The 300 MW solar farm in Spain is approved for financing under the EFSI (Junker Plan)

Ellomay Capital Ltd., a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, announced that the project for construction of a photovoltaic plant with a peak capacity of 300 MW in the municipality of Talaván, Cáceres, Spain, promoted by Talasol Solar S.L., which the Company indirectly wholly owns was approved for financing under the European Fund for Strategic Investments.

EFSI is an initiative launched jointly by the European Investment Bank (EIB), the European Investment Fund and the European Commission (together, the "EIB Group").  EFSI is a EUR 26 billion guarantee from the EU budget, complemented by a EUR 7.5 billion allocation of the EIB's own capital. The total amount of EUR 33.5 billion aims to unlock additional investment of at least EUR 500bn by 2020. EFSI is implemented by the EIB Group and projects supported by it are subject to usual EIB procedures.

As it appears in the EFSI operation scoreboard,the project comprises the financing, under a project finance scheme, of a solar photovoltaic (PV) plant with a total capacity of ca. 300 MWP. It also includes its overhead grid connection line of ca. 24 km in length and a voltage level of 400 kV and the related transforming substation. The project would be one of the first greenfield renewable energy projects to be financed in Spain following a wide-sector reform implemented in 2014 and amongst the first solar PV projects to be developed on a merchant basis and without any form of government support. In addition, the project will contribute to the EU Climate objectives and will help Spain meet its renewable target of 20% of primary energy generated by renewable sources by 2020. The project would be a major investment to be directly implemented by the promoter. The promoter acquired the project in an advanced development stage, and kept the staff originally involved in its development. In addition, the promoter has selected an owner's engineer to assist in the final development steps, including the tendering process for the Engineering, Procure and Construct (EPC) contract. An experienced EPC contractor has been appointed, and technology from reputable suppliers has been selected - including for PV panels, inverters, single-axis trackers, main transformers, etc. The project has the highest possible score in terms of contribution to EU policy, being eligible within Higher Priority Areas for projects inside the EU, fully accountable towards Climate Action objectives and located in a Cohesion region