Ellomay Capital Ltd, a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today announced that Talasol Solar S.L.U., its indirect wholly-owned subsidiary entered into a set of agreements governing the procurement of financing in the aggregate amount of approximately euro 177 million.
The Project Finance is intended to finance the construction of a photovoltaic plant with a peak capacity of 300 MW in the municipality of Talaván, Cáceres, Spain promoted by Talasol. Fichtner, Talasol’s owner engineer, currently expects that the Talasol photovoltaic plant will generate approximately 561 GWh of electricity a year.
The Project Finance consists of several facilities from Deutsche Bank AG and from the European Investment Bank under the Investment Plan for Europe known as the Juncker Plan. For more information concerning the Project Finance, see a Form 6-K furnished by the Company to the Securities and Exchange Commission on December 20, 2018.
The consummation of the Project Finance is subject to the occurrence of certain events and circumstances, including the fulfilment of the conditions to closing, that are not entirely within the control of the Company or Talasol. There can be no assurance as to whether or when the conditions to closing will be satisfied.
In its publication concerning the Project Finance, EIB noted that: “The municipality of Talaván in Cáceres will be home to one of Spain’s largest solar photovoltaic power plants, and one of the first in the country to be financed outside renewable energy auctions. The European Investment Bank is financing this project with a EUR 70m Juncker Plan loan with the aim of helping to combat climate change. When it starts operating in 2020, this new plant will prevent the release of 263,000 tonnes of CO2 into the atmosphere a year by generating electricity using solar energy.”
Ran Fridrich, CEO and a board member of Ellomay commented: “The execution of the financing agreement is a significant accomplishment and one of the final and major steps forward in the Talasol Project. The Company is very pleased with the progress achieved so far in line with the planned schedule. Talasol is a pivotal project for Ellomay as it is bound to serve as a model for our continued growth in developing, constructing and operating solar projects in Europe and Israel.”
Ori Rosenzweig, chief investment officer at Ellomay Capital, said, “The fact that two major banks, Deutsche Bank and EIB, are financing the project testifies for its significant success potential. I believe we have obtained the optimal financing terms required for the project that will set a new standard for the future solar power production in Spain and Europe. This is a good opportunity to thank our friends in DB, whom had a major positive contribution to the success of the project in general, and specifically in reaching the positive results of the financing agreement. Talasol couldn’t reach this important milestone, without the positive support throughout the process from the Spanish government, local government and the municipality of Talavan. ”
EIB Vice-President Emma Navarro said: “This project will help to increase electricity generation using solar energy, which is important for meeting European renewable energy goals in Spain, as well as for promoting sustainable growth and cutting carbon emissions. We are delighted to announce our support for this project just few days after the climate change conference held in Katowice, a great opportunity to show the world that the EIB is committed to the Paris Agreement and combating climate change. We will continue working to mobilize financing for climate action projects and to ensure that all of our activities are fully in line with the Paris objectives in 2020.”