Ellomay buys 9 MW in Israel

Israeli solar project developer Ellomay has agreed to acquire a 9 MW PV plant located in Talmei Yosef, Israel from Solegreen Ltd.

Ellomay bought 100% of the equity of Sun Team Group Ltd., the company owning the facility, for 48.6 million NIS (approximately $13.8 million).

According to Ellomany, Sun Team Group Ltd. had, prior to the transaction, approximately NIS 9.6 million (around $2.7 million) in cash, so the net purchase price in the Transaction is NIS 39 million (about $11 million).

The project, which was granted a 20-year FIT contract in April 2013, is selling power to local power utility Israeli Electric Company (IEC) at a price of 0.9857 NIS (around $0.278)/kWh.

“The electricity tariff paid by the IEC,” Ellomay said in its press release, “is guaranteed for a period of 20 years commencing November 11, 2013 and is updated once a year based on changes to the Israeli Consumer Price Index. It is expected that the annual payments received from the IEC in connection with the Talmei Yosef Project will be approximately 16 million NIS (approximately $4.5 million).”

The project was financed 70% by the Israel Discount Bank.

Including this new solar plant, the company’s operational installed PV capacity has reached 39.5 MW. Ellomay owns and operates another 22.7 MW in Italy and 7.6 MW in Spain.