Solar and storage company Nofar Energy of Israel will buy a 90% stake in 2 solar power projects in Spain with a total capacity of 235.5 MW, through its 40:60 joint venture Andromeda Solutions with Israel based infrastructure fund, the Noy Fund.
This expansion in Spain is part of their strategy to expand the presence in the European market. It cost them a total of €180 million ($213 million), including construction costs. They now expect the complete project to bring them annual revenues of €22 million, and projected a yearly EBITDA of over €18 million.
The companies said that they have executed an agreement to secure this stake in the project called Sabinar 1 with an estimated capacity for 152.2 MW due to enter construction in Q3/2021, and Sabinar 2 with 83 MW, both located near Olmedilla Photovoltaic Park in Castilla de la Mancha in central Spain. Together with 169 MW under phase 3, the Olmedilla project will have 404 MW total capacity on completion.
For both the projects, the partners will fund the initial stages with their own resources. Consequent stages will be funded based on availability of funding resources in Spain and Israel. They also plan to explore the power purchase agreement (PPA) market to ensure their viability.
Under its strategic plan, Nofar Energy plans to extend its global operations significantly in 2021 while aiming to increase the capacity of Spanish projects to 400 MW in 2021.
"We remain focused on identifying and developing additional operations and projects in additional markets," said Nofar Energy CEO Nadav Tene.
In February 2021, both the partners entered Italy's rooftop solar market through an investment in Sunprime General Srl through their joint venture Andromeda Solutions.
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