Renewable energy company Solegreen (TASE: SLGN), which operates in the US and Italy as well as in Israel, reported today that it was entering the Greek market. The company, which is 52% owned by Generation Capital, has signed a binding agreement to buy half of a solar energy venture in Greece.
Solegreen (85%) will carry out the investment in Greece in collaboration with Spanish company Eranovum Energy 1 S.L. (15%). The Greek company has eight projects under development in Greece, with a total output of 200 megawatts. The deal price is €350 million, representing the development expenses incurred on the projects by the sellers so far.
The purchase agreement gives Solegreen and its partner an option to buy 35% more of the Greek company, after the first of the eight projects is ready. Solegreen estimates the investment in developing the eight projects at €110-140 million.
Solegreen mentions the Greek government's clean energy goals as one of the factors that led the company to enter this new activity. "In 2019, the aggregate output of the renewable energy market in Greece was 6.7 gigawatts, or which 2.8 gigawatts was solar energy. Under the government's plans, solar output is expected to reach 7.7 gigawatts in 2030, representing growth of 175%.," the company explained.
Published by Globes, Israel business news - en.globes.co.il - on September 1, 2021
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