change. As you say, Philippe, we have included 11.5 million of capital gain in the first half in our EBITDA. And in the third quarter, we don't have any capital gain. Next questions are coming from Enrico Bartoli from Mediobanca. Can we provide more color on the cash flow generation of the data center business? Then, are these revenues recurring every year? The next question is coming from Generia. Can we provide any update on discussion with potential investors in Generia? And maybe your last one from Enrico. What is the amount of capacity currently under construction that Solera plans to secure through PPA contract?

Of course. About the revenues and the data center business, cash flow is still too early to talk about the cash flows. I think that let me talk about all of this in the annual results presentation with the joint venture sign and with the guys, our partners, agreed and with all the details of the joint venture, including the contract and the long-term contract and all the details. I think that it's still too early to talk about the cash flows. It will be recurrent, obviously. If we enter like a joint venture player, we are going to receive a recurrent cash flow all year during 30 years. It's the concept of the joint venture and our intention is to enter in this business. It's a good business opportunity. I don't know if we will be in the long term or we could stay a few years and then to sell, we will see. At the beginning, our vision is that we are going to obtain a recurrent cash flow. Investors in Generia, we are talking with several investors, as I have explained. We haven't talked about amount of money. It's something that obviously is significant because we are not going to increase in Generia capital for getting small amount of money. We still are under negotiation with them. The base and the concept of GENERI is to give a value of close to 300 millions of euros, but it's still too early. I think that we need to move with our partners, future partners, with our investors, and we need to see the final evolution of this deal. And the PPA contracts and the concept is the same as always. We think that it's a good idea to maintain 70-30%, approximately 70% PPA, 30% merchant concept. that could grow to 80 or that could stay between 70 to 80 is reasonable. At the end of the day, we are an infrastructure player. We want to secure cash flows and it's smart to close PPAs. But today, and not today because we have announced previously, the key point is that PPA is not only focused on oil or utilities and the traditional retail distribution company. We are opening the door to new players like data centers that they could pay more and it's more interesting probably for us to sign contracts with them.

Next question is coming from Fernando Lafuente from Alantra. Three questions. First, what explains the 60% fall in prices in Portugal and Greece? I will answer. As you know, Portugal is today merchant. It was merchant, sorry, and today is PPA. Remember that we have income, all the revenue coming from merchant. from Portugal in the last year, but from summer, all these plants, the 63 megawatt plant, are going to the PPA. Remember that the PPA of Portugal was around 22, 23 euros. So for that reason, revenue going down in Portugal from Merchant to this 22, 23 euros PPA. Second question, the 2024 EBITDA target, what does it include from infra? As we mentioned, we estimated around 25, 24, 25 million euros of infra without asset rotation for 2024. And then the next questions are coming from Manuel Palomo from BNP Paribas. More questions regarding DC business. Have we already closed a deal? Can we share our plan to grow in the UK greenfield or through acquisition? And can we please help to build the revenue bridge from the total 157 total revenue to energy sales? I will maybe answer to the last question. Energy sales is in nine months 104 millions of euros. To make the bridge with sales of 157, you have to raise the asset rotation of 11.5 millions of euros of asset rotation in the first half. And on top of that, Infra-revenue, you have to add around 21 million euros. We have recognized 14 million euros of infra-revenue in the first half and only 7 million in the third quarter. So in the third quarter, no asset rotation and only 7 million of infra-revenue.

About UK and the expansion that we have thought, obviously will be greenfield, not acquisitions. Our intention is to develop large projects, like following the concept of hub projects of large volume of megawatts that could combine solar and wind in specific locations of United Kingdom, not massively around all the country. In some specific places, we are going to develop large projects that combine solar and wind. This is our intention, especially in two places.

Next questions are coming from Archer Sidbon from Morgan Stanley. Given we are now considering two business models for data centers, Are we still committing to generate 670 million euros of cash from the data center business over 2024-2028, as indicated in the first half results?

In our mind, if these guys pay in shares, it's like to pay in cash. For me, it's reasonable to obtain cash. It's extremely important. But if these guys recognize our cash with shares of a business that will generate recurrent cash flow, at the end of the day, for me, it's even better. I think that we will combine both, as I have explained. Tier 1 players, serious playing, long-term vision that could change completely the face of the company, the face of Solaria, joint ventures, global agreements, and we want to stay with them in the long term, like always in our strategy. Good customers. Good profiles, long-term view is our understanding of this business. And for me, if they pay in charge of the joint venture and they allocate all the capex for constructing and they allocate the knowledge, it's a great deal for Solaria. And the other way, as I have explained in other presentations, is opportunistic deal to obtain cash.

Next question is coming from Daniel Rodriguez from Westinvale. First question is, can we give the capacity under construction today? And second question is regarding the shell buyback. Have we taken a decision on the possibility of a shell buyback already mentioned in first half?

Always is in my mind to execute a shard buyback and to acquire shards. But life in Solari is extremely complicated. A lot of things happen at the same time. And honestly, it's complicated to explain all. But shard buyback is always on my mind. And who knows? It's complicated because shard buyback is on my mind.

Just to answer to the first question, our capacity today under construction is 1.4 GW and we expect to have this capacity under construction fully operational at the end of 2025. Next question is coming from Henri Tart from Berenberg. in our 2024 guidance for EBITDA what we assume regarding capital gains or data center revenue versus energy business. In line with what say Arturo and what we say in the past, this year we don't expect more asset rotation. We already include 11.5 millions of euros of asset rotation in the first half. And we may include some data center revenue this for 2024. Next question is coming from Nash from Backlace. If we keep our 2024 guidance, which are we implying that the Japanese data center deal will go through? First question. And second question, if we can give any timeline for the UK.

