Israel's Noy Fund, Nofar Energy to buy 235.5-MW PV project in Spain

Mar 24, 2021 03:44 PM ET
  • Israel's Noy Infrastructure & Energy Investment Fund and green technology firm Nofar Energy Ltd (TASE: NOFR) have actually authorized an agreement to obtain 90% of the supply of a company that holds a 235.5-MW two-phase solar photovoltaic (PV) project in Spain.
Israel's Noy Fund, Nofar Energy to buy 235.5-MW PV project in Spain
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The transaction, which the Israeli firms are performing through their joint endeavor Andromeda Solutions, will certainly include an investment of a total amount of EUR 180 million (USD 212.8 m), consisting of the expenses of construction, the partners stated in a press release.

The vendor's name was not disclosed.

The bargain encompasses legal rights to the Sabinar project in main Spain. The first phase, Sabinar 1, will have an approximated capability of 152.5 MW, complied with by Sabinar 2 of 83 MW. All relevant licenses for both projects have been safeguarded.

Construction of the first stage is due to start in the 3rd quarter of 2021, with the 2nd stage beginning a quarter or 2 later, the business claimed.

Noy and Nofar Energy expect the Sabinar plants to generate annual incomes of EUR 22 million, with forecasted annual EBITDA seen over EUR 18 million.

The Sabinar 1 as well as 2 websites are located near the 169-MW Olmedilla PV project presently under construction in the Spanish area of Castile-La Mancha. Noy Fund obtained Olmedilla from UK's Hive Energy over a year earlier.

The firms plan to fund the preliminary phases of the project with their resources. They said the funding approach for the later stages will be established based upon funding sources in Spain and also Israel, the presence of power acquisition arrangements (PPAs) and also their stability provided the forecasted development of Spain's energy market in the coming years, the joint statement reads.

Andromeda Solutions is led by Noy Fund with a 60% stake, with Nofar Energy holding the continuing to be 40%. The Sabinar deal is the JV's 3rd investment.