ENLIGHT RENEWABLE ENERGY LTD.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED AS OF DECEMBER 31, 2020

Enlight Renewable Energy Ltd.

Financial Statements as of December 31 2020

Table of contents

Page

Auditors’ report regarding the audit of the components of internal control over financial reporting 2

Auditors’ report – audit of the annual financial statements 3

Financial statements:

Consolidated statements of financial position 4-5

Consolidated statements of profit or loss and other comprehensive income 6-7

Consolidated statements of changes in equity 8-10

Consolidated statements of cash flows 11-13

Notes to financial statements 14-120

Somekh Chaikin KPMG Millennium Tower 17 Ha’arba’a St. POB 609 Tel Aviv 6100601 03 684-8000

Auditors’ report to the shareholders of Enlight Renewable Energy Ltd. Regarding the audit of the components of internal control over financial reporting in accordance with Section 9B(c) to the Israeli Securities Regulations (Periodic and Immediate Reports), 1970

We have audited components of internal control over financial reporting of Enlight Renewable Energy Ltd. and its subsidiaries (hereinafter – “the Company”), as of December 31, 2020. These components of internal control were set as explained in the next paragraph. The Company’s Board of Directors and Management are responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of components of internal control over financial reporting included in the accompanying periodic report for the above date. Our responsibility is to express an opinion on the components of internal control over financial reporting based on our audit.

Components of internal control over financial reporting were audited by us according to Israel Audit Standard 911 of the Institute of Certified Public Accountants in Israel “Audit of the internal Control Components over Financial Reporting” (hereinafter – “Israel Audit Standard 911”). These components are: (1) entity level controls, including controls over the preparation process and closing of the financial reporting and general controls of information systems; (2) controls over the projects process; (all of these together are called the “audited control components”.

We conducted our audits in accordance with Israel Audit Standard 911. This standard requires that we plan and perform the audit to identify the audited control components and to obtain reasonable assurance whether these control components have been maintained effectively in all material respects. The audit includes obtaining an understanding of internal control over financial reporting, identifying the audited control components, assessing the risk that a material weakness exists in the audited control components, as well as review and assessment of effective planning and maintaining of these audited control components based on the estimated risk. Our audit, for those audited control components, also included performing such other procedures as we considered necessary under the circumstances. Our audit referred only to the audited control components, unlike internal control of all material processes over financial reporting, and therefore our opinion refers only to the audited control components. In addition, our audit did not take into account the mutual influences between the audited control components and those which are not audited, and therefore our opinion does not take into account such possible effects. We believe that our audit provides a reasonable basis for our opinion in the context described above.

Due to inherent limitations, internal control over financial reporting in general and components of internal controls in particular, may not prevent or detect a misstatement. Also, making projections on the basis of any evaluation of effectiveness is subject to the risk that controls may become inadequate because of changes in circumstances, or that the degree of compliance with the policies or procedures may be adversely affected.

In our opinion, based on our audit, the Company effectively maintained, in all material respects, the audited control components as of December 31, 2020.

We also audited the Company's consolidated financial statements as of December 31, 2020 and 2019 and for each of the two years in the period ended December 31, 2020, in accordance with auditing standards generally accepted in Israel, and our report, of March 30, 2021 included an unqualified opinion on these financial statements, based on our audit and the reports of the other auditors.

Somekh Chaikin Certified Public Accountants March 30, 2021 - 2 -

Somekh Chaikin KPMG Millennium Tower 17 Ha’arba’a St. POB 609 Tel Aviv 6100601 03 684-8000

Auditors’ report to the shareholders of Enlight Renewable Energy Ltd.

We have audited the attached consolidated statements of financial position of Enlight Renewable Energy Ltd. (hereinafter – the "Company") as of December 31, 2020 and 2019 and the consolidated statements of profit or loss, other comprehensive income, changes in equity and cash flows for each of the years in the period ended December 31, 2020. These financial statements are the responsibility of the Company’s Board of Directors and Management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Company for the year ended December 31 2018 were audited by other auditors, whose report thereon, dated March 25 2019, included an unqualified opinion. We did not audit the financial statements of subsidiaries, whose assets included in consolidation constitute approximately 37% and approximately 34% of total consolidated assets as of December 31, 2020 and 2019, respectively, and whose revenues included in consolidation comprise approximately 62% and approximately 69%, of total consolidated revenues for the years ended December 31, 2020 and 2019, respectively. The financial statements of those companies were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to amounts included for those companies, is based on the reports of the other auditors. We conducted our audit in accordance auditing standards generally accepted in Israel, including those prescribed by the Israeli Auditors (Mode of Performance) Regulations, 1973. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Company’s Board of Directors and management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit and on the reports of the other auditors, the above-mentioned consolidated financial statements present fairly, in all material aspects, the financial position of the Company and its subsidiaries as of December 31, 2020 and 2019, and the results of their operations, changes in equity and cash flows for each of the two years in the period ended December 31 2020, in conformity with International Financial Reporting Standards (IFRS) and the provisions of the Securities Regulations (Annual Financial Statements) – 2010. We have also audited in accordance with Israel Audit Standard 911 of the Institute of Certified Public Accountants in Israel “Audit of the Internal Control Components over Financial Reporting”, internal control components over financial reporting of the company as at December 31, 2020, and our report of March 30, 2021 included an unqualified opinion on the effectiveness of those components.

Somekh Chaikin Certified Public Accountants

March 30, 2021

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Enlight Renewable Energy Ltd.

Consolidated Statements of Financial Position as of December 31 2020

2020 2019 Note NIS in thousands Assets

Current assets Cash and cash equivalents 5A 319,345 683,166 Cash restricted as to use 5B 282,157 185,871 Financial assets at fair value through profit or loss 27C 104,516 72,058 Trade receivables 6 36,711 52,762 Other accounts receivable 7 89,012 19,692 Current maturities of contract assets in respect of concession arrangements 9 48,541 46,292 Total current assets 880,282 1,059,841

Non-current assets Cash restricted as to use 5B 63,435 98,460 Other accounts receivable 1,693 1,712 Deferred costs in respect of projects 48,447 83,901 Deferred borrowing costs 83,898 26,521 Investments accounted for by the equity method 8C, 30A(11) 104,373 27,226 Loans to entities accounted for by the equity method 8C 140,551 68,764 Advances on account of acquisition of shares 30A(9) 3,118 - Contract assets in respect of concession arrangements 9 871,758 925,811 Property, plant and equipment, net 10 3,015,457 1,825,715 Intangible assets, net 11 291,195 193,660 Deferred taxes 17 44,375 8,834 Right of use asset, net 26 260,302 140,253 Financial assets at fair value through profit or loss 27C, 30A(11) 32,519 - Total non-current assets 4,961,121 3,400,857

Total assets 5,841,403 4,460,698

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Consolidated Statements of Financial Position as of December 31 2020 (continued)

2020 2019 Liabilities and equity Note NIS in thousands Current liabilities Credit and current maturities of loans from banks and other financial institutions 14 669,663 95,357 Trade payables 12 25,591 120,006 Other payables 13 260,971 110,861 Current maturities of bonds 15 55,713 42,431 Current maturities of convertible bonds 15 - 308 Current maturities of loans from non-controlling interest 14 17,467 3,126 Current maturities of loans from other credit providers 14 - 9,880 Current maturities of lease liability 26 18,019 12,149 Total current liabilities 1,047,424 394,118

Non-current liabilities Bonds 15 600,487 443,788 Loans from banks and other financial institutions 14 2,032,344 1,703,376 Loans from other credit providers 14 - 135,520 Loans from non-controlling interests 14 131,198 184,216 Other financial liabilities 27D 109,049 83,286 Deferred taxes 17 27,320 46,306 Long-term payables 13 7,888 - Lease liability 26 238,310 128,089

Total non-current liabilities 3,146,596 2,724,581

Total liabilities 4,194,020 3,118,699

Equity 18 Ordinary share capital of NIS 0.01 par value 8,223 7,515 Share premium 1,347,581 986,619 Capital reserves ( 37,005) 17,382 Proceeds on account of convertible options - 614 Retained earnings (accumulated deficit) ( 143,546) 7,224 Equity attributed to the shareholders in the parent company 1,175,253 1,019,354 Non-controlling interests 472,130 322,645

Total equity 1,647,383 1,341,999

Total liabilities and equity 5,841,403 4,460,698

Yair Seroussi Gilad Yavetz Nir Yehuda Chairman of the Board of Directors CEO and Member of the Board of Directors Chief Financial Officer

Date of approval of financial statements: March 30 2021.

The notes to the consolidated financial statements are an integral part thereof. - 5 -

Enlight Renewable Energy Ltd.

Consolidated Statements of Profit or Loss and Other Comprehensive Income

2020 2019 2018 Note NIS in thousands

Revenues 21 241,691 192,549 78,633 Cost of sales 22 (53,097) ( 38,902) ( 25,724) Depreciation and amortization (52,328) ( 35,940) ( 11,266)

Gross profit 136,266 117,707 41,643

General and administrative expenses 24 (30,993) ( 27,567) ( 19,172) Selling, marketing and projects promotion expenses 23 (7,758) ( 9,153) ( 4,675)

(38,751) ( 36,720) ( 23,847)

Income from ordinary operations 97,515 80,987 17,796

Finance income 25B 59,163 73,994 81,616 Finance expenses 25A ( 107,942) ( 130,054) ( 71,303)

Total finance income (expenses) before early repayment fees ( 48,779) ( 56,060) 10,313

Income before tax and early repayment fees 48,736 24,927 28,109

Early repayment fees 25C ( 232,310) - -

Income (loss) before tax and equity profits (losses) (183,574) 24,927 28,109

Share in profits (losses) of investee entities accounted for by the equity method 89 ( 144) -

Income (loss) before taxes on income (183,485) 24,783 28,109

Taxes on income (tax benefits) 17C 33,721 ( 12,753) ( 5,975) Taxes benefits in respect of previous years 17C 8,734 - -

Income (loss) for the year ( 141,030) 12,030 22,134

Other comprehensive income (loss): Amounts that will be classified subsequently to profit or loss, net of tax: Exchange differences in respect of translation of foreign operations (2,470) ( 11,352) 3,058 Changes in the fair value of instruments used to hedge cash flows, net 27B(2) (15,638) ( 21,663) ( 13,678)

Total other comprehensive loss for the year (18,108) ( 33,015) ( 10,620)

Total comprehensive income (loss) for the year ( 159,138) ( 20,985) 11,514

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Consolidated Statements of Profit or Loss and Other Comprehensive Income (continued)

2020 2019 2018 Note NIS in thousands Income (loss) for the year attributed to: Shareholders of the parent company ( 150,770) (17,446) 2,587 Non-controlling interests 9,740 29,476 19,547

( 141,030) 12,030 22,134 Comprehensive income (loss) for the year attributed to: Shareholders of the parent company ( 166,049) (34,038) ( 3,089) Non-controlling interests 6,911 13,053 14,603 ( 159,138) (20,985) 11,514

Losses per one ordinary share (in NIS) of NIS 0.01 par value attributed to the shareholders of the parent company: 19 Basic loss per share ( 0.19) (0.03) 0.00 Diluted losses per share ( 0.19) (0.03) 0.00

Weighted average of share capital used in calculating the: Basic losses per share 782,977,562 624,952,374 523,683,556

Diluted losses per share 782,977,562 624,952,374 534,914,432

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Consolidated Statements of Changes in Equity

For the Year Ended December 31, 2020 Shareholders of the parent company Capital reserves Exchange differences in Total Proceeds on Transactions respect of the attributed to account of with non- Share based translation of shareholders of Non- Share Share convertible Controlling controlling payment Cash flow foreign Retained the parent controlling capital premium options shareholders interests transactions hedging operations earnings company interests Total N I S in thousands

Balance as at January 1, 2020 7,515 986,619 614 20,301 ( 14,936) 34,212 ( 18,062) ( 4,133) 7,224 1,019,354 322,645 1,341,999

Net income (loss) for the year ------( 150,770) (150,770) 9,740 ( 141,030)

Other comprehensive loss: Change in the fair value of instruments used to hedge cash flows, net of tax ------( 11,191) - - (11,191) ( 4,447) ( 15,638) Exchange rate difference in respect of translation of foreign operations ------( 4,088) - (4,088) 1,618 ( 2,470) Total other comprehensive loss for the year ------( 11,191) ( 4,088) - (15,279) ( 2,829) ( 18,108)

Total other comprehensive income (loss) for the year ------( 11,191) ( 4,088) ( 150,770) (166,049) 6,911 ( 159,138)

Share based payments - - - - - 14,220 - - - 14,220 - 14,220 Share issuance 639 360,081 ------360,720 - 360,720 Conversion of bonds into shares 3 881 (614) ------270 - 270 Conversion of warrants into shares 66 ------66 - 66 Change in holding rate in consolidated entities - - - - (53,328) - - - - (53,328) 171,349 118,021 Distribution of dividend in consolidated companies ------( 7,693) (7,693) Distribution of profits in consolidated partnership ------( 21,082) (21,082)

708 360,962 (614) - (53,328) 14,220 - - - 321,948 142,574 464,522 Balance as at December 31, 2020 8,223 1,347,581 - 20,301 (68,264) 48,432 (29,253) (8,221) ( 143,546) 1,175,253 472,130 1,647,383

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Consolidated Statements of Changes in Equity

For the Year Ended December 31, 2019 Shareholders of the parent company Capital reserves Exchange differences in Total Proceeds on Transactions respect of the attributed to account of with non- Share based translation of shareholders of Non- Share Share convertible Controlling controlling payment Cash flow foreign Retained the parent controlling capital premium options shareholders interests transactions hedging operations earnings company interests Total N I S in thousands

Balance as at January 1, 2019 5,356 349,809 3,950 - (16,040) 17,034 (7,731) 1,330 24,670 219,548 618,227

Net income (loss) for the year ------(17,446) (17,446) 29,476 12,030

Other comprehensive loss: Change in the fair value of instruments used to hedge cash flows, net of tax ------(11,129) - - (11,129) (10,534) (21,663) Exchange rate difference in respect of translation of foreign operations ------(5,463) - (5,463) (5,889) (11,352) Total other comprehensive loss for the year ------(11,129) (5,463) - (16,592) (16,423) (33,015)

Total other comprehensive loss for the year ------(11,129) (5,463) (17,446) (34,038) 13,053 (20,985)

Share based payments - - - - - 17,178 - - - 17,178 - 17,178 Share issuance 1,801 567,846 ------569,647 - 569,647 Conversion of bonds into shares 2 186 ( 12) ------176 - 176 Conversion of warrants into shares 53 ------53 - 53 Exercise of Series 2 warrants 303 68,778 ( 3,324) ------65,757 - 65,757 Realization of capital reserve from hedge transactions ------798 - - 798 795 1,593 Change in holding rate in consolidated entities - - - - 1,104 - - - - 1,104 116,590 117,694 Distribution of dividend in consolidated companies ------(8,036) (8,036) Distribution of profits in consolidated partnership ------(19,305) (19,305) 2,159 636,810 (3,336) - 1,104 17,178 798 - - 654,713 90,044 744,757 Balance as at December 31, 2019 7,515 986,619 614 20,301 (14,936) 34,212 (18,062) (4,133) 7,224 1,019,354 322,645 1,341,999

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Consolidated Statements of Changes in Equity (continued)

For the Year Ended December 31, 2018 Shareholders of the parent company Capital reserves Exchange differences in Total Proceeds on Transactions respect of the attributed to account of with non- Share based translation of shareholders of Non- Share Share convertible Controlling controlling payment Cash flow foreign Retained the parent controlling capital premium options shareholders interests transactions hedging operations earnings company interests Total N I S in thousands

Balance as at January 1, 2018 4,913 287,482 851 20,301 (16,040) 10,985 (523) (202) 22,083 329,850 129,587 459,437

Net income for the year ------2,587 2,587 19,547 22,134

Other comprehensive income (loss) Change in the fair value of instruments used to hedge cash flows, net of tax ------(7,208) - - ( 7,208) ( 6,470) ( 13,678) Exchange rate difference in respect of translation of foreign operations ------1,532 - 1,532 1,526 3,058 Total other comprehensive income (loss) for the year ------(7,208) 1,532 - (5,676) (4,944) 10,620

Total other comprehensive income for the year - - 851 - - - (7,208) 1,532 2,587 ( 3,089) 14,603 11,514

Share based payments - - - - - (6,049) - - - 6,049 - 6,049 Share issuance 337 58,948 ------59,285 - 59,285 Conversion of bonds into shares 32 3,379 (225) ------3,186 - 3,186 Exercise of warrants into shares 74 ------74 - 74 Issuance of warrants - - 3,324 ------3,324 - 3,324 Investment in a subsidiary entity ------87,252 87,252 Repayment of capital notes in a subsidiary ------( 3,653) ( 3,653) Distribution of a dividend in consolidated companies ------( 3,820) ( 3,820) Distribution of profits in consolidated partnership ------( 4,421) ( 4,421) 443 62,327 3,099 - - 6,049 - - - 71,918 75,358 147,276

Balance as at December 31, 2018 5,356 349,809 3,950 20,301 (16,040) 17,034 (7,731) 1,330 24,670 398,679 219,548 618,227

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Consolidated Statements of Cash Flows

2020 2019 2018 NIS in thousands Cash flows from operating activities Net income (loss) for the year from continuing operations ( 141,030) 12,030 22,134 Adjustments required to reflect the cash flows from operating activities (Appendix A) 307,475 81,646 12,187 Cash from operating activities 166,445 93,676 34,321

Interest received 3,473 2,091 1,436 Interest paid ( 138,052) ( 98,507) ( 75,564) Tax paid ( 2,960) ( 3,653) - Concession arrangements activities – repayment of a contract asset 107,398 107,450 107,325 Net cash provided by operating activities 136,304 101,057 67,518

Cash flows from investing activities Acquisition of consolidated entities (see Appendix B) ( 29,896) 11,270 ( 13,446) Cash restricted as to use ( 60,274) ( 128,217) ( 70,578) Purchase, development and construction of property, plant and equipment ( 1,175,149) ( 540,281) ( 653,486) Investment in deferred charges in respect of projects ( 41,508) ( 32,207) ( 35,786) Proceeds from disposal (purchase) of financial assets at fair value through profit or loss, net ( 36,331) ( 29,839) 26,950 Payments on account of acquisition of shares ( 3,200) - ( 17,018) Payments on account of acquisition of consolidated company ( 70,417) - - Loan to an investee company ( 136,222) ( 143,062) ( 23,435) Investment in an investee company ( 105,726) ( 6,277) (8,386) Investment in other financial assets ( 35,269) - - Net cash used in investing activities ( 1,693,992) ( 868,613) ( 795,185)

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Consolidated Statements of Cash Flows

2020 2019 2018 NIS in thousands Cash flows from financing activities (*) Receipt of loans from banks and other financial institutions 1,063,413 461,914 691,005 Repayment of loans from banks and other financial institutions ( 158,415) ( 115,426) ( 40,124) Issuance of bonds 347,911 218,758 134,006 Repayment of bonds ( 176,676) ( 25,186) ( 15,718) Distribution of profits in consolidated partnerships ( 21,034) ( 19,305) (4,583) Distribution of profits in consolidated companies ( 7,693) ( 7,864) (3,868) Repayment of capital notes in a subsidiary - - (3,332) Repayment of loans from other credit providers ( 181,817) ( 8,936) (8,882) Deferred borrowing costs ( 108,396) ( 9,337) ( 58,067) Receipt (repayment) of loans from non-controlling interests, net 31,009 ( 8,640) 19,494 Repayment of liability in respect of contingent consideration - - ( 11,397) Proceeds from disposal of stake in consolidated entity that do not result in a change of control 34,439 - - Increase in holding rate of consolidated entity ( 103,674) - - Issuance of shares 358,855 566,034 59,041 Issuance of options - - 3,324 Exercise of options into shares 67 65,562 74 Repayment of lease liability ( 18,498) ( 7,500) - Proceeds on account of investment in equity by non-controlling interests 132,643 118,239 80,258 Net cash provided by financing activities 1,192,134 1,228,313 841,231

Increase (decrease) in cash and cash equivalents ( 365,554) 460,757 113,564 Balance of cash and cash equivalents at beginning of the year 683,166 229,010 114,494 Effect of changes in exchange rates on foreign currency cash balances 1,733 (6,601) 952 Cash and cash equivalents at end of the year 319,345 683,166 229,010

(*) See Note 16.

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Consolidated Statements of Cash Flows

2020 2019 2018 NIS in thousands Appendix A – Adjustments required to reflect the cash flows from operating activities: Income and expenses not involving cash flows: Depreciation and amortization 54,535 37,627 12,095 Finance expenses in respect of bonds 1,920 5,842 6,608 Finance expenses in respect of loans used to fund projects 88,963 81,663 63,473 Finance expenses in respect of early repayment of loans 232,310 - - Finance expenses on loans from non-controlling interests 5,292 4,575 2,764 Changes in the fair value of financial instruments measured at fair value through profit or loss 2,265 ( 3,548) 143 Share based payment 8,360 14,504 6,049 Deferred taxes ( 53,209) 10,349 3,751 Finance expenses in respect of lease liability 3,737 3,671 - Finance income in respect of contract asset ( 55,594) ( 69,234) ( 73,626) Exchange differences and other 544 13,589 ( 12,048) Amortization of deferred charges in respect of projects 2,472 1,311 658 Interest income from loans to investees ( 2,258) 198 (776) Company’s share in losses of investee partnership 253 150 - Finance expenses in respect of a forward transaction 2,258 14,105 1,492 291,848 114,802 10,583 Changes in assets and liabilities: Increase in other accounts receivable ( 17,527) ( 5,106) ( 112) Increase (decrease) in trade receivables 16,496 ( 42,843) ( 2,482) Increase in other accounts payables 17,600 6,825 1,361 Increase (decrease) in trade payables ( 942 ) 7,968 2,837 15,627 ( 33,156) 1,604 307,475 81,646 12,187 Appendix B – The acquisition of companies consolidated for the first time: Working capital (excluding cash and cash equivalents) 858 ( 72,919) ( 11,836) Restricted cash 609 - - Property, plant and equipment, net 57,283 127,546 18,952 Intangible assets 55,913 9,105 19,203 Deferred borrowing costs 1,024 8,799 1,067 Deferred taxes 425 - - Liability in respect of acquisition of a subsidiary (25,342) ( 182) (4,265) Advance on account of acquisition of shares in consolidated company (60,496) ( 80,708) ( 9,675) Loan to an investee company - ( 3,126) - Non-controlling interests (378) 215 - Total consideration paid net of cash in consolidated companies 29,896 (11,270) 13,446

Appendix C – Significant investment and financing activities not in cash: During 2020, the Company was engaged in the construction of wind projects in Sweden, Kosovo and Spain, and in the construction of the Emek Habacha project in Israel, of which a total of approximately NIS 4.1 million, NIS 0.4 million, NIS 0.7 million and NIS 1.7 million, respectively, were financed through suppliers’ credit. Furthermore, in 2020 loans from non-controlling interests were converted into capital notes, which are recognized as non-controlling interest at the total amount of approximately NIS 70 million.

The notes to the consolidated financial statements are an integral part thereof.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 1 – GENERAL:

A. Enlight Renewable Energy Ltd. (hereinafter - "the Company") is an Israel resident public company, whose shares are listed on the Tel-Aviv Stock Exchange (hereinafter - "the Stock Exchange"). The Company’s address is 13 Ha’amal St. Afek Industrial Park, Rosh Ha’ayin, Israel. As of the date of this report, the Company is an investments company that operates in the field of renewable energy. As from May 2018, the Company is a company without a controlling shareholder and/or a controlling core.

B. The Company is engaged in the promotion, planning, development, construction and operation of projects for the generation of electricity from renewable energy sources in Israel and abroad. The Company has six geographical technological operating segments in its financial statements, which relate to the promotion, purchase, construction and operation of projects for the generation of electricity using wind energy in Israel, Eastern Europe and Western Europe and from solar energy, using photovoltaic technology (PV), in Israel and Eastern Europe (see Note 28). As part of its operations, the Company is engaged, among other things, in the architectural and engineering planning of electricity generation projects, in purchasing the components that are required to erect those projects, in the construction of the facilities, in obtaining of the regulatory permits and licenses that are required for construction of each project, in the generation of electricity and its sale to the electricity provider as well as in the operation of those facilities once they have been erected.

C. Definitions

The Group - The Company and its consolidated entities (as defined below).

Interested parties As defined in the Securities Law, 1968 and the - Regulations promulgated thereunder.

Consolidated entities - Companies or partnerships in which the Company has control (as defined in IFRS 10), directly or indirectly, whose financial statements are fully consolidated with those of the Company. The active consolidated entities are as detailed in Note 8.

As defined in the Securities Regulations (Annual Controlling shareholder - Financial Statements) – 2010.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES: A. Declaration regarding the implementation of International Financial Reporting Standards (IFRS) The Group's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (hereinafter - "IFRS") and the interpretations thereto, which have been published by the International Accounting Standards Board (IASB). The principal accounting policies set out below have been implemented on a consistent basis for all reporting periods that are presented in these consolidated financial statements, except for changes in accounting policies stemming from application of standards, amendments to standards and interpretations that became effective as of the date of the financial statements, as described in note 3.

B. The financial statements have been prepared in accordance with the Securities Regulations (Annual Financial Statements), 2010 (hereinafter - "the Financial Statements Regulations").

C. The operating cycle The Group's operating cycle is 12 months. D. Foreign currency (1) The functional currency and the presentation currency: The financial statements of each of the Group’s companies are drawn up in the currency of the principal economic environment in which it operates (hereinafter - "the functional currency"). In order to consolidate the financial statements, the results and the financial position of each of the Group’s companies are translated into New Israel Shekels ("NIS"), which is the Company's functional currency. The Group's consolidated financial statements are presented in NIS. As to the exchange rates and the changes therein during the periods that are presented in these financial statements, see Note 2X.

(2) Translation of transactions in currencies other than the functional currency: In the preparation of financial statements of each of the Group’s companies, transactions in currencies other than the functional currency of that Company (hereinafter - "foreign currency") are recorded using the exchange rates at the dates of the transactions. At the end of each reporting period, monetary items that are denominated in foreign currency are translated using the exchange rates as of that date. Non-monetary items that are measured at historical cost are translated using the exchange rates at the date of the transaction relating to the non-monetary item.

(3) The manner of the recording exchange rate differences: Exchange rate differences are recognized in profit or loss in the period in which they arise, except for exchange rate differences in respect of financial items receivable or payable in respect of foreign operations, the payment of which is neither planned or expected, and which therefore constitute part of the net investment in foreign operations. These exchange rate differences are recognized under in other comprehensive income among "Exchange rate differences in respect of translation of foreign operations” and are carried to income or loss upon the disposal of the net investment in the foreign operation or upon loss of control, joint control or significant influence over the foreign operation.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued): Exchange rate differences are classified in income and loss under the financing income and expenses items. Exchange rate differences relating to assets under construction for the purpose of generating electricity in the future are included in the cost of those assets to the extent that they are regarded as an adjustment to interest costs on foreign currency borrowing (as to the Group’s accounting policy with regard to capitalization of borrowing costs, see Note 2I(3)).

(4) Translation of the financial statements of investee companies whose functional currency is different from the Company's functional currency For the purpose of presenting the consolidated financial statements, the assets and liabilities of foreign operations, including attributed excess cost, are presented using the exchange rates prevailing at the end of the reporting period unless the exchange rates fluctuated significantly in the reported period, in which case, the exchange rates at the date of the transactions are used and the resulting translation differences are recognized in other comprehensive income among "exchange rate differences in respect of translation of foreign operations”. These exchange rate differences are carried to profit or loss on the date of disposal of the foreign operation in respect of which they were created, and upon loss of control, joint control or significant influence in the foreign operation. In the case of a partial disposal of a subsidiary that includes a foreign operation and which does not involve loss of control, the proportionate share of accumulated exchange rate differences that were recognized in other comprehensive income is re-attributed to non-controlling interests in that foreign operation.

E. Cash and cash equivalents: Cash and cash equivalents include cash on hand, deposits held at call as well as fixed-term deposits, that are not restricted as to use and the period to maturity of which did not exceed three months at time of investment. Cash and deposits whose use by the Group is restricted due to borrowing agreements, or which can only be used for the construction of projects, are classified by the Group as “cash restricted as to use” in the statement of financial position.

F. Consolidated financial statements (1) General The Group's consolidated financial statements include the financial statements of the Company and of entities that are controlled by the Company, directly or indirectly. An investor company controls an investee company when it is exposed or has rights to variable returns from its holdings in the investee and has the ability to influence those returns through the exercise of power over the investee. This principle applies to all investees.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) F. Consolidated financial statements (continued) The operating results of subsidiary companies that were acquired or disposed of during the reporting period are included in the Company's consolidated statements of profit or loss as from the date on which control is achieved or until the date on which control is discontinued, as the case may be. Financial statements of consolidated companies which are prepared in accordance with accounting policies that are not consistent with that of the Group are adjusted, prior to consolidation, to the accounting policy applied by the Group. For consolidation purposes, all inter-company transactions, balances, revenues and expenses are eliminated in full. (2) Non-controlling interests The share of non-controlling interests in the net assets of subsidiary companies that has been consolidated is presented separately within the Group's equity. Non-controlling interests include the amount of these rights as of the date of acquisition as well as the non-controlling interests' share in the changes that have occurred in the equity of the consolidated company subsequent to acquisition date. The non-controlling interests only have protective rights. The results of transactions with non-controlling interests, which involve the disposal of some of the Group’s investment in a consolidated company, where the transaction does not result with loss of control, are recognized in equity attributed to parent company’s shareholders. (3) Transactions eliminated in consolidation Intra-group balances and transactions, and any unrealized income and expenses arising from intercompany transactions, were eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with associates were eliminated against the investment in proportion to the Group’s interest in these investments. Unrealized losses are eliminated in the same manner as unrealized gains, but only to the extent that there is no evidence of impairment. (4) Classification of project companies’ purchase transactions as a purchase of a group of assets or as business combinations The Company accounts for transactions for the acquisition of shares of a special- purpose company, which was established in order to organize under a separate legal entity certain assets and liabilities relating to energy generation facilities, as transactions for the purchase of a group of assets where in the opinion of the Company the purchased assets and liabilities do not meet the definition of a business pursuant to the provisions of IFRS 3. G. Investments in associates An associate is an entity over which the Group has significant influence and which is not a subsidiary or a joint venture. Significant influence is the power to participate in (but not to control or jointly control) the financial and operating policy decisions of the associate. The existence of potential voting rights that are currently exercisable or convertible into the shares of the investee entity is considered when assessing whether the Group has significant influence over the entity. The results, assets and liabilities of associated companies and joint ventures are accounted for in these financial statements using the equity method.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) G. Investments in associates (continued) Under the equity method, investments in associates and joint ventures are accounted for in the consolidated statement of financial position at cost adjusted to reflect the post-acquisition changes in the Group’s share in net assets, including capital reserves, net of impairment, in any, in the value of the associate. H. Statement of cash flows classification of interest and dividends paid and interest and dividends received The Group classifies cash flows in respect of interest and dividends received as well as cash flows in respect of interest paid as cash flows generated from or used in operating activities. As a general rule, cash flows in respect of taxes on income are classified as cash flows used in operating activities, except for cash flow that can be easily identified with cash flows that were used in investing or financing activities. Dividends paid by the Group are classified as cash flows from financing activities. I. Property, plant and equipment (1) General Property, plant and equipment are tangible items, which are held for use in the production or supply of goods or services and are expected to be used during more than one period. Property, plant and equipment items are presented in the statement of financial position at cost net of accumulated depreciation and impairment losses. Cost includes the purchase cost of the asset as well any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The cost of qualifying assets also includes borrowing costs that should be capitalized as described in note 2I(3). As to the testing of impairment of property, plant and equipment, see Note 2M. Property, plant and equipment items include windfarms for the generation of electricity in Israel, Ireland, Croatia and Serbia, Sweden, Kosovo and Spain, and photovoltaic systems in Hungary and photovoltaic systems in Israel that were operated after December 31 2016. The said systems do not fall within the scope of IFRIC 12 due to the fact that the government does not control what services the operator must provide with the infrastructure, to whom it must provide them, and at what price, nor does it control any significant residual interest in the infrastructure at the end of the service arrangement. (2) Depreciation of property, plant and equipment: Each component of a depreciable property, plant and equipment item that is considered to be significant in relation to the total cost of the asset is depreciated separately. The depreciation is carried out on a systematic basis in accordance with the straight-line method over the expected useful life of the components of the item, as from the date on which the asset is ready for its intended use, whilst taking into account the expected residual value at the end of the useful lives.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) I. Property, plant and equipment (continued) The useful life, the depreciation rates and the depreciation method used in the calculation of the depreciation are as follows: Useful Depreciation Depreciation life rates method

Wind farms 25-30 years 3.3% Straight-line Photovoltaic systems 23-24 years 4.16%-4.3% Straight-line Automatic cleaning systems 20 years 5% Straight-line Others 3–14 years 7%-33% Straight-line The depreciation method, the useful life and the residual value of the asset are reviewed by Company's management at the end of each financial year. Changes are treated as changes in accounting estimates on a prospective basis. Gains or losses arising from the sale or the retirement of an item of property, plant and equipment is determined according to the difference between the sale proceeds and the carrying amount as of the date of sale or retirement and is carried to profit or loss.

(3) Borrowing costs (a) Borrowing costs that are directly attributable to the acquisition or the construction of electricity generation facilities, the preparation of which for their intended use or sale requires a substantial period of time are capitalized to the cost of those assets until such time as those assets are essentially ready for their intended use. (b) The Company determines the amount of borrowing costs which are not directly attributable and are eligible for capitalization, by applying a capitalization rate to expenses in respect of qualifying assets. The capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings attributed directly to a project. The Company capitalizes borrowing costs, which are not directly attributable, at a total amount that does not exceed the amount of borrowing costs it has incurred in that period. Exchange differences in respect of loans denominated in currencies other than the functional currency are capitalized to cost to the extent they are regarded as adjustment to interest costs. All other borrowing costs are carried to the statement of profit or loss as incurred.

(4) Liabilities in respect of costs of dismantling and removing the facility and restoring the site on which it is located: The cost of a property, plant and equipment includes, among other things, costs of dismantling and removing the facility and restoring the site on which it is located, in respect of which the entity incurs a liability when the item is purchased or as a result of using the item over a certain period for purposes other than inventory production during than period after first time recognition:

Changes in the said liability through the end of the item’s depreciation period, shall be added or deducted from the asset in the current period.

