New Investment For Italian PV Market

Ellomay Capital has announced that it has entered into Engineering Procurement & Construction Contracts with an Italian contractor for the design, supply, construction, assembly and commissioning of two photovoltaic plants of approximately 750KWp each, to be located in the Marche region in Italy, for an aggregate cost of approximately 4.5 million Euros (the "EPC Project"). Additional ancillary expenses are expected to amount to approximately 0.2 million Euros. The EPC Project requires the contractor to procure delivery of two fully operational photovoltaic plants, including the connection of the solar power plants to the Italian national grid, in order to sell the produced power to the Italian national energy handler (GSE).

Time to connection to the national grid is estimated at approximately 120 days from first payment. Thereafter, it is intended that the contractor shall operate and maintain the two solar power plants, for an annual fee, with an additional bonus or penalty to be paid if the power output is above or below certain performance benchmarks. It is the Company's intention to finance the majority of the EPC Project by obtaining financing from a financial institution.