Of course, to execute a cash deal is on track and we want to execute for this year, as we have explained. And we are negotiating and we continue negotiating, closing details. And hopefully for this year we could report a cash deal that you are mentioning. And, of course, the UK, when we expect the first operational project. This is still too early to say, but we will move fast. But I think that during 2026, 2027, we could report projects under construction and operational projects for 2027.

Next question is coming from, two question more, coming from Daniel Rodriguez from Vestiver. First one is, are we going to assign PPA for the capacity under construction, once per four gigawatts? And second question is, are we providing power behind the meter to data center?

Of course, PPA, yes, we are going to sign. As I have explained, we have today a timesheet signed for close to 600 megawatts that we thought we have... thought to include even in this presentation the name of the guys and the term sheet all the details of the term sheet agreements but but probably we will do in the full year report know that we are going to include all the information but honestly i think that is not a big deal to sign today the term sheet and to sign the contract. I think it was done. And today I could say that 600 megawatts is contracted with PPA. And data center is the same. Obviously, with a joint venture with a cash operation that we have explained, obviously, we will go with a PPA contract sign. And sorry for behind the...

The second question from Daniel was regarding the behind-the-meter. I think it's very important for us, and not only for us, for the DC and for the final customer. What we are providing in our PowerLens solution is a behind-the-meter solution. It's very important. Why? Because as Arturo said before, there is a cost saving, enormous cost saving for the final customer. of more than 20 euros per megawatt hour this is as a self-consumption as this self-consumption solution permit to the data center to avoid to pay all the regulated cost toll cost transport cost also all the taxes and all the retail margin so the saving is enormous and because of the saving the PPA price should be higher than in a normal PPA. Next question are coming from Thomas Reisch from CaixaBank. First question is, in the case that we provide the land to the DC, John Ventura project, will you have to invest in acquiring or renting the land? Second question is more detail on the battery pipeline. When should we expect ready to build and in which geography?

It depends on the project. In some projects they want to rent, in some projects they want to acquire the land. At the end of the day, our work is to allocate the land, to get the land, and to pass through to the joint venture with a fee. It's the work of Solaria. We are not going to acquire the land with Solaria's money. We pass through to the joint venture, including a fee for our development work developed by Solaria. And the battery pipeline, honestly, the battery, I know that the market is extremely focused on battery. I think that it's a good idea depending on the regulation. The Spanish government, you know that they want to approve a new regulation, theoretical in December. We will see if they approve. Depending on what they are going to approve, we will see. We could establish batteries in all of our PV assets and power plants. We have get license for batteries. It's easy. It's not complicated. And it's something that could give a premium on prices. But we need to see the new regulation. Because today in Spain, and not only in Spain, in other countries of Europe, it's not easy to include batteries. Especially in Spain today, it hasn't got sense. I think that the Spanish government should change the law at the end of this year or first quarter of next year. We will see. And with a new law... Obviously we could start with the installation massively of batteries in our installations.

Next question is coming from Philippe Aubapian from Odo. Can we detail the component of the other in the revenue versus the electricity cells? I will answer, Philippe, in line with our last quarters and years. There are two main components in our other revenue, mainly cost activation and some penalties. So mainly, it depends on the year, depends on the quarter, but cost activation and penalties. Next question is coming from Henry Tarr from Berenberg. Which projects have mainly been impacted by the infrastructure delays? What is the progress on the Garonia project?

Garonia was one of them and the Garonia project should stay connected to the grid probably for the summer of 2025 or the second half of 2025 approximately. Theoretically, the previous plan included in the first half of 2025, but it's a complex infrastructure. We had some problems with some of our colleagues. Finally, we are alone in this connection point. And, of course, we are constructing all the infrastructure, but they have delay. And hopefully for the summer we are going to start with the connection of Garonja. That includes three different phases, three different stages and this progress during the second half we are going to connect.

I will take the last question. Sorry for not answering the question. The last one may be from Nash from Barclays. Any power assumption for Q4 in our guidance?

It's like the casino. The power price in Spain today is like the casino. You have a lot of analysts and people that give clear and wise opinions about the price of electricity. They have probably more knowledge than myself after 20 years. But in my mind, probably you will see price of electricity in December similar to November, because gas prices and Trump victory, Russia, you know. You know the situation. It's something that is affecting gas prices, especially in Europe, and obviously... is something that is going to affect price of electricity. Short term, absolutely. Medium and long term, I don't know. We will see the evolution of the conflict, the war of Ukraine with Russia and the movement of the Trump government. But it's something that is going to affect seriously euro prices of electricity.

So thank you, Arturo. Thank you to everybody for joining today's call.

Thank you very much for being part of this conference call. And we'll be available for any additional information. I think that it's an exciting team. It's exciting timing because we are going to grow in new business, new activities. Europe is in a great position to attract data center investors that want to grow, that they are obligated to grow in Europe. And they are going to be high consumers of electricity, renewable electricity. They need infrastructure and they need electricity, solar and wind electricity. And I think that Solaria will be one of the key players that are going to give solution to these guys and especially focus, as I have mentioned, in Europe. and in our mind is the place to be. Sometimes we think that the business is out of the old Europe, but in our view, today, if you want to get good profits, good project IRRs, and security, Europe is the place, and especially with the new growth associated with the data center business. Thank you very much, and have a great afternoon.