Ellomay Secures Long-Term Revenue Stability with Major Italian Solar Project Award

Strategic Tariff Win Enhances Italian Expansion and Revenue Predictability

Ellomay Capital has just reached a milestone in its Italian renewables portfolio: its 100%-owned subsidiary, Ellomay Solar Italy Eleven S.r.l., has secured a crucial win in Italy's FER X competitive tender, granting it a 20-year fixed price arrangement for 75% of its new "Ellomay 11" solar project. The 79.5 MW facility is now poised for steady revenues and significant market participation as Italy accelerates its green transition.

Fixed Tariff and Merchant Upside Provide Balanced Revenue Model

For investors and industry watchers, the details of the FER X award are striking. Ellomay 11's expected annual generation is 119,300 MWh, and 75% of this output is backed by a Contract for Difference at a robust operating fixed price of €57.7/MWh, topped with a €10/MWh regional supplement. This creates a total secured price of €67.70/MWh. With a 20-year price-stabilized framework—indexed 20% to Italian CPI post-COD—the project balances long-term certainty with the ability to capitalize on market volatility for the remaining 25% of its energy sold on merchant terms.

First Project Finance Withdrawal Signals Progress Across 198 MW Portfolio

Ellomay’s expansion in Italy is gathering momentum not only with the FER X win but also through new financial backing. The company confirmed its first project finance withdrawal for its broader Italian solar portfolio, which encompasses both operational (38 MW) and advanced-construction (160 MW) sites—totaling 198 MW, where Ellomay holds a 51% stake.

Altogether, the company’s Italian activities now span approximately 460 MW of capacity, with ongoing construction, additional "ready-to-build" projects (130 MW), and permits for a further 53 MW expected soon. Ellomay is also progressing a battery energy storage (BESS) platform in Italy, aiming to unlock grid flexibility and new revenue streams.

CEO Cites Strengthened Position and Long-Term Growth Potential

Ellomay’s CEO, Ran Fridrich, highlighted that winning the FER X tender demonstrates both commercial acumen and strategic intent—laying the groundwork for a scalable platform in Italy. The dual strategy of combining stable contracted revenues with market-linked merchant exposure may help cushion the company from future market fluctuations, while the project’s indexation provisions further future-proof revenue flows.

Broader Portfolio Underlines European Renewable Focus

The FER X success in Italy is only a part of Ellomay’s expanding footprint. The company boasts significant assets across Spain (335.9 MW, including a 300 MW plant in Talasol) and has interests in pumped storage hydro, anaerobic digestion in the Netherlands, and solar in Texas. This pan-European and global portfolio reflects Ellomay’s strategy to diversify across geographies and technologies within the renewable sector.

Key Takeaway: Stability and Scale Could Drive Further Interest in Ellomay

With revenue streams secured by government-backed contracts and an ambitious growth plan, Ellomay positions itself as a key player to watch in European renewables. While long-term risks—regulatory, financial, and operational—remain inherent, this Italian tender result signals both stability and growth potential for the company’s shareholders. Investors may want to monitor Ellomay’s execution as its Italian and European operations continue to expand and new storage solutions come online.

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