Changes in the said liability due to the passage of time are recognized as financing expenses in income or loss when such changes occur.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) J. Deferred costs in respect of projects Deferred costs in respect of projects are costs that were paid for development of electricity generation projects using solar power and wind power, from which the Company expects to generate future economic benefits. Such costs are capitalized and presented under the “deferred costs in respect of projects” item in the statement of financial position. K. Concession arrangements for the provision of services The Company received from the government licenses (concessions) for the construction of electricity generation facilities using photo-voltaic technology or wind energy in order to provide electricity generation services from renewable energy sources; the Company has also entered into agreements with the Israel Electric Corporation (hereinafter - "IEC") for the purchase of the electricity that is generated in the facilities (hereinafter – "the purchase agreement") under a BOO (Build, Operate, Own) engagement. Concession arrangements for the provision of services are arrangements in which the government (“the concession grantor”/”the grantor”) enters into a contract with a private sector entity (the operator), where under that body undertakes to plan, build and fund assets that constitute public service infrastructure; in consideration for the construction of the assets, the operator receives a concession from the government to operate the assets over a defined period of time and also undertakes to provide ancillary services relating to the assets. With regard to photovoltaic systems in Israel (except for small systems), the government controls and regulates the license arrangements are follows: . The grantor controls the services that the operator is required to supply to it through the infrastructure – the Electricity Authority controls and regulates the services that the operator is required to provide and it has general and very extensive powers to regulate the operator's operations. The operator is only entitled to receive a license after compliance with specific regulatory and statutory threshold conditions; once the operator holds a license, it has a contractual obligation to generate and to sell electricity through the PV facilities, to operate them and to ensure that they operate properly and that they are properly connected to the national grid over the term of the license. The operator is committed to operate solely and exclusively in accordance with the terms of the license and may not withdraw from the purchase agreement or to cancel the license without the approval of the Electricity Authority. Furthermore, any change in the terms of the license requires the approval of the Minister of National Infrastructures (hereinafter – "the Minister") and/or the Electricity Authority and in the event of a breach, the operator may be exposed to various sanctions, as set out in the law and in the license (including the revocation of the license or its suspension, including the forfeiture of the guarantees pursuant to the license). . The grantor determines to whom the operator must provide the electricity generation services – as a matter of principle, the license holder will be entitled to sell the electricity to consumers at a price between a willing seller and a willing buyer subject to the provisions of the law and of the supply license. However, in practical terms, as of the date of publication of the report and when the applicability of IFRIC 12 to the facilities was tested, it is not yet possible to sell electricity to any entity other than to the Israel Electric Corporation. According to the regulatory arrangements that apply to the sale of electricity to private consumers, insofar as the operator in intermediate and large-scale facilities wishes to sell electricity to third parties outside the scope of the purchase agreement, this operator is required to obtain a special supply license from the Electricity Authority. However, the wording of such a supply license for photo-voltaic facilities has not yet been published by the Electricity Authority, and in fact there are no rules that regulate the manner of sale to third parties.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued)

K. Concession arrangements for the provision of services (continued) . The grantor dictates at which price of the services will be purchased – the Electricity Authority determines the tariff paid for the electricity, which is generated using the photo- voltaic facilities at the time of the approval of the tariff, and thereby it controls it and requires the operator to sign the purchase agreement as a condition for the receipt of the permanent generation license. Furthermore, the Company has performed specific economic calculations for photo-voltaic electricity generation facilities that were operated through December 31 2016, and reached the conclusion that the residual value that derives from the operation of the facility beyond the 20- year period is negligible compared to the overall value of the facility. In view of the above, the appropriate accounting treatment for photo-voltaic facilities for the generation of electricity in Israel (except for small systems) that were operated through December 31 2016, is in accordance with IFRIC 12 and the Company implements the financial asset model, as defined in that interpretation. The accounting treatment in the Company’s books of accounts in respect of such facilities is as follows - The total amount of the consideration, which it expected to be received over the term of the license is allocated to the construction services and to the operating services on the basis of the relative fair values of those services.  The value of the construction services is determined based on the construction costs with the addition of the construction margin, as is generally acceptable in accordance with the Company's assessment.  The value of the operating services is determined based on the operating costs with the addition of a margin, as is generally acceptable in accordance with the Company's assessment. Interest income is recognized over the license period using the effective interest method, based on a return rate that reflects the risks that are relevant during the period of the project’s construction and operation. This income is recognized in the statement of cash flows under cash flow from operating activities as income not involving cash flows. The proceeds attributed to the repayment of the asset are classified in the statement of cash flow under cash flow from operating activities as activity in respect of concession arrangements – repayment of contract asset. The consideration in respect of the construction services, which is measured initially as fair value by determining the return rate, as described above, is recognized over the construction period according to the percentage of completion. As to the timing of recognition of revenue from provision of services, see Section S(2) below. The consideration recognize on the date of revenue recognition as described above is accounted for as a contract asset under IFRS 14 (see section S(2) below) throughout the concession period and it is not reclassified as a financial asset (receivables) during the commercial operation stage in accordance with IFRS 9, since the contractual right to receive payment for the services under the agreement is established when the facilities are operated and electricity is actually generated and does not depend solely on the passage of time. As to critical accounting estimates and judgments, see Note 4 below. As to impairment of financial assets, see Section O(4) below.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued)

L. Intangible assets Intangible assets are identifiable non-monetary assets without physical substance. Intangible assets with an indefinite useful life are not amortized and are tested for impairment annually or whenever there are indications of impairment in accordance with the provisions of IAS 36. The estimated useful life of intangible assets with an indefinite useful life is tested at the end of each reporting year. A change in the estimated useful life of an intangible asset, from indefinite useful life to finite useful life, is applied prospectively. Intangible assets with finite useful life are amortized on a straight-line basis over their estimated useful life, subject to impairment testing. A change in the estimated useful life of an intangible asset with a finite useful life is applied prospectively. The Company has agreements for the supply of electricity and concession agreements, which are presented at cost net of amortization (except as described in Note 2K), and amortized accordingly over the useful life determined for the facility to which they are attributed.

M. Impairment in the value of tangible and intangible assets At the end of each reporting period, the Group tests the carrying amounts of its tangible and intangible assets in order to determine whether there are any indications of impairment in the value of those assets. In the event that such indications exist, the recoverable amount of the asset is estimated in order to determine the amount of impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Intangible assets with indefinite useful life and intangible assets that are not yet ready for use, are tested for impairment annually, or more frequently if there are indications of impairment. The recoverable amount is the higher of the fair value of the asset, less the disposal costs and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset in respect of which the estimated future cash flows were not adjusted. Where the recoverable amount of an asset (or of a cash- generating unit) is assessed to be lower than its carrying amount, the carrying amount of the asset (or the cash- generating unit) is written down to its recoverable amount. An impairment loss is recognized immediately as an expense in profit or loss.

N. Contingent consideration arrangements Contingent consideration is classified as a financial liability in accordance with the provisions of IAS 32 "Financial Instruments: Presentation". At the time of the initial recognition, the fair value of the contingent consideration arrangement is estimated by discounting the expected future cash flows in accordance with management's assessment and is charged against the cost of the asset. In subsequent periods, changes in the expected cash flows for assets that are classified as property, plant and equipment and fall within the scope of IAS 16 “Property, Plant and Equipment” are capitalized to the cost of the asset. For assets that are classified as financial assets and fall within the scope of IFRIC 12 “Service Concession Arrangements”, changes due to the passage of time are recognized as incurred as finance expenses in profit or loss, whereas changes in the expected cash flows are discounted using the effective interest rate that was set upon initial recognition and are charged against the cost of the asset until the construction is completed; subsequent to construction such changes are carried to income or loss.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) O. Financial assets (1) General Financial assets are recognized in the statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Investments in financial assets are initially recognized at fair value plus transaction costs, except for financial assets at fair value through profit or loss, which are initially recognized at fair value. Transaction costs relating to financial assets at fair value through profit or loss are charged immediately as an expense to income or loss. Subsequent to initial recognition, financial assets shall be measured at amortized cost or at fair value in accordance with their classification. (2) Classification of financial assets Debt instruments are measured at amortized cost when the following tow conditions are met:  The Group’s business model is to hold the assets in order to collect contractual cash flows; and  The asset’s contractual terms determine specific dates on which the contractual cash flows that are solely payments of principal and interest will be received. All other financial assets are measured at fair value through profit and loss. (3) Financial assets measured at amortized cost and the effective interest method The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Receivables, cash restricted as to use, contractual asset in respect of concession arrangements and other receivables with fixed payments are measured at amortized cost using the effective interest method net of any impairment. Interest income is recognized using the effective interest method, except for short-term receivables when the interest amount that should be recognized in respect thereof are not material.

(4) Impairment of financial assets As to receivables, the Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance. The expected credit losses in respect of those financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. For contract assets in respect of concession arrangements, the Group recognizes a provision for impairment according to lifetime expected credit losses, when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the asset has not increased significantly since initial recognition, the Group measures the loss allowance for that financial asset in accordance with the probability for default in the next 12 months. The assessment of whether a provision for impairment should be recognized according to lifetime expected credit losses is based on significant increases in the likelihood or risk of a default occurring since initial recognition instead of on objective evidence of a financial asset being credit-impaired at the reporting date or an actual default occurring.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) O. Financial assets (continued) Lifetime expected credit losses represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month expected credit losses represent the portion of lifetime expected credit losses that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. P. Financial liabilities and equity instruments issued by the Group (1) Classification as a financial liability or as an equity instrument Liabilities and equity instruments issued by the Group are classified as financial liabilities or as an equity instrument, in accordance with the nature of the contractual arrangements and the definition of financial liability and equity instrument. (2) Equity instruments An equity instrument is any contract, which evidences a residual right in the Group's assets after deducting all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. Group’s purchases of its equity instruments are recognized and amortized directly in equity. No gain or loss is recognized upon purchase, sale, issuance or cancellation of the Group’s equity instruments. (3) Financial liabilities The financial liabilities are presented and measured in accordance with the following classification: . Financial liabilities at fair value through profit or loss (derivatives that are not designated within hedge accounting relationships). . Financial liabilities at amortized cost. Financial liabilities at amortized cost: The Group has loans from banks and others, which were initially recognized at fair value net of transaction costs. Subsequent to initial recognition, the said loans are measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument, or, where appropriate, a shorter period, to their carrying amount. (4) Derecognition of financial liabilities Financial liabilities are derecognized when the Group’s contractual obligation expires, or when it is settled or cancelled. (5) Substantially different terms of a debt instrument An exchange of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Furthermore, a substantial modification of the terms of an existing financial liability or an exchange between an existing borrower and lender of debt instruments with substantially different terms are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability at fair value.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) P. Financial liabilities and equity instruments issued by the Group (continued) In such cases, the entire difference between the amortized cost of the original financial liability and the fair value of the new financial liability is recognized in income and loss under the financing income or expenses item The terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received, discounted by the original effective interest rate, is at least ten percent different from the discounted present value of the remaining cash flows of the original financial liability. In addition to the quantitative test, the Group tests, among other things, if changes have also occurred in different economic parameters implied in the exchanged debt instruments. Therefore, as a general rule, the exchange of index-linked debt instruments with debt instruments which are not linked to the index are considered as an exchange of debt instruments with substantially different terms even if they do not meet the quantitative test described above. Upon the exchange of debt instruments with equity instruments, equity instruments issued at the time of the extinguishment and derecognition of the liability, in full or part, are deemed part of the “consideration paid” for the purpose of calculating profit or loss from derecognition of the financial liability. Equity instruments are measured initially at fair value, unless it is not possible to reliably measure the value. In the latter case, the issued instruments are measured at the fair value of the derecognized liability. Any difference between the amortized cost of the financial liability and the initial measurement of the equity instruments is recognized in the statement of income in the finance income or expenses item. (6) Non-substantial change of the terms of a debt instrument In the event of that the change in terms (or exchange) of a debt instrument is not substantial, the new cash flows are discounted at the original effective interest rate, with the difference between the present value of the financial liability under the original terms and the present value of the original financial liability being recognized in profit or loss. (7) Bonds convertible into Company shares Bonds that are convertible into Company shares, where the payments of the principal and/or the interest in respect thereof are not linked to a currency that is different from the Company's functional currency, or to the Consumer Prices Index, constitute a compound financial instrument. The component parts of the convertible bonds are separated at the time of the issuance of the bonds, such that the liability component is presented under long-term liabilities (net of current maturities) and the equity component is presented under equity. The fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. The balance of proceeds from convertible bonds is attributed to the conversion option incorporated therein and presented under "proceeds on account of convertible options". This component is recognized in equity net of the effect of taxes on income and it is not re-measured in subsequent periods. The issuance costs are allocated proportionately to the components of the compound financial instrument in accordance with the allocation of the proceeds.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) P. Financial liabilities and equity instruments issued by the Group (continued) (8) Option warrants for the purchase of Company's shares: Proceeds in respect of the issuance of option warrants for the purchase of Company's shares, which confer upon their holder a right to purchase a fixed number of ordinary shares in consideration for a fixed amount in cash are presented under the “proceeds on account of convertible options” item. This component is recognized and included in equity and is not remeasured in subsequent periods. (9) Capital notes: Consolidated companies have interest-bearing capital notes that are repayable upon the liquidation of the companies, after the settlement of all of their obligations. Notwithstanding the above, the companies are entitled to fully or partially repay the capital notes and the interest that has accrued thereon, at their exclusive discretion, and subject to the terms of the financing agreements. Since in accordance with the terms of the capital notes the companies are not contractually obligated to deliver cash/other financial assets to the counterparty, the contract as a whole does not meet the definition of a financial liability and therefore it is classified as an equity instrument. In light of the above, the Group does not recognize interest expenses in respect of the non-controlling interests' share of the capital notes in the statement of profit or loss. When a consolidated company fully or partially repays the capital notes, the Group recognizes a payment that is attributed to the interest that was accrued in respect of the capital notes by way of the reduction of the balance of the non-controlling interests. (10) Capital notes measured at amortized cost Consolidated companies have interest-bearing capital notes that were received from non-controlling interest (hereafter – “the lenders”) and which are fully or partially repayable at any given time, subject to the terms of the lenders’ financing agreements. Since according to the terms of the capital notes, the date of repayment of the capital notes is not subject to the discretion of the consolidated companies, the contract is defined as a financial liability. The capital notes are initially recognized in the consolidated companies at fair value, whereas the difference between the cash balances received and their fair value is recognized in equity under the “non-controlling interests” item. In subsequent periods, changes arising from the passage of time are recognized in profit or loss as incurred as finance expenses. (11) Other financial liabilities The Group has bonds and loans from banks, which were initially recognized at fair value net of transaction costs. Subsequent to initial recognition, such financial liabilities are measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments of the financial liability to its carrying amount over the expected life, or over a shorter period, where appropriate.

- 26 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) P. Financial liabilities and equity instruments issued by the Group (continued) (12) Deferred borrowing costs Cost paid by the Company in respect of credit extended by banks and other financial institutions. As of balance sheet date borrowing costs in respect of (some or all) credit facilities that have not yet been utilized are carried to the “deferred borrowing costs” asset. When the credit is actually received the proportionate share of the costs is carried to the loan and taken into account in the effective interest. (13) Financial liabilities and contract assets in respect of concession arrangements linked to the Consumer Prices Index The Group has financial liabilities and contract assets in respect of concession arrangements, which are index-linked and measured at amortized cost. The Group determines the effective interest rate for these liabilities as a real rate with the addition of linkage differentials in accordance with actual changes in the Index up to the end of the reporting period. (14) Share capital Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognized as a deduction from equity, net of any tax effects. Incremental costs directly attributable to an expected issuance of an instrument that will be classified as an equity instrument are recognized as an asset in the statement of financial position. The costs are deducted from the equity upon the initial recognition of the equity instruments or are amortized as financing expenses in the statement of profit or loss when the issuance is no longer expected to take place. Q. Splitting of consideration from the issuance of a package of securities The consideration received from the issuance of a package of securities is allocated to the various components of the package. The consideration is first allocated to financial liabilities that are measured at fair value through profit or loss, whereas the remaining balance is allocated to other financial liabilities, which are only measured at fair value at the time of initial recognition. The fair value of the financial liabilities that are measured at fair value through profit or loss is determined based on the market prices of the securities shortly after they are issued. The issuance costs are allocated between each of the components proportionally to the value that has been determined for each component that was issued. The issuance costs that were allocated to financial liabilities that are measured at fair value through profit or loss are carried to profit or loss at the time of the issue. The issuance costs that have been allocated to other financial liabilities are presented as a deduction from the liability and are carried to profit or loss using the effective interest method. R. Derivative financial instruments and hedge accounting (1) General The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts and interest rate swaps. Further details of derivative financial instruments used by the Group are disclosed in Note 27. Derivative are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event - 27 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) R. Derivative financial instruments and hedge accounting (continued) the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The classification in the statement of financial position of derivative financial instruments, which are used for hedging, is determined in accordance with the contractual term of the derivative financial instrument. If the contractual term of the derivative exceeds 12 months, the derivative will be presented in the statement of financial position as a non-current item; if the term of the derivative does not exceed 12 months, the derivative will be classified as a current item. (2) Hedge accounting: The Group applies the hedge accounting model in IFRS 9 as its accounting policy. The Group designates derivative financial instruments as hedges. The hedges are designated as cash flow hedges. Transactions for hedging of foreign currency risks arising from projected transactions for purchase of equipment in foreign currency and for hedging of interest risk in respect of loans at variable interest are accounted for as cash flow hedges. The Group documents at the inception of the hedge the relationship between hedging instruments and hedged items. As part of the documenting process, the Group identifies the hedge, the hedged item, the nature of the hedge risk and the manner in which the Group assesses whether the hedging relationship meet its requirements as to the effectiveness of the hedge (including its analysis of the reasons for non-effectiveness of the hedge, how it determines the hedge ration and the impact of credit risk on the economic relationship between hedging instruments and hedged items). Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The hedge is effective when the hedging relationship meets all the following requirements:  There is an economic relationship between the hedged item and the hedge instrument;  The effect of credit risk does not dominate the value changes that result from that economic relationship; and  The hedge ratio of the hedging relationship is the same as that actually used by the Group in the economic hedge.  the effect of credit risk does not domi nate the val ue c hanges that result from that economic rel ationship  f a hedging relations hip ceases to meet the hedge effectiv eness requir ement relating to the hedge rati o but the risk m anagem ent objec tive for that designated hedging rel ati ons hip remains the same, an entity adjusts the hedge rati o of the hedging r elati onshi p (i.e., rebalances the hedge) so that it m eets the q ualifyi ng criteria agai n. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the Group adjusts the hedge ration of the hedging relationship (i.e., rebalances the hedge) so that it meets the qualifying criteria again. When rebalancing is carried out, the non-effectiveness of the hedging relationship is determined and recognized immediately in profit or loss before the adjustment of the hedging relationship. Any gains or losses arising from rebalancing is recognized in income or loss. The Group's hedging activity includes cash flow hedges. The Group applies cash flow hedging accounting in respect of loans bearing variable interest or transactions for hedging of foreign currency risks arising from predicted transactions for the purchase of equipment inf foreign currency, in respect of which the Group has entered into interest rate swap contracts and foreign currency hedge transactions, respectively. - 28 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) R. Derivative financial instruments and hedge accounting (continued) The effective portion of changes in the fair value of derivatives that are designated as cash flow hedges is recognized in other comprehensive income under the “changes in the fair value of instruments used to hedge cash flows”. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. Cash flow hedge accounting is discontinued when the hedging instrument expires, sold, or exercised, or when the hedge relationship no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income are recognized in profit or loss when the hedged item or the forecast transaction is ultimately recognized in the statement of profit or loss or when it is no longer expected that the forecasted transaction will materialize. (3) Economic hedges Hedge accounting is not applied to derivative instruments used for economic hedging of financial assets and liabilities denominated in foreign currency. The changes in the fair value of those derivatives are carried to income or loss under the finance expenses or income item. S. Revenue recognition Revenues from contracts with customers are recognized in the statement of profit or loss when control is the asset is transferred to the customer. Group’s revenues from its business activities stem mainly from agreements for the supply of electricity to local electricity authorities in the countries in which it operates. The date of transfer of control to the customer in respect of those agreements is when electricity is actually supplied to the customer. Revenue is measured and recognized at the fair value of the consideration receivable according to the terms of the contract, net of amounts collected in favor of third parties (such as taxes). Revenue is recognized in the consolidated statements of profit or loss to the extent that it is probable that the economic benefits will flow to the Group and the revenue and costs, if relevant, can be measured reliably. Set forth below are the specific revenue recognition criteria which are to be satisfied in order for revenues to be recognized: (1) Revenues from the sale of electricity: Revenues from the sale of electricity are carried to the statement of income as incurred over the period of electricity generation. (2) Revenues from concession arrangements for the provision of services: . Revenues in respect of construction services are recognized in accordance with the provisions of IAS 11 in accordance with the percentage completion method. The percentage of completion of the construction contracts is determined based on the completion of engineering stages. Following the initial recognition of revenues, interest income is recognized under the effective interest method over the period of the arrangement. . Revenues in respect of operating services are recognized upon provision of the service over the period of the arrangement.

- 29 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) S. Revenue recognition (continued) (3) The difference between “contract asset” and “receivables” When the Group renders construction services to a customer before the repayment date of a payment from a customer pursuant to the agreement, the Company presents the consideration receivable as a “contract asset”, except for any amounts presented under “receivables”. A “contract asset” is the Group’s right to receive consideration for services it rendered to the customer. “Receivables” are the Group’s right to receive unconditional consideration if only the passage of time is required before consideration is due. The Group presents in the consolidated statement of financial position “contract assets” in respect of contracts with customers as a separate item from “receivables”. The “contract asset” is presented under the “contract assets in respect of services concession arrangements” item (for more information, see note 2K above), whereas receivables are presented among the “trade receivables” item. (3) Revenue from services of construction contractor In the construction contracting area of activity, the Group measures the rate of completion using a method which is based on inputs. In accordance with this method, the rate of completion is determined based on the estimated costs required to complete the performance obligation. The Group recognizes in the consolidated statement of income or loss revenues and costs from construction services to the associate entity, and therefore, the total revenues and costs in these consolidated financial statements represents the partners’ share in the said associate entity.

T. Share based payments Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The Group measures the fair value of the equity instruments that are granted at the time of the grant using the binomial model (details regarding the measurement of the fair value of share-based payments, see Note 20). Where the granted equity instruments do not vest until the employees have completed a defined period of service, comply with performance conditions or until defined market conditions are met, the Group recognizes the share-based payment arrangements in the financial statements over the vesting period, against an increase in equity, under the "reserve in respect of share-based payment transactions" item. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. A change in the estimate compared with previous periods is recognized in profit or loss over the remaining vesting period. U. Taxes on income (1) General Taxes on income (tax benefits) include the amount of current taxes, taxes in respect of prior years and also the total change in deferred tax balances, except for deferred taxes that arise from transactions that were carried directly to equity. When calculating the deferred taxes, the Company is required to exercise judgment in the determination of the tax liability and the timing thereof. Any differences between the Company's assessment of the tax provision and the actual tax results are charged under taxes on income (tax benefits) in respect of prior years in the period in which the final tax liability becomes clear.

- 30 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) U. Taxes on income (continued) (2) Current taxes Current tax expenses are calculated based on the taxable income of the Company and the consolidated companies during the reporting period. Taxable income differs from profit before tax because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Current tax assets and liabilities are offset when there is a legally enforceable right to offset the amounts that were recognized and an intention to settle the balances on a net basis. (3) Deferred taxes Group companies recognize deferred taxes in respect of temporary differences between the value of assets and liabilities for tax purposes and their values in the financial statements. The deferred tax balances (asset or liability) are calculated in accordance with the tax rates that are expected to be in effect at the time the deferred tax asset is utilized or the deferred tax liability is settled, based on the tax rates and the tax laws that have been enacted or substantially enacted until the date of the statement of financial position. Deferred tax liabilities are generally recognized in respect of all temporary differences between the values of assets and liabilities for tax purposes and their values in the financial statements. Deferred tax assets are recognized for all deductible temporary differences up to the amount in respect of which it is probable that taxable income will be available against which those deductible temporary differences can be utilized. The Group does not record deferred taxes in respect of temporary differences arising from the initial recognition of an asset or a liability in a transaction other than a business combination, where at the time of the transaction, the initial recognition of an asset or a liability does not affect the accounting profit and the taxable income (loss for tax purposes). The taxes that would apply in the event of the disposal of the investments in investee companies are not taken into account in the calculation of the deferred taxes, since the Group intends to hold the investments and to develop them. Furthermore, deferred taxes are not taken into account in respect of the distribution of profits in Israeli companies, since the dividends from Israeli companies are not liable to tax. On the other hand, the Company created deferred taxes in respect of distributable profits of foreign companies, if any, in accordance with the Company’s expectation that these profits will be distributed in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset deferred tax assets against deferred tiltabilities, where they relate to taxes on income that are levied by the same tax authority and the Group intends to settle the balances on a net basis. (4) Uncertain tax positions The Group recognizes a provision for uncertain tax positions, including additional tax and interest expenses, when it is more likely than not that the Group will be require to invest its economic resources to settle the liability.

- 31 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) V. Employee benefits (1) Post-employment benefits Post-employment benefits include severance pay. Company’s employees have signed a document applying to them the provisions of Section 14 of the Severance Pay Law, 1963, whereby its regular deposits with pension funds and/or with insurance policies, exempt it from any additional liability to the employees, in respect of whom the said amounts have been deposited and therefore such benefits are classified as a defined contribution plan. Expenses in respect of the Group’s obligation to deposit funds as part of a defined contribution plan are carried to income or loss commensurate with receipt of work services from the employee, in respect of which it has an obligation to deposit funds. The difference between the amount to be contributed and the total amounts that have already been contributed is presented as a liability. (2) Short-term employee benefits Short-term employee benefits are benefits that are payable within a period that does not exceed 12 months from the end of the period in which the service that gives rise to the entitlement to the benefit is provided. Short-term employee benefits in the Group include the Group's short-term liability in respect of payroll, vacation and recreation pay. These benefits are carried to profit or loss as incurred. The benefits are measured at the undiscounted amount of the benefits that the Company expects to pay. The difference between the amount of the short-term benefits that the employee is entitled to and the amount that has been paid in respect thereof is recognized as a liability. W. Earnings per share The Company calculates the amounts of the basic earnings per share in respect of the profit of loss that is attributed to the shareholders in the Company by dividing the profit or loss that is attributed to the holders of the ordinary Company shares by the weighted average of the number of ordinary shares outstanding during the reporting period. For the purpose of calculating the diluted earnings per share, the Company adjusts the profit or the loss that is attributed to the holders of ordinary shares and the weighted average of the number of shares outstanding in respect of the impact on all of the dilutive potential shares. X. Exchange rates and linkage basis (1) Balances that are denominated in foreign currency or linked thereto, are included in the financial statements in accordance with the representative exchange rates as published by the Bank of Israel and which were in effect as of the end of the reporting period. (2) Balances that are linked to the Consumer Prices Index (are presented in accordance with the last known index as of the date of the statement of financial position (hereinafter - "the known index").

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) X. Exchange rates and linkage basis (3) Set forth below are data regarding the exchange rate of the Euro, the Croatian Kuna, the Hungarian Forint and the Dollar and the Index Representative exchange rate Index (*) US Hungarian Croatian Known Euro Dollar Forint Kuna Index (NIS per 1) In points Date of the financial statements: As at December 31, 2020 3.944 3.215 0.011 0.523 102.1 As at December 31, 2019 3.878 3.456 0.012 0.521 102.7

Rates of change % % % % %

For the year ended December 31, 2020 1.7 ( 7 ) ( 8.3) 0.4 (0.6 ) For the year ended December 31, 2019 ( 9.6) ( 7.8) ( 10) ( 10) 0.3 For the year ended December 31, 2018 3.3 8.1 - 4.7 1.2

(*) Basis: Average 2012 = 100.00 Y. Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is more likely than note that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period. When the effect of the time value of money is material, the amount of the provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability without adjustment for the Company’s own credit risk. The carrying amount of the provision is adjusted each period to reflect the passage of time. The amount of the adjustment is recognized as a finance expense. Z. Leases Accounting policy applies as from January 1 2019

Determining whether an arrangement contains a lease

Upon entering into a lease engagement, the Group determines whether the arrangement constitutes or contains a lease while assessing whether the arrangement transfer a right to control the use of an identified asset for a specified period of time in return for consideration. When assessing whether an arrangement transfers the right to control the use of an identified asset, the Group assesses whether it has the following two rights:

(a) The right to obtain essentially all the economic benefits from use of the identified asset; and (b) The right to direct the use of the identified asset.

- 33 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) Z. Leases (continued) For lease contracts that include non-lease components, such as services or maintenance, which relate to the lease component, the Group opted to account for the contract as a separate lease component without separating the components.

Leased assets and lease liabilities

Contracts that convey to the Group control over use of a lease asset during a period in return for consideration are accounted for as leases. Upon initial recognition, the Group recognizes a liability in an amount equal to the present value of the future lease payments (these payments do not include certain variable lease payments), and at the same time the Group recognizes a right-of-use asset in an amount equal to the lease liability, adjusted to reflect lease payments made in advance or accrued, and with the addition of direct expenses incurred in the lease. Since the interest rate implicit in the lease is not readily determinable, the lessee’s incremental interest rate is used. Subsequent to initial recognition, the asset is accounted for in accordance with the cost model, and depreciated over the term of the lease or the useful life of the asset – whichever is shorter.

The Group opted to apply the practical expedient whereby short-term lease of up to one year and/or or leases with an underlying asset of low value are accounted for such that the lease fees are carried to profit or loss on a straight-line basis, over the term of the lease, without recognizing a lease asset and/or a lease liability in the statement of financial position.

The term of the lease

The lease term is determined as the non-cancellable period of the lease plus periods covered by an option to extend or an option to terminate the lease if the lessee is reasonably certain to exercise the extension option or not exercise the termination option, respectively.

Variable lease payments

Variable lease payments based on an index or a rate are initially measured using the index or the rate at the commencement date and are included in the measurement of the lease liability. When a change occurs in the cash flows from future lease payments due to a change in the index or the rate, the remaining balance of the liability is updated against the right-of-se asset.

Other variable lease payments, which are not included in the measurement of the liability, are carried to income or loss on the date on which the conditions for these payments are fulfilled.

Depreciating a right-of-use asset

Subsequent to the lease commencement date, the right-of-use asset is measured at cost, net of accumulated depreciation and impairment losses, and adjusted to reflect remeasurements of the lease liability. The depreciation is calculated on a straight-line basis over the contractual lease period:

 Photovoltaic facility 20-24 years  Wind farm 25-30 years  Offices 3-7 years

- 34 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 2 - PRINCIPAL ACCOUNTING POLICIES (continued) Z. Leases (continued) Extension and termination options of the lease period

Where a significant event or change in circumstances occurs that is within the control of the Group which affects the decision of whether the Group is reasonably certain to exercise an option that was not previously included in determining the lease period, or will not exercise an option that was previously included in determining the lease period, the Group remeasures the lease liability in accordance with the lease payments that are revised in accordance with an updated discount rate, and records the change in the carrying amount of the liability against the right-of-use asset, or carries the change to profit or loss if the carrying amount of a right-of-use asset was depreciated in full.

Lease modifications

The Group accounts a modification as a separate lease if the modification increases the scope of the lease by adding a right of use of one or more underlying assets, and the lease consideration is increased by an amount that matches the separate price of the increased scope as well as any adjustments to this separate price in order to reflect the lease's circumstances.

In all other cases, on the lease modification commencement date, the Group allocates the revised contract consideration to the different contract components, determines the revised lease term and measures the lease liability using the revised discounted lease payments at the revised discount rate.

For lease modifications that reduce the lease scope, the Group recognizes a decrease in the carrying amount of the right-of-use asset to reflect the partial or full cancellation of the lease and recognizes a profit or loss from the difference between the decrease in the right-of-use asset and the remeasured lease liability in the statement of profit or loss.

For other lease modifications, the Company remeasures the lease liability against the right-of-use asset.

Subleases In cases where the Group leases the underlying asset under a sublease, the Group evaluates the classification of the sublease as a finance or operating lease, in reference to the right-of- use received from the head lease. The Group assessed the existing leases on the date of initial application in accordance with the balance of the contractual terms thereof as of that date.

- 35 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 3 – NEW FINANCIAL REPORTING STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS

a. First time application of new standards, amendments to standards and interpretations

As from January 1 2020, the Group applies the new standards and amendments to standards described below:

Amendment to IFRS 3, Business Combination

The amendment clarifies whether a transaction to acquire an operation is the acquisition of a "business" or a group of assets. For purposes of this examination, the amendment added the possibility of utilizing the concentration test so that if substantially all of the fair value of the acquired assets is concentrated in a single identifiable asset or a group of similar identifiable assets, the acquisition will be of an asset. In addition, the minimum requirements for definition as a business have been clarified, such as, for example, the requirement that the acquired processes be substantive so that in order for it to be a business, the operation shall include at least one input element and one substantive process, which together significantly contribute to the ability to create outputs. Furthermore, the amendment narrows the reference to the output element required in order to meet the definition of a business and adds examples illustrating the aforesaid examination.

Applicability and transitional provisions

The amendment is effective for asset or business acquisition transactions whose acquisition date falls in annual periods beginning on or after January 1,2020.

Implications

The Company is of the opinion that the application of the said amendments does not have a material effect on the financial statements.

Amendment to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors and Amendment to IAS 1 Financial Statements Presentation

Disclosure requirements

The amendment redefines the term “materiality” to ensure its consistent application in the conceptual framework and in the various standards. According to the amendment, information is material if its omission, misstatement or non-disclosure could reasonably be expected to influence the decisions that the primary users make on the basis of the financial statements.

Applicability and transitional provisions

The amendments will be implemented prospectively for annual periods commencing on January 1, 2020.

Implications

The Company is of the opinion that the application of the amendments does not have a material effect on the financial statements.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 3 – NEW FINANCIAL REPORTING STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS (continued)

b. New standards, amendments to standards and interpretations not yet adopted (continued)

Amendment to IAS 1, Financial Statements Presentation: Classification of a Liability as Current or Non-Current

Disclosure requirements

The amendment replaces certain classification requirements of liabilities as current or non- current. Thus, for example, in accordance with the amendment, a liability shall be classified as non-current when the entity has the right to defer the settlement by at least 12 months after the end of the reporting period. As part of the amendment, the requirement for a right to be “unconditional” was removed and instead, it is required that a right to defer settlement must have substance and exist at the end of the reporting period. According to the amendment, a right exists as of reporting date only if an entity meets the conditions for deferral of the settlement as of that date. In addition, the amendment clarifies that a liability’s conversion right shall affect the classification of the entire instrument as current or non-current, unless the conversion feature represents an equity component.

Applicability and transitional provisions

The amendment will come into effect for reporting periods commencing on January 1, 2023. Early adoption is permitted. The amendment will be applied retrospectively, including restatement of comparative figures.

Implications

The Group has not yet started to assess the potential effect of the application of the amendment on the financial statements.

Amendment to IAS 16 – Property, Plant and Equipment – Proceeds before Intended Use

The amendment canceled the requirement whereby when calculating costs that can be directly attributed to property, plant and equipment, entities should deduct from the cost of testing whether the asset is functioning properly the net consideration from the sale of any items produced in the process (such as samples produced when testing equipment). Instead, these proceeds shall be recognized in profit or loss in accordance with the relevant standards, and the cost of the items sold shall be measured in accordance with the measurement requirements of IAS 2 – “Inventory”.

Applicability and transitional provisions

The amendment will come into effect for reporting periods commencing on January 1, 2022 or thereafter. Early adoption is permitted. The amendment will be applied retrospectively, including restatement of comparative figures, but only for property, plant and equipment items brought to the location and condition necessary for them to be capable of operating in the manner intended by management after the earliest reporting period presented upon first-time application. The entity shall recognize the cumulative effect of initially applying the amendment as an adjustment to the opening balance of retained earnings at the beginning of that earliest period presented.

- 37 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 3 – NEW FINANCIAL REPORTING STANDARDS, INTERPRETATIONS AND AMENDMENTS TO STANDARDS (continued)

b. New standards, amendments to standards and interpretations not yet adopted (continued)

Implications

The Group has not yet started to assess the potential effect of the application of the amendment on the financial statements.

Amendment to IFRS 3, Business Combinations

The amendment changes the requirement to recognize liabilities in business combinations in accordance with the conceptual framework, since the interaction between those provisions and the provisions set out in IAS 37 as to recognition of liabilities was not clear in certain cases. The amendment adds an exception to the principles of recognizing liabilities under IFRS 3. Under the exception, contingent liabilities shall be recognized in accordance with the requirements of IAS 37 and IFRIC 21 rather than in accordance with the conceptual framework. This amendment prevents gaps in the timing of recognition of liabilities, which might have resulted with gains or losses immediately after the business combination (day2 gain or loss). The amendment also clarifies that contingent assets would not be recognized on the business combination date.

Applicability and transitional provisions

The amendment will come into effect for reporting periods commencing on January 1, 2022 or thereafter

Implications

The Group has not yet started to assess the potential effect of the application of the amendment on the financial statements.

NOTE 4 – CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATTION UNCERTAINTY A. General In the application of the Group's accounting policies, which are described in note 2 above, the Company’s management is required to make, in certain cases, critical judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed by management on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

- 38 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 4 – CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATTION UNCERTAINTY (continued) B. Use of estimates and judgements The preparation of the financial statements in accordance with IFRS requires management to use judgements, assessments, estimates and assumptions that impact the application of the accounting policy and the amounts of assets, liabilities, income and expenses. It should be clarified that actual result may vary from those estimates. When formulating the accounting estimates used in preparation of the Group’s financial statements, Company’s management is required to make assumptions as to circumstances and events that involve significant uncertainty. Management’s judgement in determining the estimates is based on past experience, various facts, external factors and reasonable assumptions in accordance with the circumstances that apply to each estimate. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and any future periods affected. The following are the critical judgements, apart from those involving estimations, that the management has made in the process of applying the Company's accounting policy and that have significant effect on the amounts recognized in the financial statements. Recognizing deferred tax asset in respect of losses for tax purposes

The Group recognizes a tax asset in the statement of financial position when it is expected that the Group will have future taxable income against which the carryforward losses may be utilized. Where the Company expects that it will not utilize carryforward losses recognized as tax assets in previous periods, it cancels the deferred tax asset to profit or loss. For information on losses in respect of which a deferred tax asset was recognized, see Note 17 regarding taxes on income.

Uncertain tax positions

The extent of the uncertainty that the Group’s tax positions will be accepted (uncertain tax positions) and the risk of it incurring any additional tax and interest expenses. This is based on an analysis of a number of factors, including interpretations of the tax laws and the Group’s past experience. The potential impact on the financial statements is the recognizing of further income tax expenses. For information on tax assessments received, see Note 17 regarding taxes on income. Determining the lease period The lease term is determined as the non-cancellable period of the lease plus periods covered by an option to extend and/or an option to terminate the lease if the lessee is reasonably certain to exercise the extension option or not exercise the termination option. The potential impact on the financial statements is an increase or decrease in initial measurement of right-of-use asset and lease liability and in depreciation and financing expenses in subsequent periods. See Note 26 regarding leases. Discount rate applied to a lease liability The Group discounts the lease payments by using its incremental borrowing rate. The potential impact on the financial statements is an increase or decrease in lease liability, right-of-use asset and depreciation and financing expenses to be recognized. See Note 3 and 26 regarding leases.

