Israel-based Israeli outfit Ellomay Capital has agreed to acquire Spanish firm Talasol Solar, which is promoting the construction of a 300MW photovoltaic facility in Spain.

The project, which is expected to cost €255m, will be located in the municipality of Talaván in Cáceres. It is expected to generate approximately 580 gigawatt-hours of electricity a year. 

Ellomay said the project is expected to be construction ready within 10-15 months.  

The company expects that the capital to build the solar farm will come from banks, suppliers, equity or debt financing and potential partners. 

Howevr, there can be no guarantee of obtaining such financing. The company added that there are no agreements, commitments or understandings in connection to any such financing as of now.

Ellomay Capital CEO and director Ran Fridrich said the Talasol project will be one of the largest PV projects in Europe which is likely to operate based on long-term power purchase agreements (PPAs) with utilities and/or electricity brokers.

Fridrich added: “Ellomay has been active in the Spanish PV market since 2012. The Talasol opportunity intrigued us, and we received good feedback on the Project's location and characteristics and on the expected future of the Spanish solar market from various market players, such as EPC contractors, utilities, brokers, investment banks and commercial banks in the Spanish and European markets.

“The high radiation in the Spanish peninsula, the significant decline of the panel prices and the relatively attractive finance costs, are expected to allow the Spanish solar market to become an advanced grid parity market".

In December 2016, Ellomay Capital completed the acquisition of a 51% stake in a waste-to-energy anaerobic digestion facility named as Goor Project in The Netherlands.