Ellomay has executed a Framework Agreement between its wholly-owned subsidiary, Ellomay Luxembourg Holdings S.àr.l. (“Ellomay Luxembourg”), and an established and experienced European developer (the “Developer”).
Pursuant to the Framework Agreement, the Developer will provide Ellomay Luxembourg with development services with respect to photovoltaic greenfield projects in Italy in the scope of 350 MW with the aim of reaching an aggregate “ready to build” authorized capacity of at least 265 MW over a forty-one months period. The effectiveness of the Framework Agreement is subject to the parties reaching an agreed form of certain agreements that will be attached to the Framework Agreement within twenty days of its execution.
In addition to the 265 MW mentioned above, Ellomay Luxembourg has the option to purchase approximately 37 MW that are already under development by the Developer, 30 MW of which have already received the approval for connection to the Italian electricity grid.
The Framework Agreement provides that the Developer will offer all projects identified during the term of the Framework Agreement exclusively to Ellomay Luxembourg and that, with respect to each project acquired by Ellomay Luxembourg, the Developer will be entitled to provide development services until it reaches the “ready to build” status. The parties agreed on a development budget including a monthly development service consideration, to be paid to the Developer and all other payments for the tasks required to bring the projects to a ready to build status in an amount that is not material to the Company. In addition the Company undertook to pay a success fee to the Developer with respect to each project that achieves a “ready to build” status.
The advancement and development of projects that will become part of the Framework Agreement is subject to various conditions, including receipt of regulatory approvals and authorizations and procurement of land rights. There can be no assurance as to the aggregate capacity of projects that will by identified by the Developer and that will thereafter reach the “ready to build” status, and as to the Company’s decision and success in completing construction of any of such projects. Any future decision of the Company with respect to the continued development of projects will be subject to the relevant circumstances existing at the time such decision will be made.
Ran Fridrich, CEO of Ellomay noted: “The Framework Agreement executed by the Company is another tier in the Company’s plan to increase its portfolio of photovoltaic facilities that are based on greed parity. Today the Company’s projects under development are in an aggregate scope of approximately 550 MW and the Company intends to increase the scope shortly to approximately 1,000 MW that are expected to be built over the coming three years. The Company’s deep knowledge and extensive experience in constructing and operation photovoltaic facilities in Italy and Spain enable it to cooperate with experienced and reputable developers.”
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