- 39 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 4 – CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATTION UNCERTAINTY (continued) B. Use of estimates and judgements Concession arrangements For the purpose of determining whether the Company’s engagement in connection with the construction and operation of photo-voltaic systems in Israel and the windfarm for generation of electricity from wind energy are within the scope of IFRIC 12, significant judgment needs to be exercised, including in respect of legal interpretations of the system of laws, licenses and agreements in the relevant arrangement for the purpose of determining the extent of the government’s control over the services that are provided and in respect of the materiality of the residual value at the end of the engagement period (see Note 2K). In accordance with the above, the Company has performed a case-by-case assessment of each of the facilities. When making the assessment, the Company was required to exercise judgment regarding the period during which Company will operate each of the facilities beyond the arrangement period, regarding the expected revenue and costs from the operation of the facility beyond the arrangement period and regarding the discount rate applied to the cash flows that were used in the calculation. The Company’s reached the conclusion that in respect of photovoltaic facilities that were commercial operated through December 31 2016, the residual value stemming from activating the facilities for more than 20 years is negligible in relation to the overall value thereof and therefore those facilities fall within the scope of IFRIC 12. Recognition of facilities as property, plant and equipment In 2017-2019, the Company assessed the characteristics of the photovoltaic facilities and wind farm for the generation of electricity from wind energy which reached financial closing in the said years and reached the conclusion that they do not fall within the scope of IFRIC 12 and should be accounted for according to the property, plant and equipment model. For more information, see Note 2k. Useful life of property, plant and equipment The Company consulted legal and technical advisors in order to determine the useful life of the facilities it owns and which are accounted for according to the property, plant and equipment method. The Company is also required to exercise judgment when determining the depreciation period of property, plant and equipment that will reflect the future economic benefits embodied in the asset. Assessment of control An investing company controls an invested company when it is exposed or has rights to variable returns from its holding in the invested company, and when it has the ability to influence those returns through exercising power over the investee. Since the ability to influence the returns is sometimes subject to restrictions arising from rights conferred upon the Company’s partners in the different projects, the Company is required to exercise judgement as to the question of whether those rights are considered protective rights or participating rights. As a general rule, when entering into transactions, the Company retains control of all organs which make the decisions that may influence those returns by holding the majority of the voting rights in the board of directors in the general meeting of shareholders. However, the incorporation documents of the consolidated entities include a reference to certain decisions that require a special majority of the shareholders, such as: issuance of rights and capital raising in the consolidated entity, making decisions regarding changes to the structure of the consolidated entity, approval of changes in the consolidated entity’s documents of incorporation, purchase or sale of material assets and making changes to material agreements.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 4 –CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATTION UNCERTAINTY B. Critical judgments in applying accounting policies (continued) Since the protective rights relate to fundamental changes to the operations of an investee entity, the Company is of the opinion that the rights that are conferred upon its partners in the various projects are protective rights, whereas the Company is the one that holds the rights that give it the ability to decide on the activities that have a significant effect on the investee entity's return. Determining whether an asset qualifies for capitalization In order to determine whether a project constitutes an asset that qualifies for capitalization, Group management estimates whether the system of statutory permits, link to the land, the project’s ability to connect to the grid leads to the conclusion that it is expected that the project will generate economic benefits to the Company (i.e., it is expected that the project’ construction will be completed and that it will be enter commercial operation). Where it is not expected that regulatory permits will be obtained, the Company carried the development costs to the statement of profit or loss.

NOTE 5 – CASH AND CASH EQUIVALENTS A. Composition As of December 31, 2020 2019 NIS in thousands Cash in hand and in banks 302,936 680,531 Short-term deposits 16,409 2,635 Total 319,345 683,166

B. Cash restricted as to use As of December 31, 2020 2019 NIS in thousands Cash restricted as to use for the short-term (a) 282,157 185,871 Cash restricted as to use for the long-term (b) 63,435 98,460 345,592 284,331

The following is the composition of the cash which is restricted as to use as of December 31, 2020 and 2019: (a) Cash, the use of which is restricted for the short-term in the total amount of approximately NIS 249 (December 31, 2019 - approximately NIS 57 million), which is designated for the construction of projects. Cash, the use of which is restricted for the short-term in the total amount of approximately NIS 33 million (December 31, 2019 – NIS 129 million) to secure future payments.

(b) Cash, the use of which is restricted for the long-term, in the total amount of approximately NIS 15 million (December 31, 2019 – approximately NIS 16 million) in respect of guarantees provided for the receipt of licenses.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 5 – CASH AND CASH EQUIVALENTS (continued) B. Cash restricted as to use (continued) Cash, the use of which is restricted for the long-term, in the total amount of approximately NIS 48 million, in respect of reserves for the servicing of debts for loans from banks and other financial institutions used to fund projects in accordance with the financing agreements (December 31, 2019 – approximately NIS 82 million).

NOTE 6 – TRADE RECEIVABLE

a. Composition As of December 31, 2020 2019 NIS in thousands

Income receivable in respect of the sale of electricity and the operation of facilities 6,731 8,373 Open accounts 29,980 44,389 36,711 52,762

b. Management of credit risk by the Group

Credit risk related to the risk that the counterparty will not meet its contractual obligations and will cause financial losses to the Group. Upon entering into an engagement for the first time, the Group assesses the quality of the credit extended to the customer. The restrictions placed on Group’s customers are reviewed once a year, or more often, based on new information that was received and on the customer’s meeting his obligations to repay previous debts.

The Group measures the provisions for credit losses in respect of customers according to the probability of default over the lifetime of the instruments; the provisions in respect of contract assets relating to concession arrangements (see note 9) are measured according to the probability of default during the next 12 months. Since the Company customers are large entities (IEC) that benefits from regulatory support, the probability for default is low and the Company expects that the credit losses expected in respect of those customers are negligible.

NOTE 7 - OTHER ACCOUNTS RECEIVABLE

Composition As of December 31, 2020 2019 NIS in thousands Receivables: Government institutions 53,244 12,684 Other accounts receivable 27,226 2,362 80,470 15,226 Debit balances: Prepaid expenses 8,542 4,466

Total 89,012 19,692

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 8 – INVESTMENT IN INVESTEE ENTITIES

A. Consolidated entities

Details of the material active consolidated entities that are held by the Company Effective holding rate in the equity Country of of the consolidated Name of the entity incorporation entity As of December 31 2020 2019 % % Enlight Eshkol Havazelet L.P. (hereinafter – "Havazelet")(a) Israel 100 100 Eshkol Havazelet – Halutzyut – Enlight L.P. (hereinafter – "Halutzyut")(b) Israel 89.99 79.49 Tlamim Enlight L.P. (hereinafter – "Tlamim") (b) Israel 100 100 Mivtachim Green Energies Ltd. (hereinafter – "Mivtachim") (b) Israel 51 51 Talmei Bilu Green Energies Ltd. (hereinafter – "Talmei Bilu")(b) Israel 100 100 Eshkol Ella – Cramim – Enlight L.P. (hereinafter – "Cramim") (c) Israel 100 100 Eshkol Brosh – Idan – Enlight L.P. (hereinafter - "Idan") (d) Israel 100 100 Eshkol Zait – Zait Yarok – Enlight L.P. (hereinafter – " Zait Yarok") (e) Israel 100 100 Golan Fruits – Enlight L.P. (hereafter – “Golan Fruits” Israel 51 51 Eshkol Gefen- Barbur – Enlight L.P. (hereinafter – Barbur") (f) Israel 51 51 Sde Nehemia – Enlight L.P. (hereinafter – "Sde Nehemia"). Israel 100 100 Kinetic Energies – Alternative Electrical Energies Ltd. (hereinafter – "Kinetic Energies") (g) Israel 6 8.1 60.9 Emek Habacha Wind Energies Ltd. (hereinafter – “Emek Habacha") (g) Israel 41 36.54 Enlight – Eshkol Hadas L.P. (hereinafter – “Hadas”) (h) Israel 100 100 Talmei Yafeh San L.P. (hereinafter – “Talmei Yafeh” (h) Israel 50 50 Dorot San L.P. (hereinafter – “Dorot”) (h) Israel 50 50 Enlight Cramim L.P. (hereinafter – “Enlight Cramim”) (h) Israel 74 74 Enlight Beit Shikma L.P. (hereinafter – “Beit Shikma”) Israel 60 50 Orsol Energy 3 (A.A) L.P. (hereinafter – “Revivim”) (i) Israel 90 90 Enlight Kidmat Tzvi L.P. (hereinafter – “Kidmant Tzvi”) Israel 74 74 Enlight – Eshkol Dekel L.P. (hereinafter – “Beit Rimon”) Israel 50.1 50.1 Enlight – Aveeram Entrepreneurial L.P. (hereinafter - "Enlight- Aveeram") Israel 60 60 Ruach Bereshit L.P. (hereinafter – “Ruach Bereshit”) Israel 60 60 Tullynamoyle Wind Farm 3 Ltd. (hereinafter – "Tullynamoyle") (j) Ireland 50.1 50.1 Vjetroelektrana Lukovac d.o.o. (hereinafter – "Lukovac" (k) Croatia 50.1 50.1 EW-K-WIND d.o.o (hereinafter – “EWK”) (l) Serbia 50.1 50.1 Megujulohaz kft (hereinafter – “Meg” (j) Hungary 50.1 50.1 Raaba Green kft (hereinafter – “Raaba”) (j) Hungary 50.1 50.1 SOWI Kosovo LLC (hereinafter – “SOWI” (m) Kosovo 48 48 Vindpark Malarberget I Norberg AB (n) Sweden 68.8 68.8 Enlight Beit Hashita Solar Energy L.P (hereinafter – “Beit Hashita) Israel 74 74 Enlight Eu Energies kft(p) Hungary 100 0 GEneracion Eolica Castilla La Mancha Sl (hereinafter – “GECAMA”(q) Spain 72 25

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 8 – INVESTMENT IN INVESTEE ENTITIES (continued)

A. Consolidated entities (continued)

Details of the material active consolidated entities that are held by the Company a. Havazelet is wholly-owned by the Company and holds app. 89.99% of the rights in the partnership Halutzyut that was established for the purpose of manufacturing electricity using solar energy. b. Tlamim is wholly-owned by the Company through Enlight-Eshkol Vered (hereinafter – "Vered"), a limited partnership that is registered in Israel. Tlamim holds 100% of the shares of Mivtachim and 100% of the shares of Tlamei Bilu, which were established for the purpose of generating electricity using solar energy. c. Cramim is wholly-owned by the Company through Enlight-Eshkol Ella (hereinafter - "Ella"), a limited partnership that is registered in Israel. d. Idan is wholly-owned by the Company through Enlight-Eshkol Brosh (hereinafter - "Brosh"), a limited partnership that is registered in Israel, which was established for the purpose of generating electricity using solar energy. e. Zait Yarok is wholly held by the Company through Enlight-Eshkol Zait (hereinafter - "Zait"), a limited partnership that is registered in Israel, which was established for the purpose of generating electricity using solar energy. f. Barbur is wholly-owned by the Company through Enlight-Eshkol Gefen (hereinafter - "Gefen"), a limited partnership that is registered in Israel, which was established for the purpose of generating electricity using wind energy. g. Kinetic Energies is held (97%) by Shikma Enlight (hereinafter - "Shikma"), a limited partnership that is registered in Israel, in which the Company has a direct holding of 70%. Kinetic Energies holds 60% of the shares in Emek Habacha, which was established for the purpose of generating electricity using solar energy. h. Hadas is wholly-owned by the Company and holds 50%, 50%, 74% and 100% of the rights in the partnerships Talmei Yafe, Dorot and Enlight Cramim, respectively, which were established for the purpose of generating electricity using solar energy. i. Revivim is held by the Company through Enlight Eshkol Mimun Green L.P., a limited partnership registered in Israel, fully-owned by the Company and holding 90% of the rights in Revivim. j. The Company, through M.A. Movilim Renewable Energies LP registered in Israel, which is held directly by the Company at a rate of 50.1% (hereinafter – "Movilim") holds 100% of the shares of Enlight Energy Ireland Limited (hereinafter – "Enlight Ireland", a company registered in Ireland, which was established in order to acquire the Tullynamoyle project for the generation of electricity using wind energy. k. The Company, through Balkan Energies Co-operation U.A (a company registered in the Netherlands), which is held directly by the Company at a rate of 50.1% (hereinafter – "Co- Op") holds 100% of the shares of Balkan Energies Croatia 1 B.V., a company registered in the Netherlands which was established in order to acquire the Lukovac project, for the generation of electricity using wind energy. Furthermore, Movilim holds 100% of Meg’s shares and 100% of Raaba’ shares – Hungarian companies established for the purpose of generating electricity using solar energy.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 8 – INVESTMENT IN INVESTEE ENTITIES (continued):

A. Consolidated entities (continued) l. The Company holds, through Co-Op, 100% of the shares of Balkan Energies Serbia 1 B.V., a company registered in the Netherlands, which holds 100% of the shares of EWK, a company registered in Serbia, which was established for the purpose manufacturing electricity using wind energy. m. The Company, through Danuba Power L.P, which is registered in Israel and held (60%) by the Company, holds 100% of the shares of Danuba Energies Kft. (a company registered in Hungary (hereinafter – “Danuba”), which was established for the purpose of purchasing SOWI, a company registered in Kosovo, which was established for the purpose of generating electricity from wind energy. As of the date of this report, Danuba has direct holdings of 80% in SOWI. n. The Company, through Nordic Wind L.P. (hereinafter – the “Nordic Wind”), which is registered in Israel and held by the Company (68.8%), holds 100% of the shares of Nordic Energies Kft (a company registered in Hungary), that was established for the purpose of purchasing a Swedish project for generation of electricity from wind energy. Nordic Energies Kft has direct holdings of 74% in the project company and the remaining 26% are held through NEG Nordic Energies – Germany GmbH & Co KG (German partnership, through a 100% holding). o. Ruach Bereshit is held by the Company through Ruah Hanan–Enlight L.P. (hereinafter – “Ruah Hanan”, a limited partnership registered in Israel, which is held by the Company (100%) and holds 60% of the rights in Ruach Bereshit. p. The Company holds 100% of the shares of Enlight EU (a company registered in Hungary, whose activities focus mainly on direct and indirect holdings in project companies at the development. Construction and operation stages in Italy, Sweden and the USA, and in other business activities, including provision of management and advisory services. q. The Company, through Iberian Wind L.P., which is registered in Israel and held by the Company (72%), holds 100% of the shares of Iberian Energies Kft (a company registered in Hungary), which holds 100% of the shares of Generacio Eolica Castilla La Mancha – Iberian Energy Spain SL (a company registered in Spain), which holds 100% of the shares of GECAMA (a company registered in Spain), which was established for the purpose of generating electricity using wind energy.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 8 – INVESTMENT IN INVESTEE ENTITIES (continued)

B. Subsidiary entities with material non-controlling interests

NIS in thousands As of December 31, 2020 As of December 31, 2020 Rate of Total ownership Profit (loss) Cash Cash Cash increase rights held Balance of attributed to flows flows flows (decrease) by non- non- Non- Non- non- from from from in cash and Name of investee controlling controlling Current current Current current Profit controlling operating investing financing cash partnership/ company interest % interest assets assets liabilities liabilities Revenues (loss) interest activities activities activities equivalents

Mivtachim Green ------8,498 (11,760) 4,085 22,622 1,696 (23,115) 1,203 Energies Ltd.

Eshkol Havazelet – 10.01 15,482 62,635 527,494 424,723 35,700 13,620 (91,511) (7,821) 46,250 21,075 (45,537) 21,788 Halutzyut – Enlight L.P.

Ruach Shikma – Enlight 63.46 50,318 64,052 585,759 23,517 587,952 - (131) (861) (1,626) (281,389) 283,015 - L.P.

Ruach Bereshit L.P. 40 68,638 59,215 478,507 24,778 334,378 - 264 106 (190) (380,506) 380,060 (636)

Movilim 49.90 35,636 26,504 272,557 14,692 212,958 34,761 (1,158) 576 13,054 3,876 (8,989) 7,941

Co-Op 49.90 39,471 57,295 909,474 87,672 799,998 140,172 28,104 14,019 79,143 (632) (83,185) (4,674)

Nordic Wind 31.18 70,136 145,841 455,697 32,476 344,146 - (2,610) (814) 730 (321,844) 289,187 (31,927)

Danuba Power 40 76,901 25,838 298,797 20,549 111,835 - (618) (247) (681) (210,490) 175,750 (35,420)

Iberian Wind 28.07 112,001 19,756 429,319 23,101 27,025 - (122) (34) (1,318) (277,506) 292,892 14,068

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 8 – INVESTMENT IN INVESTEE ENTITIES (continued)

B. Subsidiary entities with material non-controlling interests

NIS in thousands As of December 31, 2019 As of December 31, 2019 Rate of Total ownership Profit (loss) Cash Cash Cash increase rights held Balance of attributed to flows flows flows (decrease) by non- non- Non- Non- non- from from from in cash and Name of investee controlling controlling Current current Current current Profit controlling operating investing financing cash partnership/ company interest % interest assets assets liabilities liabilities Revenues (loss) interest activities activities activities equivalents

Mivtachim Green 49 37,696 17,580 175,741 7,600 124,713 10,429 12,306 6,030 21,040 ( 1,821) (23,097) (3,878) Energies Ltd.

Eshkol Havazelet – 20.51 52,487 39,674 580,013 25,310 349,222 15,199 20,815 4,269 45,005 - (48,803) (3,798) Halutzyut – Enlight L.P.

Ruach Shikma – Enlight 63.46 57,375 10,599 309,656 17,036 252,520 - 219 416 ( 1,323) ( 9,531) 10,852 ( 2) L.P.

Movilim 49.9 33,016 41,345 296,132 31,130 240,189 13,511 ( 3,637) ( 1,814) 13,827 ( 148,020) 134,910 717

Co-Op 49.9 25,958 80,698 919,684 47,617 900,755 123,834 42,090 21,004 41,346 ( 159,131) 107,763 ( 10,022)

Nordic Wind 31.2 77,347 71,405 283,717 74,301 32,776 - ( 864) ( 269) 418 ( 221,383) 259,427 38,462

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 8 – INVESTMENT IN INVESTEE ENTITIES (continued)

B. Subsidiaries with material non-controlling interests

NIS in thousands As of December 31, 2018 As of December 31, 2018 Rate of Total ownership Profit (loss) Cash Cash Cash increase rights held Balance of attributed to flows flows flows (decrease) by non- non- Non- Non- non- from from from in cash and Name of investee controlling controlling Current current Current current Profit controlling operating investing financing cash partnership/ company interest % interest assets assets liabilities liabilities Revenues (loss) interest activities activities activities equivalents

Mivtachim Green 49 39,702 19,219 172,551 6,670 119,996 8,234 10,659 5,223 19,862 ( 91) (20,584) (813) Energies Ltd.

Eshkol Havazelet – 20.51 53,794 45,496 568,540 23,036 339,458 11,714 19,601 4,020 34,944 3,271 (41,786) (3,571) Halutzyut – Enlight L.P.

Ruach Shikma – Enlight 63.46 60,857 35,994 219,504 18,578 180,297 - ( 888) (129) ( 705) ( 162,156) 162,577 ( 284) L.P.

Movilim 49.9 55,199 38,888 175,613 19,497 84,383 20,939 6,442 3,215 5,184 ( 63,718) 65,263 6,729

Co-Op 49.9 7,765 125,860 899,990 174,309 835,979 38,835 14,197 6,596 21 ( 376) 391 36

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 8 – INVESTMENT IN INVESTEE ENTITIES (continued) C. Investment in associate entities: Effective holding rate in the equity Country of of the consolidated Name of the entity incorporation entity As of December 31 2020 2019 % % Kadarim Enlight Solar L.P. Israel 50 50 Mey Golan – Enlight Energy Tzafa L.P. Israel 50.1 - Carmei Haruach L.P. (hereinafter – “Carmei Haruach”) (a) Israel 50.2 50.2 Emek Haruchot L.P (hereinafter – “Emek Haruchot”) (b) Israel 60 60 Enlight K2 0 Wind d.o.o (hereinafter – “Serbia 2” (c) Serbia 16.7 16.7 Bjornberget Vindkraft AB (hereinafter – “Bjorn”) (d) Sweden 60.7 -

a. Ruach Hardof – Enlight L.P. is fully owned by the Company and holds 60% of the rights in Carmei Haruach L.P., which was established for the purpose of generating electricity using wind energy. b. Ruach Abigail – Enlight L.P. is fully owned by the Company and holds 60% of the rights in Emek Haruchot L.P., which was established for the purpose of generating electricity using wind energy. c. The Company, through Co-Op, holds 33.33% of the shares of Serbia 2, which was established for the purpose of generating electricity using wind energy. d. The Company, through Enlight EU, has a direct holding in Bjorn (51%), and an indirect holding in Bjorn (9.7%) through the PGEIF fund. For more information, see Note 30A(11).

NOTE 9 – CONTRACT ASSETS IN RESPECT OF CONCESSION ARRANGEMENTS FOR THE CONSTRUCTION AND OPERATION OF PHOTOVOLTAIC SYSTEMS

Total Tariff of Rate of installed facility (NIS return on Contract asset as of capacity in per KWh) contract asset December 31 2020 Project MW % of holding in project Halutzyut 55 90% 62.8 6% linked NIS 525,990 thousand 51% in Perot Hagolan project 100% in Sde Nehemia project Medium Sized Roofs 2.63 51% in Barbur project 53.99 5.75% linked NIS 16,462 thousand Talmei Bilu 10 100% 102.46 6.5% linked NIS 135,743 thousand Mivtachim 10 100% 130.39 8% linked NIS 159,733 thousand Cramim 5 100% 96.31 6% linked NIS 52,334 thousand Idan 3 100% 96.31 6% linked NIS 30,037 thousand

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 10 – PROPERTY, PLANT AND EQUIPMENT Composition and movements Solar Windfarms systems (A) (B) Others Total NIS in thousands Cost: As at January 1, 2020 412,745 1,446,871 7,522 1,867,138 Discount- IFRS 16 - 9,088 - 9,088 Additions (1) 3,138 1,078,136 1,878 1,083,152 Classification from deferred charges in respect of projects to property, plant and equipment (2) - 85,636 - 85,636 Entry into consolidation (3) - 57,291 - 57,291 Translation differences (14,737) 15,713 ( 414) 562 Cost as at December 31, 2020 401,146 2,692,735 8,986 3,102,867

Accumulated depreciation: As at January 1, 2020 9,330 30,463 1,630 41,423 Depreciation expenses 12,954 30,859 1,232 45,045 Translation differences ( 37) 1,559 ( 580) 942 Accumulated depreciation as at December 31, 22,247 62,881 2,282 87,410 2020

Carrying balance as at December 31, 2020 378,899 2,629,854 6,704 3,015,457

Cost: As at January 1, 2019 202,949 1,045,894 3,440 1,252,283 Discount- IFRS 16 700 3,527 - 4,227 Additions (1) 221,025 344,326 4,082 569,433 Classification from deferred charges in respect of projects to property, plant and equipment (2) - 10,271 - 10,271 Entry into consolidation (3) - 127,118 - 127,118 Translation differences (11,929 ) (84,265) - ( 96,194) Cost as at December 31, 2019 412,745 1,446,871 7,522 1,867,138

Accumulated depreciation: As at January 1, 2019 1,575 10,103 1,060 12,738 Depreciation expenses 7,699 21,454 570 29,723 Translation differences 56 ( 1,094) - ( 1,038) Accumulated depreciation as at December 31, 2019 9,330 30,463 1,630 41,423

Carrying balance as at December 31, 2019 403,415 1,416,408 5,892 1,825,715

(1) A total of app. NIS 39 million out of this amount constitutes capitalization of borrowing costs incurred in the period during which the assets were erected (2019 – app. NIS 21 million). (2) Deferred costs mainly in respect of the Ruach Bereshit project were reclassified to property, plant and equipment. (3) In June 2020 the Company consolidated for the first time the GECAMA project (Spain) at a cost of approx. NIS 57 million (2019: consolidation for the first time of the Picasso project (Sweden), and SOWI Kosovo).

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 10 – PROPERTY, PLANT AND EQUIPMENT (continued) (A) Solar systems:  Zait Yarok - An Israeli project partnership, which is wholly controlled by the Company. Zait Yarok holds 12 small photovoltaic systems with an overall installed capacity of approximately 0.5 MW. As at December 31, 2020, the depreciated cost of these facilities is approximately NIS 3 million.  Sunlight 1 6 projects with an overall installed capacity of app. 53 MW, which were erected in 2018 and were connected to the grid at the end of 2018. The projects are controlled by the Company. As at December 31, 2020, the depreciated cost is approximately NIS 176 million.  Sunlight 2 Two projects with an overall installed capacity of app. 12 MW, which are controlled by the Company. As of December 31 2020, the cost of the assets under construction is approximately NIS 45 million.  Attila (Hungary) Two Hungarian project companies, that combine three solar energy projects in Hungary and hold licenses for construction of an electricity generation facility using solar energy with an overall installed capacity of app. 57 MW. The project companies are controlled by the Company since October 2018 (see Note 30A(9)). The construction of the project commenced in October 2018 and commercial operation started in 2019. As of December 31 2020, the depreciated cost of the assets is app. NIS 156 million. (B) Windfarms  Tullynamoyle (Ireland) An Irish project company, which has been under the Company's control since July 2015. The project company holds licenses for the construction of a station for the generation of electricity using wind energy with an installed capacity of approximately 13.6 MW in North-Western Ireland. The construction of the project began in December 2015 and the commercial operation started in December 2017. As at December 31, 2020, the depreciated cost of the asset is approximately NIS 78 million.  Lukovac (Croatia) A Croatian company project which is controlled by the Company as from March 2016. The project company holds licenses to construction a station for the generation of electricity using wind energy with an installed capacity of approximately 49 MW in Croatia. The construction of the project started during November 2016 and the commercial operation started in May 2018. As of December 31, 2020, the amortized cost of the systems is app. NIS 197 million.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 10 – PROPERTY, PLANT AND EQUIPMENT (continued) (B) Windfarms (continued)  EWK (Serbia) A Serbian project company which is controlled by the Company since September 2017. The project company holds licenses for the construction of a station for the generation of electricity using wind energy with an installed capacity of approximately 105 MW in Serbia. The construction of the project began in October 2017 and the commercial operation started in 2019. As at December 31, 2020, the depreciated cost of the asset under construction is approximately NIS 566 million.  Emek Habacha The project company is controlled by the Company since May 2014 (see Note 30A(1)). The project company holds licenses for the construction of a station for the generation of electricity using wind energy with an installed capacity of approximately 109 MW in the Golan Heights. The construction of the project began in July 2018. As of December 31 2020, the cost of the asset under construction is app. NIS 499 million.  Ruach Bereshit The project partnership holds licenses to erect a facility for the generation of electricity using wind energy with an installed capacity of app. 189 MW in Ramat Hagolan; the construction of the project started in July 2020. As of December 31 2020, the cost of the asset under construction is app. NIS 384 million.  Picasso (Sweden) A Swedish project company controlled by the Company as from May 2019 (see Note 30A). The project company holds licenses for the construction of a station for the generation of electricity using wind energy with an installed capacity of app. 113 MW in Sweden. As of December 31 2020, the cost of the asset under construction is app. NIS 386 million.  Sowi (Kosovo) A Kosovo-based company controlled by the Company as from May 2019 (see Note 30A(10). The project company holds licenses for the construction of a station for the generation of electricity using wind energy with an installed capacity of app. 105 MW in Serbia. As of December 31 2020, the cost of the asset under construction is app. NIS 245 million.  Gecama (Spain) A Spanish project company controlled by the Company since June 2020 (see Note 30a(5)). The project company holds licenses for the construction of a station for the generation of electricity using wind energy with an installed capacity of app. 312 MW in Spain. As of December 31 2020, the cost of the asset under construction is app. NIS 275 million.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 11 – INTANGIBLE ASSETS A. Composition and movements Agreements for the supply of electricity and concession agreements (*) NIS in thousands Cost: Balance as of January 1, 2020 199,131 Entry into consolidation 55,909 Payments on account of acquisition of consolidated company 44,393 Translation differences 1,255 Balance as of December 31, 2020 300,688

Amortization: Balance as of January 1, 2020 5,471 Amortization 4,022 Balance as of December 31, 2020 9,493

Amortized cost as of December 31, 2020 291,195

Cost: Balance as of January 1, 2019 150,078 Entry into consolidation 63,111 Translation differences ( 14,058) Balance as of December 31, 2019 199,131

Amortization: Balance as of January 1, 2019 2,737 Amortization 2,734 Balance as of December 31, 2019 5,471

Amortized cost as of December 31, 2019 193,660

(*) Electricity supply agreements were recognized as an intangible asset at an amount equal to the proportionate share of the total consideration transferred. B Breakdown of intangible assets’ amortization in statement of income or loss 2020 2019 2018 NIS in thousands

Cost of sale (depreciation and amortization) 4,022 2,734 1,406

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 12 – SUPPLIERS AND OTHER SERVICE PROVIDERS A. Composed as follows As of December 31, 2020 2019 NIS in thousands

Open accounts 25,420 119,341 Checks payable 171 665 25,591 120,006

B. The average credit period that is received from the Company's suppliers in 2020 is 75 days. The Company did not pay interest in respect of this period. NOTE 13 – OTHER ACCOUNTS PAYABLE Composed as follows As of December 31, 2020 2019 NIS in thousands

Payables in respect of acquisition transactions (1) 19,963 52,763 Accrued expenses 25,222 31,289 Early repayment fee (2) 179,052 - Interest payable in respect of loans for the funding of projects 466 8,332 Interest payable on bonds 7,785 7,683 Government institutions 18,735 2,580 Liabilities to employees and other liabilities in respect of wages and salaries 2,251 1,596 Benefits in respect of vacation and recreation pay 2,228 1,489 Current maturity of liability in respect of a contingent consideration arrangement (see Note 27D(1)) 470 440 Payables in respect of a forward transaction 4,683 4,574 Others 116 115 260,971 110,861

(1) The balance as of December 31 2020 arises from future obligation to sellers in the wind projects in Sweden (Picasso), Kosovo (SOWO) and Spain (GECAMA). In respect of the GECAMA project in Spain there is an additional payable balance of NIS 7.9 million (EURO 2 million) which are repayable in periods of more than one year from balance sheet date, and are therefore presented separately as long-term payables. The balance as of December 31 2019 arises from a future obligation to sellers in the wind projects in Sweden (Picasso) and Kosovo (SOWI).

(2) For more information regarding early repayment fee, see Note 14(2) a. and b.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS Composed as follows Current liabilities Non-current liabilities Total As of December 31, As of December 31, As of December 31, 2020 2019 2020 2019 2020 2019 NIS in thousands

Credit from banks (1) 23,416 - - - - - Loans from banks and other financial institutions (2) 646,247 95,357 2,032,344 1,703,376 1,798,733 1,798,733 Loans from other credit providers (3) - 9,880 - 135,520 145,400 145,400 Loans from non-controlling interests (4) 17,467 3,126 131,198 184,216 187,342 187,342 Total credit from banks, financial institutions and other credit providers 687,130 108,363 2,163,542 2,023,112 2,131,475 2,131,475

(1) Withdrawals from Value Added Tax facilities in the construction period in accordance with the financing agreements for the various projects.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2019

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) (2) Loans from banks and other financial institutions Project’s name Mivtachim and Talmei Bilu Halutzyut Cramim and Idan Intermediate Roofs

Funding bank Bank Leumi Le-Israel B.M and entities from Bank Leumi Le-Israel B.M, entities Israel Discount Bank Ltd. Clal Insurance Company Ltd. and Clal Finance Group from Clal Finance Group and the other entities of the Clal Group. Phoenix Loan/credit facility App. NIS 262 million App. NIS 383 million App. NIS 92 million App. NIS 15 million Date of extending funding February 2013 June 2013 November 2012 January 2019 Balance of loan as of 31/12/20 App. NIS 184.5 million App. NIS 319.3 million App. NIS 70 million App. NIS 13.3 million Balance of loan as of 31/12/19 App. NIS 199 million App. NIS 333 million App. NIS 74.4 million App. NIS 14.2 million Repayment schedule Structured repayment schedules, which are Structured repayment schedules, which Structured repayment schedules, which Structured repayment schedules, comprised of semi-annual repayments are comprised of quarterly repayments are comprised of quarterly repayments which are comprised of quarterly repayments Debt period Construction period plus 19 years Construction period plus 18 years Construction period plus 18 years App. 15 year Stated annual interest 5% interest linked to the CPI 4.8% interest linked to the CPI Interest in the range of 3.8%-4.9% linked 2.2% interest linked to the CPI to the CPI Financial covenants Debt servicing reserve App. NIS 9.8 million App. NIS 0.7 million ADSCR for breach 1.07 1.08 1.05 1.07 LLCR for breach 1.07 1.10 1.05 1.12 Compliance with financial As of balance sheet date, the companies As of balance sheet date, the As of balance sheet date, the As of balance sheet date, the covenants complied with the aforementioned financial partnership complied with the partnerships complied with the partnerships complied with the covenants aforementioned financial covenants aforementioned financial covenants aforementioned financial covenants Collaterals Guarantees in accordance with the Guarantees in accordance with the Guarantees in accordance with the A charge on the partnerships’ construction, operating and maintenance construction, operating and construction, operating and maintenance rights in the projects, project’s agreements in connection with the facilities; a maintenance agreements in connection agreements in connection with the partnerships’ assets, the right to renewing fixed charge on all of Mivtachim with the facility; a renewing fixed facility; a renewing fixed charge on all receive proceeds from the sale of and Talmei Bilu's assets, including their bank charge on all of Halutzyut's assets, of the project partnerships' assets, electricity, project partnership’s accounts; a floating charge on all of the including Halutzyut's bank accounts; a including the project partnerships' bank rights in land, insurance, Mivtachim and Talmei Bilu's assets, a charge charge on all of the partners' rights in accounts; a charge on all of the project agreements with contractors and on all of the shareholders’ shares in Halutzyut in connection with their partnerships' rights in connection with collaterals from contractors Mivtachim and Talmei Bilu in connection holdings in the partnership (except for their holdings in the project partnerships thereunder, partners’ right to with their holdings in the project companies amounts that are distributable in (except for the distributable amounts in receive profits, etc. Furthermore, (except for amounts that are distributable in accordance with the provisions of the accordance with the provisions of the each group of projects will back accordance with the provisions of the financing agreement); a charge on the financing agreement); a charge on the the obligations of all projects financing agreement); a charge on the project's rights in land; as well as a project's rights in land; as well as a within that group. projects’ rights in land; as well as a charge on charge on the insurance policies charge on the insurance policies. the insurance policies. Referral to further information See Note 14(2)a See Note 14(2)a See Note 14(2)a - - 56 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2019

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) (2) Loans from banks and other financial institutions (continued) Project’s name Talmei Yafeh, Dorot, Revivim, Enlight Emek Habacha Tariff Tenders Projects – “Sunlight 2” and Dekel Cramim and Kidmat Tzvi” – "Sunlight 1” Funding bank Institutional entities from the Clal Insurance Bank Hapoalim Ltd. in collaboration Clal Insurance Company Ltd. and other entities of the Clal Group with the Phoenix and Harel Groups Group Loan/credit facility App. NIS 160 million App. NIS 563 million App. NIS 70 million Date of extending funding March 2018 November 2018 December 2019 Balance of loan as of 31/12/20 App. NIS 147 million App. NIS 407.6 million App. NIS 49.5 million Balance of loan as of 31/12/19 App. NIS 154 million App. NIS 117 million App. NIS 51 million Repayment schedule Structured repayment schedules, which are Structured repayment schedules, which Structured repayment schedules, quarterly repayments comprised of quarterly repayments are comprised of quarterly repayments Debt period Construction period plus app. 22 years Construction period plus app. 18 years Construction period plus 22 years Stated annual interest Interest in the ranges of 2.6%-3% linked to Construction period – base interest (*) Base interest (*) plus a 2.15% margin CPI-linked. the CPI plus a 3.3% margin CPI-linked. Operating period -base interest (*) plus a 2.65% margin CPI-linked Financial covenants Debt servicing reserve App. NIS 5.2 million App. NIS 5.2 million App. NIS 1.14 million ADSCR for breach 1.07 1.07 1.07 LLCR for breach 1.12 1.12 1.12 Compliance with financial As of balance sheet date, the partnerships As of balance sheet date there is no As of balance sheet date, the partnerships met all the covenants complied with the aforementioned financial requirement to meet the above- requirements of the above-mentioned financial covenants covenants mentioned financial covenants Collaterals A charge on the partnerships’ rights in the Pledge on the tariff and conditional A charge on the partnerships’ rights in the projects, projects, project’s partnerships’ assets, the license, pledge on assets of the special- project’s partnerships’ assets, the right to receive proceeds right to receive proceeds from the sale of purpose project corporation, the cash from the sale of electricity, project partnership’s rights in electricity, project partnership’s rights in land, flow rights, the rights in land, the land, insurance, agreements with contractors and insurance, agreements with contractors and insurances, the securities from collaterals from contractors thereunder, partners’ right to collaterals from contractors thereunder, construction contractors, etc. receive profits, etc. Furthermore, each group of projects partners’ right to receive profits, etc. will back the obligations of all projects within that group. Furthermore, each group of projects will back the obligations of all projects within that group. Guarantees See Note 30B(5) See Note 30B(11) See Note 30B(7) Reference to further information - See Note 30A(1) - (*) Base interest – interest on government bonds (CPI-linked) with identical average duration which becomes fixed on date of withdrawal.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2019

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) (2) Loans from banks and other financial institutions (continued)

