Solair's Spain After Calasparra: Storage Can Support a Later Sale, Cash Has Not Arrived
Calasparra is now connected and Alizarsun is still on the sale track, but Solair's Spain has shifted from a regular PV disposal to a sale that is supposed to reflect storage upside. That can improve the proceeds, but the assets are still classified as held for sale and Q1 included an impairment.
Solair's Spain is no longer only the risk of a failed transaction. Calasparra has moved from an asset marked for sale to a connected project generating electricity revenue, while Alizarsun and Calasparra are still presented as assets intended for disposal. The important change is that the future sale no longer rests only on ordinary PV assets, but on an attempt to obtain a development premium that reflects planned storage additions in both projects. That can be the right decision if storage is installed on time and improves the sale price by more than the investment required. But the cash has not arrived: the assets and liabilities are still on the balance sheet as disposal groups, and Q1 included a NIS 5.7 million impairment related to Calasparra and Alizarsun. The current conclusion is therefore not that Spain has weakened, but that the proof path has moved from a fast sale to realized enhancement. The next checkpoints are simpler: an actual sale, a price that recognizes storage, and real progress on installation over the coming year.
The Spanish sale now depends on storage, not only PV
On March 25, 2026, the agreement with InfraRed to sell the three Spanish projects, Alizarsun, Calasparra and Villena, was terminated because of gaps between the parties. The company is already looking for an alternative buyer and expects to sell Alizarsun and Calasparra within the coming year. This is not the same position as before the termination: Calasparra has completed the approvals required for grid connection, a technical connection agreement was signed, and the project has started generating electricity revenue. Part of the execution risk has therefore fallen.
Still, the main value the company is trying to surface now sits somewhere else. In the connected-project table, Alizarsun is shown as a 50 MW PV project and Calasparra as a 31 MW PV project, with no existing storage in that table. The current estimate is that storage systems will be installed in both projects over the next 12 months, at a cost of about NIS 48 million for Alizarsun and about NIS 30 million for Calasparra. The company expects the sale to reflect a development premium for that storage potential.
| Project | PV base before storage, 100% project | Planned storage cost | Annual forecast after storage, 100% project |
|---|---|---|---|
| Alizarsun | Revenue 11, EBITDA 7, FFO 5, FCF 1 | about NIS 48 million | Revenue 41, EBITDA 32, FFO 24, FCF 8 |
| Calasparra | Revenue 11, EBITDA 7, FFO 4, FCF 2 | about NIS 30 million | Revenue 29, EBITDA 24, FFO 16, FCF 6 |
The table explains why the company is not framing Spain simply as a failed sale. If the storage forecasts materialize, the projects should look to a potential buyer like assets with a materially different profitability profile. But this is still project-level forecasting, on a 100% basis, before sale price, tax, debt and the question of how much of the proceeds actually reaches the listed company.
Grid connection reduced risk, the impairment shows value is still not locked in
Calasparra's grid connection matters because it moves the asset from development to an early operating stage. In Q1, Calasparra contributed about NIS 1.0 million of revenue and about NIS 0.9 million of EBITDA at project level. Alizarsun contributed about NIS 1.3 million of revenue and about NIS 0.9 million of EBITDA. These are still small numbers relative to the disposal story, but they give a potential buyer a live asset rather than only a development pipeline.
The other side is accounting and economic caution. Following Calasparra's grid connection and acceptance tests, an external valuation was performed using discounted cash flow, based on the project's power sale agreements and energy-price forecasts from industry consultants. The result was an impairment loss of about NIS 2.6 million for Calasparra. At Alizarsun, as part of additional investment in the sale and improvement process, another impairment of about NIS 3.1 million was recorded. Together, Q1 includes about NIS 5.7 million of impairment in the two assets.
That number does not cancel the storage story. It does show that the current accounting value of the assets, before a new sale and before a proven storage premium, is still not giving the company full credit for future enhancement. If the next buyer mainly pays for connected PV, the terminated transaction will look like delayed cash. If the buyer pays for a hybrid storage asset, waiting can be economically justified.
The assets are still held for sale, so this is a capital recycling question
The balance-sheet classification is what prevents the story from being only operational. At the end of March 2026, Calasparra and Alizarsun were still shown as assets held for sale: NIS 115.9 million for Calasparra and NIS 161.6 million for Alizarsun, or NIS 277.5 million together. Against them are liabilities held for sale of NIS 75.6 million at Calasparra and NIS 91.6 million at Alizarsun, or NIS 167.3 million together. In other words, Spain has not released cash yet. It remains a layer of assets and liabilities waiting for realization.
That is the difference between project-level FFO and value accessible to shareholders. As long as Alizarsun and Calasparra are held for sale, the issue moves from how much they can produce in a normal post-storage year to whether the company can convert the enhancement into actual proceeds. The positive scenario is a sale within 12 months at a price that recognizes the storage addition and returns capital to the company. The weaker scenario is storage installation that requires more investment while the sale is delayed or the premium is not high enough to compensate for waiting.
What Decides the Next Read
Spain has improved operationally, but not yet in cash terms. Connected Calasparra reduces the risk that a buyer is purchasing an immature pipeline, and storage additions can justify a better price than the ordinary PV alternative. But until an agreement is signed and proceeds arrive, that progress remains an enhancement promise rather than proven capital recycling. Over the next few quarters the market will look for storage installation or an agreement that funds it, an alternative buyer with a price that recognizes the changed asset profile, and balance-sheet movement showing that assets held for sale became cash rather than simply remaining a disposal target.
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