Execution of EPC Agreement in connection with Ellomay Solar Project in Spain

Representative image by andreas160578 from Pixabay

Ellomay Capital Ltd., a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, indirectly owns Ellomay Solar S.L.U. (“Ellomay Solar”), which promotes the construction of a photovoltaic plant with an installed capacity of 28 MWDC in the municipality of Talaván, Cáceres, Spain, (the “Ellomay Solar Project”), entered into an engineering, procurement & construction agreement in connection with the Ellomay Solar Project (the “EPC Agreement”) with METKA EGN Spain S.L.U., a 100% indirect subsidiary of MYTILINEOS S.A., under the Renewables & Storage Development Business Unit.

The EPC Agreement provides a fixed and lump-sum amount of €15.32 million for the complete execution and performance of the works defined in the EPC Agreement. The works include engineering, procurement and construction of the Ellomay Solar Project and the ancillary facilities for injecting power into the grid and performance of two years of O&M services. The EPC Agreement includes additional standard provisions, including concerning liquidated damages in connection with delays and performance, performance guarantees, suspension and termination.

METKA EGN Spain is expected to complete the works under the EPC Agreement within 9 months from receipt of the Notice to Proceed. The early works commenced on 1st March 2021, and the Notice to Proceed is expected to be provided during May 2021.

MYTILINEOS’ Renewables & Storage Development Business Unit is an EPC and O&M contractor for the full range of solar and battery storage applications, ranging from stand-alone solar parks and battery storage applications to complex hybrid projects. Its project references include more than 1.5GW of PV projects and 400MW of battery storage in Europe, Africa, Asia, Australia and the Americas, in addition to the 300MW photovoltaic plant owned by Talasol Solar S.l., for which Metka EGN Spain was the EPC Contractor and which was connected to the Spanish national grid in December 2020. Metka EGN Spain now serves as the O&M contractor for such a plant.

Ran Fridrich, CEO and a Board member, Ellomay, commented: “The Ellomay Solar Project, was initiated by the Company’s business development team in a process that started with locating the land and obtaining all of the required permits to commence construction within two years from the beginning of the development process. The Company continues to develop a large number of additional photovoltaic projects in Spain, Italy, and Israel. All of these projects are developed by the Company’s business development team and are expected to reach “ready to build” status gradually, some soon and others in the more distant future.”

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