Project’s name Tullynamoyle Lockavitz(b) EWK Funding bank Bank of Ireland “ERSTE" and "PBZ", members of the ERSTE, EBRD and NoviSad INTESA Group Loan/credit facility App. EUR 14.3 million App. EUR 31 million and app. 134 App. EUR 139 million million Croatian Kunas (*) Date of extending funding August 2020 December 2020 December 2017 Balance of loan as of 31/12/20 App. EUR 13.7 million App. EUR 25 million and app. 134 App. EUR 111 million million Croatian Kunas Balance of loan as of 31/12/19 App. EUR 16.4 million App. EUR 25.9 million and App. 139.2 App. EUR 119 million million Croatian Kunas Repayment schedule The loan shall be repaid in 50 quarterly The loan shall be repaid in 46 quarterly The loan shall be repaid in 23 semi-annual payments payments payments Debt period 12.5 years 11.5 years Construction period plus 11.5 years Stated annual interest App. 90% of the loan at interest at the rate of Interest of 3.75% on the EURO loan App. EUR 83 million of the loan at an interest of 2.3%, 3.47% and app. 10% of the loan at 3M and interest of 3.5% on the loan in app. EUR 40 million of the loan at an interest of 3.95%, Euribor interest plus a 2% margin Croatian Kunas and app. EUR 16 million of the loan at an interest ranging 4.65%-4.83%. Financial covenants Debt servicing reserve - App. EUR 2.7 million App. EUR 7.7 million ADSCR for breach 1.05 1.10 1.10 Compliance with financial As of balance sheet date, the Company As of balance sheet date the Company As of balance sheet date the Company complied with the covenants complied with the aforementioned financial complied with the above-mentioned above-mentioned financial covenants covenants financial covenants Collaterals The project company placed a charge on all The project company will pledge to the The project company will pledge to the bank the project's of the project’s equipment, its rights under bank the project's equipment, company’s assets, the right to cash flow, insurances, agreements for the sale of the electricity, its electricity sales agreements, rights to collaterals from construction contractors, etc. rights under licenses, its rights under the licenses, insurance policy and the other insurance policy and the its remaining rights rights in the project. in the project in favor of the Bank. Furthermore, a charge was placed in favor of the Bank on all of the Company's holdings in the project company. Guarantees See Note 30B(2) Reference to further information See Note 14(2)b See Notes 30A(8) (*) Exchange rate of Croatian Kuna/NIS as of December 31 2020 – 1.911.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2019

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) (2) Loans from banks and other financial institutions (continued) Project’s name Meg and Raaba Wind energy project in Kosovo Picasso wind project in Sweden Funding bank ERSTE bank ERSTE Group, NLB Group and EBRD Hamburg Commercial Bank Loan/credit facility App. 14 billion Hungarian Forint (*) App. EUR 115 million App. EUR 81.7 million. In addition, the bank will extend a credit facility for the required guarantees of up to app. EUR 15 million in the construction period and up to app. EUR 7 million in the operation period Date of extending funding January 2019 January 2020 January 2020 Balance of loan as of 31/12/20 App. 13.4 billion Forints App. EUR 31.8 million App. EUR 79.4 million Balance of loan as of 31/12/19 App. 14 billion Forints - - Repayment schedule Quarterly repayments, structured repayment Semi-annual repayments, structured Quarterly repayments, structured schedule with lower repayments in the first repayment schedule repayment schedule couple of years Debt period Construction period plus app. 17 years Construction period plus app. 11 years Construction period plus 18 years Stated annual interest App. 30% of the loan at interest at the rate of App. 50% of the loan at interest of 1.9% Interest of 1.58% for the construction 4.05% and app. 70% of the loan at interest of and app. 50% of the loan at Euribor period and through December 31 2029 6.3%. interest plus a 4% margin. The and interest of 2.33% through the end of Company has undertaken to hedge at the term of the loan. least 40% of the total base interest obligation for the entire term of the debt Financial covenants Debt servicing reserve 383 million Hungarian Forints - - ADSCR for breach Ranging 1.05-1.10 Ranging 1.05-1.10 Ranging 1.05-1.10 Compliance with financial As of balance sheet date the Company met As of balance sheet date there is no As of balance sheet date there is no covenants the requirements of all of the above- requirement to meet the above- requirement to meet the above- mentioned financial covenants mentioned financial covenants mentioned financial covenants Collaterals Pledge on the tariff and conditional license, Pledge on the assets of the project Pledge on the assets of the project pledge on assets of the project corporations, company, the cash flow rights, the company, the cash flow rights, the the cash flow rights, the rights in land, the rights in land, the insurances, the rights in land, the insurances, the insurances, the collaterals from project collaterals from project contractors, etc. collaterals from project contractors, etc. contractors, etc. The financing of the portfolio of projects is implemented and assessed on a consolidated basis. Guarantees See Note 30B(5) See Note 30B(10) See Note 30B(8) Reference to further information See Note 30A(4) See Notes 30A(6) (*) Exchange rate of Forint/NIS as of December 31 2020 – 92.58. - 59 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) 2) Loans from banks and other financial institutions (continued)

Project’s name Ruach Bereshit Gecama Funding bank Bank Hapoalim Ltd. in collaboration with entities from the Migdal Group and Amitim Banco de Sabadell and Bankia Loan/credit facility Approx. NIS 1.05 billion Approx. EUR 160 million Date of extending funding July 2020 June 2020 Balance of loan as of 31/12/20 Approx. NIS 255.5 million - Balance of loan as of 31/12/19 - - Repayment schedule Quarterly repayments, structured Semi-annual repayments, structured repayment schedule repayment schedule Debt period The construction year plus 19 years The construction period plus 14 years Stated annual interest The construction period – base interest(*) Euribor base interest plus a 2.5%-3% plus a 2.5%-3% margin margin. The Company has undertaken to The operating period - base interest(*) plus hedge at least 75% of the total liability of a 2.2%-2.7% margin the base interest for a debt period of at least 13 years as from the date of operation of the project. Financial covenants Debt servicing reserve - - ADSCR for breach 1.05 1.05 Compliance with financial As of balance sheet date there is no As of balance sheet date there is no covenants requirement to meet the above-mentioned requirement to meet the above-mentioned financial covenants financial covenants Collaterals Pledge on the assets of the special-purpose Pledge on the assets of the special-purpose project corporation, the cash flow rights, project corporation, the cash flow rights, the rights in land, the insurances, the the rights in land, the insurances, the collaterals from project contractors, etc. collaterals from project contractors, etc. Guarantees See Note 30B(12) See Note 30B(7) Reference to further information See Note 30A(3) See Note 30A(5) A. Signing a refinance agreement for five income-generating solar projects in Israel with a aggregate installed capacity of 83 MW On December 30 2020, the Company signed a refinance agreement with a consortium of lenders headed by Bank Leumi Le-Israel B.M. in collaboration with entities from the Menora Group and Amitim Senior Pension Funds (hereinafter collectively: the “Lenders”), as follows:

a. According to the financial closing agreements, the Lenders provided senior debt totaling approx. NIS 1.1 billion in the form of non-recourse project finance to the project corporations of the Halutzyut, Mivtachim. Talmei Bilu, Cramim and Idan projects, which generate electricity from solar energy with cumulative installed capacity of 83 MW, and which are located on land in the south of Israel (hereinafter collectively: the “Projects”).

b. The process included a full repayment of the senior debt granted to the Projects – totaling approx. NIS 575 million, release of funds totaling approx. NIS 33.5 million and taking a new senior debt totaling approx. NIS 1.1 billion at an interest rate which is lower than the interest rate payable on the previous senior debt loans. Upon completion of the process in January 2021, the Company and its partners withdrew an available cash flow balance of approx. NIS 360 million from the Projects.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) 2) Loans from banks and other financial institutions (continued) A. Signing a refinance agreement for five income-generating solar projects in Israel with a cumulative installed capacity of 83 MW c. During December 2020, the Company issued binding notices to the previous lenders regarding the execution of the transaction, following which the Company recorded a one-off cost of approx. NIS 185 million in its financial statements for this year in respect of payment of early repayment fees and transaction costs relating to the original loans, and which have not yet been fully amortized; this fee is payable in addition to the NIS 40 million in early repayment fees paid in respect of the repayment of the mezzanine debt that was repaid by the Company as described in Note 14(3). On the other hand, the Company is expected to record a significant improvement in its finance costs and financial results in the next 15 years.

d. In view of the Company’s expectation to repay the loans, the NIS 575 million loans were included under in the “credit and current maturities of loans from banks and other financial institutions” item within current liabilities in the consolidated statements of financial position. Furthermore, debt servicing reserves totaling NIS 33.5 million in respect of the repaid loans, which were recognized as long-term cash restricted as to use, are included in the cash and cash equivalent item and the short-term cash restricted as to use item in the consolidated statements of financial position as of December 31 2020 in accordance with the removal of the lender’s pledge through balance sheet date.

e. The refinance transaction shall significantly optimize the Projects’ financing structure and adapt the Projects to an environment of improved interest and commercial terms as compared with prevailing market terms at the time of execution of the previous financing transactions.

Set forth below are the principal terms of the Project’s refinancing:

 Term of the loan – the remaining period until the expiry date of the fixed license to generate electricity of each project (between 13 to 15 years).  Overall interest – the base interest is determined based on yields of government bonds with similar average duration plus a 1.7%-2% margin.  Repayment schedule – quarterly repayments, structured repayment schedule in accordance with the debt service coverage ratios.  Projected and historical Debt-Service Coverage Ratio (DSCR) for distribution and LLCR for a 12-month period: 1.13 to 1.15.  Projected and historical Debt-Service Coverage Ratio (DSCR) for breach and LLCR for a 12-month period: 1.05.  Principal events in which immediate repayment will be demanded – the immediate repayment of the loan can be demanded in serious breach events that were set, which mainly include: Failure to pay on time; breach of material representations or obligations; insolvency, failure to obtain permits required for the projects and/or cancellation of such permits; an event that has a material impact on the project and the debt.  Principal collaterals – as is generally accepted in project funding (pledge on assets of the project company, the cash flow rights, the rights in land, the insurances, the collaterals from construction contractors, etc.). Gross guarantee between project corporations in relation to debt servicing.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) 2) Loans from banks and other financial institutions (continued) A. Signing a refinance agreement for five income-generating solar projects in Israel with a cumulative installed capacity of 83 MW (continued) The process of refinancing, withdrawal of the new debt and the repayment of the old debt as described above was completed after balance sheet date. B. Signing a loan agreement for revising commercial terms and receipt of additional credit for the Lukovac project in Croatia with a cumulative installed capacity of 49 MW On December 31 2020, the Company signed an agreement for revising the financing terms of the senior debt and receiving additional credit for the income-generating wind project “Lukovac” in Croatia with an installed capacity of 49 MW (hereinafter: the “Project”). The agreement was signed with the Project’s existing consortium of senior lenders (hereinafter: the “Lenders”), as follows:

a. The senior debt given to the project company by the lenders in 2016 currently amounts to approx. EURO 43 million. As part of the agreement, the term of the loan shall be extended by one further year through June 30 2032, and the weighted interest rate shall decrease by approx. 1.4%.

b. In addition, the lenders shall provide the project company further non-recourse project financing at the total amount of approx. EURO 6 million, which will be repaid in accordance with the repayment schedule of the existing senior debt, and will bear overall interest of base Euribor plus a 3% margin (reflecting an overall interest rate of 2.5% as of the date of this report).

c. Following the signing of the agreement for revising the financing terms, the Company recorded a one-off cost of approx. NIS 7.25 million in its 2020 financial statements in respect of fees to lenders and transaction costs relating to the original loans, and which have not yet been fully amortized.

d. The Company and its partners are expected to withdraw the cash balance arising from the additional credit facility. After making such a withdrawal, the Company and its partners shall repay the full amount of equity they invested in the project in December 2016 – totaling approx. EUR 16 million. As of the publication date of this report, the additional credit facility has not yet been withdrawn.

e. The refinance transaction shall significantly optimize the Project’s financing structure and adapt the Project to the present global interest environment; the transaction reflects improved commercial terms as compared with prevailing market terms at the time of execution of the first financing transaction. 3) Loans from other credit providers The Halutzyut project and the financing of the acquisition of Mivtachim and Talmei Bilu The Company engaged in an agreement with Noy Fund to receive 3 non-recourse mezzanine loans at a total amount of NIS 78 million in order to fund an investment in the Halutzyut project. The Company engaged in the agreement through the limited partnership Havazelet, which holds Halutzyut and which is indirectly fully-owned by the Company. - 62 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) 3) Loans from other credit providers (continued) The Halutzyut project and the financing of the acquisition of Mivtachim and Talmei Bilu (continued) Furthermore, the Company entered into a series of agreements for the financing of the overall cost of the acquisition; the Company entered into those agreements through Tlamim, which a partnership that is wholly-owned by the Company and which has a 51% holding in Mivtachim and 100% holding in Talmei Bilu; the agreements include three layers of financing, as follows: 1. A graduated mezzanine loan, at the total amount of NIS 57 million, from Poalim Ventures Ltd. and Poalim IBI (hereinafter - "Poalim") as well as bodies from the "Phoenix" Group (hereinafter - "Senior institutional"). 2. A mezzanine loan which will be subordinated to the Senior institutional, at the total amount of NIS 15 million from Poalim (hereinafter - "subordinate institutional"); 3. A mezzanine loan of NIS 20 million, from the Noy Fund, which will be subordinated to the two abovementioned layers (hereinafter - "the Noy loan"). The loans are non-recourse loans with no right of recourse to the Company. The loans had borne interest at different rates, in accordance with their terms of seniority, in a range of 8.74%-12%. On November 4 2020, the Company completed – through Tlamim and Havazelet – early repayment of the mezzanine loan given to the partnership. In total, the Company repaid approx. NIS 201.7 million, of which NIS 40 million were repaid in early repayment fees. Agreement for the acquisition of Noy Fund’s holdings in the Halutzyut and Mivtachim solar projects and repayment of the mezzanine loans: On September 21 2020, the Company signed agreements for the acquisition of all of Noy Fund’s rights in the Halutzyut and Mivtachim projects and for the repayment of the mezzanine loans as described above totaling approx. NIS 230 million (hereinafter: the “Transaction” and the “Projects”, respectively). The transaction with Noy Fund was completed on November 4 2020, and the Company increased its holdings in the projects such that it will hold 100% of the shares in Mivtachim’s project company and 90% of the rights in the Halutzyut project company and 100% of the rights in the general partners of the Halutzyut partnership. The Company’s share in the weighted cash flow stemming from the Projects as a result of the completion of the transaction is expected to increase by approx. NIS 30 million per year over the remaining operating period of the Projects. (4) Loan from non-controlling interest (a) Financing of the acquisition of Lockavitz and EWK The Company entered into agreements for receipt of loans under capital notes received from shareholders, who hold 49.9% of Co-Op, at the total amount of approximately EUR 1.7 million (approximately NIS 136 million); the Company entered into the agreements through Co-Op, the company which holds 100% of the shares of the Lockavitz project through Balkan Energies – Croatia 1 B.V. and a 100% of the shares of the EWK project company through Balkan Energies – Serbia 1 B.V.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) (4) Loan from non-controlling interest (continued) (a) Financing of the acquisition of Lockavitz and EWK (continued) The capital notes are denominated in Euros and bear annual interest of 5%. The capital notes can be fully or partially repaid at any given time, subject to the lenders’ financing agreements. The capital notes that were issued to finance the Lockavitz project will be repaid on December 31, 2021, and the capital notes issued to finance the EWK project will be repaid on September 30, 2024. As from January 2020, the capital notes to Balkan Energies – Croatia 1 B.V. bear interest of 3.75% and the capital notes to Serbia Balkan Energies 1 B.V. bear interest of 4.25%. In 2020 partial repayment of the capital notes and accrued interest was carried out amounting to app. EUR 15.8 million (app. 62 million). As of December 31, 2020, the remaining balance (including interest payable) of the capital notes received from non-controlling interests in Co-Op is approximately NIS 103.3 million. (b) Financing of Emek Habacha project The Company entered into agreements for receipt of loans from non-controlling interests. The Company entered into these agreements through Ruah Shikma, the limited partnership that holds Emek Habacha through Kinetic Energies – Alternative Electrical Energies Ltd. As of December 31, 2020, the remaining balance (including interest payable) of the loans received from non-controlling interests in Ruah Shikma is approximately NIS 38.6 million. The loans bear annual interest of 6%. (c) Financing of the Dorot, Talmei Yafeh and Revivim projects of Sunlight 1 The Company – through Dorot, Talmei Yafeh and Revivim entered into agreements for receipt of loans from non-controlling interests. As of December 31, 2020, the remaining balance (including interest payable) in respect of the loans received from non-controlling interests in Sunlight 1 is approximately NIS 6.3 million. The loans bear annual interest of 5%. (d) Financing of the Enlight-Aveeram partnership The Company – through Enlight-Aveeram entered into agreements for receipt of loans from non-controlling interests. During the reported period, the Company received additional loans totaling NIS 326 thousand. In June 2020, the loan and interest accrued thereon totaling NIS 14.7 million were converted into capital notes classified as non-controlling interest. As of December 31, 2020, the remaining balance (including interest payable) of the loans received from non-controlling interests in Enlight-Aveeram is approximately NIS 331 million. The loans bear annual interest of 5%.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 14 – CREDIT FROM BANKS, FINANCIAL INSTITUTIONS AND OTHER CREDIT PROVIDERS (continued) (4) Loan from non-controlling interest (continued) (e) Financing of the Bereshit wind project The Company, through Ruach Bereshit, entered into agreements for receipt of loans from non-controlling interests. During the reported year, the Company received additional loans totaling approx. NIS 50.5 million from non- controlling interest. Furthermore, on March 24 2020, the loan balance – NIS 55 million – was converted into capital notes classified as non-controlling interest. The loans bear annual interest of 5%. NOTE 15 – BONDS: Composition: Current liabilities Non-current liabilities Total As of December 31, As of December 31, As of December 31, 2020 2019 2020 2019 2020 2019 NIS in thousands Series B bonds (A) - 15,221 - 127,136 - 142,357 Series D bonds - 308 - - - 308 Series E bonds (B) 9,450 9,450 106,072 115,363 115,522 124,813 Series F bonds (C) 46,263 17,760 494,415 201,289 540,678 219,049 Total bonds 55,713 42,739 600,487 443,788 656,200 486,527

A. Series B bonds: In February 2014, the Company issued 71,000,000 Series B bonds of NIS 1 par value each (hereinafter – "the Series B bonds"), together with 355,000 option warrants (Series 5), which were exercised in 2014 into approximately 35,500,000 Series B bonds) (hereinafter – "the option warrants (Series 5)"). The immediate gross consideration arising to the Company from the public offering amounted to approximately NIS 71.5 million; after adding the proceeds from exercising the options (fully exercised), the consideration aggregated approximately NIS 106 million. On February 25, 2016 the Company issued 70,393,000 Series B bonds of NIS 1 par value each by way of series expansion. The total (gross) consideration for the Company as part of the public offering aggregated approximately NIS 76 million. During April 2016, the Company issued 25,395,572 Series B bonds of NIS 1 par value each by way of series expansion as part of a private placement. The total (gross) consideration arising to the Company from the private placement aggregated to approximately NIS 27.3 million. The Series B bonds were repayable in seven installments, which were paid on March 1 of each of the years 2015 to 2021, of which 6 equal installments at a rate of 7% each were paid in the years 2015 through 2020 and one payment, at a rate of 58% of the principal of the bonds, was planned to be paid in 2021, but was repaid as part of the early repayment of the bonds’ balance carried out by the Company at the end of 2020 (for further details, see below in this note). The Series B bonds had borne interest at a fixed annual rate of 7.25%, which was paid twice a year on March 1 and on September 1 of each of the years 2015 through 2020.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 15 – BONDS (continued) A. Series B bonds (continued) Early repayment in full of Series B bonds of the Company On November 1 2020, the Company completed early repayment in full of its Series B bonds in accordance with the provisions of the deed of trust (hereinafter: the “Early Repayment” and the “Bonds”). The Early Repayment was carried out on the basis of the cash balance of the Bonds which were due to be early repaid (principal plus interest), discounted by the rate of yield on government bond (as defined below) plus interest at the rate of 1%. The discounting of the Bonds which were due to be early repaid was calculated as from the Early Repayment date through the last repayment date set in relation to the Bonds in the first offering report. For that purpose: “the yield on government bond” means the average (gross) yield to maturity, in the period of seven business days ending two business days prior to the date of Early Repayment announcement of three series of government bonds, whose average duration is the closest to the average duration of the Bonds on the relevant date. The Early Repayment amount constitutes a total of NIS 1.03 per NIS 1 par value of Bonds. The Early Repayment amount is in respect of the unpaid principal of the Bonds – NIS 126,115 thousand; the balance of the Early Repayment amount attributed to linkage differences and interest in respect of the Bonds amounts to NIS 4,138 thousand in respect of the period between the date on which the last interest payment was made – September 1 2020 – through the date of the Early Repayment, discounted as of early Repayment Date by 3.28%. Upon completing the Early Repayment of the Bonds, all of the Company’s obligations to the Bond holders were met. B. Issuance of Series E bonds In June 2018, the Company issued 135,000,000 par value of Series E bonds together with 30,375,000 Series 2 warrants. As of the date of this report, the remaining balance of the Series 2 warrants expired after most of the options have been exercised. The Series E bonds are repayable in 13 installments, which will be paid in 12 semi-annual installments, each of which shall constitute 3.5% of the principal of the Series E bonds and will be paid on March 1 and September 1 of each of the years 2019 through 2024, and one last installment, at a rate of 58% of the principal of the Series E bonds, which will be paid on March 1, 2025. The bonds bear interest at a fixed annual rate of 4.25%, which is payable twice a year on March 1 and on September 1 of each of the years 2018 through 2025, where the first payment will be paid on September 1, 2018 and the last payment will be paid on March 1, 2025. Except for the first interest period, each interest payment will be paid in respect of the six-month period that ended one day before the payment date. The rate of interest that will be paid in respect of a particular interest period (except for the first interest period), is in respect of the period that starts on the payment date of the previous interest period and ends a day before the next payment date. After the commencement of the interest period, the interest shall be calculated as the annual interest rate divided by two (i.e., 2.125%). The effective interest rate of the Series E bonds is approximately 4.4%. The principal of the Series E bonds and the interest accrued thereon are not linked to any index or currency. The Company’s obligation to repay the bonds is not secured with any pledge or other collateral.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 15 – BONDS (continued) B. Issuance of Series E bonds (continued) Principal financial covenants in respect of the Series E bonds  So long as there will be Series E bonds outstanding, the Company’s shareholders’ equity as per its financial statements (audited or reviewed) shall not be less than NIS 200 million.  So long as there will be Series E bonds outstanding, the ratio between the net standalone financial debt and the net CAP shall not exceed 70% over two consecutive financial statements (audited or reviewed).  So long as the Series E bonds have not been fully repaid, the net standalone financial debt as defined above shall not exceed NIS 10 million, and the ratio between net consolidated financial debt and EBITDA as of calculation date (if any) shall not exceed 18 over more than two consecutive financial statements (audited or reviewed).  So long as the Series E bonds have not been fully repaid, the ratio between the Company’s shareholders’ equity as per its standalone financial statements and its total balance sheet as per its standalone financial statements shall not be less than 20% over two consecutive financial statements (audited or reviewed).  So long as the Series E bonds have not been fully repaid, it will not place and or agree to place and/or demand to place floating charges of any rank in favor of any third party on all its assets, i.e., general floating charges to secure any debt or liability.  So long as the Series E bonds have not been fully repaid, the Company will only make distributions subject to the accumulated conditions set out in the bonds’ deed of trust. As at December 31, 2020, the Company was in compliance with all the financial covenants in accordance with the Deed of Trust, as described above. As of December 31 2020, the outstanding balance payable (principal and interest) in respect of the Series E bonds is NIS 118,849 thousand. C. Series F bonds In June 2019, the Company completed the issuance of a new series of bonds (Series F) pursuant to the Company’s shelf offering report and shelf prospectus. The bonds were rated by Midroog at A3.il (issuer rating) which is identical to the Company’s rating. Pursuant to the shelf offering report, the Company issued, in effect, 222,000,000 par value of Series F registered bonds of NIS 1 par value each. The Series F bonds are repayable in 7 installments, which will be paid in 6 annual installments, each of which shall constitute 8% of the principal of the Series F bonds and will be paid on September 1 of each of the years 2020 through 2025, and one last installment, at a rate of 52% of the principal of the Series F bonds, which will be paid on September 1, 2026. The interest on the bonds shall be paid twice a year on March 1 and on September 1 of each of the years 2019 through 2026, where the first payment will be paid on September 1, 2019 and the last payment will be paid on September 1, 2026, all subject to the terms set out in the shelf offering report. The first interest payment was paid on September 1, 2019 in respect of the period starting on the first trading date after the tender to the public and ending on August 31 2019, calculated on the basis on 365 days a year according to the number of days in this period.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 15 – BONDS (continued) C. Series F bonds (continued) The principal of the Series F bonds and the interest accrued thereon are not linked to any index or currency. The interest rate set in the tender to the public was 3.45%. The issuance was carried out at no discount. The effective interest rate of the Series F bonds is approximately 3.7%. On April 7 2020, the Company carried out a private offering of Series F bonds by way of expanding the series F bonds by 101,010,101 par value of bonds (hereinafter: the “Additional Bonds”) for a total gross consideration of NIS 100 million. The bonds were issued to several accredited investors. Furthermore, on August 31 2020, the Company completed a further offering of 234,860,000 Series F bonds (an additional series expansion) of NIS 1 par value each (hereinafter: the “Bonds”) for a total gross consideration of NIS 251 million. Some of the bonds were issued to a number of accredited investors as part of a tender held for accredited investors prior to the offering. The Israel Tax Authority issued a pre-ruling regarding the calculation of the uniform weighted discount rate in relation to the entire Series F bonds (after the expansions). In accordance with the said calculation, the discount rate applied to the entire series is 0.24%. Furthermore, Midroog affirmed an A3.il rating with a stable outlook for a series expansion at a total scope of up to NIS 250 million par value of Series F bonds and for the entire series of bonds. Subsequent of the aforesaid expansions and as of balance sheet date, the overall amount of the Series F bonds was NIS 532,029,293 par value of bonds. The Additional Bonds issued in the offerings described above constitute, as from the date of their listing, a single series for all intents and purposes together with the Series F bonds issued by the Company and already listed; the Additional Bonds shall have the same terms and rights as the existing bonds for all intents and purposes. For details about the terms of the bonds, see above. Principal financial covenants in respect of the Series F bonds  So long there will be Series F bonds outstanding, the Company’s shareholders’ equity as per its financial statements (audited or reviewed) shall not be less than NIS 375 million.  So long there will be Series F bonds outstanding, the ratio between the net standalone financial debt and the net CAP shall not exceed 70% over two consecutive financial statements (audited or reviewed).  So long as the Series F bonds have not been fully repaid and the net standalone financial debt, as defined above, does not exceed NIS 10 million, and the net consolidated financial debt to EBITDA ratio as of the date of the calculation (if any), shall not exceed 18 for more than two consecutive financial statements (audited or reviewed).  So long as the Series F bonds have not been fully repaid the ratio between the Company’s shareholders’ equity as per its standalone financial statements and its total balance sheet as per its standalone financial statements shall not be less than 20% over two consecutive financial statements (audited or reviewed).

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 15 – BONDS (continued) C. Series F bonds (continued)  So long as the Series F bonds have not been fully repaid, it will not place and or agree to place and/or demand to place floating charges of any rank in favor of any third party on all its assets, i.e., general floating charges to secure any debt or liability.  So long as the Series F bonds have not been fully repaid, the Company shall only make distribution subject to accumulated conditions set out in the bonds’ deed of trust. As of December 31 2020, and the date of publication of this report, the Company complies with all financial covenants in accordance with the Deed of Trust as described above. As of December 31 2020, the outstanding balance (principal and interest payable) in respect of the Series F bonds is approx. NIS 552,977 thousand.

- 69 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 16 – CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES Composed as follows Translation differences on Adjustments in Conversions Balance as of Cash flow from translation of respect of cash flow carried to Balance as of January 1, financing foreign from operating shareholders’ Non-cash December 31, 2020 activities operations activities (3) equity transactions 2020 NIS in thousands

Bonds (1) 493,894 171,283 - ( 1,192 ) - - 663,985 Convertible bonds (1) 320 ( 50 ) - 1 ( 271 ) - - Loans from banks and other financial 1,802,276 905,004 (1,114 ) 8,338 - ( 2) (12,032 ) 2,702,472 institutions (1) Loans from other credit providers (1) 150,179 ( 101,228 ) - ( 48,951 ) - - - Loans from non-controlling interests 187,342 31,007 2,075 ( 10,144 ) - ( 61,615 ) 148,665 Lease liability 140,248 ( 18,498) 159 ( 3,737) - ( 4) 138,168 256,340 2,774,259 987,518 1,120 ( 55,685) ( 271) 64,521 3,771,462

(1) Including interest payable. (2) Stemming mainly from offsetting deferred borrowing costs that were paid in advance by the project companies on financial closing dates and capitalized financing expenses during the construction period. (3) Including interest accrued and interest paid. (4) Created for the first time against right-of-use asset.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 16 – CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES (continued) Composed as follows Translation differences on Adjustments in Conversions Balance as of Cash flow from translation of respect of cash flow carried to Balance as of January 1, financing foreign from operating shareholders’ Non-cash December 31, 2019 activities operations activities (3) equity transactions 2019 NIS in thousands

Bonds (1) 298,281 194,087 - 1,526 - - 493,894 Convertible bonds 1,005 ( 515 ) - 5 ( 175 ) - 320 Short-term credit from banks and other financial institutions (1) 1,537,329 346,551 ( 73,894) 10,629 - ( 2) (18,339) 1,802,276 Loans from other credit providers (1) 158,855 ( 8,937 ) - 261 - - 150,179

Loans from non-controlling interests 201,375 ( 8,640) ( 14,116) (138) - ( 2) 8,861 187,342 Lease liability - ( 11,170) ( 970) 3,671 - ( 4) 148,717 140,248 2,196,845 511,376 ( 88,980) 15,954 ( 175) 139,239 2,774,259

(1) Including interest payable. (2) Stemming mainly from offsetting deferred borrowing costs that were paid in advance by the project companies on financial closing dates and capitalized financing expenses during the construction period. (3) Including interest accrued and interest paid. (4) Created for the first time against right-of-use asset.

- 71 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 17 – TAXES ON INCOME A. Deferred tax balances: As of December 31, 2020 2019 NIS in thousands Current tax assets (liabilities): Current tax assets 487 407 Current tax liabilities ( 2,558) ( 95) Total current tax assets (liabilities) ( 2,071) 312

Non-current tax assets (liabilities): Deferred tax assets 44,375 8,834 Deferred tax liabilities ( 27,320) ( 46,306) Total non-current tax assets (liabilities) 17,055 ( 37,472)

The composition of the deferred tax assets (liabilities) is detailed as follows:

Balance as of Recognized Other Balance as of January 1, in profit or comprehensive Recognized Entry to December 31, 2020 loss income in equity consolidation 2020 NIS in thousands Temporary differences: Property, plant and equipment ( 10,202) ( 3,222) - - ( 86) ( 13,510) Application of IFRS 16 – - Leases, net 155 1,782 - 27 1,964 Financial assets at fair value through profit or loss ( 384) 370 - - - ( 14) Contract asset in respect of - concession arrangements ( 173,285) 121,564 - ( 12,703) ( 64,424) Investments in consolidated - entities ( 4,456) 882 - - ( 3,574) Deferred borrowing costs ( 3,413) ( 3,209) - - - ( 6,622) Provision for dismantling and - removal ( 247) ( 112) - - ( 359) Cash flow hedges 5,310 246 3,821 - - 9,377 Total ( 186,522) 118,301 3,821 ( 12,676) ( 86) ( 77,162)

Losses and tax benefits not utilized: Losses for tax purposes 149,031 ( *)(63,191) ( 182) 8,053 506 94,217 Tax benefits in respect of issuance costs 19 ( 1,883) - 1,864 - - 149,050 ( 65,074) ( 182) 9,917 506 94,217 Total ( 37,472) 53,227 3,639 ( 2,759) 420 17,055

(*) In accordance with the tax assessments agreement as set out in Note 17F(5).

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 17 – TAXES ON INCOME A. Deferred tax balances (continued): The composition of the deferred tax assets (liabilities) is detailed as follows:

Balance as of Other Balance as of January 1, Recognized in comprehensive Recognized December 31, 2019 profit or loss income in equity 2019 NIS in thousands Temporary differences: Property, plant and equipment ( 3,748) ( 6,299) ( 10,047) Financial assets at fair value through profit or loss 239 ( 623) ( 384) Contract asset in respect of concession arrangements ( 167,684) ( 5,601) ( 173,285) Investments in consolidated entities ( 1,572) ( 2,884) ( 4,456) Deferred borrowing costs ( 1,918) ( 1,495) ( 3,413) Provision for dismantling and removal ( 247) ( 247) Cash flow hedges 1,119 4,191 5,310 Total ( 173,564) ( 17,149) 4,191 - (186,522)

Losses and tax benefits not utilized: Losses for tax purposes 137,953 10,813 265 149,031 Tax benefits in respect of issuance costs 446 ( 3,963) 3,536 19 138,399 6,850 265 3,536 149,050 Total ( 35,165) ( 10,299) 4,456 3,536 ( 37,472) Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to offset deferred tax assets against deferred tiltabilities, where they relate to taxes on income that are levied by the same tax authority and the Company intends to settle the balances on a net basis. B. Amounts in respect of which no deferred tax assets were recognized Taxes that would have applied in the case of disposal of investments in investees were not included in the calculation of deferred taxes, since the Group intends to hold and develop those investments. Furthermore, no deferred taxes were taken into account in respect of distribution of dividends by Israeli companies, since such dividends are not subject to tax. Total accrued distributable profits and/or disposal of investment in these companies amounts to app. NIS 17 million as of December 31 2020.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 17 – TAXES ON INCOME (continued)

C. Taxes on income (tax benefits) that were recognized in profit or loss: For the year ended December 31 2020 2019 2018 NIS in thousands

Current taxes: Current taxes on income 3,996 2,454 2,224 Taxes in respect of previous years 6,776 - - Total current taxes 10,772 2,454 2,224

Deferred taxes: Deferred tax expenses (income) in respect of the creation and reversal of temporary differences ( 7,236) 17,149 22,883 Income derived from the creation of deferred taxes for unutilized losses and tax benefits ( 30,481) ( 6,850) ( 19,132) Taxes in respect of previous years ( 15,510) Total deferred taxes ( 53,227) 10,299 3,751

Total taxes on income (tax benefits) from continuing operations ( 42,455) 12,753 5,975

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 17 – TAXES ON INCOME (continued) D. Theoretical tax expense Following is a reconciliation of the theoretical tax expense, assuming all income and expenses, gains and losses in the statement of profit or loss are taxed at the statutory tax rates and the actual tax expense as per the statement of profit or loss: For the year ended December 31 2020 2019 2018 NIS in thousands

Income (loss) from continuing operations before taxes on income ( 183,485) 24,783 28,109 Statutory tax rate 23% 23% 23% Expenses (income) according to the statutory tax rate ( 42,202) 5,700 6,465

Increase (decrease) in taxes on income resulting from the following factors: Minority interest in profits/losses of investee partnerships 2,906 ( 793) ( 210) Adjustment of the tax rate of entities assessed abroad (2,884) ( 3,425) ( 1,185) Non-deductible expenses and exempt income 8,080 5,671 2 Losses and benefits for tax purposes in respect of which no deferred taxes have been previously recorded and in respect of which deferred taxes were recorded in the reporting period ( 132) ( 1,347) Losses for tax purposes in respect of which no deferred taxes were recorded 440 768 598 Adjustments due to changes in tax rates ( 18) ( 48) - Temporary differences in respect of subsidiary companies and partnerships in respect of which deferred taxes were recognized ( 882) 2,884 1,572 Changes in deferred taxes in respect of previous years (8,734) Other 971 1,996 80 Total taxes on income from continuing operations as presented in profit or loss ( 42,455) 12,753 5,975

E. Carryforward tax losses The balance of the Company’s carryforward tax losses as of December 31, 2020 is approximately NIS 226 million. The balance of the Group’s carryforward tax losses as of December 31, 2020 is approximately NIS 461 million; no deferred taxes were created in respect of loss amounting to NIS 7.2 million.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 17 – TAXES ON INCOME (continued)

F. Details regarding the tax environment in which the Group operates (1) Set forth below are the tax rates that are relevant to the Group's operations in Israel in the years 2016–2019: 2018 - 23% 2019 – 23% 2020 – 23% The current taxes for the reported periods are calculated in accordance with the tax rate presented in the above table. (2) Taxation of subsidiaries outside of Israel: Subsidiaries that are incorporated outside of Israel are assessed for tax under the tax laws in their countries of residence. The principal tax rates applicable to the major subsidiaries incorporated outside Israel are as follows:  Entities incorporated in Croatia: The corporate tax rate applicable to the Company's operations in Croatia is 18%.  Entities incorporated in Ireland: The corporate tax rate applicable to the Company's operations in Ireland is 12.5%.  Entities incorporated in Serbia: The corporate tax rate applicable to the Company's operations in Serbia is 15%.  Entities incorporated in the Netherlands: The corporate tax rate applicable to the Company's operations in the Netherlands is 20%.  Entities incorporated in the Hungary: The corporate tax rate applicable to the Company's operations in Hungary is 9%.  Entities incorporated in the Sweden: The corporate tax rate applicable to the Company's operations in Sweden is 21.4%.  Entities incorporated in the Kosovo: The corporate tax rate applicable to the Company's operations in Kosovo is 10%.  Entities incorporated in Spain: The corporate tax rate applicable to the Company's operations in Spain is 25%. In general, inter-company transactions between the Company and the subsidiaries outside Israel are subject to provisions and reporting under the Income Tax Regulations (Determination of Market Terms), 2006. (3) Measurement of the results for income tax purposes IFRS vary from accounting principles generally accepted in Israel. Accordingly, the preparation of the financial statements in accordance with IFRS may reflect a financial position, operating results and cash flows that are materially different from those that are presented in accordance with accounting principles generally accepted in Israel and in accordance with the principles of the tax method applied in Israel. a. When calculating the provision for tax and the current tax expenses of the Mivtachim and Talmei Bilu projects, the Company does not apply Accounting Standard Number 33 – "Service Concession Arrangements", but rather Accounting Standard Number 27 – "Fixed assets" and claims depreciation expenses in respect of the facilities in accordance with the Income Tax Regulation (Depreciation), 1941.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 17 – TAXES ON INCOME (continued)

E. Details regarding the tax environment in which the Group operates (continued) (3) Measurement of the results for income tax purposes (continued) b. The Company deducts finance expenses and general and administrative expenses in respect of the acquisition of electricity generation projects, which are incorporated as subsidiaries. c. The Company is an “industrial company", as defined in the Law for the Encouragement of Industry (Taxation), 1969. d. Despite what is stated in Note 2P(6) regarding the non-recognition of interest expenses in the statement of profit or loss in respect of capital notes that have been extended to consolidated companies, the Group recognizes the interest expenses, in accordance with the terms of the note, in the calculation of the taxable income of the investee companies for income tax purposes. (4) Depreciation: The Group claims depreciation expenses for income tax purposes at a rate of 25% in accordance with Addendum B to the Income Tax Regulations (Depreciation) in respect of electricity generation facilities in which solar energy is used to generate electricity by using photovoltaic technology whose date of operation is from January 1 2009 to December 31 2015. In respect of similar facilities whose operation date falls as from January 1 2016, the Company claims depreciation expenses for income tax purposes at the rate of 7% in accordance with the Income Tax Regulations (Depreciation), 1941, for electricity-generating devices.

