Ellomay Capital Ltd. announced that its Italian project company, Ellomay Solar Italy Eleven S.r.l., has been awarded a 20‑year Contract for Difference in Italy’s FER X national competitive tender for the Ellomay 11 79.5 MW solar project. The award covers 75 % of the project’s output at a fixed price of €57.7 per megawatt‑hour, plus a €10 per megawatt‑hour regional supplement, giving a total revenue rate of €67.7 per megawatt‑hour.
The 20‑year CfD provides long‑term revenue certainty for the majority of the project’s output, de‑risking the development and improving bankability. By locking in a price that is above the weighted average award price for solar projects in the FER X program, Ellomay secures a stable cash‑flow stream that can be used to support future expansion and to meet debt covenants.
In addition to the tariff award, Ellomay reported the first withdrawal of €110 million under the project‑finance facility for its 198 MW Italian solar portfolio. The portfolio consists of 38 MW of operational projects and 160 MW that are in advanced construction or ready‑to‑build stages. The financing, secured with a European institutional investor, will fund the construction of the 160 MW portion and strengthen the company’s capital structure.
The combination of a favorable CfD and a sizable financing facility positions Ellomay to accelerate its Italian renewable portfolio, reduce project risk, and create a platform for future battery energy‑storage projects that can complement the solar assets. The long‑term revenue certainty from the CfD also improves the company’s ability to attract additional equity and debt financing for other markets.
CEO Ran Fridrich said, “Winning the FER X tender for Ellomay 11 is an important strategic milestone for our expansion in Italy. It demonstrates our ability to place winning bids in national competitive tenders and positions us to advance a high‑value project that combines long‑term revenue certainty with meaningful merchant exposure.” The announcement signals confidence in the company’s bidding strategy and its execution capability in a competitive regulatory environment.
Overall, the tariff award and the first project‑finance withdrawal reinforce Ellomay’s growth trajectory in Italy, enhance cash‑flow predictability, and strengthen its balance sheet, providing a solid foundation for future expansion in the renewable energy sector.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.