Ellomay Capital Ltd. announced that its Italian project company, Ellomay Solar Italy Fourteen S.r.l., has been awarded a 20‑year Contract for Difference (CfD) under Italy’s FER X “NZIA” national competitive tender. The CfD covers 80 % of the 20‑MW Ellomay 14 project’s output at a fixed price of €68 per megawatt‑hour, plus a €10 per megawatt‑hour regional supplement, for a total supported price of €78 per megawatt‑hour. The tariff is indexed to the Italian Consumer Price Index (CPI) at 100 % from the tender publication date until the Commercial Operation Date (COD) and at 20 % thereafter, providing a hedge against inflation for the long‑term revenue stream.
The award delivers long‑term revenue certainty for the majority of the project’s output, while the remaining 20 % will be sold on the merchant market, preserving upside exposure to Italian wholesale prices. This contract is a key component of Ellomay’s strategy to expand its Italian portfolio, which already includes 38 MW of operational projects, 160 MW under advanced construction, and 210 MW in ready‑to‑build status. Securing a 20‑year CfD for a new 20‑MW plant strengthens the company’s commercial position and supports its broader goal of scaling its renewable portfolio across Europe and Israel.
The FER X “NZIA” tender is part of Italy’s effort to align with the EU Net Zero Industry Act, prioritising non‑price criteria such as the use of non‑Chinese components for key equipment. Ellomay’s success in meeting these criteria demonstrates its ability to navigate the tender’s supply‑chain requirements and positions the company favorably against competitors such as Enel, X‑Elio, and R.Power. The tender’s focus on non‑Chinese components reflects a broader EU push to diversify supply chains and reduce dependence on China, giving Ellomay a strategic advantage in a market that increasingly values supply‑chain resilience.
Ellomay’s Italian pipeline now includes the newly awarded Ellomay 14 project, bringing the company’s total Italian capacity to 308 MW across operational, advanced‑construction, and ready‑to‑build projects. The 20‑MW Ellomay 14 will be the first new project to receive a FER X CfD in the Piemonte region, expanding the company’s geographic footprint and reinforcing its presence in a high‑potential area for solar development.
CEO Ran Fridrich said the award “highlights the steady advancement of our activities in Italy” and underscored the company’s focus on projects that meet the tender’s non‑Chinese component requirement. The 20‑year CfD provides a stable revenue base, while the merchant portion offers upside potential, balancing risk and reward. The company acknowledges construction timelines and market price volatility as headwinds, but the long‑term contract mitigates revenue uncertainty.
The 20‑year CfD is expected to generate approximately €55 million in total revenue for the Ellomay 14 project, based on the €78 per megawatt‑hour supported price and the project’s 20‑MW capacity. In addition to the CfD, the project will be eligible for tradeable Guarantees of Origin, offering an additional potential revenue stream. The combination of a long‑term, CPI‑indexed contract and the opportunity for GoO trading positions Ellomay 14 as a financially robust asset within the company’s portfolio.
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