(5) The Company has final tax assessments through tax year 2018. On March 22 2021, the Company signed a tax assessments agreement with the Israel Tax Authority in respect of tax years 2014-2018. Set forth below are the key points of the agreement:  The Halutzyut and Medium Sized Roofs shall be taxed on the basis on Accounting Standard No. 33 “Service Concession Arrangements”.  The amortization of the excess of cost that stemmed from the acquisition of Mivtachim and Talmei Bilu’s shares through the Tlamim partnership shall not be deductible for tax purposes.  Am approx. NIS 6.5 million tax payment in respect of previous years.  The Company recognizes tax income of approx. NIS 9 million as a result of release of tax reserve created in respect of financial asset’s profits in 2013, which are not expected to be reversed due to the tax assessment arrangement.

NOTE 18 – SHARE CAPITAL

A. Authorized share capital: As of December 31, 2020 2019 NIS

Ordinary shares of NIS 0.01par value 12,460,000 12,460,000

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 18 – SHARE CAPITAL (continued) B. Issued share capital: Number of shares Share capital Share premium As of As of As of December 31 December 31 December 31 2020 2019 2020 2019 2020 2019 NIS in thousands

Ordinary shares of NIS 0.01 par value fully paid 822,966,282 752,144,343 8,223 7,515 1,347,581 986,619

C. Movements in the fully paid share capital: Number of shares

Balance as at January 1, 2019 536,179,943

Issuance of shares (2-3) 180,145,700

Exercise of Series 2 options (1) 30,266,303

Exercise of options by employees 5,383,476

Conversion of bonds into shares 168,921

Balance as at December 31, 2019 752,144,343

Issuance of shares (4-5) 63,884,300

Exercise of options by employees 6,676,438

Conversion of bonds into shares 261,201

Balance as at December 31, 2020 822,966,282

(1) In June 2018, the Company issued 30,375,000 Series 2 warrants exercisable into ordinary Company shares such that each Series 2 warrant will be exercisable into one ordinary Company share in consideration for exercise price of NIS 2.20 per share (unlinked) on each trading day as from the date of their listing for trade on the stock exchange. Our of a total of 30,375,000 Series 2 warrants, 30,266,303 warrants were exercised into 30,266,303 Company shares for a net consideration of app. NIS 65.5 million. The remaining balance of warrants that were not exercised (total of 108,697 warrants) expired on 16.6.2019. (2) On April 22 2019, the Company completed a public offering of 95,755,800 ordinary Company shares of NIS 0.01 par value each, for a uniform price of NIS 2.33 per share for a gross consideration of approximately NIS 223,111 thousand (total proceeds received net of issuance costs are approximately NIS 217,119 thousand). - 78 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 18 – SHARE CAPITAL (continued) C. Movements in the fully paid share capital (continued) (3) On December 19 2019, the Company completed a public offering of 84,389,900 ordinary Company shares of NIS 0.01 par value each, for a uniform price of NIS 4.25 per share for a gross consideration of approximately NIS 358,657 thousand (total proceeds received net of issuance costs are approximately NIS 348,743 thousand). (4) On May 6 2020, the Company allocated - as part of a private placement - 18,300,000 ordinary Company shares to accredited investors for a total gross consideration of app. NIS 75,030 thousand. The accredited investors are among the leading institutional entities, including entities which are currently interested parties in the Company. (Total proceeds received net of issuance costs amount to approx. NIS 74,386 thousand). (5) On August 31 2020, the Company completed the issuance of 45,584,300 ordinary Company shares of NIS 0.01 par value each, for a total gross consideration of approx. NIS 291,740 thousand. Some of the ordinary shares were issued to a number of accredited investors as part of the tender for the accredited investors that was held prior to the issuance. (Total proceeds received net of issuance costs amount to NIS 284,469 thousand). (6) For information about an issuance carried out after balance sheet date, see Note 31(4).

NOTE 19 -EARNINGS PER SHARE A. Basic earnings per share For the year ended December 31 2020 2019 2018 NIS in thousands

Earnings (loss) attributed to Company’s owners used for the purpose of the calculating the basic earnings per share ( 150,770) (17,446) 2,587

For the year ended December 31 2020 2019 2018 NIS in thousands

Weighted average number of ordinary shares used for the calculation of the basic earnings per share 782,977,562 624,952,374 523,683,556

B. Diluted earnings per share For the year ended December 31 2020 2019 2018 NIS in thousands

Income (loss) used to calculate the diluted earnings per share ( 150,770) (17,446) 2,587

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 19 -EARNINGS PER SHARE B. Diluted earnings per share (continued) For the year ended December 31 2020 2019 2018 NIS in thousands

Weighted average of the number of ordinary shares used to calculate basic earnings per share 782,977,562 624,952,374 523,683,556 Adjustments: Bonds convertible into Company shares - Option warrants issued under share-based payment arrangements - - 11,230,876 Weighted average of the number of shares used to calculate diluted earnings per share 782,977,562 624,952,374 534,914,432

NOTE 20 – SHARE-BASED PAYMENT Details of the plans for the allocation of option warrants to the Company's employees: Number Number of shares Number Value Share of options that of options of Number Overall Exercise price exercised expired/ remaining Date of the each of number of price in in as of the forfeited as of the allocation option offerees shares NIS NIS date of the as of the Date of date of the in financial date of the expiry of financial NIS statements financial options statements statements 27.10.2013(A) 2 1,425,000 0.697/0.667 0.878 0.52 1,425,000 - 27.10.2020 0 10.05.2015(A) 6 2,425,000 0.755 0.743 0.38 1,198,297 900,000 10.05.2022 326,703 07.12.2015(A) 1 1,200,000 0.755 0.722 0.36 1,200,000 - 07.12.2022 0 07.06.2016(A) 2 1,000,000 0.73 0.711 0.35 913,378 - 07.06.2023 86,622

07.08.2016(B) 3 12,000,000 0.74285 0.685 0.335 9,250,000 - 07.08.2023 2,750,000 07.08.2016(C) 1 3,000,000 0.76 0.685 0.325 - 1,000,000 07.08.2023 2,000,000 24.01.2017(A) 2 800,000 1.002 1.09 0.545 300,000 400,000 24.01.2024 100,000 18.05.2017(A) 1 600,000 1.3525 1.342 0.64 210,000 - 18.05.2024 390,000 05.02.2018(A) 6 3,100,000 1.84 1.805 0.77 600,000 - 05.02.2025 2,500,000 02.05.2018(A) 1 600,000 1.723 1.67 0.711 300,000 - 02.05.2025 300,000 26.07.2018(A) 2 800,000 1.908 1.838 0.835 200,000 - 26.07.2025 600,000 26.08.2018(A) 5 2,000,000 1.875 1.885 0.863 300,000 - 26.08.2025 1,700000, 12.09.2018(D)(E) 2 13,500,000 1.961 1.905 0.855 1,000,000 - 12.09.2025 12.500,000 28.10.2018(E) 2 16,020,000 1.995 1.82 0.787 - - 28.10.2025 16,020,000 01.11.2018(A) 2 4,950,000 1.987 1.889 0.84 - - 01.11.2025 4,950,000 31.03.2019(A)(F) 3 1,000,000 2.175 2.24 0.961 - - 31.03.2026 1,000,000 04.04.2019(A)(F) 2 800,000 2.2 2.22 0.94 - - 04.04.2026 800,000 27.05.2019(A)(F) 2 800,000 2.37 2.42 1.034 - - 27.05.2026 800,000 28.11.2019(A)(F) 5 2,100,000 4.157 4.23 1.906 - - 28.11.2026 2,100,000 20.01.2020(A)(G) 20 2,715,000 4.4678 4.91 1.97 - - 20.01.2027 2,715,000 12.04.2020(A)(F) 1 700,000 4.11 4.15 1.55 - - 12.04.2027 700,000 17.05.2020(A)(G) 6 1,100,000 4.85 5.07 1.97 - - 17.05.2027 1,100,000 23.07.2020(A)(G) 3 450,000 5.46 5.47 1.98 - - 23.07.2027 450,000 13.10.2020(A)(G) 1 1,030,000 6.25 7.01 2.77 - - 13.10.2027 1,030,000 10.11.2020(A)(G) 7 1,150,000 6.48 6.63 2.41 - - 10.11.2027 1,150,000

Total 75,265,000 16,896,675 2,300,000 56,068,325

- 80 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 20 – SHARE-BASED PAYMENT (continued) The value of the options was calculated using the binomial model. When calculating the value of the benefit, the share price, the exercise price, the risk-free interest and the expected life of the option were taken into account. (A) General description of the option warrants in the Company: Generally, and in relation to the description of all allocations in this report, the option warrants are to be exercised on a “cashless exercise” basis, as set out in the options plan. Subject to the other terms of the options plan, the entitlement of each of the aforementioned offerees to exercise the option warrants will be established in accordance with the vesting periods, as follows: 50% of the options will vest within 24 months after the grant date, 25% of the options will vest within 36 months after the grant date and 25% of the options will vest within 48 months after the grant date. In certain cases, different vesting dates were determined, as described above, and to the extent that it is not stated otherwise, the vesting dates are as set out in this paragraph. The option warrants are subject to the generally accepted adjustments in accordance with the terms of the options plan, among other things, in the event of the distribution of a dividend, issuance of rights and issuance of bonus shares. All allotments of option warrants were made on the basis of the Company’s existing options plan. In the event of the termination of employment, the offeree will have a limited period to exercise only vested option warrants. In the event of termination of employment/activity under circumstances that were defined as aggravating circumstances, the Company will be given the option of revoking rights. (B) In 2016, the Company allotted to each of the Entrepreneurs 4,000,000 non-marketable and non-transferrable option warrants which can be exercised on a net basis, and in total 12,000,000 option warrants. The vesting period of the option warrants will be spread over 4 years and commenced only after the end of the vesting period of the previous package of the Entrepreneurs ' options of 2013. The option warrants were granted on August 8 2016. The exercise price is as set out in the above table. (C) In 2016, the Company allotted 3,000,000 non-marketable and non-transferrable option warrants to Mr. Or Alovitz, the Chairman of the Company's Board of Directors as of award date; the said option warrants can be exercised on a net basis. The vesting period of the option warrants will be spread over 3 years. The option warrants were granted on August 8, 2016. The exercise price is as set out in the above table. As from August 30, 2018, Or Alovitz no longer serves as a Company director; therefore 1,000,000 unvested options have expired. (D) On September 12 2018, the Company allotted 3,600,000 non-marketable and non- transferrable option warrants to the Company’s Chairman of the Board of Directors, Mr. Yair Seroussi, which can be exercised on a net basis. The vesting period of the option warrants will be spread over 4 years, on a quarterly basis; As to the exercise price, see the above table. (E) On September 12 2018 and on October 28 2018, the Company allocated 9,900,000 non- marketable and non-transferrable option warrants to Mr. Gilad Yavetz and 16,020,000 non- marketable and non-transferrable option warrants to Mr. Zafrir Yoeli and Amit Paz together. The option warrants can be exercised on a net basis. The vesting period of the option warrants will be spread over 4 years; 18% of the options will vest one year after award date, 25% will vest on a quarterly basis over the second year, 30% will vest on a quarterly basis over the third year and 27% will vest on a quarterly basis during the fourth year. As to the exercise price, see the above table.

- 81 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 20 – SHARE-BASED PAYMENT (continued) (F) On April 12 2020, the Company carried out a private allocation of 700,000 non-marketable and non-transferrable Company warrants to a VP office holder. The option warrants are to be exercised on a “cashless exercise” basis. The option warrants will vest over a 4-year period as follows: 50% of the options will vest within two years after the allocation date, 25% of the options will vest within three years after the allocation date, and 25% of the options will vest within for years after the allocation date. As to the exercise price, see the table above. (G) In 2020, employees were awarded options exercisable on a net basis. The estimated value of the options was calculated according to the binomial model. Set forth below are the assumptions which were taken into account in the calculation of the estimated value of the options: Award date 20.01.2020 12.04.2020 17.05.2020 23.07.2020 13.10.2020(*) 10.11.2020

Number of options 2,715,000 700,000 1,100,000 450,000 1,030,000 1,150,000 Option value 1.97 1.55 1.97 1.98 2.77 2.41 Exercise price 4.47 4.11 4.85 5.46 6.25 6.48 Share price 4.91 4.11 5.07 5.47 7.01 6.63 Risk-free interest 0.65% 0.67% 0.61% 0.45% 0.55% 0.58% Standard deviation 35.1% 35.4% 35.6% 34.9% 34% 33.8% Value of the options 5,343,362 1,082,944 2,160,814 890,507 2,849,234 2,771,040

Term of the option 7 years from award date (*) Out of total options allocated, 430,000 options shall vest upon meeting targets. The options will vest in 16 equal batches over 4 years (26,875 options per quarter). NOTE 21 – REVENUE For the year ended December 31 2020 2019 2018 NIS in thousands Electricity and operation of facilities 232,908 192,549 78,633 Construction services 5,276 - - Management fees 3,507 - - Total 241,691 192,549 78,633

NOTE 22 – COST OF SALES For the year ended December 31 2020 2019 2018 NIS in thousands The composition of the cost of sales – electricity and the operation of facilities: Maintenance of sites 32,714 27,324 14,894 Municipal taxes 6,471 4,702 1,770 Rent 242 1,069 5,841 Insurance 3,316 2,435 1,602 Wages, salaries and related expenses 2,955 2,061 959 Expenses in respect of facilities construction services 4,927 - - Project development 2,472 1,311 658 Total 53,097 74,842 36,990

- 82 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 23 – SELLING, MARKETING AND PROJECTS PROMOTION EXPENSES Composition For the year ended December 31 2020 2019 2018 NIS in thousands

Wages, salaries, and related expenses 5,282 5,423 2,672 Vehicle 65 69 152 Legal, marketing outside Israel and marketing communications 2,411 3,661 1,851 Total 7,758 9,153 4,675

NOTE 24 – GENERAL AND ADMINISTRATIVE EXPENSES For the year ended December 31 2020 2019 2018 NIS in thousands Wages, salaries, and related expenses 16,139 15,504 7,919 Vehicles 241 254 401 Management fees and directors’ fees 1,538 1,664 2,238 Office expenses and maintenance 1,646 1,457 1,717 Fees 388 568 481 Professional fees 6,571 5,128 3,715 Government institutions - - 1,236 Other 4,471 2,992 1,465 Total 30,993 27,567 19,172

NOTE 25 – FINANCE EXPENSES, NET A. Finance expenses For the year ended December 31 2020 2019 2018 NIS in thousands

Loans used to finance projects 88,891 82,837 65,738 Bonds 27,282 19,681 13,984 Changes in the fair value of financial instruments measured at fair value through profit or loss 2,256 Contingent consideration arrangement 752 985 912 Non-controlling interest 5,224 4,575 1,589 Finance expenses from foreign currency hedge transactions 1,069 13,037 - Finance expenses in respect of lease liability 3,737 3,671 - Exchange differences 557 18,862 - Others 3,535 3,003 1,786 133,303 146,651 84,009 Amounts capitalized to the cost of qualifying assets ( 25,361) (16,597) (12,706) Total 107,942 130,054 71,303

- 83 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 25 – FINANCE EXPENSES, NET B. Finance income For the year ended December 31 2020 2019 2018 NIS in thousands Finance income from a financial contract in respect of concession arrangements 55,594 69,234 73,628 Changes in the fair value of financial instruments measured at fair value through profit or loss - 3,548 - Finance income from investments accounted for by the equity method 3,524 948 677 Exchange differences - - 7,311 Others 45 264 - Total 59,163 73,994 81,616

C. Early repayment fees and transaction costs: Refinancing of senior debt in projects: For the year ended December 31 2020 NIS in thousands

Halutzyut 106,948 Mivtachim 28,074 Talmei Bilu 34,876 Cramim 9,351 Idan 5,492 Croatia (Lukovac) 7,249 Total refinanced debt in projects 191,990

Repayment of loans from other credit providers: For the year ended December 31 2020 NIS in thousands

Tlamim 13,677 Havazelet 26,643 Total repayment of loans from other credit providers 40,320

Total repayment fees and transaction costs 232,310

(*) For more information, see Notes 14(2)a, 14(2)b and 14(3).

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 26 - LEASES

As from January 1 2019, the Group applies IFRS 16, “Leases”. As part of the lease agreements, the Group leases the following items: 1. Land; 2. Offices and vehicles.

The Group leases mainly land for the purpose of erecting renewable energies facilities. The total amount recognized in the statement of financial position as of December 31 2020 in respect of a right-of-use asset pertaining to leases is NIS 260,302 thousand. The total amount recognized in the statement of financial position as of December 31 2020 in respect of lease liability pertaining to lease of land is NIS 256,329 thousand.

Right-of-use assets

Composition Offices and In thousands of NIS Land vehicles Total

Balance as of January 1 2020 133,971 6,282 140,253 Additions 129,268 - 129,268 Depreciation in respect of right-of-use assets ( 8,696) ( 1,197) ( 9,893) Other 710 ( 36) 674 Balance as of December 31 2020 255,253 5,049 260,302

Lease liability

Analysis of repayment dates of the Group’s lease liabilities December 31

In thousands of NIS 2020

Up to one year ( 18,019) Between a year to five years ( 55,464) More than five year ( 182,846) Total ( 256,329)

Current maturities of lease liability ( 18,019) Long-term lease liabilities ( 238,310) ( 256,329)

In thousands of NIS For the year ended

December 31 Impact on statement of profit or loss 2020

Interest expenses in respect of lease liability ( 3,737) Income pertaining to variable lease payments that were not included in the measurement of the lease liability 581 Depreciation expenses ( 5,468)

Total ( 8,624)

- 85 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 26 – LEASES (continued)

Lease payments that also include variable lease payments that were not included in the measurement of the lease liability As part of the lease contracts that the Group engages in, the lease payments are linked to local consumer prices indices as of the date of engagement in the lease. The revision of the lease liability as a result of revaluation of the lease payments is carried to right-of-use asset. The amount in respect of which the asset was updated in 2020 amounted to approx. NIS 500 thousand.

NOTE 27 – FINANCIAL INSTRUMENTS

A. Financial risks management policy: The Company’s activities expose it to a variety of financial risks, as described below. The Group's overall risks management policy focuses on activities designed minimize the potential adverse effects on the Group's financial performance. The Group uses derivative financial instruments in order to hedge certain exposures to risks. The officer charged with the management of the Company's risk management is the Company's Chief Financial Officer, who reports from time to time to the Board of Directors and to the Financial Statements Review Committee on the steps he takes to minimize the Company's market risk and the results of those steps. The Company's policy is to minimize the various risks as far as possible. The Company focuses its risk management solely on economic exposures, where there is a contradiction between that exposure and the accounting exposure. Furthermore, the Chief Financial Officer reports on an ongoing basis to the relevant bodies in the Company on the state of the liquidity balances and the Company's liabilities and their composition. The Company’s operations expose it to a variety of financial risks, as described below:

(1) Changes in the exchange rates of foreign currency Some of the construction costs of the projects, finance costs and the transactions and revenues of the Company are denominated in foreign currency. Therefore, the Company is exposed to changes in the exchange rates that affect the feasibility and the profitability of the projects. The Company assesses and uses derivative financial instruments from time to time, primarily forward transactions and currency options ("hedging transactions") to hedge its economic exposure to changes in the exchange rate of foreign currencies. On May 11 2020, a subsidiary of the Company entered into an app. NIS 11 million hedge transaction to hedge the Euro/NIS exchange rate on the basis of the schedule of payments to an construction contractor, in order to reduce the Company’s exposure to changes in the exchange rates of those currencies. The hedging was carried out by purchasing put and call options. As of December 31 2020, the fair value of the transaction is approx. NIS 1.5 million, and other comprehensive income of approx. NIS 1.5 million was recognized in respect thereof. Furthermore, during 2020 the outstanding balance of a hedge transaction entered into by the above-mentioned subsidiary - totaling approx. NIS 70 million – was repaid; the transaction was entered into to hedge the Euro/NIS exchange rate on the basis of the schedule of payments to an construction contractor in order to reduce the Company’s exposure to fluctuations in the exchange rate of those currencies. In 2020, the subsidiary recognized other comprehensive income of approx. NIS 3.2 million in respect of the said transaction (2019 and 2018 – other comprehensive loss of approx. NIS 6.1 million and other comprehensive income of approx. NIS 2.6 million, respectively). - 86 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued)

A. Financial risks management policy (continued) (1) Changes in the exchange rates of foreign currency continued) A subsidiary partnership of the Company entered into an approx. NIS 138.6 million hedge transaction to hedge the Euro/NIS exchange rate on the basis of the schedule of payments to an construction contractor, in order to reduce the Company’s exposure to changes in the exchange rates of those currencies. The payments were made and will be made alternately during the years 2020 through 2022. The hedge transaction was implemented by purchasing call options and writing put options at exercise exchange rates in the range of 3.945-3.956. The transaction was carried out without incurring costs. The opening nominal value of the transaction as of December 31 2020 is approx. NIS 110.6 million. The transaction’s fair value is approx. NIS 4.7 million (liability), and other comprehensive loss of approx. NIS 4.7 million was recognized in respect thereof. The Company is exposed to fluctuations in the Euro/NIS exchange rate due to net investment in subsidiaries whose functional currency is the Euro. The risk hedged by hedging the net investment is the risk that the Euro will weaken against the NIS, which will cause impairment in the carrying amount of the net investment in the subsidiaries. Some of the Company’s net investment in the subsidiaries is hedged under hedge transactions totaling approx. NIS 92 million that hedge the Euro/NIS exchange rate and mitigate the foreign currency exchange rate risk stemming from the investment in the subsidiaries. The transactions are designated as hedge instruments which hedge the changes in the net investment value attributed to changes in exchange rates. In order to assess the effectiveness of the hedge, the Company determines the economic relationship between the hedge instruments and the hedged item by comparing the changes in the carrying amount of the hedge transaction to the changes in the foreign operation due to exchange rate fluctuations (the offsetting method). Hedging was carried out by way of purchasing call options and writing put options at an exercise exchange rate of 3.85, and by purchasing a put option at an exercise exchange rate of 3.95 with reverse knock-out at an exercise exchange rate of 4.65. The transaction will be repaid in a single payment in July 2022. The fair value of the transactions as of December 31 2020 is approx. NIS 5.1 million (liability), and loss of approx. NIS 1.1 million and other comprehensive loss of approx. NIS 4.7 million was recognized in respect thereof. Set forth below is the sensitivity analysis that includes existing balances of the financial items that are denominated in foreign currency and adjusts their translation at the end of the period to the changes in the exchange rates of foreign currencies. Furthermore, the sensitivity analysis includes loans for foreign operations of the Group, which are denominated in a currency other than the currency of the lender or of the borrower, which does not form a part of the net investment in a foreign operation. Had the Company’s functional currency strengthened by 5% against the Euro with all other variables held constant, pre-tax income for the years ended December 31, 2020 and December 31 2019 would have been approximately NIS 5.3 million and approximately NIS 9.1 million lower, respectively. Furthermore, had the Euro strengthened by 5% against the Croatian Kuna with all other variables held constant, pre-tax income for the year ended December 31, 2020 and December 31 2019 would have been approximately NIS 5.4 million and approximately NIS 5.9 million lower, respectively.

- 87 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued)

A. Financial risks management policy (continued)

(1) Changes in the exchange rates of foreign currency continued) Furthermore, the Company has a shareholders' equity exposure in respect of its share in the shareholders' equity of subsidiaries with a functional currency other than the Company's functional currency. This exposure is recorded to other comprehensive income. Had the Company’s functional currency strengthened by 5% against the Euro with all other variables held constant, shareholders’ equity for the years ended December 31, 2020 and December 31 2019 would have been approximately NIS 59.9 million and approximately NIS 23 million lower, respectively. Furthermore, had the Company’s functional currency strengthened by 5% against the Croatian Kuna with all other variables held constant, shareholders’ equity for the year ended December 31, 2020 and December 31 2019 would have been approximately NIS 1.1 million and approximately NIS 1.2 million lower, respectively. Furthermore, had the Company’s functional currency strengthened by 5% against the Hungarian Forint, with all other variables held constant, shareholders’ equity for the year ended December 31 2020 and December 31 2019 would have been app. NIS 0.7 million and approx. NIS 1 million lower, respectively.

(2) Changes in the Consumer Prices Index Consolidated entities in Israel have revenues from electricity, which are determined based on a tariff, which is updated once a year in accordance with the Consumer Prices Index. On the other hand, loans, which the consolidated entities have taken are made, to the extent possible, under linkage which is identical to the linkage of the electricity tariff. The Company also grants CPI-linked loans to entities under its ownership.

Had the Consumer Prices Index increased by additional 2% with all other variables held constant, the pre-tax income for the years ended December 31, 2020 and 2019 would have increased by approximately NIS 5.1 million and remained unchanged, respectively. Had the consumer price index decreased by additional 2% with all other variables held constant, the pre-tax income for the years ended December 31 2020 and December 31, 2019 would have been approximately NIS 15 million and approximately NIS 8 million lower, respectively. The difference between the impact of an increase in the CPI on the pre-tax income and the impact of a decrease in the CPI on the pre-tax income stems from the fact that the under the CPI-linked bank loans agreements, the decrease of the CPI is limited by a fixed lower boundary (based on the base index), whereas the effect of the CPI on the electricity tariff, which impacts the value of the contract assets in respect of the concession arrangements, is not limited.

Foreign subsidiaries of the Company have CPI-linked electricity agreements, the linkage in respect thereof is not material in 2020.

- 88 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued)

B. Financial risks factors (continued) (1) Set forth below is an analysis of the financial instruments in accordance with the linkage bases and the various currencies As of December 31, 2020 Linked to Linked to the Linked to Linked to the Euro Dollar the Kuna the Forint Index-linked Unlinked Total NIS in thousands Current assets: Cash and cash equivalents 77,738 5,543 249 6,707 - 229,108 319,345 Restricted as to use 153,185 - - 2,353 - 126,619 282,157 Financial assets measured at fair value through profit or loss - 2,087 - - 37,498 64,931 104,516 Trade receivables 18,760 5,011 - 355 - 12,585 36,711 Other accounts receivable 8,138 801 - - - 15,961 24,900 257,821 13,442 249 9,415 37,498 449,204 767,629 Non-current assets: Cash restricted as to use 41,830 - - 6,670 - 14,935 63,435 Long-term receivables - - - 65 - - 65 Financial assets measured at fair value through profit or loss 32,519 - - - - - 32,519 Loans to entities accounted for by the equity method 83,041 - - - 54,961 2,549 140,551 157,390 - - 6,735 54,961 17,484 236,570 Current liabilities: Credit and current maturities of loans from banks and other financial institutions ( 69,508) - ( 5,531) ( 3,463) ( 581,668) ( 9,493) ( 669,663) Trade payables ( 7,050) ( 195) ( 1,669) ( 279) ( 16,398) ( 25,591) Other accounts payable ( 29,080) - ( 974) ( 758) ( 470) ( 208,722) ( 240,004) Current maturities of bonds - - - - - ( 55,713) ( 55,713) Current maturities of lease liability ( 501) - - ( 276) ( 17,103) ( 139) ( 18,019) Current maturities in respect of loans from non- controlling interest ( 17,467) - - - - - ( 17,467) ( 123,606) ( 195) ( 8,174) ( 4,776) ( 599,241) ( 290,465) ( 1,026,457) Non-current liabilities Bonds - - - - - ( 600,487) ( 600,487) Loans from banks and other financial institutions ( 959,577) - ( 64,727) ( 141,683) ( 866,357) - ( 2,032,344) Loans from non- controlling interests ( 85,812) - - - - ( 45,386) ( 131,198) Lease liability ( 45,688) - - ( 4,088) ( 187,195) ( 1,339) ( 238,310) Long-term payables ( 7,888) - - - - - ( 7,888) Other financial liabilities ( 57,417) - ( 18,819) ( 18,248) ( 9,482) ( 5,083) ( 109,049) ( 1,156,382) - ( 83,546) ( 164,019) ( 1,063,034) ( 652,295) ( 3,119,276) Total net assets (liabilities) ( 864,729) 13,247 ( 91,471) ( 152,646) ( 1,569,816) ( 483,219) ( 3,148,634)

- 89 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued):

B. Financial risks factors (continued): (1) Set forth below is an analysis of the financial instruments in accordance with the linkage bases and the various currencies (continued) As of December 31, 2019 Linked to Linked to the Linked to Linked to the Euro Dollar the Kuna the Forint Index-linked Unlinked Total NIS in thousands Current assets: Cash and cash equivalents 148,967 89 5,871 3,335 - 524,904 683,166 Restricted as to use 60,623 - - 2,300 - 122,948 185,871 Financial assets measured at fair value through profit or loss - 605 - - 27,295 44,158 72,058 Trade receivables 33,652 - 6,104 1,303 - 11,703 52,762 Other accounts receivable 7,151 - - - - 6,084 13,235 250,393 694 11,975 6,938 27,295 709,797 1,007,092 Non-current assets: Cash restricted as to use 40,421 - 4,616 - - 53,423 98,460 Loan to a company accounted for by the equity method 56,452 - - - - 12,312 68,764 96,873 - 4,616 - - 65,735 167,224 Current liabilities:

Credit and current maturities of loans from banks and other financial institutions ( 41,290) - ( 4,790) ( 3,762) ( 45,515) - ( 95,357) Trade payables ( 97,125) - ( 25) ( 169) - ( 22,687) ( 120,006) Other accounts payable ( 63,742) - ( 2,400) ( 7,217) ( 7,842) ( 28,170) ( 109,371) Current maturities of bonds - - - - - ( 42,431) ( 42,431) Current maturities of convertible bonds - - - - - ( 308) ( 308) Current maturities in respect of lease ( 316) - - ( 293) ( 11,400) ( 140) ( 12,149) Current maturities of loans from other credit providers - - - - ( 9,880) - (9,880) Current maturities in respect of loans from non-controlling interest ( 3,126) - - - - - (3,126) ( 205,599) - ( 7,215) (11,441) ( 74,637) ( 93,736) ( 392,628) Non-current liabilities Bonds - - - - - ( 443,788) ( 443,788) Loans from banks and other financial institutions ( 582,450) - ( 67,918) ( 156,588) ( 896,420) - ( 1,703,376) Loans from other credit providers - - - - ( 135,520) - ( 135,520) Loans from non- controlling interests ( 127,273) - - - - ( 56,943) ( 184,216) Lease liability ( 25,536) - - ( 4,439) ( 96,702) ( 1,412) ( 128,089) Other financial liabilities ( 40,416) - ( 11,659) (21,199) ( 10,012) - ( 83,286) ( 775,675) - ( 79,577) ( 182,226) ( 1,138,654) ( 502,143) ( 2,678,275) Total net assets (liabilities) (634,008) 694 (74,817) (182,113) (1,185,996) 179,653 (1,896,587)

- 90 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued) B. Financial risks factors (continued) (2) Interest risk Changes in the interest rates: Risk in respect of changes in the interest rate stems from loans bearing interest at variable rates, which expose the Company to cash flow risk. The following table presents the carrying amounts of the financial instruments that are exposed to cash flow interest rate risk and are not hedged by interest rates swaps: NIS thousands As at December 31, 2020: Financial assets measured at fair value through profit or loss - Bank credit, linked to the Prime(*) ( 9,493) Bank credit linked to the Euribor(*) (13,923) Bank loan linked to the Euribor ( 4,716)

As at December 31, 2019: Financial assets measured at fair value through profit or loss 2,548 Bank loan linked to the Euribor (11,713)

(*) As of December 31 2020, project companies which are in the construction period (in Israel, Kosovo and Sweden) have short-term loans that were taken for the purpose of paying VAT. Those loans are linked to the Prime and Libor interest, respectively. The interest expenses in the construction period are capitalized to the cost of the facility and do not impact the results of the Company. The potential impact of changes in the Prime and Euribor interest rates is immaterial to the Company. Interest rate swaps: The Group has entered into interest rate swaps, where under it exchanges the differences between fixed and variable rate interest amounts calculated by reference to an agreed notional principal amount. These swap contracts enable the Group to minimize the cash flow exposure of debt issued at variable interest. The fair value of interest rate swaps at the end of the reporting period is determined by discounting the future cash flows using curves at the end of the reporting period and the credit risk inherent in the contract. All interest rate swaps, which exchange variable interest amounts with fixed interest amounts, are designated as cash flow hedges aimed to minimize the Group's exposure to cash flow interest rate risk arising from variable interest rates on loans. As to the Group’s cash flow hedging policy, see Note 2R(2).

- 91 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued) B. Financial risks factors (continued) (2) Interest risk (continued) The following table sets out the interest rates swaps designated as hedge instruments as of the end of the reporting period: Interest rates Par value Repayment Carrying date amount The hedged contract Original After hedging Thousands Final Thousands of of Euros NIS Loan to finance the Lukovac project Euribor – 3 (see Note 14(2) months 0.75% 29,781 30/06/2031 (4,768) Loan to finance the Picasso project Euribor – 3 (see Note 14(2) months 0.81% 44,857 31/03/2039 (7,241) Loan to finance the Gecama project Euribor – 6 (see Note 14(2) months 0.027% 152,000 30/06/2035 (8,974) Loan to hedge the Raaba and Meg Libor – 3 projects (see Note 14(2) months 3.7%-1.445% 37,898 31/12/2030 (18,248) During 2020 and 2019, the Group recognized in other comprehensive income a loss of NIS 13,339 thousand and NIS 15,311 thousand (net of tax), respectively, in respect of the effectiveness of the cash flow hedges to hedge the cash flow interest rate risk. (3) Credit risk Most of the consolidated entities’ revenues are derived from the local electricity corporations in the relevant countries. The Company's cash balances and deposits are deposited with financially stable banks in Israel and in abroad. (4) Liquidity risk The cash flow forecasting is performed by the Company’s finance department both at the level of the various Group entities and at the consolidated level. Group finance monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. The Group’s forecasts take into consideration several factors, such as the Group’s sources of financing of expected investments and debt servicing, which include, among other things, the cash flows from operating activities and from disposal of projects that are owned by the Company, as well as equity and debt raising, which include, among other things, issuance of rights, long-term loans and bonds. Furthermore, the Group's forecasts take into consideration compliance with financial covenants, compliance with certain liquidity ratios and, if applicable, compliance with external regulatory or legal requirements. The cash surpluses that are held by Group entities, which are not required to finance the operations as part of the working capital, are invested in solid investment channels, such as time deposits and other solid investment channels. The Group chooses instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts. The table below analyzes the Company’s assets and liabilities into relevant maturity groupings, except for current items in the statement of financial position, such as trade payables, other payables, trade receivables and other receivables which are expected to be settled in accordance with their carrying amounts in the course of the forthcoming year: - 92 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued)

B. Financial risks factors (continued)

As at December 31, 2020(**) 2021 2022 2023 2024 2025 After 2025 Total NIS in thousands

Cash restricted as to use for the long-term 29,529 947 6,917 - - 55,570 92,963 29,529 947 6,917 - - 55,570 92,963

Loans from non- controlling interests ( 18,210) ( 726) ( 17,214) ( 97,107) ( 12,725) ( 2,622) ( 148,604) Bonds (*) ( 78,851) ( 76,858) ( 74,864) ( 72,881) ( 134,901) ( 311,087) ( 749,442) Other financial liabilities ( 1,386) ( 1,376) ( 1,366) ( 1,358) ( 1,294) ( 59,037) ( 65,817) Lease liability ( 18,019) ( 12,822) ( 13,893) ( 20,208) ( 19,451) ( 548,068) ( 632,461) Credit and loans from banks and other financial institutions (*) ( 683,595) ( 160,620) ( 152,153) ( 157,739) ( 143,021) ( 1,573,759) ( 2,870,887) ( 800,061) ( 252,402) ( 259,490) ( 349,293) ( 311,392) ( 2,494,573) ( 4,467,211)

(*) The above data are presented in accordance with their nominal value at the time of repayment including interest that has not yet accumulated and are linked to the Index/ exchange rate on the date of the statement of financial position. (**) The Company is a party to agreements for the sale of electricity for periods of 12-23 years, which are not reflected in the Company’s statement of financial position. C. Fair value:

(1) Details of the assets and the liabilities that are measured at fair value in the statement of financial position: For the purpose of measuring the fair value of assets and liabilities, the Group classifies them in accordance with a three-level hierarchy, as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 - Inputs other than quoted prices that are included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Inputs for the asset or liability that are not based observable market data.

