Solgreen Ltd, a prominent player in renewable energy, has announced a significant breakthrough in its efforts to expand Israel’s renewable energy infrastructure.
In an agreement reached, the company secured substantial financing to support its integrated photovoltaic (PV) projects combined with energy storage. This landmark agreement, valued at approximately 900 million NIS, represents a crucial step toward achieving Solgreen’s goal of becoming a leading electricity producer in the field of renewable energy in Israel.
The financing agreement, orchestrated in collaboration with Bank Leumi of Israel Ltd. and institutional entities from the Menorah Mivathim group, paves the way for the construction of ground-based photovoltaic projects paired with cutting-edge energy storage technologies. These projects, known as Agira, are set to play a pivotal role in Israel’s transition towards a more sustainable energy ecosystem.
The integrated PV and storage projects boast a total installed capacity of approximately 210 megawatts, coupled with an impressive energy storage capacity of around 470-megawatt hours. This initiative aligns with the Israeli government’s vision of increasing renewable energy’s share in the national energy mix.
Key components of the financing agreement include a senior debt framework of about 574 million NIS and an equity bridging framework of approximately 150 million NIS, among other additional financial frameworks totalling about 170 million NIS.
The financing agreement is structured to adhere to the regulations applicable at the time of signing, with provisions for potential adjustments in response to changing market dynamics. One significant aspect of this agreement is its potential to enhance the profitability of these projects. By transitioning from fixed pricing models to selling electricity to third parties in the free market, Solgreen aims to optimize returns, taking into account market electricity price estimates.
Solgreen’s strategic vision includes the establishment of large-scale photovoltaic projects integrated with energy storage. The company’s commitment to this vision was reinforced by a rights issue conducted on May 4, 2023, primarily aimed at securing financing for these pioneering endeavors.
It’s important to note that the disbursement of funds under this financing agreement is contingent upon meeting various conditions specified in the agreement, including the completion of necessary documentation, collateral postings, and compliance with predefined coverage ratios.
Solgreen’s commitment to sustainable energy production, combined with this significant financing agreement, positions the company as a driving force behind Israel’s renewable energy transformation.