Ellomay inks framework deal for 250 MW of solar in Italy

An unnamed European developer and contractor has agreed to scout and develop greenfield solar photovoltaic (PV) projects in Italy with a total capacity of at least 250 MW for Ellomay Capital Ltd (TASE:ELLO).

The Israel-based renewable power producer said in a statement on Tuesday that its fully-owned unit Ellomay Luxemburg Holdings Sarl has entered into a framework agreement with that developer. The target aggregate capacity should be achieved within a three-year period.

The European firm presently has projects with a potential combined capacity of 100 MW in various advanced development stages. It expects about 70 MW to achieve the ready-to-build status by end-2020.

If Ellomay chooses to acquire the shovel-ready projects, it will enter into engineering, procurement and construction (EPC) and operation and maintenance (O&M) contracts with the unnamed company. Ellomay Luxemburg has paid an advance payment to the developer and has committed to make additional payments once the projects submit environmental impact assessment applications.

“We recognize the potential in the developing Italian renewable energy sector, which is based on market prices and not on governmental subsidies. Ellomay Luxemburg has been operating in the Italian energy market for a substantial period and this experience will enable us to utilize all the benefits included in this business opportunity," commented Ran Fridrich, CEO of Ellomay.

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