- 93 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued)

C. Fair value (continued) (1) Details of the assets and the liabilities that are measured at fair value in the statement of financial position The following table presents the Group's assets and liabilities that are measured at fair value in the Company’s statement of financial position in accordance with the level at which they have been measured: As at December 31, 2020 Level 1 Level 2 Level 3 Total NIS in thousands

The fair value of items measured at fair value on a recurring basis: Financial assets at fair value: Financial assets that are measured at fair value through profit or loss 104,516 - - 104,516 Forward transactions - 1,482 - 1,482 Non-marketable shares measured at fair value through profit or loss - - 32,519 32,519

Financial liabilities at fair value: Interest swaps - ( 46,699) - ( 46,699) Forward transactions - ( 9,766) - ( 9,766)

As at December 31, 2019 Level 1 Level 2 Level 3 Total NIS in thousands

The fair value of items measured at fair value on a recurring basis: Financial assets at fair value: Financial assets that are measured at fair value through profit or loss 72,058 - - 72,058

Financial liabilities at fair value: Interest swaps - - (33,208) (33,208) Forward transactions - - (4,574) (4,574)

- 94 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 27 – FINANCIAL INSTRUMENTS (continued)

C. Fair value (continued) (2) Fair value of items that are not measured at fair value in the statement of financial position: Except as detailed in the following table, the Company is of the opinion that the carrying amounts of the items that are not measured at fair value is identical to or approximates their fair value: Fair value Carrying amount Fair value level As of December 31, As of December 31, 2020 2019 2020 2019

Bonds Level 1 663,985 493,893 707,148 534,209

Loans from banks and other financial institutions (1) Level 3 1,306,586 1,759,904 1,491,048 2,063,540

Loans from other credit providers (1) Level 3 - 150,777 - 183,472

Liability in respect of a contingent consideration arrangement (1) Level 3 9,953 10,452 13,157 13,776

(1) The fair value has been determined in accordance with the present value of the future cash flows, discounted at an interest rate that in management's opinion reflects the changes in the credit margins and the level of risk that have occurred in the period.

D. Other financial liabilities: As of December 31, 2020 2019 NIS in thousands Forward transactions 5,083 4,574 Interest swaps 46,699 33,208 Liabilities in respect of a contingent consideration arrangement (1) 9,482 10,012 Dismantling and restoration liability 47,785 40,066 109,049 87,860

(1) The Company has liabilities in respect of contingent consideration arrangements in respect of entrepreneurial services that were provided by some of the settlements in the Halutzyut project. In consideration for the entrepreneurial services, those settlements are entitled to a percentage of the free cash flows for distribution, as defined in the agreement. The balance of liability in respect of contingent consideration arrangement (including current maturities) (see also Note 13) as at December 31, 2020 and 2019 is NIS 9,953 thousand and NIS 10,452 thousand, respectively. (2) Forward transactions in respect of foreign currency, which are due within less than a year, are presented within current liabilities as part of the accounts payable and accruals item.

- 95 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 28 – SEGEMENT REPORTING: A. General Operating segments are reported in a manner consistent with the internal reporting regarding the Company’s components which are regularly reviewed by the Group’s chief operating decision-make for the purpose of allocating resources and assessing performance of the operating segments. The reporting segments are distinguished from one another both at the technological level and at the level of the geographical areas in which the Company operates and are assessed separately in view of the different technological and regulatory characteristics that apply to each of the segments. In view of the increase in the scope of the Company’s activities, the Group’s chief operating decision-maker reviews the Group’s results divided between PV projects and wind projects. The projects are reviewed together based on their geographical location and the arrangements that apply to the different projects. Furthermore, as from the reported period, the chief operating decision-maker reviews the Company’s results from provision of management and construction services to projects that are fully or partially owned by the Company. The comparative figures for 2019 and 2018 as set out below were updated accordingly. Set forth below are the details of the Company’s operating segments in accordance with IFRS 8: PV Israel segment - generates its revenue from sale of electricity, which is generated using solar energy in Israel.

Israel wind segment - expected to generate its revenue from sale of electricity, which is generated using wind energy in Israel.

Eastern Europe wind segment generates its revenue from sale of electricity manufactured using wind energy in Eastern European countries, mostly in a fixed tariff over an extended period.

Eastern Europe PV segment generates its revenue from sale of electricity manufactured using solar energy in Eastern European countries, mostly in a fixed tariff over an extended period.

Western Europe wind energy Mostly expected to generate its revenues from sale of segment electricity using wind energy in Western European countries at prices set in the free market (between a willing buyer and a willing seller)

Management and construction Generates its revenues from provision of management segment services to projects in the development, construction or operating stages, and from the provision of construction services to projects that are fully or partially owned by the Company. The reports, which are delivered to the Group's chief operating decision-maker for the purpose of allocating resources and assessing performance of the operating segments are based on assessment of the solar systems as property, plant and equipment items that generate revenues from electricity and not as a contract asset (in respect of medium and large-scale systems in Israel that were activated before December 31 2016) and the results from entities under joint control are presented in accordance with the Company’s share. Furthermore, segment results are based on the Company's operating income, net of interest expenses in respect of project financing loans and current taxes and after eliminating depreciation and amortization expenses that are attributed to the Company's reportable segments (excluding depreciation expenses arising from application of IFRS 16 and a

corresponding recording of rent expenses in accordance with IAS 17). - 96 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 28 – SEGEMENT REPORTING (continued)

B. Segment revenue and expenses (continued)

For the year ended December 31 2020 Central/ Western Eastern Eastern Management Europe Europe Israel Europe and PV Israel Wind Wind Wind PV construction Adjustments Total NIS in thousands Segment revenue 166,129 8,981 140,170 - 25,781 46,122 ( 145,492) 241,691

Segment results 89,974 592 90,344 ( 1,925) 11,352 12,693 353 203,383

Items that have not been allocated to segments: Finance income from a contract asset under concession arrangements 55,595 Repayment of a contract asset under concession arrangements ( 107,399) Depreciation and amortization ( 63,142) Expenses that are not attributed to segments ( 24,129) Finance income 3,568 Finance expenses ( 19,051) Early repayment fees ( 232,310) Loss before taxes on income ( 183,485)

For the year ended December 31 2019 Central/ Western Eastern Eastern Management Europe Europe Israel Europe and PV Israel Wind Wind Wind PV construction Adjustments Total NIS in thousands Segment revenue 162,652 9,010 123,835 - 4,502 28,664 ( 136,114) 192,549

Segment results 84,929 4,434 90,369 ( 286) 221 11,708 ( 15,571) 175,804

Items that have not been allocated to segments: Finance income from a contract asset under concession arrangements 69,234 Repayment of a contract asset under concession arrangements ( 107,450) Depreciation and amortization ( 48,472) Expenses that are not attributed to segments ( 21,635) Finance income 4,760 Finance expenses ( 47,458) Income before taxes on income 24,783

- 97 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 28 – SEGEMENT REPORTING (continued) B. Segment revenue and expenses (continued)

For the year ended December 31 2018 Central/ Western Eastern Eastern Management Europe Europe Israel Europe and PV Israel Wind Wind Wind PV construction Adjustments Total NIS in thousands Segment revenue 137,844 9,278 38,836 - - 34,534 ( 141,859) 78,633

Segment results 68,506 4,636 23,203 ( 117) ( 521) 10,809 ( 14,316) 92,200

Items that have not been allocated to segments: Finance income from a contract asset under concession arrangements 73,628 Repayment of a contract asset under concession arrangements ( 107,325) Depreciation and amortization ( 15,446) Expenses that are not attributed to segments ( 17,370) Finance income 7,993 Finance expenses (5,571) Income before taxes on income 28,109

NOTE 29 – BALANCES AND TRANSACTIONS WITH INTERESTED PARTIES AND RELATED PARTIES A. Remuneration, benefits and transactions with interested parties and other related parties For the year ended December 31 2020 2019 2018 NIS in thousands Remuneration and benefits given to interested parties and related parties: Payroll and related expenses to interested parties employed by the Company 1,728 1,683 2,498 Award of options to interested parties employed by the Company 2,104 4,135 1944 Number of persons to whom the benefit relates 1 1 3 Management fees to interested parties who are not employed by the Company - - 642 Number of bodies to whom the benefit relates - - 2 Remuneration for directors who are not employed by the Company 1,280 1,361 616 Number of persons to whom the benefit relates 6 7 6 Award of options to directors who are not employed by the company 658 1,308 813 Number of persons to whom the benefit relates 1 1 2 Additional transactions with interested parties and related parties:

Interested parties - - 111

- 98 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 29 – BALANCES AND TRANSACTIONS WITH INTERESTED PARTIES AND OTHER RELATED PARTIES (continued) B. Engagements with interested parties and controlling shareholders Renumeration of senior office holders The service and employment terms of the Company’s office holders is regulated under the Company’s renumeration policy as approved by the General Meeting of the Company’s Board of Directors. Set froth below are a number of key issues: (1) Pursuant to the resolution of the Company’s organs, as from August 2019, the monthly salary of Mr. Gilad Yavetz, the Company's CEO (and founder) was updated to a gross amount of NIS 80,000. It should be noted that pursuant to the Company’s organs, as from August 1 2020, the monthly salary of the Company’s CEO shall increase at a rate of 3% and will be linked to the consumer price index in respect of August 2019. Pursuant to the resolution of the Company’s organs, in 2019, the monthly salary of Mr. Zafrir Yoeli (VP Marketing, Sales and Business Development and one of the Company’s founders) was updated to a gross amount of NIS 61,000. In effect from 1.1.2020, his monthly salary was updated to a gross amount of NIS 64,000. Furthermore, pursuant to the resolution of the Company’s organs, in effect from 1.1.2020, the monthly salary of Mr. Amit Pas (VP Engineering and Operations and one of the Company’s founders) was updated to a gross amount of NS 61,000. (2) In 2018, the Company approved the award of 9,900,000 option warrants to Mr. Gilad Yavetz according to the terms set out below. The options were allotted under the capital gains taxation track through a trustee pursuant to Section 102 of the Income Tax Ordinance. The exercise price of the option warrants was determined close to actual allotment of the option warrants (shortly after receipt of the Stock Exchange’s approval) according to the average price of the Company's share during the 30 trading days prior to the date of awarding the option warrants, plus a premium of 5%. The exercise price is not linked to the CPI; for more information, see Note 20E. Furthermore, on September 12 2018, the Company’s Board of Directors (after approval of the Remuneration Committee), allocated 16,020,000 non-marketable option warrants to the other two founders – Mr. Zafrir Yoeli VP Marketing, Sales and Business Development and Mr. Amit Paz VP Engineering and Operations of the Company:  Zafrir Yoeli, VP Marketing, Sales and Business Development – 9,180,000 option warrants.

 Amit Paz, VP Engineering and Operations – 6,840,000 option warrants. The allocation of the option warrants to offerees, whereby the option warrants are exercisable using a “cashless exercise” mechanism, was carried out under the capital gains taxation track pursuant to the provisions of Section 102 of the Income Tax Ordinance and the Income Tax Rules (Tax Reliefs in the Allotment of Options to Employees), 2003. The exercise price of the option warrants was determined in accordance with the average price of the Company’s share during the 30 trading days preceding the allotment date plus a 5% premium. The exercise price is not linked to the consumer price index.

- 99 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 29 – BALANCES AND TRANSACTIONS WITH INTERESTED PARTIES AND OTHER RELATED PARTIES (continued) B. Engagements with interested parties and controlling shareholders The option warrants shall vest over a 4-year period, as follows: 18% of the options will vest one year after allotment date; additional 25% will vest on a quarterly basis over the second year after allotment date; additional 30% will vest on a quarterly basis over the third year after allotment date; additional 27% will vest on a quarterly basis during the fourth year after allotment date. The options include an acceleration mechanism in the event of a “control” event in the Company. The conversion of the option warrants into shares shall be made using the cashless exercise mechanism. (3) Approval of the employment terms of Mr. Yair Seroussi, the Chairman of the Company’s Board of Directors, as approved in 2019 - Mr. Seroussi will be entitled to an annual renumeration of NIS 420,000 that will be paid in monthly equal installment against an invoice. Pursuant to the terms of the Company’s options plan, Mr. Seroussi will receive an equity-settled renumeration of 3,600,000 non-marketable option warrants of the Company (hereinafter – the “Options”); the Options were allotted without consideration. The options were allotted under the capital gains taxation track through a trustee pursuant to Section 102 of the Income Tax Ordinance. The exercise price was determined according to the average price of the Company's share during the 30 trading days prior to the date of awarding the Options, plus a premium of 5%. The exercise price is not linked to the CPI; for more information, see Note 20D. The Options will vest on a quarterly basis over 16 quarters. The conversion of the Options into shares shall be made using the cashless exercise mechanism. NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS

A. Commitments (1) The Emek Habacha transaction: During November 2020, the Company entered into a transaction to increase its holdings in Kinetic Energies. In accordance with the transaction’s outline, the Company, operating through Shikma, purchased 10.3% of shareholders’ holdings in Kinetic Energies (hereinafter: the “Sellers”) in consideration for approximately NIS 16 million. The transaction was carried out with the offsetting of a loan granted to the Sellers by Ruach Shikma for the purpose of completing the development and providing the equity required for financial closing. Upon completion of the transaction, the Company's (indirect) holding rate in the rights in the Emek Habacha project increased from 36.5% to 41%. According to the approval that was received, the electricity that will be generated in the facility will be sold (to the electricity grid) at NIS 0.3581 per kWh. On July 8 2018, the project company signed agreements to finance the project, see also Note 14(2). Furthermore, on that date, the project company issued capital notes to the parent company and to the parent company A.A. Ben Dov Emek Habacha Ltd, at the total amount of NIS 78,750 thousand and NIS 52,500 thousand, respectively.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS

A. Commitments (continued) Set forth below are the principal engagements with contractors in connection with the project: (a) TSA agreement with General Electric for the supply of the turbines, transporting them to the site as well as lifting and commissioning of the turbines. The contractor provides performance guarantees according to normal practice in the industry as well as a parent company guarantee. (b) BOA agreement with a partnership between the companies “Minrav” and “Nextcom” for planning and execution of the electricity, communication and civil engineering infrastructures of the project, including the turbines’ foundations, road paving and crane pallets, construction of a station for the generation of electricity and an electrical substation, the overall acceptance tests of the project, etc. The contractor provides performance guarantees according to normal practice in the industry as well as a parent company guarantee. Furthermore, the parties also signed an agreement for the maintenance of the infrastructures for a period of 20 years. (c) FSA agreement with General Electric for maintenance and operation over a 20- year period, with a warranty for operational availability of 95% in the first year and 97% from the second year and thereafter, preventative and corrective maintenance of the turbines, including supply of all spare parts over a 20-yers period. The contractor will provide guarantees according to the normal practice in the industry. All agreements are turn-key agreements and were approved by the Lenders. Furthermore, all agreements include an agreed compensation mechanism in respect of various delays and breaches. The agreements include breach and cancellation clauses as acceptable in the industry. Also, all the agreements comply with the technical requirements set in the agreement and according to Israeli law. On August 9, 2018, the Company received the Electricity Authority’s approval for the financial closure and compliance with the terms set for proving closure, pursuant to the provisions of the law and the terms of the conditional license of the project. On December 22 2020, the Company received Electricity Authority’s tariff approval and approval for compliance with the terms set for financial closure in respect of increasing the farm’s installed capacity by further 12.8 MW, i.e., from 96 MW to approx. 109 MW, by erecting 4 additional turbines in the farm’s premises, such that the extended farm shall include 34 wind turbines (hereinafter: the “Project Expansion”). In accordance with the approval received, the sale tariff to the electricity grid in respect of the additional 12.8 MW will be NIS 0.2819 per kWh (linked to the consumer price index), and accordingly the weighted tariff for the entire project will be NIS 0.3491 per kWh (linked to the consumer price index). The project is in advanced construction stages and its expansion shall be implemented immediately, within the project’s planned schedule; therefore, the expansion is not expected to delay the operation of the project.

- 101 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued)

(2) Conditional license – “Yatir” On August 1 2019, the Company received notice whereby the South District Planning and Building Committee approved the plan of the project (hereafter – the “District Committee’s Approval”). The approved plan permits the construction of 10 large wind turbines on agricultural land at the area of the Yatir woods. An appeal was filed against the District Committee’s Approval; the appeal was filed to the appeals subcommittee of the National Planning and Building Council. The subcommittee rejected the key points of the appeal, and on July 20 2020 the plan was published in order to validate it. Building permits for the construction of the farm are currently being promoted. Furthermore, the Livne and Har Amasa settlements filed petitions against the approval of the wind turbines plan in Yatir; the petitions were filed to the Be’er Sheva District Court in its capacity as an Administrative Court. The said settlements are located near the planned wind farm in Yatir and they petitioned against the decision of the subcommittee of the National Planning and Building Council to reject their previous appeals and to approve the publication of the wind plan in Yatir in order to validate it. This is the third round where petitioners raise planning claims and other claims against the procedure of approval of the plan and against various aspects of the plan itself. Those petitions are filed after objections which were filed to the South District Planning and Building Committee and appeals submitted to the National Planning and Building Council as described above were rejected. Although it is not possible to accurately assess the petitions’ chances of being allowed, in view of the importance of the project and its significant benefits to the public, and in view of the comprehensive planning process that was carried out and the fact that all of the petitioners’ claims have already been presented to the planning organs, including the highest planning council, and in view of the fact that those claims were rejected – the Company and its legal advisors are of the opinion that it is highly probable that the petitions will not be allowed. The Project has a conditional license to generate electricity at the installed capacity of 42 Megawatts. The Company estimates that during the first stage, the project’s installed capacity will be app. 30 Megawatts. The Project’s final installed capacity shall be determined after completion of the detailed planning processes and coordination with the Israel Electricity Corporation. The Company holds (indirectly) 50.1% of the project’s partnership holding the conditional license. The remaining rights in the project’s partnership are held by the Company’s partners of the Aveeram Group, and by the settlement Beit Yatir, which exercised its option to become a partner. As to the settlements Maon and Carmel, with whom the project is promoted, those settlement also have an option to join as partners holding non-controlling interests close to the date of receipt of approval of the project’s tariff. (3) The wind energy projects "Ruach Bereshit"

On July 28 2020, the Company met all the conditions for the construction of the Ruach Bereshit project, including approval of the tariff, the building permits and the conditions precedent for financial closing of the project’s financing with a consortium of lenders led by Bank Hapoalim Ltd. in collaboration with entities from the Migdal Group and Amitim (hereinafter jointly: the “Lenders”), and for the start of the construction work. - 102 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued)

(3) The wind energy projects "Ruach Bereshit" (continued) The project is erected in the region of Mount Peres in the Golan Heights on land owned by the following settlements: Yonathan, Alonei Habashan, Ramat Magshimim, Mevo Hama, Natur, Kanaf and Avnei Eithan. The project has a conditional license to generate electricity at an installed capacity of 189 MW according to the prevailing arrangement. The Company holds (indirectly) 60% of the project’s partnership which owns the conditional license (the remaining rights are held by Company’s partners from the “Aveeram Ltd.” group). The settlements providing the land for the project have an option to join as partners with non-controlling interest. The Ruach Bereshit plan was approved by the National Infrastructures Committee and by the National Housing Cabinet, and the Company obtained a license and a binding connection survey for an installed capacity of 189 MW. Senior debt financing Pursuant to the financial closing agreements, the partnership will receive non-recourse project financing at a scope of app. NIS 1.05 billion out of an estimated construction cost of approx. NIS 1.25 billion. The remaining funds required for the project were provided by the Company and its partner in the project, the Aveeram Group, based on the proportionate holdings of the parties in the project partnership (60% and 40%, respectively). The Company met all the conditions precedent for financial closing, including obtaining an approval for the tariff from the Electricity Authority, whereby the tariff for the sale (to the electricity grid) of the electricity generated in the project will be NIS 0.3208 per kWh, linked to the consumer price index. The Company currently expects that commercial operation of the project will take place during the second half of 2022. For information about the updating of the terms of the project’s senior debt, see Note 14(2) above.

(4) Signing an agreement for the acquisition of the rights in a wind energy project in Kosovo with a total installed capacity of approximately 105 MW and financial closing of the project

In March 2018, the Company purchased the rights in a wind energy project in Kosovo under advanced development stages with a total installed capacity of approximately 105 MW (hereinafter: the “Agreement” and the “Project).

The wind project in Kosovo is the largest project of its kind in Kosovo that secured its quota of 150 MW for wind projects. The Company is in the advanced stages of the construction of the Project in accordance with an agreement for the supply of wind turbines with General Electric, which will supply and erect 27 turbines with an overall installed capacity of app. 105 MW.

- 103 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (4) Signing an agreement for the acquisition of the rights in a wind energy project in Kosovo with a total installed capacity of approximately 105 MW and financial closing of the project (continued) The Company also entered into a 15-year operation and maintenance agreement with General Electric with the Company having the option to extend the agreement by further 5 years. Furthermore, the Company and Notus – a German contractor with extensive international experience in the field of electricity and construction of wind farms – entered into agreement for the construction of the electricity infrastructures and civil engineering work for the project. According to the Company’s current estimates, the testing of the project connection to the electricity grid and the commencement of the entitlement to revenues is expected at the end of 2021, subject to the progress of work on the ground and weather constraints. The total amount of investment in the project is estimated at app. EUR 160-170 million, including project construction costs, finance costs and costs pertaining to purchase of rights. The payment in respect of the acquisition of the project will be made in accordance with the milestones, as follows:

(a) An amount of EUR 1 million will be paid to the sellers in consideration for 50% of the project company’s shares upon fulfillment of the defined conditions precedent (hereafter – “the date of the first installment”); most of the amount was earmarked for repayment of previous shareholders’ loans. Also, the Company will provide the sellers a company guarantee to secure the payment of the full consideration payable as part of the transaction. 8.

(b) On the date of the financial closing the sellers were paid an amount that was determined on the basis of a formula which was agreed upon between the parties (“the consideration adjustment formula”), which is conditional on the future performance of the project, the expected terms of financing and the expected construction and operation costs. In consideration for the second installment, the Company received 30% of the project company’s shares and obtained a holding rate of 80%.

(c) The remaining balance of the consideration will be paid to the sellers on the date of commencement of commercial operation of the project in accordance with the consideration adjustment formula, and the Company’s holdings in the project company’s shares will increase to 100% against this payment. In December 2019 the Company completed the financial closing of the Kosovo project, see also Note 14(2). Agreement for joint investment in the project with the Phoenix Group The project company is held indirectly by a partnership (hereafter – the “Danuba Power”) that was established together with the “Phoenix” Group for the purpose of investing in the project. The limited partners of the said partnership are the Company, which holds 60% of the partnership’s capital, and institutional entities of the Phoenix Group hold 40% of the partnership’s capital. Furthermore, the Company holds 100% of the rights in the partnership’s General Partner. - 104 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (4) Signing an agreement for the acquisition of the rights in a wind energy project in Kosovo with a total installed capacity of approximately 105 MW and financial closing of the project (continued) The general partner will have the exclusive power to manage the partnership and conduct all activities required for the purpose of promoting and implementing the project; in its capacity, the general partner shall be entitled to payments, including management fees, that will be derived from the scope of investment in the partnership’s capital, development and initiation fees in respect of the initiation of the project and the development services rendered to the project, and success fees that will be calculated as a certain percentage of the distributions to the partners, in excess of an annual minimum return. (5) The wind energy project in Spain with an installed capacity of approx. 312 MW – the Gecama project

On July 5, 2018, the Company signed an agreement for the acquisition of all rights in the 323 MW Gecama project that is in advanced development stages (hereafter – “the Project”). The Project is located in the Castilla-La Mancha region in Spain. In September 2020, the final building permits for the construction of the project were obtained, including the Spanish Ministry of Energy’s Administrative Authorization for Construction, the permits for execution of the construction works from the 11 local authorities on areas of which the Project will be erected and the settlement of all rights in land, both at the area of the wind turbines farm and along the electricity transmission line to be erected as part of the project. Furthermore, the construction works started at full capacity and orders for commencement of work were issued to the turbines’ supplier and the contractors. To date, the Company expects that the tests of the Project’s connection to the electricity grid and the entitlement to revenues are expected to take place towards the end of the second half of 2022, subject to the progress of the work on the ground. An agreement for the supply of wind turbines was signed with Nordex SE – a public company listed on the Frankfurt Stock Exchange – which will supply turbines with an overall installed capacity of approx. 312 MW. Furthermore, an operating and maintenance contract was signed with Nordex SE for a 20-year period. The agreement includes a manufacturer undertaking to high-level availability and supply of all spare parts and required maintenance services. Furthermore, an agreement for the construction of the electricity and civil engineering infrastructure of the project was signed with Elecnor for the purpose of erecting the wind farm. On June 21 2020 the Company completed the financial closing of the project’s funding with two out of the five largest banks in Spain, Banco de Sabadell and Bankia (hereinafter jointly: the “Funding Entities”), as follows: Senior debt financing: The financing will be given to the project company on a non-recourse project financing basis at a scope of app. EUR 160 million, which constitutes app. 50% of the cost of investment in the project, which is estimated at approx. EUR 323 million.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (5) The wind energy project in Spain with an installed capacity of approx. 312 MW – the Gecama project (continued) The remaining capital required to the project, at the scope of app. 50% of the cost of investment therein will be invested by the Iberian Wind Partnership which is held by the Company (72%), the Phoenix Group (14.7%) and the Menora Group (13.3%). In June 2020, the said partnership purchased further 45% of the share capital of the project company, and in December 2020 it purchased additional 30% and achieved a 100% holding (indirectly). In addition to the senior debt loan, the banks will provide a revolving dedicated credit facility of up to EUR 7 million for the purpose semi-annual debt payment over the entire loan period and a VAT facility of up to approx. EUR 1 million during the construction period. The funding agreement was signed on a full merchant terms basis. That is to say, the funding agreement leaves with the Company the decision of whether to sell the electricity in the market or engage in PPA agreements and/or hedge agreement and at which scope. The project’s financial closing agreements were signed after the Funding Banks completed – to their satisfaction – comprehensive due diligence checks, including due diligence works relating to legal, engineering-planning, regulatory and environmental aspects of the project, the turbine supply agreement, the construction and operation agreements, etc. For information about the terms of the project’s senior debt financing, see Note 14(2) above. Joint investment agreement in the project with the Phoenix Group and the Menora Group as described below: On January 28 2020, the Company reported the completion of negotiations and the signing of a partnership agreement with the Phoenix Group and the Menora Group for the purpose of investing in the project, as described below: 1. The partnership’s general partner is a limited liability company wholly-owned by the Company. The partnership’s limited partners are the Company, that will hold 72% of the partnership’s capital, institutional entities of the Phoenix Group that will hold approx. 14.7% of the partnership’s capital, and institutional entities of the Menora Group that will hold 13.3% of the partnership’s capital. 2. The limited partners will invest in the partnership a total amounting to approx. EUR 163 million (the Company’s share is app. EUR 117 million, the Phoenix Group’s share is app. EUR 24 million, and Menora Group’s share is app. EUR 22 million), that will serve as the shareholders’ equity component required to erect the project.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (5) The wind energy project in Spain with an installed capacity of approx. 312 MW – the Gecama project (continued) 3. The general partner is the partnership’s manager and conducts all activities required for the purpose of promoting and implementing the project; in its capacity, the general partner shall be entitled to payments, including management fees, that will be derived from the total amount of investment in the partnership’s capital, development and initiation fees in respect of the initiation of the project and the development services rendered to the project, and success fees that will be calculated as a certain percentage of the distributions to the partners, in excess of an annual minimum return. The partnership agreement confers upon the Phoenix Group and the Menora Group generally accepted rights that protect them as holders of minority rights. (6) Wind energy project in Sweden with an installed capacity of approx. 113 MW – the Picasso project On May 29 2019, the Company reported the signing of a series of agreements for investment and construction of a 113 Megawatts wind energy project in Sweden (hereinafter: the “Project” or the “Picasso Project”). The Picasso Project is located in southern Sweden and includes 27 wind turbines with an installed capacity of 4.2 MW each – app. 113 Megawatts in total. As of the date of approval of this report, the project is in final construction stages, and test running commenced; the Company estimates that the commercial operation of the project will take place in the second quarter of 2021. Commensurate with the purchase agreements, the Company signed (through the project company) a series of agreements in connection with the construction, management and operation of the project, including, among other things, a turbines supply agreement (TSA) and a 30-year maintenance and operation agreement with the Danish company VESTAS, which is the leading global turbine supplier in terms of market share. In addition, a Balance of Plant (BOP) agreement was signed with a domestic contracting company. The Company and the sellers also signed market-terms agreements for the provision of management services in respect of the period of the project’s construction and operation. Furthermore, on December 12 2019, the Company and Hamburg Commercial Bank, a German bank specializing in financing of renewable energy projects in Northern Europe entered into financial closing agreements to finance the project. For further details, see Note 14(2). Agreement for the sale of electricity (PPA): The Company and a large European energy utility company entered into a commercial agreement for the sale of electricity (PPA); as part of the agreement, the Company will sell app. half of the electricity generated by the project at a fixed tariff for a 12-year period. The remaining balance of generated electricity will be sold on the electricity market of northern Europe (the Nord Pool), which is Europe's largest electricity market, whose members include, among others, the Nordic countries, Germany, Britain and Baltic countries.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (6) Wind energy project in Sweden with an installed capacity of approx. 113 MW – the Picasso project (continued) Joint investment agreement in a project with the Menora Group: The Company also signed a partnership agreement with Menora Mivtachim Ltd., Shomra Insurance Company Ltd. and Menora Mivtachim Pension and Provident Ltd. (hereinafter jointly – “Menora”) for the purpose of investing in the shareholders’ equity required for the construction of the project. Under the agreement, the Company will receive excess returns in respect of the initiation and management of the transaction, and success fees, the payment of which is subject to the occurrence of return scenarios that were defined as described below. The partnership that was established has indirect holdings in the project company; the Company’s share is approx. 69% of the partnership’s capital, and Menora’s share is approx. 31% of the partnership’s capital. Furthermore, the Company holds 100% of the rights in the partnership’s managing general partner. The limited partners shall invest a total of approx. EUR 60 million in the partnership; the Company’s share in the investment is app. EUR 40 million and Menora’s share is approx. EUR 20 million, that will serve together as the shareholders’ equity component required for the construction of the project. The general partner is the partnership’s manager and conducts all activities required for the purpose of promoting and implementing the project; in this capacity, the general partner shall be entitled to compensation, including management fees, that will be derived from the scope of investment in the partnership’s capital, development and initiation fees in respect of the initiation of the project and the development services rendered to the project, and success fees that will be calculated as a certain percentage of the distributions to the partners, in excess of an annual minimum return. The partnership agreement confers upon Menora generally accepted rights that protect it as holder of minority rights. In March 2021, the Swedish authorities issued approval to the project’s electrification and the transmission of electricity from the project to the electricity grid, and entitlement to revenues was established. For more information, see Note 31(5).

