Enters into a Joint Development Agreement for Solar PV
Projects in Texas
TEL-AVIV, Israel, March 21,
2023 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE
American: ELLO) (TASE: ELLO) ("Ellomay" or the "Company"), a
renewable energy and power generator and developer of renewable
energy and power projects in Europe and Israel, today announced its entry into a Joint
Development Agreement (the "JDA") for the development of
solar photovoltaic projects in the State
of Texas.
The JDA was executed with a project development company
experienced in the development of energy projects, site
acquisition, capital markets and commercial management. The JDA
provides for the initial development, design, construction and
finance of two solar PV projects with aggregate projected DC
capacity of 23 MW (the "First Projects"). The First Projects
are in advanced stages of development and the estimated capital
costs of the First Projects are in the range of $25-$27 million.
The Company's share of the capital costs of the First Projects is
estimated at approximately $18-$20 million and
the balance is intended to be provided by tax equity sources with
whom the Company is currently in discussions. The sites for
the First Projects will be leased under long-term leases from
special purpose companies (Landcos) controlled by the development
team. One of the First Projects, with a DC capacity of
approximately 13 MW, is expected to achieve Ready to Build status
within six months. The JDA also provides for the development of
three additional solar PV projects up to Ready to Build status with
aggregate DC capacity of approximately 30 MW.
The projects to be developed under the JDA will be subject to
the ERCOT Distributed Generation ("DG") Scheme for projects
of up to 10 MW AC capacity and the applicable electricity market is
the "ERCOT North" zone market. Under the DG Scheme, ERCOT (the
electricity regulator of the State of
Texas), allows owners of generation assets to sell
electricity to Qualified Service Entities (QSE's) at market rates
under Real Time or Day Ahead prices at the local nodes where the
projects are located and/or to designated "Behind the Meter"
clients under Power Purchase Agreements.
Ran Fridrich, CEO of Ellomay noted that "The execution of the
JDA follows a very careful and in-depth analysis of the US Solar PV
market by the Company and fulfils Ellomay's strategy to enter into
the US market in a careful and gradual manner. Ellomay identified
potential partners for the joint development of Solar PV projects
in the State of Texas with
particular focus on sites in the Metro Dallas area, a densely
populated area experiencing high economic growth and large
potential for future growth in electricity demand. Ellomay's
strategy will be to build the projects "close to market" in areas
of high electricity demand, thus reducing risks such as curtailment
and other operating risks. Ellomay views the entry into the Ercot
North Market as an important but careful step into the vast US
electricity market, focusing on the State
of Texas that has and is experiencing high economic and
electricity demand growth."
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE American and with the Tel Aviv Stock Exchange under
the trading symbol "ELLO". Since 2009, Ellomay Capital focuses
its business in the renewable energy and power sectors in
Europe and Israel.
To date, Ellomay has evaluated numerous opportunities and
invested significant funds in the renewable, clean energy and
natural resources industries in Israel, Italy
and Spain, including:
- Approximately 35.9 MW of photovoltaic power plants in
Spain and a photovoltaic power
plant of approximately 9 MW in Israel;
- 9.375% indirect interest in Dorad Energy Ltd., which owns and
operates one of Israel's largest
private power plants with production capacity of approximately
860MW, representing about 6%-8% of Israel's total current electricity
consumption;
- 51% of Talasol, which owns a photovoltaic plant with a peak
capacity of 300MW in the municipality of Talaván, Cáceres,
Spain;
- Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas
Gelderland B.V., project companies operating anaerobic digestion
plants in the Netherlands,
with a green gas production capacity of approximately 3 million,
3.8 million and 9.5 million Nm3 per year, respectively;
- 83.333% of Ellomay Pumped Storage (2014) Ltd., which is
involved in a project to construct a 156 MW pumped storage hydro
power plant in the Manara Cliff, Israel.
For more information about Ellomay, visit
http://www.ellomay.com.
Information Relating to Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties, including statements
that are based on the current expectations and assumptions of the
Company's management. All statements, other than statements of
historical facts, included in this press release regarding the
Company's plans and objectives, expectations and assumptions of
management are forward-looking statements. The use of certain
words, including the words "estimate," "project," "intend,"
"expect," "believe" and similar expressions are intended to
identify forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The Company
may not actually achieve the plans, intentions or expectations
disclosed in the forward-looking statements and you should not
place undue reliance on the Company's forward-looking statements.
Various important factors could cause actual results or events to
differ materially from those that may be expressed or implied by
the Company's forward-looking statements, including risks and
uncertainties applicable to projects under development and
construction, shortages in equipment and components required to
build the projects and inability to enter into an agreement with a
tax partner under acceptable terms or at all. These and other risks
and uncertainties associated with the Company's business are
described in greater detail in the filings the Company makes from
time to time with Securities and Exchange Commission, including its
Annual Report on Form 20-F. The forward-looking statements are made
as of this date and the Company does not undertake any obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise.
Contact:
Kalia Rubenbach (Weintraub)
CFO
Tel: +972 (3) 797-1111
Email: hilai@ellomay.com
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SOURCE Ellomay Capital Ltd.