Ellomay targets to develop PV projects in Italy with a capacity of 250 MW
Post date: 20/11/2019 - 13:08
Israeli firm Ellomay Capital Ltd., developer of renewable energy and power projects in Europe and Israel, announced the execution of a framework agreement between its wholly-owned subsidiary, Ellomay Luxemburg Holdings S.àr.l., and an unnamed European developer and contractor. The company will scout and develop photovoltaic greenfield projects in Italy with the aim of reaching an aggregate authorized capacity of at least 250 MW over a three-year period. The developer is currently in various advanced development stages of projects in an aggregate capacity of approximately 100 MW. It is currently estimated that projects with an aggregate capacity of approximately 70 MW will achieve ready-to-build status by the end of 2020.
According to the announcement, each ready-to-build project will be presented to Ellomay Luxemburg, and if accepted the developer is obligated to transfer to Ellomay Luxemburg 100 percent of the share capital of the entity that holds the rights to the project. Subsequently, Ellomay Luxemburg will enter into engineering, procurement and construction (EPC) and operation and maintenance (O&M) contracts with the developer.
In connection with the execution of the Framework Agreement, Ellomay Luxemburg paid the developer an advance payment in an amount that is not material to the company, based on the target aggregate project capacity of 250 MW, and undertook to pay an additional advance payment per each project when the project submits its environmental impact assessment application. In the event the target aggregate capacity is not achieved within a three-year period or in the event a project does not reach ready-to-build status, the advance payment will be proportionately refunded.