(7) The signing of a conditional agreement for a wind energy project under development in Georgia with a potential installed capacity of approx. 100 MW On January 29 2020, the Company reported the completion of negotiations and the signing of an agreement for the purchase of rights in a wind energy project under development in Georgia with an installed capacity of approx. 100 MW (hereinafter – the “Agreement” and the “Project”). The Project is under development and to date some of the rights in the relevant land have already been secured, and the process of obtaining environmental approvals is under way. The execution of the agreement is subject to the fulfillment of a number of conditions precedent as set out below. Pursuant to the agreement, the Company will gradually purchase – whether directly or through a wholly-controlled company thereof, all shares in a company incorporated in Georgia, which currently holds the rights to the project (hereafter – the “Project Company”); the purchase will be subject to several milestones and the fulfillment of the conditions precedent.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (7) Wind energy project in Sweden with an installed capacity of approx. 113 MW – the Picasso project (continued) The project company signed an agreement with Georgia's government and is conducting advanced negotiations for signing a detailed framework agreement, which is expected to include the Power Purchase Agreement (PPA), and which will ensure the project's right to be connected to Georgia's national grid (hereafter – the “Framework Agreement”). The PPA will be signed with the Georgian government management company based on a Feed in Tariff in combination with sale of power under market conditions for some of the time. The achievement of the first milestone of the purchase transaction outline is subject to the fulfillment of several conditions precedent, principally the signing of the framework and PPA agreement with the Georgian government. Furthermore, the parties will sign a shareholders’ agreement, and an agreement for the provision of engineering services and project construction management services by the sellers. The project is included in the current wind energy quota promoted by the Georgian government, at a preliminary scope of approx. 250 MW. To date, the electricity market in Georgia relied mainly on generation of electricity using hydroelectric facilities. Following Georgia’s signing the European Energy Treaty, the Georgian government undertook to support further development of renewable energies; therefore, it recently adopted a National Renewable Energy Action Plan (NREAP) and passed new legislation relating to this field, which sets renewable energy targets of 35% of the total energy consumption by 2030. (8) The Coronavirus events 1. During the reporting period, the Coronavirus virus started to spread worldwide. The World Health Organization defined the spread of the virus as a “global pandemic”. The spread of the virus had a material effect on the business activity of many companies and the equity and commodities markets worldwide. As to the Company’s activity, so far, the spread of the Coronavirus in Israel and globally did not have a material impact on its activities. In the opinion of the Company, based on information currently available to it, the Company’s operations are not expected to be materially adversely impacted. Set forth below are certain aspects of the Coronavirus events that may impact the Company’s activities given the continuation of the economic crisis: a. Activation of force majeure clauses included in material contracts of the Company, such as – electricity contracts, construction contracts and financing agreements. If such an event takes place, the Company’s different projects might be materially impacted. For more details on the impact of the activation of the force majeure clause on the wind energy project in Serbia, see section 2 below. b. Delays in time tables of Company’s projects in the development and construction stages, due to, among other things, travel restrictions in countries in which the Company has operations. c. Impact on trade components in the sale of electricity both in projects after financial closing and in projects in development stages. The Company’s revenues’ structure moderates the exposure to changes in the prices of electricity. 100% of the Company’s revenues in 2020 are in accordance with tariff arrangements. - 109 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (8) The Coronavirus events (continued) d. Sharp fluctuations in exchange rates might impact the foreign currency denominated costs of construction of projects under construction, and the foreign currency denominated cash flows from operational projects. Furthermore, sharp increases in interest rates might impact the finance costs of projects under development or construction. In addition, sharp fluctuations and changes in securities’ prices might impact returns in the capital markets and the Company’s securities portfolio. 2. Due to the spread of the coronavirus worldwide, on March 22 2020 the Serbian government published an emergency order for a period of up to 90 days (hereinafter – the “Order”). Pursuant to the order, EPS, the Serbian government electricity company, announced the activation of the force majeure clause included in the PPA agreement of private electricity generators in Serbia, including the Blacksmith project. Further to the activation of the force majeure clause, EPS announced that it suspends, for the period of the Serbian emergency order, its obligation to pay the full tariff in respect of electricity generated in the facility; currently, the tariff is app. EUR 97 per generated megawatt hour. At the same time, EPS announced that once the period of the emergency order ends, its obligations under the agreement shall apply in full. In addition, the period of the PPA agreement (which is currently 12 years) shall be extended accordingly, by the period during which the agreement was suspended, such that the proportionate share of revenues that were lost will be earned by the Company in the future. At the same time, EPS offered the Company to enter into a temporary agreement for the period of the emergency order, whereby electricity will be purchased at a price that constitutes 30% of the current tariff. The Company was given an option to reach alternative arrangements to sell the electricity at market rates during that period, subject to compliance with licensing requirements, including the balancing requirements. The Company opted to enter into the temporary agreement offered by EPS. On May 6 2020, the Serbian government announced the cancellation of the emergency order which ended the state of emergency in the country. At the same time, EPS announced the immediate reinstatement of its obligation to pay the full tariff in respect of electricity generation in the Blacksmith project, while meeting all the terms of the PPA. This ended the suspension period that was in effect while the emergency order was in effect. Accordingly, the project is once again operating in a fully routine mode, and in practice the emergency order was in effect several weeks (46 days instead of 90 days which was the period of time originally set in the emergency order), and there was no material impact on the project’s activity and results. Furthermore, it should be emphasized that the PPA’s period and the period during which the tariff under the PPA will be in effect will be extended by the period during which the order was in effect, i.e., 46 additional days. The total economic damage to the Company due to the emergency order (in accordance with the Company’s share in the project and taking into account the extension of the PPA’s period) is estimated at approx. EUR 1 million.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (9) An option agreement for the acquisition of a 25 MW solar project in Hungary which won a tariff tender On April 13 2020, the Company completed its engagement in an option agreement for the purchase of a 25 MW solar project located on land in Hungary; the project has won a tariff tender and is in advanced development stages as described below (hereafter – the “Project”). During the option period, the Company provided a performance guarantee to the authorities in an amount which is immaterial to the Company. The project, which is promoted by the developers of the Company’s other projects in Hungary, won a solar projects tender of the Hungarian government with a secured tariff for a 15-year period from the date of connection to the grid. The project is located in proximity to other solar projects of the Company in Hungary. If the agreement come to fruition, this project will be the Company’s fourth solar facility, after completing the first three facilities with an installed capacity of 57 MW in 2019. In October 2020, the Company exercised the option to purchase the project company and a total of approx. EUR 791 were transferred to an escrow account until conditions precedent in the project’s development are met and the transaction is finalized. (10) Company’s winning the Electricity Authority’s tender for the construction of power generation facilities using photovoltaic technology combined with energy storage

Storage tender 1 On July 14 2020, the Company reported that as part of a first-of-its-kind tender published by the Electricity Authority for the construction of power generation facilities using photovoltaic technology combined with energy storage capacity that will be connected to the grid (high and low voltage) (procedure no. 1) (hereafter – the “Tender”), the Company won aggregated installed capacity of 48 MW (in AC terms), which reflects the construction of facilities with an installed capacity (in DC terms) of app. 130 MW, which can “spread” generation through the array of panels and energy storage facilities and deliver the power to the grid with a connection installed capacity of up to 48 MW in AC terms at any time this is made possible by the Israel Electric Corporation. The Company is one of three companies selected in the tender. According to the Electricity Authority’s announcement, the tariff applicable to those who won the procedure is app. NIS 0.199 per kWh (linked to the Consumer Price Index) for a period of 23 years that will commence on each facility’s commercial operation date. This is a first-of-its-kind tender for the construction of facilities that combine storage capabilities - that is to say, photovoltaic facilities connected to a storage system that is based, in most cases, on large batteries with a 4-hour storage capacity; this enables the conversion of electricity into energy that can be stored and then converting this energy back to electricity. The technology enables the entity generating the electricity to deliver energy to the grid at any hour of the day except for times in which such delivery was restricted by the Israel Electric Corporation in accordance with the restrictions set for that electricity generating entity.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (10) Company’s winning the Electricity Authority’s tender for the construction of power generation facilities using photovoltaic technology combined with energy storage (continued) Implementing the winning bid is conditional, among other things, on obtaining permits from the Israel Electric Corporation to connect the projects to the grid and on achieving the milestone of receiving a grid synchronization permit from the Israel Electric Corporation within 37 months at the latest. Furthermore, the Company will work to obtain all approvals and permits required for the construction of the facilities to be built as part of its winning bid, including entering into a transaction with the Israel Land Authority in connection with the land on which the facilities will be erected. In accordance with the Tender’s terms, in order to implement the winning bid as aforesaid, the Company provided a bank guarantee in respect of the construction of the said facility totaling NIS 600,000 for each MW out of the installed capacity won by the Company. Storage tender 2 On December 29 2020, the Company reported that as part of a tender published by the Electricity Authority for the construction of power generation facilities using photovoltaic technology combined with energy storage capacity that will be connected to the grid (procedure no. 2) (hereafter – the “Tender”), the Company won aggregated installed capacity of 82 MW (in AC terms) at the point of connection to the national grid (hereafter – the “Connection Size”). This installed capacity, in combination with the energy storage technology, will enable the Company to set up a number of facilities with an estimated out put of approx. 200 MW (in DC terms). The achieved ratio between the installed capacity of the solar facilities and the Connection Size, which is expected to be 2.5 (the size of the facility will be approx. 2.5 times the Connection Size), is achieved, as aforesaid, through the energy storage technology, which is combined into the facilities. In accordance with the tender’s requirements, the facilities’ plan includes a number of batteries allowing the storage of excess hourly generation when the sun shines, and the delivery of the stored electricity to the grid during other times of the day, when the winning Connection Size is not fully utilized. This planning enables to significantly increase the efficiency of the use of the national grid, thereby saving the Israeli economy the large costs of erecting distribution and delivery systems by the Israel Electric Corporation. According to the Electricity Authority’s announcement, the tariff applicable to those who won the procedure is app. NIS 0.1745 per kWh (linked to the Consumer Price Index) for a period that will commence on each facility’s commercial operation date until December 29 2045. This is a second-of-its-kind tender for the construction of facilities that combine storage capabilities - that is to say, photovoltaic facilities connected to a storage system that is based, in most cases, on large batteries with a 4-hour storage capacity; this enables the conversion of electricity into energy that can be stored and then converting this energy back to electricity. The terms of the tender enable the entity generating the electricity to deliver energy to the grid at any hour of the day except for times in which such delivery was restricted by the Israel Electric Corporation in accordance with the restrictions set for that electricity generating entity. - 112 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued)

A. Commitments (continued) (10) Company’s winning the Electricity Authority’s tender for the construction of power generation facilities using photovoltaic technology combined with energy storage (continued) Implementing the winning bid is conditional, among other things, on obtaining permits from the Israel Electric Corporation to connect the projects to the grid and on achieving the milestone of receiving a grid synchronization permit from the Israel Electric Corporation within 30 months from the winning announcement (hereinafter – the “Binding Date”) or up to 37 months from the winning announcement against the forfeiture of guarantees (hereinafter – the “Latest Binding Date”). Furthermore, the synchronization date may be postponed by up to 15 months after the Latest Binding Date, against the provision of further guarantees, that will be forfeited gradually in accordance with the actual date of connection. The Company will work to obtain all approvals and permits required for the construction of the facilities to be built as part of its winning bid, including completion of statutory plans as required, obtaining building permits and entering into a transaction with the Israel Land Authority in connection with the land on which the facilities will be erected. In accordance with the Tender’s terms, in order to implement the winning bid as aforesaid, the Company is required to provide a bank guarantee in respect of the construction of the said facility totaling NIS 600,000 for each MW out of the AC installed capacity won by the Company. The overall cost of construction of the facilities and the relating energy storage facilities is expected to amount to approx. NIS 650-750 million. The Company estimates that the facilities’ useful life will be 30 years at the very least and real-terms revenues from the 24th year and thereafter will be at a lower tariff. (11) Signing an agreement to invest and acquire control in a wind energy project in Sweden which is approaching the construction stage, with a total installed capacity of approx. 372 MW – the “Björnberget project”, and a letter of intent as to funding the project On October 11 2020, the Company completed a transaction for the acquisition of control in a wind energy electricity generation facility in Sweden and the commencement of construction of that facility; the facility has an overall installed capacity of approx. 372 MW (hereinafter – the “Transaction” and the “Project”, respectively). As part of the conditions precedent, which were met, the Project obtained most of the permits required for immediate commencement of construction works, and orders for commencement of work were issued to construction and equipment contractors. The Björnberget project is located in central Sweden, and is one of the largest wind energy projects in Europe comprising approx. 60 wind turbines. The Project has completed the material development processes, including an environmental survey, key building permits and agreement for connection to the grid. Furthermore, most of the right in lands were secured. According to the Company’s estimates, the construction of the Project will commence soon and commercial operation is expected to take place in the first half of 2023. The overall investment in the rights purchased and in the construction of the Project is expected to amount to approx. EUR 435-445 million. The Company’s share in the investment is approx. EUR 130-140 million. - 113 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued) A. Commitments (continued) (11) Signing an agreement to invest and acquire control in a wind energy project in Sweden which is approaching the construction stage, with a total installed capacity of approx. 372 MW – the “Björnberget project”, and a letter of intent as to funding the project The transaction is carried out as a joint investment together with a European utilities fund - PGEIF - Prime Green Energy Investment Fund (hereinafter – the “Fund”), which specializes in investments in the field of wind energy in the Nordic market, and is a member of the “Prime Capital” Group, which has assets and investments under management totaling billions of Euros around the world. Pursuant to the transaction’s structure, the Company and the Fund purchased 100% of the holdings and ownership rights in the project company. As from the financial closing date, the Company shall have a majority in the project company’s Board of Directors; material issues outside the ordinary course of business of the project company shall require a majority of all principal partners in the project company. At the same time, the Company was allocated a stake of approx. 19.8% in the Fund, such that its weighted stake in the Project at this stage is 61%. The Company’s weighted stake in the Project may decrease to approx. 55% if the Fund will recruit new investors, or add another investor to the Project such that the Fund’s holdings therein will be lower than 49%. The investment in the PGEIF fund is presented in the financial statements as a financial instrument at fair value through profit or loss. The Company and the Fund shall act as strategic development partners to promote further transactions in the Nordic market. The Company has undertaken to invest in the Fund -against its holdings in the Fund - up to EURO 50 million, during the investment period and over the Fund’s life; the said funds shall be used for investment in projects as aforesaid. According to the business model, the project company is expected to sell approx. 50%- 55% of the electricity generated in the facility over approx. the first 10 years under an agreement for the purchase of electricity at a secured tariff, and the remaining balance of generated electricity will be sold on the electricity market of northern Europe (the Nord Pool) without any government subsidies. For that purpose, on December 20, 2020, the Company and an international corporation entered into a purchase power agreement (PPA) for the sale of 50% of the electricity that will be generated in the Project for a 10-year period, and for the provision of electricity sale services to the grid during the term of the agreement. As part of the engagement, the project company signed a turbines supply agreement (TSA) with a Swedish subsidiary of Siemens Gamesa Renewable Energy (“SGRE”), one of the leading global turbine manufacturers in the world. Furthermore, the project company and SGRE signed a long-term service and maintenance contracts, which includes a manufacturer undertaking to high-level availability and supply of spare parts and required maintenance services. Furthermore, and as mentioned above, an agreement for the construction of the electricity and civil engineering infrastructure of the project (BOP) was signed with RES, which is one of the leading global renewable energy companies, serving as the Project’s developer; management agreement for the operation periods was also signed.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued) A. Commitments (continued) (11) Signing an agreement to invest and acquire control in a wind energy project in Sweden which is approaching the construction stage, with a total installed capacity of approx. 372 MW – the “Björnberget project”, and a letter of intent as to funding the project On January 1 2021, the Company completed the signing of a letter of intents in respect of the Project’s financing. For more information, see Note 31(1). B. Guarantees: Bank guarantees provided by the Company: (1) In connection with rental agreements of the Mivtachim project and the Talmei Bilu, Halutziut, Cramim-Enlight and Kidmat Tzvi projects, bank guarantees of approximately NIS 4.97 million were provided. (2) As part of the receipt of a permanent license for generation of electricity in the Halutziut, Cramim and Idan and Medium Sized Roofs projects, bank guarantees of approximately NIS 1.38 million were provided in favor of the Electricity Authority. (3) As part of the rental agreement for the Company's offices, an index-linked bank guarantee of approximately NIS 0.23 million was provided to the renter company. (4) As part of the receipt of conditional licenses for 5 projects, the Company provided bank guarantees of NIS 1.2 million. (5) During the course of 2019, the Company won the first tender for the generation of electricity using photovoltaic facilities placed on top of roofs and floating on water reservoirs with an aggregate installed capacity of 14 MW. As part of its winning the tender, the Company was required to provide a guarantee of approximately NIS 2.1 million. In February 2020, the Company provided another performance guarantee of NIS 1.85 million in respect of this procedure. (6) In 2020, the Company won a first-of-its-kind competitive procedure for the construction of power generation facilities using photovoltaic technology combined with energy storage capacity that will be connected to the grid with an aggregated installed capacity of 48 MW. As part of the procedure, the Company was required to provide a performance guarantee of NIS 28.8 million during 2020. (7) In 2020, the Company won a second-of-its-kind competitive procedure for the construction of power generation facilities using photovoltaic technology combined with energy storage capacity that will be connected to the grid with an aggregated installed capacity of 82 MW. As part of the procedure, the Company was required to provide a performance guarantee of NIS 20 million during 2020. (8) As part of an agreement with a supplier of turbines in the first project in Sweden, the Company was required to provide a bank guarantee of app. EUR 1.7 million in 2020, after the Company’s meeting the conditions for first withdrawal under the financing agreement signed in December 2019. (9) As part of the agreement with a contractor for connecting the delivery network in the second project in Sweden – the Björnberget project - the Company was required to provide a bank guarantee of app. EUR 21.6 million in 2020, until the Company’s meeting the conditions for first withdrawal under the financing agreement.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued) B. Guarantees (continued) Bank guarantees provided by subsidiary entities: (10) In 2019, the Company provided bank guarantees in favor of the electricity company in Kosovo in connection with the Sowi project. In 2020, the total amount of the guarantees was approx. EUR 0.35 million. (11) In 2018, as part of receipt of a conditional license for the Emek Habacha project, the Company provided a guarantee of approx. NIS 2 million to the Electricity Authority. In 2020, the Company provided another guarantee to the Electricity Authority. The amount of the said guarantee is NIS 0.27 million. Total Company’s guarantees to the Electricity Authority in 2020 amounted to NIS 2.28 million. Furthermore, in 2017 the Company provided bank guarantees of app. NIS 3.9 million in respect of lease to project settlements. In 2020, the Company provided a further bank guarantee – of NIS 0.4 million – in respect of lease to the Elrom settlement. Total project’s guarantees to settlements in respect of lease amounted to NIS 4.26 million. (12) As part of receipt of a conditional license to the Ruach Bereshit project, in 2020 the Company provided a guarantee to the Electricity Authority at the total amount of approx. NIS 3.4 million. Company guarantees (1) As part of the rent agreement for renting the Company's offices, it provided an index- linked promissory note of approximately NIS 0.2 million to the renter company. (2) As part of the financing agreements with the Bank of Ireland, the Company provided company guarantees of approx. EURO 1.1 million to the bank to secure those of its undertakings that are related to construction costs. In the event that the guarantee is realized, the Company shall be entitled to indemnification from its partners in the Movilim venture. (3) As part of signing the financing agreements of the EWK project in Serbia, the Company provided guarantees of approximately 5% of the cost of the project (app. EUR 9.4 million, that the Company will provide in the event of exceeding the cost of construction and/or the minimal coverage ratios that were set for the first two years of operations. In the event that the guarantee is realized, the Company shall be entitled to an indemnity from its partners in the Movilim venture. (4) As part of signing the financing agreements of the Beit Shikma solar project, the Company provided a guarantee in respect of the at an amount equal to 5% of the senior credit facilities provided (amounting to app. NIS 1.3 million) to secure compliance with the minimal coverage ratios that were set and will be assessed two years after the projects’ operation date. (5) As part of signing the financing agreements of the solar projects in Hungary, the Company provided guarantees of approximately 5% of the cost of the projects (app. EUR 2.9 million, that the Company will provide in the event of exceeding the cost of construction and/or the minimal coverage ratios that were set for up to two years after operation. In the event that the guarantee is realized, the Company shall be entitled to an indemnity from its partners in the Movilim venture.

- 116 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 30 – GUARANTEES, CONTINGENT LIABILITIES, COMMITMENTS AND LIENS (continued) B. Guarantees (continued) Company guarantees (continued) (6) As part of signing the financing agreements of the Picasso project in Sweden, the Company provided a guarantee of up to EUR 5 million, that will be provided by the Company in the event of exceeding the cost of construction and/or for debt resizing on operation date. Furthermore, the Company provided a guarantee of up to EUR 7 million in favor of OFFTAKER until it is replaced by the financing bank on operation date. In the event that the guarantee is realized, the Company shall be entitled to an indemnity from its partners in the Nordic Wind partnership. (7) As part of signing the financing agreement of the Gecama project in Spain, the Company provided a guarantee that will be realized if the cost of requisition of the project land exceeds EUR 6 million. Furthermore, and as part of the construction contracts, the Company provided a guarantee to the turbine supplier, to the construction contractors and to some of the local authorities as required under the work licenses. In the event that the guarantee is realized, the Company shall be entitled to an indemnity from its partners in the Iberian Wind partnership.

NOTE 31 –EVENTS TAKING PLACE SUBSEQUENT TO THE END OF THE REPORTING PERIOD

(1) Signing a letter of intent to finance the wind energy project in Sweden – the “Björnberget project” On January 3 2021, the Company reported the signing of a letter of intent to finance the project in collaboration with a consortium of three senior European lenders, comprising two German commercial banks, which specialize in the funding of renewable energy projects in Northern Europe, and a government bank. Set forth below are the key points of the letter of intent: 1. The loan agreement with the project company shall be in the format of a non-recourse project financing, that will fund approx. 50% of the cost of investment in the project, estimated at approx. EUR 430-440 million (including the cost of acquisition of the project rights). 2. Accordingly, the credit facility to be extended to the project company by the funding entity will amount to EUR 210-220 million for the construction period plus 18 year after commercial operation. The remaining balance of the required capital shall be injected by the project company. 3. Furthermore, the project shall be provided guarantees of up to EUR 81 million for the construction period and up to approx. EUR 40 million during the operating period. 4. The signing of the set of the detailed of binding financing documents is subject, among other things, to the completion of due diligence studies by the funding entities and their advisors in connection with the project, to the satisfaction of the funding entities, and to the finalization of all commercial and legal agreements in connection with the financing transaction.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 31 –EVENTS TAKING PLACE SUBSEQUENT TO THE END OF THE REPORTING PERIOD (continued) (2) Signing of an agreement in principle with the Navitas Group for collaboration in offshore wind projects in the international market On February 7 2021, the Company and a private company controlled by the controlling shareholders of the “Navitas Petroleum” partnership, which is listed on the Tel Aviv Stock Exchange (NVPT.L), entered into an agreement in principle for development, financing, construction and operation of offshore wind projects in the international market (hereinafter: the “Agreement in Principle” and “Navitas”, respectively). The parties to the joint activity will be Enlight and Navitas (the publicly listed partnership) subject to obtaining regulatory approvals, as described below. Pursuant to the agreement in principle, during the next two years the parties will work jointly and exclusively to identify opportunities for development, investment and/or acquisition of offshore wind ventures in the international market, with Enlight holding 60% and Navitas holding 40% of the joint activity and its profits. The agreement in principle is subject, as is generally accepted, to the signing of detailed binding agreements, and to the finalization of the negotiations between the parties, including in relation to each specific project. It should be clarified that in accordance with the agreement in principle, the members of Navitas’ general partner (with whom the agreement in principle was signed) intend to transfer the joint activity to Navitas as per the agreement in principle, subject to the approval of an amendment to the Tel Aviv Stock Exchange’s Rules and Regulations, that will allow the integration of renewable energy activities in the activities of partnerships such as Navitas, and subject to the receipt of all approvals required for that purpose by law, including the approval of the meeting of holders of Navitas’ participation units. To the best of the Company’s knowledge, the issue of amending the Tel Aviv Stock Exchange’s Rules and Regulations is currently being considered by the Tel Aviv Stock Exchange. About the offshore wind turbines market The offshore wind turbine market is the fastest growing segment in the renewable energy market. According to sources available in the public domain, it is expected to grow at a CAGR of approx. 20%. To date, approx. 34 GW of offshore wind projects were erected globally, and the scope of installations is expected to grow to more than 80 GW until 2025. According to various publications, the market share of the offshore wind segment in North America, which is currently an emerging segment in this region, is expected to increase significantly and reach approx. 164 GW by 2050 – a substantial share of total global installations. Furthermore, in recent years, offshore wind turbines constituted an increasing share of the global wind energy project mix when compared to onshore projects; this trend is attributed to technological developments and to the decline in related costs, including in the field of floating offshore wind turbines, which is developing alongside the technology that has been the dominant technology to date – wind turbines that are attached to the seabed by a fixed foundation. Using floating turbines enables the positioning of turbines in deeper water than in the case of fixed-base turbines, as well as utilizing areas with higher wind speeds, which are located further away from the shore. At the same time, material improvements were achieved in technology and in the utilization of offshore turbines, which currently reach an installed capacity of more than 12 MW per turbine. - 118 -

Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 31 –EVENTS TAKING PLACE SUBSEQUENT TO THE END OF THE REPORTING PERIOD (continued) (2) Signing of an agreement in principle with the Navitas Group for collaboration in offshore wind projects in the international market (continued) The Company is of the opinion that its development, engineering and management capabilities in the international renewable energies market, and specifically in the wind energy segment, in combination with Navitas Group’s business development capabilities in the international market in general and in the US market in particular, in conjunction with Navitas’ experience in offshore infrastructure and energy projects created excellent synergy that will contribute to the development of high-quality projects in the field of offshore wind projects. (3) Negotiation for the acquisition of a leading US company operating in the field of solar energy and energy storage During February 2021, the Company signed a letter of intent for the acquisition of an approx. 90% stake in a leading and highly experienced US company operating in development, construction and operation of solar energy and energy storage facilities (hereinafter – the “Target Company”) at an overall company value of up to $430 million, in a transaction that includes a tiered consideration mechanism, which is performance-based, as described below: To date, the Target Company has successfully developed, erected and sold solar facilities with an installed capacity of more than 1.5 GW, and it holds a significant portfolio of projects under development across the USA, in states with a significant growth potential. The Target Company employs approx. 80 employees and is currently growing. The Target Company’s portfolio is composed of approx. 50 utility scale solar projects under various development stages with a total installed capacity of approx. 9.9 GW (in DC terms). Some of the projects require a combination of energy storage facilities with an aggregate scope of more than 1.5 GWh (“the project backlog”). The Company estimates that app. 15 projects with overall installed capacity of approx. 2.5 GW are in advanced development stages and are expected to reach the construction stage during the next two years. With relation to those facilities, the Target Company has already signed PPA agreements for the sale of electricity or is conducting advanced negotiations for signing such agreements in respect of projects with aggregated installed capacity of approx. 2 GW, for an average period of 19 years and in respect of the entire electricity generated. The acquisition of the Target Company is planned to be carried out at an estimated company value of up to $ 430 million, of which approx. $160 million will be paid on the date of closing. The remaining balance of up to $230 (reflecting acquisition of a 90% stake as described above), shall be paid in accordance with a tiered performance- based mechanism over five years, in accordance with the fulfilment of the projects backlog, and subject to the developers’ continued service as senior officers in the Target Company. Accordingly, as part of the transaction, approx. 10% of the holdings in the Target Company shall continue to be held by the two developers who also serve as senior managers in that company. For the avoidance of doubt, it should be noted that the acquisition does not include the facilities that were erected prior to the acquisition and sold to third parties, but rather the development portfolio, which currently amounts to approx. 9.9 GW as aforesaid, and the holdings in the Target Company, including all its capabilities and IP rights.

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Enlight Renewable Energy Ltd.

Notes to Financial Statements as of December 31 2020

NOTE 31 –EVENTS TAKING PLACE SUBSEQUENT TO THE END OF THE REPORTING PERIOD (continued) (3) Negotiation for the acquisition of a leading US company operating in the field of solar energy and energy storage (continued) The Company and the Target Company entered into a letter of intent that includes an exclusivity period, during which the parties shall hold detailed negotiations about the terms of the transaction and the acquisition agreement, and the Company and its advisors shall conduct a comprehensive due diligence in connection with the Target Company. The Company is of the opinion that the detailed and binding acquisition agreement shall be signed during the second quarter of 2021, subject, among other things, to the completion of due diligence studies by the Company and its advisors in connection with the Target Company to the satisfaction of the Company, and subject to the finalization of all commercial and legal agreements in connection with the acquisition transaction. It should be clarified that as of the report’s publication date, the completion of the acquisition transaction in the manner described above and/or any other manner is uncertain. (4) Issuance of Company’s shares On March 2 2021, the Company completed a uniform public offering of 93,641,400 ordinary Company shares of NIS 0.01 par value each by way of a tender in respect of the unit price. Total gross issuance proceeds amounted to approx. NIS 589,941 thousand. (5) The Picasso wind energy project in Sweden – connection to the grid and establishment of entitlement to revenues On March 29 2021, the project for generation of electricity using wind energy in Sweden with a 113 MW installed capacity (hereinafter – the “Project”) received the Swedish authorities’ approval for the Project’s electrification and the transmission of electricity generated by the Project’s wind turbines to the electricity grid as part of a test-run process. At this stage, the project company has started to gradually connect the turbines to the electricity grid and to conduct tests. The Swedish regulator allows selling the electricity generated at this stage to the grid at market terms. The test runs are conducted simultaneously with the completion of the farm’s construction, and are expected to continue for approx. 3 months, until all turbines reach full commercial activity. During the test run period all electricity generated in the Project shall be sold in the Nord Pool – the electricity market of which Sweden is a member. As mentioned in Note 30A(6) above, the project company and a large European energy company entered into a commercial agreement for the sale of electricity (PPA), under which the project company will sell about half of the electricity generated in the Project at a fixed rate for a 12-year period. The remaining electricity generated from the Project shall be sold at market terms in the Nord Pool. This agreement will come into force after the test run period ends, and after the commencement of full commercial operation.

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Enlight Renewable Energy Ltd. (“the Company”) Directors' Report on the State of the Company's Affairs as of December 31, 2020

The Company’s Board of Directors is pleased to submit the Directors’ Report for the year ended December 31, 2020 which reviews the principal changes in the Company’s activity in the year 2020 (hereafter - “the Reporting Period”). The report was drawn up in accordance with the Securities Regulations (Periodic and Immediate Reports), 5730-1970.

1. General - summary description of the company’s business Enlight specializes in the setting up, development, funding, construction and operation of projects for generation of electricity from renewable energy sources in Europe and in Israel. In recent years, Enlight has erected and/or invested in more than 150 projects. The Company has mature facilities with a total generation installed capacity approx. of 2,000 MWs (revenue-generating projects, projects under construction and projects in the pre-construction stage); approx. further 1,300 MWs are under advanced development stages, and additional 1,000 MWs are under various development stages. The Company has a growing revenue backlog arising from long-term agreements for the sale of the electricity generated in its current facilities. Concurrently, the Company develops a significant portfolio of other projects that will potentially generate revenues in the future.

2. General indexes on company level Estimated cumulative installed capacity in MW from revenue-generating projects and projects under construction

Projects under construction

Floating PV 17

Sweden 1 113

Emek Habaha Israel 109

Kosovo 105

Spain 312

Sweden 2 372

Ruach Bereshit 189 Israel

Total 1,217

1,659

1,217

754

536 314

277 383 385 202 57 57 57 31/12/2018 31/12/2019 31/12/2020

Sold Yielding Under construction

2

Electricity proceeds in respect of projects after commercial operation millions of NIS (3)

405-425 Israel Abroad 342 300

175 137

163 167 EBITD

2019 2020 2021E חו"ל ישראל Israel Abroad

EBITDA and FFO in respect of projects after commercial operation millions of NIS (1) (2) (3) (4)

EBITDA

330-350 291 256

118 151

138 140

2019 2020 2021E חו"ל ישראל

Israel Abroad

3

FFO

265-285

206 187

98 113

89 93

2019 2020 2021E חו"ל ישראל

Israel Abroad

1. The EBITDA indicator is calculated as profit (revenues from electricity proceeds less operation costs) before taxes, depreciation and amortization based on the implementation of the fixed asset model in respect of project after commercial operation. 2. The FFO indicator is calculated on the basis of the EBITDA indicator as defined above, after neutralizing the effects of non-recurring events, plus/net of current tax expenses and interest expenses (current interest payments net of/plus changes in interest payable) in respect of senior loans and mezzanine non- recourse loans. The indicators set out above are cash flow and profitability indicators generally accepted in renewable energy projects; these indicators are used by the Company’s decision makers. It should also be noted that the above indicators are not based on generally accepted accounting principles. However, in Company’s opinion they may contribute to the analysis of the financial statements, and to the understanding of the Company’s activities by readers thereof. 3. Projects whose functional currency is not the Shekel were translated into NIS according to average exchange rate for the period. 4. Excluding the impact of the application of IFRS 16.

4

Summary of Company’s activity by selected performance indicators

3. Breakdown of projects’ data and indicators as of date of publication of the report NIS millions a. Revenue-generating projects

Electricity Installed Electricity Balance of loan EBITDA for Operation Enlight's stake FFO for Country Project generation capacity proceeds for principal as of 12 months (3) year (including indirect) 12 months (4) technology (MW) 12 months 31/12/2020 (6)

Halutzyut Solar 2015 55 90%(11) 71 317(21) 61 48 Sunlight1 Solar 2018-19 53 App. 75% 20 159 15 10 Sunlight2 Solar 2019-20 21 50%-100% 7 42 5 4 Mivtachim Solar 2013 10 100%(11) 30 82(21) 26 22

Talmei Bilu Solar 2013 10 100% 22 103(21) 18 13

Cramim Solar 2013 5 100% 9 44(21) 7 6 Israel Idan Solar 2013 3 100% 5 26(21) 5 3 Golan Fruit, Sde Solar 2015 2.6 51%-100% 2 14 2 1 Nehemia and Barbur Zait Yarok Solar 2012-13 0.5 100% 1 2 1 1 Ireland Tullynamoyle (1) Wind 2017 13.6 50.1% 9 55 6 4 Croatia Lukovac (1) (6) Wind 2018 49 50.1% 48 169 43 32 Serbia Blacksmith (1) (13) Wind 2019 105 50.1% 92 493 80 64 Hungary Attila (1) Solar 2019 57 50.1% 26 149 22 13 Total revenue-generating projects in 385 342 1,655 291 221 the 12-months ended 31.12.2020

Subordinated debt (mezzanine non-recourse) 100%(11) 0(11) (15) Total FFO at projects level 206 Total FFO attributed to Enlight 136

Total FFO attributed to Enlight after increasing holdings in Halutzyut and Mibtachim – Proforma(17) 159

5

b. Projects under construction

Balance of Expected rate of shareholders’ Projected Projected holdings Projected Electricity Installed Total equity for annual electricity Projected Projected (indirect) as of average Referral to Country Project generation capacity projected investment as of electricity proceeds for the average operation date of EBITDA Chapter 4 technology (MW)(19) cost reporting date, proceeds for the initial operation FFO (4)(18) date commercial (3) (6) Company’s project period year operation share 1 Israel Solar floating Solar 17 50.1% 65-70 0 7-9(10) 7 70% 60% Q2, 2021

1-12 years(7): 40-60 Q2, 2 Sweden Picasso(1) Wind 113 69% 560 0 35-45(7) 78% 68% 13-30 years(7): 2021(23) 65-105 Emek Q2/Q3, 3 Israel Wind 109 40.8%(22) 705-715 0 115-145(10) 115-120 80% 63% Habacha 2021

1-12 years(7): 90-110 4 Kosovo Selac(1) Wind 105 60% 660 0 90-100(7) 80% 70% H2, 2021 13-30 years(7): 115-150

1-13 years(7): 1,250- 140-240 5 Spain Gecama(1) Wind 312 72% 170 140-150(7) 83% 66% Q2, 2022 1,300 14-30 years(7): 240-320

1-10 years(7): 1,700- 120-180 6 Sweden Björnberget(1) Wind 372 61%(15) 320 110-130(7) 78% 65% Q4, 2022 1,750 11-30 years(7): 200-360 7 Israel Bereshit Wind 189 60%(14) 1,250 0 140-160(10) 140-160 80% 74% H1, 2023

Total projects under 6,190- 1,217 490 637-712 construction 6,305

6 c. Projects in pre- construction stage(2)

Installed capacity Rate of holdings Projected annual Projected electricity Electricity Overall Referral to (MW) and storage (indirect) as of date electricity proceeds for the initial Country Project generation projected Chapter 4 capacity (MWh) of commercial proceeds for the representative operation technology cost (19) operation project period year 120 MW+192 8 Israel Solar + storage 1 Solar + storage 90%-80% 410-460 45-55(10) 45-55 MWh (12) 200 MW+328 9 Israel Solar + storage 2 Solar + storage 55%-65%(12) 650-750 65-85(10) 65-85 MWh 10 Israel Yatir Wind 36(5) 50.2% 160-180 15-25(10) 15-25 11 Hungary Hungary 2 (1) Solar 25 100% 60-70 6-8(7) 6 Total projects in preparation for 381 MW+520

construction MWh d. Projects under advanced development (8)

Installed capacity Operating segment Country (MW) and storage Electricity generation Referral to capacity (MWh) (19) technology Chapter 4 Spain (3 projects) 400 Solar 12 Western Europe Italy (4 projects) 200 Solar 13 Total western Europe 600 Israel (projects backlog) Wind Israel Wind 40 Israel (projects backlog) Solar + Storage Solar + Storage 140 MW + 230 MWh Georgia (one project) 100 Wind 14 Central and Eastern Europe Serbia (one project) 95 Wind Total central and eastern Europe 195

Total projects under 975 MW + 230 MWh advanced development

7 e. Projects under development (9)

Installed capacity

Operating segment (MW) and storage Electricity generation Referral to Country capacity (MWh) (19) technology Chapter 4 Western Europe Spain (2 projects) 300 Solar and wind 12 Israel Wind Israel (projects backlog) 340 Wind Solar + Storage Israel (projects backlog) 600 MW + 940 MWh Solar + Storage Central and Eastern Europe Hungary (projects backlog) 75 Wind 15

Total projects under 1,315 MW + 940 MWh advanced development f. Negotiations for acquiring a company in the USA (20) Enlight is conducting negotiations to acquire a 90% stake in a leading US company operating in the field of solar energy and energy storage. Set forth below is the target company’s portfolio:

Installed capacity

Development status (MW) and storage Electricity generation Referral to Country capacity (MWh) (19) technology Chapter 4 Approx. 2,000 MW + USA Solar + storage 16 Advanced development (8) approx. 700 MWh Approx. 7,900 MW + USA Solar + storage 16 Development (9) approx. 1,100 MWh Approx. 9,900 MW +

Total approx. 1,800 MWh

The portfolio presented in the table represents the target company’s estimated portfolio. It should be clarified that at this stage there is no certainty that the acquisition transaction will be completed; the presented portfolio, including the terms of the transaction as a whole are subject to due diligence studies, and the successful completion of the negotiation and may change until the transaction comes to fruition, all in accordance with the risk factors and restrictions described above in the report. g. Annual revenues from management fees, finders’ fees and development fees

Revenues to Enlight during the

12-month period ended 13.12.20 26 Management fees 8 Finders’ fees 4 Development fees 10 Revenues – EPC contractor 48 Revenues as per standalone report 26 Entitlement to finders’ fees in investee entity

Total revenues from management fees, finders’ fees and 74 development fees attributed to Enlight

8

(1) Translated according to the exchange rate of Euro/NIS 3.94 for the period for actual results, and Euro/Kuna exchange rate of 7.54 for project in Croatia and Euro/Forint exchange rate of 365.13 for project in Hungary as of December 31 2020. (2) Projects that are in preparation for construction and whose construction is expected to commence in the next 12 months, but have not yet received all regulatory approvals for commencement of construction and therefore it is not certain that they will come to fruition and if they do come to fruition, whether they will supply the noted installed capacity. (3) The EBITDA indicator is calculated as profit (revenues from electricity proceeds less operating costs) before finance expenses, taxes, depreciation and amortization based on the implementation of the fixed asset model in respect of projects after commercial operation. (4) The FFO indicator is calculated on the basis of the EBITDA indicator as defined above, after neutralizing the effects of non-recurring events, plus/net of current tax expenses and interest expenses (current interest payments net of/plus change in interest payable (in respect of senior loans and mezzanine non-recourse loans. The indicators set out above are cash flow and profitability indicators generally accepted in renewable energy projects; these indicators are used by the Company’s decision makers. It should also be noted that the above indicators are not based on generally accepted accounting principles. However, in Company’s opinion they may contribute to the analysis of the financial statements, and to the understanding of the Company’s activities by readers thereof. (5) The project has a conditional license for an installed capacity of 42 MW. In the opinion of the Company, the project’s installed capacity will be app. 30 MW, but the final installed capacity will be determined after the completion of the planning and coordination processes with the Israel Electricity Corporation. (6) Excluding the effect of the application of IFRS 16. (7) Based on median forecast of the future electricity prices by a leading international engineering and consultancy firm, and the Company’s assumption regarding the forecasted inflation in the project’s country. (8) Projects under advanced development – projects that are expected to reach RTB (Ready to Build) stage within 24 months. These projects have not yet received all regulatory approval and therefore there is no certainty that they will come to fruition or that they will obtain the specified installed capacity; the progress of those projects is subject, among other things, to the completion of complex development processes. (9) Projects under development are projects under various development stages, which obtained rights in land and some of the regulatory approvals, but in Company’s opinion, commencement of construction is not expected in the next 24 months, projects that won a tariff tender and for which there are construction plans, but in Company’s opinion, commencement of construction is not expected in the next 24 months. At this preliminary stage, the scope of the projects that will come to fruition is uncertain. The promotion of those projects is subject, among other things, to the completion of complex development processes. Subject to the above, the Company is of the opinion that those projects that will come to fruition out of the backlog shall come to fruition gradually, whether fully or partially over the next years. (10) The projection for annual electricity proceeds is based on an assumption that the consumer price index will increase by 1%. (11) In September 2020, the Company signed an agreement for acquisition of Noy Fund’s rights in the Halutzyut (10.5%) and Mivtachim (49%) projects and the repayment of all mezzanine loans extended by Noy Fund. Furthermore, during the third quarter of 2020, the Company repaid mezzanine loans extended by institutional entities and other lenders for the Mivtachim and Talmei Bilu projects. (12) The weighted holding rate may change in accordance with the presented range. (13) Blacksmith’s results suffered a one-off adverse effect in the reported period due to emergency order issued by the Serbian government in March 2020, which activated the force majeure clause and triggered a decrease in the tariff for a 46-day period. (14) The final holding rate shall be determined in accordance with the number of project partners’ options exercised, and may decrease to up to 54%. (15) The final holding rate may decrease to 55% if the fund with which the Company partnered in this project will recruit further investors. For more information about the transaction’s structure, see a description of the transaction in Section 4 of the Directors’ Report. (16) FFO in respect of increase in holdings in Halutzyut and Mivtachim was attributed to Enlight since Q4 2020. (17) Enlight’s share in FFO assuming that the impact of increase in holdings in Halutzyut (10.5%) and Mivtachim (49%), and repayment of all mezzanine loans were fully included in the FFO of the last 12 months. (18) The FFO rate is impacted, among other things, from the project’s legal incorporation structure, which determines whether tax will apply at project level. (19) The installed capacity (MW) in solar projects represents MWdc, and in wind projects it represents MWp. (20) On February 28 2021, the Company announced a negotiation for the acquisition of a leading US company operating in the field of solar energy and energy storage. The presented portfolio represents the target company’s estimated portfolio. It should be clarified that at this stage there is no certainty that the acquisition transaction will come to fruition and that the presented portfolio is subject to due diligence studies and may change. For more details see the Company’s report of February 28 2021 (ref. no. https://maya.tase.co.il/reports/details/1354406). (21) In December 2020, the Company signed an agreement for refinancing of five revenue-generating solar projects in Israel with an overall installed capacity of 83 MW. As part of the agreement, senior debt totaling approx. NIS 1.1 billion in a non-recourse project financing format was provided to the corporations of the Halutzyut, Mivtachim, Talmei Bilu, Cramim and Idan projects against the repayment of the old senior debt. The new senior debt, which was withdrawn after balance sheet date, is distributed among the projects as follows (excluding debt servicing facilities):

9

Project Debt balance withdrawn NIS millions Halutzyut 609 Mivtachim 194 Talmei Bilu 162 Cramim 68 Idan 39

)22) The Company increased its holdings in the project (indirect holdings) from 36.5% to 40.8%. (23) In March 2021, the Company received approval for the Project’s electrification and the transmission of electricity generated by the project’s wind turbines to the electricity grid. The project company has started to gradually connect the turbines to the electricity grid and to conduct tests. The Swedish regulator allows selling the electricity generated at this stage to the grid at market terms through the Nord Pool electricity market. For more information see immediate report: https://mayafiles.tase.co.il/rpdf/1361001- 1362000/P1361112-00.pdf.

