June 7 (Renewables Now) - Israeli energy and infrastructure company Ellomay Capital Ltd (TASE:ELLO) said today it has entered into an agreement to take over a local firm that owns a 9-MWp solar photovoltaic (PV) plant in Talmei Yosef.
Ellomay will acquire that firm from a subsidiary of Solegreen Ltd (TLV:SLGN) for ILS 39 million (USD 11m/EUR 9.8m). Subject to certain approvals, the transaction is expected to close in the third quarter of 2017.
The Talmei Yosef plant, which is 80% financed by a local consortium led by Israel Discount Bank, sells its output to the Israeli Electric Company (IEC) under a standard 20-year power purchase agreement (PPA). The tariff currently applicable to the plant amounts to ILS 0.9857 per kWh and it is updated once a year based on changes to the Israeli Consumer Price Index.
Ran Fridrich, CEO and a board member of Ellomay, said that the company sees business potential in the asset being acquired. “We expect to continue investing in additional yielding assets in parallel to the development of new projects, thereby diversifying our operations and portfolio,” he added.
(ILS 1.0 = USD 0.282/EUR 0.251)