Israel's Ellomay backs Spanish solar

The Israeli company has signed a binding letter of intent to purchase three solar plants in Spain, expanding its presence in the country.

Ellomay Capital, an Israeli-based renewable energy and energy infrastructure investor, has entered into a binding letter of intent to purchase three solar plants in Spain, expanding its presence in the country.

Under the agreement, Ellomay will spend €9.5 million to buy the solar plants – with a capacity of 5.6 MWp (megawatt peak) – that are located in Murica, Spain. The plants are expected to more than triple the firm's current solar photovoltaic (PV) production capacity to about 7.9 MWp in Spain, the company said in a statement.

The company has 13 existing PV sites in Italy and Spain, and the acquisition of the latest solar plants will increase its aggregate capacity to more than 30 MWp.

Ellomay expects that the annual revenue from the three solar plants will be around €2 million, with its entire PV portfolio generating an annual revenue of around €13.2 million.

The three solar plants are based on ground-mounted fixed technology and were connected to the Spanish national grid in 2011, according to the statement.

They have been held by a Spanish company whose German parent has entered into insolvency proceedings.