Ellomay steps in US with co-development solar deal in Texas

Israeli renewables developer and power producer Ellomay Capital Ltd (TASE:ELLO) has set foot on the US market by signing a co-development agreement for 23 MW DC of solar projects in Texas.

The company, which is already present in Europe and its home country, last week said that the contract also provides for the development of three additional photovoltaic (PV) projects totalling 30 MW DC, up to the shovel-ready status.

The joint development agreement was sealed with an unnamed company experienced in the development of energy projects, site acquisition, capital markets and commercial management. Under the arrangement, the partners will work to design, build and finance the construction of two solar schemes, which are currently in the advanced stages of development. Their required cost is estimated at between USD 25 million (EUR 23.3m) and USD 27 million. Ellomay’s share stands at roughly USD 18 million-20 million, with the balance to be sourced from tax equity investors.

The first project in the 23-MW bundle will have a capacity of 10 MW DC and is expected to become ready-to-built within six months. Both plants will be able to sell their output to qualified service entities at market rates and under power purchase agreements (PPAs).

(USD 1.0 = EUR 0.931)

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