10

4. Status and significant events during the reporting period as of the date of publication of this report Projects under construction

1. Floating PV project (Israel), 17 MW

In 2020, construction works started in a project comprising photovoltaic electricity generation facilities on top of water reservoirs and roofs with a capacity of approx. 17 MW DC (which are equivalents to 14 MW AC). The cost of construction of the project is estimated at NIS 65-70 million. The tariff set in a tender is NIS 0.2333 KWh (linked to the CPI), which reflects NIS 7-9 million projected annual electricity proceeds over the license period – 25 years from date of commercial operation. The completion of construction works and commencement of entitlement to revenues are expected to take place in the second quarter of 2021.

2. Picasso wind project (Sweden), 113 MW

In December 2019, the Company signed the project’s financial closing agreements for the funding of the project and commencement of its construction. The project was provided to the project company in a formant of a non-recourse project finance, at a scope of app. 60% of the project’s cost of investment, which is estimated at app. EUR 140 million. The capital required for the project was invested by the Company (holding a 69% stake in the project company), and by institutional entities from the Menora group. Under the agreement, the Company will receive management fees, finders’ fees and excess distribution and return rates. In March 2021, the Company received approval for the project’s electrification and the transmission of electricity generated by the project’s wind turbines to the electricity grid. The project company has started to gradually connect the turbines to the electricity grid and to conduct tests. The Swedish regulator allows selling the electricity generated at this stage to the grid at market terms through the Nord Pool electricity market. The test runs are conducted simultaneously with the completion of the farm’s construction, and are expected to continue for approx. 3 months, until all turbines reach full commercial activity

In accordance with the business model, the project company will sell app. half of the electricity generated by the project at a fixed tariff for the first 12 years to a large German utility company under a PPA agreement. The remaining balance of generated electricity will be sold on the electricity market of northern Europe (the Nord Pool), which is Europe's largest electricity market.

Based on the above-mentioned mix, revenues from sale of electricity in the project are expected to be EUR 10-151 million per year during the first 12 years, and app. EUR 17-26 million per year during the remaining 18 years (years 13-30).

1 Based on median forecast of the future electricity prices by a leading international engineering and consultancy firm, and the Company’s assumption regarding the forecasted inflation in the project’s country. 11

3. Emek Habacha project (Israel), 109 MW

In July 2018, the Company completed the financial closing of the project with a consortium of lenders headed by Bank Hapoalim Ltd. In December 2020, the required approvals were received allowing the increase of the project’s installed capacity by additional 13 MW thereby allowing the project to reach an installed capacity of 109 MW. Based on the tariff that was received and the facility projected installed capacity, project revenues from electricity proceeds are expected to amount to NIS 115-145 million per year during the license period (20 years). The cost of construction of the project is estimated at NIS 705-715 million. The construction of the project will be financed on a non-recourse project financing basis, at a leveraging rate of app. 80%, with a loan that will cover the construction period plus 18 years. Commercial operation of the project is expected to take place in the second/third quarter of 2021.

4. Selac wind project (Kosovo), 105 MW

In December 2019, the Company completed the financial closing of the project with leading European financial entities, and commenced the construction of the project. The cost of construction of the project is estimated at app. EUR 165 million. The project will be financed in the format of non-recourse project financing at the scope of app. EUR 115 million. The loan’s amount will be spread over the project’s construction period plus additional 11 years from its commercial operation date.

Based on the project’s potential installed capacity, the Company estimates that it will generate gross app. EUR 25 million per year in revenues from sale of electricity during the Feed in Tariff period (FIT) (12 years) and app. EUR 29-37 million per year thereafter2. According to the Company’s current estimates, the testing of the project connection to the electricity grid and the commencement of the entitlement to revenues is expected during the second half of 2021, subject to the progress of work on the ground and weather constraints.

5. Gecama wind project (Spain), 312 MW

In June 2020 the Company entered into a financial closing agreement in respect of the project’s funding with two out of the five largest banks in Spain, Banco de Sabadell and Bankia. Under the agreement, the project company will be provided senior debt on a non-recourse project financing basis at a scope of approx. 50% of the total cost of investment in the project, which is estimated at approx. EUR 320 million. Construction work in the project started in the third quarter of 2020.

The Company (which holds a 72% stake in the project company) and institutional entities of the Menorah Group and the Phoenix Group shall invest in the project’s shareholders’ equity, and the Company shall be entitled to management fees, finders’ fees and excess distribution and return rates.

1. Based on median forecast of the future electricity prices by a leading international engineering and consultancy firm, and the Company’s assumption regarding the forecasted inflation in the project’s country. 12

Based on direct sale of electricity in the market, the projected revenues in respect of the project’s 1st to 13th years, is app. EUR 35-601 million per year, and during the years 14-30, revenues will range between EUR 60-80 million per year1. In the opinion of the Company, commercial operation of the project is estimated to take place during the first half of 2022.

6. Björnberget project (Sweden), 372 MW

In October 2020, the Company finalized the acquisition of the Björnberget project (hereinafter – “Björnberget”) and started construction works therein. The Company’s weighted holdings in the project amount to 61%2, and the remaining balance is held by a European utilities fund, which specializes in investments in the field of wind energy in the Nordic market, and is a member of the “Prime Capital” Group. In accordance with the transaction’s structure, the overall investment in the acquisition of project rights and construction is expected to amount to approx. EUR 430-440 million; the Company’s share is expected to amount to EUR 130-140 million. In January 2021, the Company and the fund signed a letter of intent for the financing of approx. 50% of the project’s cost under non-recourse project financing format with a consortium of three senior European lenders. Furthermore, in December 2020, the Company and the fund entered into a PPA agreement with one of the leading global technology companies for the sale of 50% of the electricity that will be generated in the project for a 10-year period at a fixed price. The remaining electricity to be generated in the project will be sold on the Nord Pool. The project’s electricity proceeds are expected to amount to approx. EUR 301 million in the first year, and approx. EUR 601 million per year on average. EBITDA is estimated at approx. EUR 501 million per year on average over the entire operation period. In the opinion of the Company, commercial operation is expected to take place in the fourth quarter of 2020.

7. Ruach Bereshit project (Israel), 189 MW

In August 2020, the Company received the Electricity Authority’s approval to the effect that all the conditions precedent for the construction of the Ruach Bereshit project were met, including approval of the tariff, and a full building permit; accordingly, construction works started in the project. The financing will be provided to the project company in a non-recourse project financing format amounting to approx. NIS 1.05 billion out of the total project’s cost of investment, which is estimated at approx. NIS 1.25 billion. Based on the project’s projected installed capacity, the Company estimates that it will generate approx. NIS 140-160 million per year over the license period (20 years). The construction of the project started in the third quarter of 2020, and it is expected that entitlement to revenues will be established in the first half of 2023.

1 Based on median forecast of the future electricity prices by a leading international engineering and consultancy firm, and the Company’s assumption regarding the forecasted inflation in the project’s country. 2 The final holding rate may decrease to 55% if the fund with which the Company partnered in the project shall recruit additional investors 13

Projects in the pre-construction stage

8. Combined PV and storage 1 (Israel), approx. 120 MW(19) plus approx. 192 MWh in storage capacity

In July 2020, the Company won a tender published by the Electricity Authority for the construction of power generation facilities using photovoltaic technology combined with energy storage capacity that will be connected to the grid with an aggregate installed capacity of 48 MW (in AC terms), which reflects the construction of facilities with an installed capacity (in DC terms) of app. 120 MW1, and an overall energy storage capacity of 192 MWh. The projected cost of construction of the facilities and related storage facilities is estimated at approx. NIS 410-460 million. The tariff set in the tender is NIS 0.199 per kWh (linked to the CPI), which reflects projected electricity proceeds of approx. NIS 45-55 million per year over the license period of 23 years from the commercial operation of each facility. The use of the storage technology enables to significantly increase the installed capacity of the solar projects, since some of the electricity generated is stored in batteries and delivered to the grid during the time of the day in which generation of solar energy is lower and the demand to electricity in the grid is smaller. Therefore, a certain connection size (in AC terms) enables an installed capacity (in DC terms) which is significantly higher than that of electricity generation facilities that do not have storage capabilities. The implementation of the winning bid is conditional, among other things, on obtaining permits from the Israel Electric Corporation to connect the projects to the grid and on achieving the milestone of receiving a grid synchronization permit from the Israel Electric Corporation within 37 months at the latest.

9. Combined PV and storage 2 (Israel), approx. 200 MW(19) plus approx. 328 MWh in storage capacity

In December 2020, the Company won a tender published by the Electricity Authority for the construction of power generation facilities using photovoltaic technology combined with energy storage capacity that will be connected to the grid with an aggregate installed capacity of 82 MW (in AC terms), which reflects the construction of facilities with an installed capacity (in DC terms) of 200 MW1, and an overall energy storage capacity of 328 MWh. The projected cost of construction of the facilities and related storage facilities is estimated at approx. NIS 650-750 million. The tariff set in the tender is NIS 0.1745 per kWh (linked to the CPI), which reflects projected electricity proceeds of approx. NIS 65-85 million per year over the license period of 23 years from the commercial operation of each facility. The implementation of the winning bid is conditional, among other things, on obtaining permits from the Israel Electric Corporation to connect the projects to the grid and on achieving the milestone of receiving a grid synchronization permit from the Israel Electric Corporation within 37 months at the latest.

1. At this stage of the projects’ development, there is no certainty as to the scope or the date on which the projects will come to fruition.

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10. Yatir wind project (Israel), 36 MW

In August 2019, the District Planning and Building Committee approved the project’s plan. The project’s installed capacity is expected to be 36 MW2 and its cost is expected to be NIS 160-180 million. Based on the project’s projected installed capacity, the Company estimates that it will generate proceeds of approx. NIS 15-25 million per year over the license period (20 years). The Company is of the opinion that it will be possible to commence the construction of the project during 2021.

11. Solar project Hungary 2 (Hungary), 25 MW

In April 2020, the Company completed its engagement in an option agreement for the purchase of a 25 MW2 solar project in advanced development stages located on land in Hungary; the project, which is promoted by the developers of the Company’s other projects in Hungary, won a solar projects tender of the Hungarian government with a secured tariff for a 15-year period. Based on the project’s projected installed capacity, the Company estimates that it will generate proceeds of approx. EUR 1.6 million per year. The cost of construction of the project is estimated at approx. EUR 15-17 million. The Company is of the opinion that it will be possible to commence the construction of the project during 2021.

Projects under advanced development and under development

12. Spain (wind and solar), 700 MW

In July 2019, the Company signed collaboration agreements for the development of clusters of wind and solar energy projects in Spain, which are in development stages. The process is part of the Company’s strategy to leverage its core capabilities and relative advantages in development of renewable energy projects in the Israeli and international markets, from preliminary development stages. In view of the progress of legislation designed to enable the construction of hybrid renewable energy projects in Spain (projects that generate electricity from two or more sources of renewable energy), the Company is working to add a solar project with an installed capacity of approx. 150 MW using Gecama project’s existing infrastructures. The development of this project is conditional upon the completion of legislation process and obtaining the required regulatory approval. At this stage, the Company develops five projects with aggregated installed capacity of approx. 700 MW.2

13. Italy (solar), 200 MW

In November 2019, the Company entered into a series of agreements with an Italian development company and an Italian management company for collaboration in the development of clusters of solar photovoltaic energy projects in Italy, which are in preliminary development stages. At this stage, the Company is developing four projects with an aggregate installed capacity of app. 200 MW.2

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14.Georgia, (wind) 100 MW

In January 2020, the Company signed an agreement for the purchase of rights in a wind energy project under development in Georgia. The estimated overall cost of investment of the project is app. USD 135-155 million. In addition, the Company estimates that the project will generate gross revenues from sale of electricity of app. USD 18-211 million per year during the PPA period (10 years), and an average revenue of USD 25-30 million per year thereafter1. The Company is of the opinion that subject to obtaining all approvals, and the construction, operation and financing agreements for the project, the construction of the project can commence within 12-18 months. Furthermore, the project has scope for expansion by app. 200 MW1, subject to the increase of the wind energy quotas in Georgia and the fulfillment of additional conditions.

15. Hungary (solar) 75 MW

The Company signed a framework agreement for the development of solar projects in Hungary with a target installed capacity of approx. 300 MW1, with the aim of submitting bids in tariff tenders. The agreement was signed with the developers of the projects erected by the Company in Hungary, who are highly experienced in the development of large-scale solar projects in the country and who will be in charge of the projects’ development process until development is completed. The Company shall hold 60% of each project, subject to the completion of due diligence studies to the satisfaction of the Company; upon completion of development and subject to winning the tender, the Company shall purchase 100% of the projects’ rights at a premium agreed upon between the parties1.

16. Negotiations for acquisition of a 90% stake in a leading US company operating in the field of solar energy and energy storage

In February 2021, the Company reported that it is holding negotiations for the acquisition of an approx. 90% stake in a leading and highly experienced US company operating in development, construction and operation of solar energy and energy storage facilities (hereinafter – the “Target Company”) at an overall company value of up to $430 million, in a transaction that includes a tiered consideration mechanism, which is performance-based. To date, the Target Company has successfully developed, erected and sold solar facilities with an installed capacity of more than 1.5 GW, and it holds a significant portfolio of projects under development across the USA, in states with a significant growth potential. The Target Company employs approx. 80 employees and is currently growing. The Target Company’s portfolio is composed of approx. 50 utility scale solar projects under various development stages with a total installed capacity of approx. 9.9 GW (in DC terms). Some of the projects require a combination of energy storage facilities with an aggregate scope of more than 1.5 GWh. The Company estimates that app. 10 projects with overall installed capacity of approx. 2.0 GW are in advanced development stages.

1. At this stage of the projects’ development, there is no certainty as to the scope or the date on which the projects will come to fruition

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With relation to those facilities, the Target Company has already signed PPA agreements for the sale of electricity or is conducting advanced negotiations for signing such agreements for an average period of 19 years in respect of the entire electricity generated. The acquisition of the Target Company is planned to be carried out at an estimated company value of up to $ 430 million, of which approx. $160 million will be paid on the date of closing. The remaining balance of up to $230 (reflecting acquisition of a 90% stake), shall be paid in accordance with a tiered performance- based mechanism over five years, in accordance with the fulfilment of the projects backlog, and subject to the developers’ continued service as senior officers in the Target Company. Accordingly, as part of the transaction, approx. 10% of the holdings in the Target Company shall continue to be held by the two developers who also serve as senior managers in that company. For the avoidance of doubt, it should be noted that the acquisition does not include the facilities that were erected prior to the acquisition and sold to third parties, but rather the development portfolio, which currently amounts to approx. 9.9 GW, and the holdings in the Target Company, including all its capabilities and IP rights. The Company and the Target Company entered into a letter of intent that includes an exclusivity period, during which the parties shall hold detailed negotiations about the terms of the transaction and the acquisition agreement, and the Company and its advisors shall conduct a comprehensive due diligence in connection with the Target Company. The Company is of the opinion that the detailed and binding acquisition agreement shall be signed during the second quarter of 2021, subject, among other things, to the completion of due diligence studies by the Company and its advisors in connection with the Target Company to the satisfaction of the Company, and subject to the finalization of all commercial and legal agreements in connection with the acquisition transaction. It should be clarified that at this stage, the completion of the acquisition transaction in the manner described above and/or any other manner is uncertain.

17. Signing of an agreement in principle with the Navitas Group for collaboration in offshore wind projects in the international market

In February 2021, the Company and the "Navitas Group" entered into an agreement in principle for collaboration in offshore wind projects in the international market. Pursuant to the agreement in principle, during the next two years the parties will work jointly and exclusively to identify opportunities for development, investment and/or acquisition of offshore wind ventures in the international market, with Enlight holding 60% and Navitas holding 40% of the joint activity and its profits. The agreement in principle is subject to the signing of detailed binding agreements, and to the finalization of the negotiations between the parties, including in relation to each specific project.

Income-generating projects

18. Acquisition of Noy Fund’s holdings in Halutzyut and Mivtachin and full repayment of the Company’s mezzanine loans

In September 2020, the Company signed an agreement for acquisition of Noy Fund’s stake in the Halutzyut (10.5%) and Mivtachim (49%) projects and the repayment of all mezzanine loans extended by Noy Fund in the Halutzyut, Mivtachim and Talmei Bilu projects, totaling approx. NIS 230 million. Furthermore, during the third quarter of 2020, the Company repaid mezzanine 17

loans extended by institutional entities and other lenders for the Mivtachim and Talmei Bilu projects at the total amount of approx. NIS 57 million.

19. Refinancing five income-generating solar projects in Israel with a aggregate installed capacity of 83 MW

In December 2020, the Company signed a refinance agreement in respect of five income- generating projects with an aggregate installed capacity of 83 MW. As part of the agreements, senior debt totaling approx. NIS 1.1 billion in the form of non-recourse project finance was provided to the project corporations of the Halutzyut, Mivtachim. Talmei Bilu, Cramim and Idan projects. The agreement included a full repayment of the senior debt granted to the projects – totaling approx. NIS 580 million, release of debt service reserve accounts totaling approx. NIS 40 million and taking a new senior debt totaling approx. NIS 1.1 billion at an interest rate which is lower than the interest rate payable on the previous senior debt loans. As a result of the process, the Company and its partners are expected to withdraw an available cash flow balance of approx. NIS 370 million.

The Company paid one-off early repayment fees totaling approx. NIS 220 million in respect of the refinancing process involving the existing senior debt and mezzanine debt it repaid; (the early repayment fee recorded in the financial statements as of December 31 2020 - amounting to NIS 232 million – also include accounting deductions in respect of the repaid loans and expenses in respect of the revision of the commercial terms of the senior debt in the Lukovac project in Croatia). Accordingly, the Company shall benefit from a reduction in current financing costs and from cash flows in the next 15 years of the projects’ operations (2021-2035) and from excess cash balance of approx. NIS 200 million as a result of this move (after repayment of the mezzanine loans).

20. Agreement for revising commercial terms and receipt of additional credit for the Lukovac wind project in Croatia

In December 2020, the Company signed an agreement for revising the financing terms of the senior debt and receiving additional credit for the income-generating wind project “Lukovac” in Croatia. As part of the agreement, the term of the loan shall be extended by one further year, the weighted interest rate shall decrease by approx. 1.4%, and the lenders shall provide the project company further non-recourse project financing at the total amount of approx. EURO 6 million. The Company and its partners are expected to withdraw the cash balance arising from the additional credit facility.

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Holdings structure and indexes

Since the beginning of 2020, the Company completed the issuance of securities at the total amount of app. NIS 965 million alongside an issuance and expansion of Series F bonds at the total amount of app. NIS 350 million. The bonds were rated by Midroog at A3.il (stable outlook).

In November 2020, the Company completed an early repayment in full of its Series B bonds at the total amount of approx. 130 million.

In April 2019, Midroog decided to award a A3.il rating to the Company (stable rating outlook). In May 2020, Midroog affirmed the Company’s rating at Midroog at A3.il (stable outlook).

Stock exchange indexes

The Company is among the companies comprising the Tel Aviv 125 index. Other Stock Exchange indexes in which the Company’s securities are included are the Tel Aviv 90 index, Tel Aviv Cleantech index, the Tel Aviv Technology index, the Tel Aviv Global-Blue Tech index, Tel Aviv Tech-Elite index, Tel Aviv Rimon index, Tel Sector-Balance index, Tel Aviv Energy Infrastructures index, and Tel Aviv Industry index.

The Company is also among the companies comprising the following indexes: S&P Global Clean Energy Index, Global Small Cap Index MSCI, MAC Global Solar Energy Stock Index, S&P Abroad Market Index

Forward-looking information:

The aforementioned information in relation to the first part of the Directors’ Report on pages 1–18 including, but not only, with regard to the projects’ data, the structure of their financing, the financial and operating data thereof, the estimated time tables or other estimations of activities, projected financial indexes, etc., both in relation to the projects and in relation to the Company as a whole - includes forward looking information as defined in the Securities Law, 5728-1968. This information is based on the information available to the Company or the group as of the date of approval of the financial statements. This information includes Company and management’s estimates or intentions as of the date of this report. These estimates rely on tests carried out by Company’s management, analysis of existing regulations, laws, tariffs, licenses and regulatory decisions in connection with each and every project, existing financing agreements or management’s expectations in connection therewith, economic analyses, internal analyses, market studies, etc. It should be clarified that actual results may vary substantially from the results projected or implied by this information and which are included in this report, including, among other things, due to the risk factors listed in Chapter A – Description of the Corporation’s Business in the 2020 periodic report, including economic, regulatory and macro variables, market prices, global market terms, finance costs, macro factors, etc. The Company shall report material changes in relation to the data reported above.

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The Coronavirus events

During the first quarter of 2020, the Coronavirus virus started to spread worldwide. The spread of the virus led to a short-term slump in equity markets around the world and to a global economic slowdown. Nevertheless, during 2020, the Coronavirus pandemic did not have a material effect on the Group’s operating results. During the first quarter of 2021, the Israeli government started the rollout of the Coronavirus vaccines. At this stage there is no certainty as to the unfolding of the pandemic, the rate of return to normal activity and the opening of market, nor is there certainty that a new outbreak will be avoided (including new mutations), which will lead to the imposition of new restrictions.

The global spread of the Coronavirus causes uncertainty in the global economy. As a means to stop the spread of the virus, many countries, including Israel, took a number of steps and imposed travel restrictions. These restrictions caused many businesses to shutdown, slowed down manufacturing and delayed freight and international transport. So far, the spread of the virus in Israel and around the world did not have a material impact on the Company’s activities, and based on information currently available to the Company its activity is not expected to be materially impacted.

Upon commencement of the Coronavirus crisis, the Company conducted extensive risk management processes and took cross-organizational steps in order to deal with issues and/or events relating to the effects of the crisis; so far, the Company has significantly minimized any potential consequences of the crisis, such that as of the date of this report and in the foreseeable future the Company’s activity is not expected to be materially impacted, both in terms of construction of projects and in terms of financing and business development processes conducted by the Company. The Company has in place dedicated work and management teams which manage the activity of its projects, and closely monitor events and consequences relating to the Coronavirus crisis, At the same time, the Company has in place business development teams that work to identify business opportunities and manage business development.

In the opinion of the Company, based on information available to it as of the report’s approval date, the Company’s operations are not expected to be materially adversely impacted, as described below:

1. The Company benefits from a significant financial strength stemming from a combination of a high cash balance, a lower than before leveraging balance, operating flexibility, material and well distributed cash flows from income-generating project and an improved control and management structure.

2. All of the Company’s construction and maintenance work in all of its income-generating projects continue uninterrupted without any material delays. The Company’s facilities were recognized as essential facilities, and accordingly the construction and maintenance continue as usual.

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3. All income-generating facilities of the Company in Israel and abroad continue operating in full capacity. The Company’s revenue structure moderates the exposure to changes in electricity prices. 100% of the Company’s revenues in 2020 are under regulated tariffs, and app. 85% and 80% of the Company’s projected revenues in 2021 and 2022, respectively, are under regulated tariffs. In connection to the Blacksmith project in Serbia, in March 2020 the Serbian government published an emergency order, pursuant to which EPS (the Serbian government electricity company) announced the activation of the force majeure clause included in the PPA agreement of private electricity generators in Serbia, including the Blacksmith project and the suspension of the full tariff. In May, after 46 day, the emergency order was cancelled and the electricity tariffs were reinstated. In accordance with the above, the terms of the PPA agreement and the secured tariff thereunder shall be extended by the number of shutdown days. In the opinion of the Company, the net financial impact on the Company (taking into consideration the Company’s 50.1% stake in the facility) is approx. a million Euros.

In order to enable the continued growth of the Company and to minimize risks, the Company’s strategy includes the following aspects:

1. Enhancing the Company’s financial structure through high-quality capital raising in the Israeli capital market – in order to enable the advancing of the Company’s projects backlog, which includes projects in different development stages, and in order to enhance the Company’s financial strength, the Company issues shares and bonds in the Israeli capital market. Since the beginning of the Coronavirus crisis, the Company raised approx. NIS 965 million in shares and approx. NIS 250 million (gross) in bonds (expansion of the Series F bonds).

2. Enhancing the Company’s financing activity with Israeli and foreign banks – as part of these activities, the Company works to enhance the structure of its credit facilities and at the same time to advance the financial closing of its material projects – without a material delay to projects’ processes, their financing structure and/or a material change in finance costs.

3. Working closely with regulators - the Company maintains close contact with regulators in Israel and in other countries in which it operates, in order to continue promoting on a continuous basis the approvals required for the development of its various businesses and projects.

4. Continued business development efforts – The Company continues to assess business development opportunities and works to promote various opportunities in the Israeli and international market. The Company is of the opinion that the current crisis generates opportunities for developing and acquiring other projects.

5. Risk hedging – the Company has in place a comprehensive hedging policy to mitigate currency and interest risks.

It should be clarified that in the opinion of the Company – based on an analysis of stress conditions and sensitivity analyses it conducted, its field of operations, financial strength, and the preparedness of its management and employees will enable it to continue promoting its activity in

21 accordance with the strategy set by its Board of Directors, even if the Coronavirus crisis continues and/or in the event of a continued global economic slowdown.

Despite the above, at this stage it is not possible to estimate the impact of a continued or renewed spread of the Coronavirus in the long-term; such impact might be affected from the degree of the projected global recession, that might have an adverse impact on the economy in general and the field of renewable energy in particular. Since this crisis is a dynamic ongoing event with high degree of uncertainty, the extent of its impact on future business activity in Israel and across the world depends on the extent that various factors relating to dealing with the spread of the virus in Israel and across the world will materialize – including the amount of time during which the virus (or new mutations) shall continue to spread against the ability to find effective treatments and/or vaccines; the scope of restrictions on business activity as a result of such spread; the level of government support provided around the world, the international economic conditions. etc.

Set forth below are a number of potential impacts on the Company’s activity assuming that the economic crisis will continue: a. Activation of force majeure clauses in material contracts of the Company, such as – PPAs, construction contracts and financing contracts. The activation of such clauses might have a material impact on the Company’s various projects. b. Delays in time tables of Company projects under development. c. Impact on the sale of electricity, both in projects after financial closing and in projects in development stages. As described above, the Company’s revenue structure moderates the exposure to changes in electricity prices. d. Sharp changes in exchange rates may impact both foreign currency construction costs of projects under construction, and foreign currency cash flows from projects being operated. Furthermore, sharp increases in interest rates may impact the financing costs of projects under development or construction. In addition, fluctuations in securities’ prices may impact returns in the capital markets and the Company’s securities portfolio.

Forward-looking information:

The aforementioned information in relation to the effects and/or any potential effects of the Coronavirus crisis includes forward looking information as defined in the Securities Law, which is based on information available to the Company’s management as of the date of this report, the materialization of which is uncertain; changes in the Company’s estimates or a global deterioration might impact Company’s assessments.

The above information regarding the economic environment and the external factors impacting the Company’s activity is based on assessments and subjective estimates made by the Company based on its managers’ experience, and on publications and surveys written and published by professionals in Israel and globally in connection with the condition of the Israeli and global economies. In view of the above, actual results may be different than the 22

estimates and assessments set out in this report in connection with the external factors impacting the Company and its activities.

5. Adjustment between the consolidated statement of profit or loss and the non-GAAP fixed assets report Set forth below is an adjustment between data which are reported as part of the 2020 consolidated statement of profit or loss, in which some of the projects in Israel are accounted for according to the financial asset method (IFRIC 12) and the report presenting all projects under the assumption that they would have been accounted for by the fixed assets method, in accordance with the method used by the Company to assess its operating results:

Consolidated Adjustments Non-GAAP fixed NIS in millions statement of profit or assets report loss

Revenues 242 ) 5( 107 349 Cost of revenues ) 53( ) 53(

Depreciation and amortization (1) ) 53( ) 7( )39( ) 92( Gross profit 136 204 Operating expenses (29) (29)

Depreciation and amortization (1) ) 9( ) 9( Income from ordinary operations 98 166

Financing expenses (8) - - Exchange differences ) 1( ) 1(

Interest expenses (3) ) 111( ) 111(

Financing income 63 ) 6( )56( 7 Income before tax and before 49 61 early repayment fees

Early repayment fee (9) ) 232( ) 232( Loss before tax ) 183( ) 171(

EBITDA (2) Company A/N 267 Current tax payments ) 4( ) 4(

FFO (4) Company A/N 152

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Non-GAAP fixed assets report

Furthermore, set forth below is a summary of the data for 2018-2020 under the assumption that all facilities would have been accounted for under the fixed assets method:

NIS in millions For the year ended For the year ended For the year ended December 31 2020 December 31 2019 December 31 2018

Revenues 349 300 186 Cost of revenues ) 53( ) 39( ) 26(

Depreciation and amortization (1) ) 92( ) 75( ) 50( Gross profit 204 186 110 Operating expenses (29) ) 25( ) 20(

Depreciation and amortization (1) ) 9( ) 12( ) 4( Income from ordinary operations 166 149 86

Financing expenses (8) - ) 23( - Exchange differences ) 1( ) 20( 7

Interest expenses (3) ) 111( ) 87( ) 72( Financing income 7 5 2 Income before tax and before 61 24 23 early repayment fees

Early repayment fee (9) ) 232( - - Income (loss) before tax ) 171( 24 23

EBITDA (2) Company 267 236 140 Current tax payments ) 4( ) 2( ) 2(

FFO (4) Company 152 147 66 (1) Depreciation and amortization – depreciation in respect of fixed assets items, amortization of intangible assets, depreciation of right- of-use asset and share-based payment. (2) The EBITDA indicator is calculated as income (revenues from electricity proceeds, less operating costs) before financing expenses, taxes, depreciation and amortization, based on the implementation of the fixed assets model after commercial operation. (3) Interest expenses – current interest payments net of/plus changes in interest payable and net of interest payments to partners (excluding finance expenses due to the application of IFRS 16). (4) The FFO indicator is calculated based on the EBITDA indicator, as defined above, net of the impact of non-recurring events, plus/net of current tax expenses and interest expenses as defined above. The indicators set out above are cash flow and profitability indicators generally accepted in renewable energy projects; these indicators are used by the Company’s decision makers. It should also be noted that the above indicators are not based on generally accepted accounting principles. However, in Company’s opinion they may contribute to the analysis of the financial statements, and to the understanding of the Company’s activities by readers thereof. (5) Recording revenues from sale of electricity instead of repayment of a financial asset (see consolidated statements of cash flows). (6) Cancellation of recording of financing income stemming from the financial asset (see Note 15B to the consolidated financial statements). (7) Recording of depreciation expenses in respect of PV facilities in Israel which are accounted for as financial assets in the statutory reports and were converted into fixed assets items. Depreciation expenses that were added in the adjustment column were calculated under a residual value assumption of 15% (in relation to the cost of construction of the fixed assets) and a depreciation period of 20 years. (8) Mainly includes revaluation of CPI-linked loans, finance expenses to non-controlling interest, revaluation of hedge transactions and securities portfolio (if this net amount is positive it is classified to the financing income line item). 24

(9) One-off fees in respect of early repayment of loan from other credit providers.

The financial asset model compared with the fixed asset model

In its financial statements, the Company applies two main accounting models to record the photovoltaic facilities and recognize revenues in respect thereof:

1. Fixed asset model 2. Financial asset model (for facilities in Israel) The financial asset model is implemented where according to regulation, the government controls and regulates the terms of the license for the entire license (including determining who will the electricity generation services be provided to and the price at which these services will be provided) as well as when the residual value of the facility at the end of the license period is no longer considered material. For more details, see Note 2 K of the annual financial statements. According to the financial asset model, the Company records revenues during the facility’s construction period (as in the case of an executing contractor) whereas under the fixed asset model, revenues are recorded as capital investment; this means that although the legal ownership of the facility is held by the Company, because of the manner in which the government controls and regulates the license’s terms, from an accounting perspective the facility is viewed as if it had been transferred to the government’s ownership and the Company serves as an executing contractor during the construction period and as an operating contractor during the operating period.

In view of the fact that the total proceeds from electricity from the project and the timing in which those proceeds were actually received remain the same regardless of whether the model which is applied is the fixed asset model or the financial asset model, and those proceeds will be received upon the generation of electricity and the feeding thereof into the grid, the financial asset model actually breaks the link between the timing of revenue recognition and the timing of receipt of cash, whereas in the fixed asset model the timing of revenue recognition approximates the timing of receipt of cash.

During the construction period, revenues are recognized from construction in respect of which there is no cash flow and which give rise to the right to receive proceeds in respect of the construction services, in the form of a financial asset that is recorded in the Company’s books of accounts. On the other hand, during the operating period, operating and financing income is recognized in the statement of profit or loss and this income is lower than the actual electricity proceeds. The difference between the electricity proceeds and revenues in the Company’s statement of profit or loss during the operation period serves to repay the financial asset that was created in the construction period until it is reduced to zero at the end of the license period.

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The following chart shows how the statement of profit of loss of a sample project behaves compared with its cash flow at the different stages during the license’s period under the two models.

Fixed asset model Financial asset model under concession arrangements ןCash operations

Operational Construction Operational Construction stage stage Stage stage Non-cash operations Electricity Electricity Proceeds proceeds Total revenues Total revenues )*( )*( Construction Operating and revenues finance income

Depreciation Construction costs Total expenses Total expenses )*( )*( Operating Operating expenses expenses

(*) The total amount of revenues and expenses which will be recognized over the term of the project are identical under the two models.

For the Company’s financial results by sectors, see Note 28 of the attached financial statements.

For details regarding separate financial information of partnerships, which have been pledged to secure the repayment of the Company’s liability certificates, see update of chapter A (description of the corporation’s business).

Projects in the construction and operations stages divided into financial asset and fixed asset

Financial asset Fixed asset

Halutzyut Blacksmith Mivtachim Lukovac Talmei Bilu Sunlight1+2 Cramim Tullynamoyle Idan Zait Yarok Golan Fruits, Sde Nehemia and Barbur Emek Habacha Hungary

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