Ashtrom Renewable Energy will establish projects with a capacity of 476 MW in Greece for an overall investment of up to 380 million euros
In addition, Ashtrom has the right to take ownership of several other projects at advanced stages of development.
TEL AVIV, Israel, October 11, 2022 /PRNewswire/ — Another milestone for Ashtrom Group (TASE: ASHG) in promoting its renewable energy operations. The subsidiary Ashtrom Renewable Energy announces its entry into activity in Greece today, following its operations in the United States and Poland, which began last year. Ashtrom Group today announces that its subsidiary, Ashtrom Renewable Energy, has signed agreements to develop a pipeline of solar projects in Greece in which a local development partner will develop five projects under initial development and with a cumulative scope of ~476 MW. The cost of setting up these projects is estimated at 335-€380Mbased on the assumption that the construction cost per MW, including the cost of connecting such projects to the network, is estimated at 700-800K€.
In addition, Ashtrom Renewable Energy has secured a future right to take over several additional projects owned by the Greek company at advanced stages of development and which the development partner expects to obtain the substantial permits necessary for construction over the course of the year. coming year. .
In addition, the agreement contains a mechanism whereby the consideration for the development partner will be determined based on the milestones defined in the agreement and the progress of the development, where the major part of the consideration will be paid at stages of advanced development and after approval of connection to the electricity grid. Grid.
Yitsik Marmelshtein, CEO, Ashtrom Renewable Energy: “Ashtrom’s entry into the energy market in Greece fits with its strategy of expanding its renewable energy activities in other countries, following our entry into the United States and Poland. We believe that the Greek market – characterized by accelerated growth, high electricity prices and good solar radiation conditions compared to other European countries – can be a significant growth opportunity for Ashtrom Renewable Energy in the near future. We intend to take further steps and develop other renewable energy projects, thereby establishing our operations in the United States, Israel, Poland and Greecewhere we are carrying out substantial projects with a total capacity of around 1.5 GW”.
The renewable energy market in Greece has experienced accelerated growth in recent years and is expected to continue to grow in the near future in light of various developments in the European energy market, particularly in Greece. The total installed capacity in Greece in 2022 is estimated at ~21 GW, with solar capacity estimated at ~4 GW.
According to market consultants specializing in Greeceinstalled solar capacity is expected to reach ~10 GW by 2030, representing a significant share of the energy generation mix in Greece.
Electricity derived from renewable energy projects in Greece can be sold through a variety of methods, including participation in government-published tenders, through long-term power purchase agreements (PPAs) or the sale of electricity on the open market.
Ashtrom Renewable Energy operates in several major geographic markets, primarily focusing on the United States and Europe. This project is in addition to several others in which the company operates Texas and Idaho. These projects, including the current project pipeline, are in various stages of development, comprising approximately 1,500 MW. Ashtrom recently announced that it has signed a first agreement with a partner to sell ~235 MWdc of electricity in a project generating an overall capacity of ~400 MWdc in Texas. The agreement was signed with the San Antonio electricity company (international Aa2 classification), which will acquire 60% of the electricity produced by the said project for 20 years.
Ashstrom Group is among Israel’s leading construction and real estate companies whose shares are listed Tel Aviv 35. The group operates in several business segments: Construction and construction of infrastructure in Israel – including, among others, residential and infrastructural contract constructions; Franchising – participating in tenders and performing planning, operating and financing activities for large-scale infrastructure and residential projects; Housing entrepreneurship in Israel, through Ashdar, a leading subsidiary and one of the oldest in the sector; Investment and corporate real estate, through Ashtrom Properties, a subsidiary operating in Israel, Germany and England, owning and managing shopping centers and malls, office buildings and employment centers, industrial structures and more; Industries – mainly manufacture, marketing and sale of raw materials to the construction industry and import and marketing of finishing products for the construction industry; Overseas construction and infrastructure contracts, as well as residential real estate development in the United States and Europe – performed by Ashstrom International; Renewable energy – investment in wind, solar, storage and other energy-related projects in Israel and around the world. The Chairman of Ashtrom Group is Mr. Rami NussbaumGroup CEO – Gil Giron.
Yitsik Marmelshtein, CEO, Ashtrom Renewable Energy
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SOURCEAshtrom Group LTD.