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Zenith Energy Ltd. (LSE:ZEN) has expanded its Italian solar portfolio beyond its original 2026 goal after acquiring another photovoltaic project in southern Italy, prompting the company to set a higher year-end acquisition target.
Zenith has acquired a 10 MWp photovoltaic project in Foggia, Puglia, increasing its Italian solar development pipeline to approximately 203 MWp.
The acquisition takes the company past its previous target of building a 200 MWp portfolio during 2026 ahead of schedule. Zenith has subsequently increased its year-end acquisition objective to 240 MWp.
The expansion forms part of the energy producer’s strategy to build a scalable renewable energy business in Italy alongside its conventional production, exploration and development activities across North Africa, the U.S. and Europe.
Construction is also progressing on three solar plants in Puglia, while Zenith is planning the approximately €12 million sale of its roughly 50 MWp South Piedmont portfolio.
The latest acquisition increases Zenith’s exposure to Puglia, an area offering relatively high levels of solar irradiation.
The company is seeking to generate value at multiple stages of the solar project lifecycle, including development, construction and operation, while selectively selling assets when opportunities arise.
Zenith could also benefit from government support for renewable energy development. An EU-approved €23 billion Italian state aid programme is designed to provide long-term price support for qualifying renewable energy projects.
Management believes the combination of supportive renewable energy policies and its growing development pipeline provides a foundation for building a larger Italian solar platform.
The proposed €12 million disposal of Zenith’s approximately 50 MWp South Piedmont portfolio demonstrates that portfolio expansion is only one element of the company’s renewable energy strategy.
Rather than retaining every project through operation, Zenith intends to selectively monetise assets as they advance through development. This approach could allow the company to recycle capital into additional opportunities while seeking to translate development progress into shareholder value.
The increased 240 MWp acquisition target means further portfolio additions will be required before the end of 2026 if Zenith is to achieve its revised objective.
Despite the expanding solar pipeline, Zenith’s broader financial profile presents risks. The company has experienced recurring negative operating and free cash flow, returned to substantial losses in 2026 and has seen debt increase.
Technical indicators also remain weak, with a negative MACD and the share price trading below key moving averages. Losses result in a negative price-to-earnings ratio, while the absence of a dividend limits income support for shareholders.
These factors leave execution of the renewable strategy, successful project monetisation and progress toward revenue-generating assets as important considerations alongside continued portfolio growth.
Zenith Energy is an independent energy company with production, exploration and development interests across North Africa, the U.S. and Europe. The company is listed in London, Oslo and on Sweden’s Spotlight market.
Alongside its conventional energy operations, Zenith has increasingly expanded into Italian solar power. Its strategy covers the full project lifecycle, from acquiring and developing photovoltaic assets through construction and operation to selective disposals.
The company aims to use this combination of renewable development and conventional energy experience to build scalable assets and advance projects toward revenue generation or monetisation.
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