Ellomay acquires 300 MW PV project in southern Spain

Israel-based solar company Ellomay Capital has agreed to acquire Talasol Solar, a special purpose vehicle owning one of Spain’s largest PV projects, the 300 MW Talasol Solar project.

The company was acquired through a share purchase agreement at a price of €10 million ($10.9 million). The project is expected to be developed in the municipality of Talaván, in the southern region of Extremadura.

Ellomay said the agreement is subject to several customary conditions, including receipt of certain regulatory approvals and entry into certain material agreements. This project is one of the first large-scale PV projects announced in Spain after the government introduced a moratorium for solar in 2012.

“The Talasol project is a material project, which we believe is going to be one of the largest PV projects in Europe. The Talasol project is expected to operate based on long-term power purchase agreements (PPAs) with utilities and/or electricity brokers. Ellomay has been active in the Spanish PV market since 2012,” said Ellomay CEO Ran Fridrich.

Ellomay added that, depending on the EPC agreement, the capex including development costs and interest is expected to be approximately €225-255 million (approximately $245 million – $278 million). Currently, however, the company has not secured yet the financing for the project, although it hopes to raise the required funds from “from banks, suppliers, equity or debt financings  and potential partners.”

After Spain introduced the moratorium for solar in 2012, not a single large-scale PV project has been built in the country, although several projects such as the Talaván projects were announced across several southern regions over the past years. All of these projects, which were originally conceived to sell power to the local grid at market prices, could now eventually compete in Spain’s upcoming 3 GW renewable energy auction.