Ellomay contracts METKA to build 300-MW Spanish PV project

Israeli renewable energy and power company Ellomay Capital Ltd (TASE:ELLO) has awarded the engineering, procurement and construction (EPC) contract for its 300-MW direct current (DC) Talasol photovoltaic (PV) project in Spain to METKA EGN Ltd.

"This is a very significant milestone in the advancement of the Talasol project, which is expected to be one of the largest photovoltaic projects in Europe and one of the first projects to work on grid parity, that is, without subsidies," Ellomay chief executive Ran Fridrich said today in a statement.

Ellomay is developing the project in the municipality of Talavan in the western Spanish province of Caceres.

Under the EPC agreement, METKA EGN, a joint venture between Greek companies Mytilineos Holdings SA (ATH:MYTIL) and Egnatia Group, will be paid a fixed and lump-sum amount of EUR 192.5 million (USD 223m). The deal includes the engineering, procurement and construction of the Talasol project and the ancillary facilities, including a 400-kV step-up substation and the line connecting the plant to the grid, as well as two years of operations and maintenance services. The contract is expected to be executed in 16 months. It can be terminated, if the project does not reach financial close within 14 months.

Subject to securing regulatory approvals and project financing, the Talasol project is expected to be online during the first half of 2020.

As announced recently, Ellomay is seeking EUR 125 million in financing from the European Investment Bank (EIB) to help finance the project.

(EUR 1 = USD 1.159)

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