TEL AVIV, Israel, August 24, 2014 /PRNewswire/ --
Ellomay Capital Ltd. (NYSE MKT:
ELLO()TASE: ELOM)
("Ellomay" or the
"Company") an emerging operator in the
renewable energy and energy infrastructure sector, today announced
the approval by the Italian parliament and the conversion into law
of the Italian decree (the "Decree") providing for a
decrease in the Feed-in-Tariff ("FiT") guaranteed to
existing photovoltaic plants with nominal capacity of more than 200
kW ("Law 116/2014"). Preliminary information concerning the
Decree was included in the Company's press release issued on
June 25, 2014.
Law 116/2014 includes several changes compared to the Decree.
Pursuant to Law 116/2014, operators of existing photovoltaic
plants, such as the Company, which received a guaranteed 20-year
FiT under current Italian legislation, will be required to choose
between the following four alternatives:
(i) a reduction of 8% in the FiT for photovoltaic plants with
nominal capacity above 900 kW, a reduction of 7% in the FiT for
photovoltaic plants with nominal capacity between 500 kW and 900 kW
and a reduction of 6% in the FiT for photovoltaic plants with
nominal capacity between 200 kW and 500 kW (i.e., out of the twelve
Italian photovoltaic plants owned by the Company, eight will be
subject to a reduction of 8% in the FiT and four will be subject to
a reduction of 7% in the FiT);
(ii) extending the 20-year term of the FiT to 24 years with a
reduction in the FiT in a range of 17%-25%, depending on the time
remaining on the term of the FiT for the relevant
photovoltaic plant, with higher reductions applicable to
photovoltaic plants that commenced operations earlier (based on the
remaining years in the initial guaranteed FiT period of the
Company's existing Italian photovoltaic plants, the expected
reduction in the FiT for the Company's photovoltaic plants is
approximately 19%);
(iii) a rescheduling in the FiT so that during an initial period
the FiT is reduced and during the second period the FiT is
increased in the same amount of the reduction (the percentages of
the decrease and length of the initial period have not yet been
published and will be determined by the Italian Ministry of
Economic Development by October 1,
2014 but based on Law 116/2014 the goal is to provide for a
scheme that will guarantee an annual saving of at least
Euro 600 million by the Italian
public between 2015 and 2019, assuming all photovoltaic operators
opt for this alternative); or
(iv) the beneficiaries of FiT incentive schemes can sell up to
80% of the revenues deriving from the incentives generated by the
photovoltaic plant to a selected buyer to be identified among the
top EU banks. The selected buyer will become eligible to receive
the original FiT and will not be subject to the changes set forth
in alternatives (i) through (iii) above. The exact terms of this
alternative will be set by the Italian Authority for Electricity
and Gas by November 20, 2014.
The operators that will choose one of the alternatives set forth
in (i) - (iii) above can benefit from governmentally subsidized
lines of credit or guarantees, for a maximum amount equal to the
difference between the incentive due as of December 31, 2014 and the rescheduled incentive
under the alternative chosen. The guarantee or line of credit will
be made available by Cassa depositi e prestiti, a financing
institution controlled by the Italian government, according to
criteria that will be determined in the future by a specific
decree.
As the Company previously announced, the photovoltaic plant
operators, such as the Company, are required to make this choice by
November 30, 2014, with effect
commencing January 1, 2015. Operators
that will not make a choice will automatically be subject to the
first alternative.
The Company is studying Law 116/2014 and its effects on the
Company's results and, as final details concerning the four
alternatives have not been published yet, cannot at this point
determine which alternative it will choose with respect to each of
its Italian photovoltaic plants.
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE MKT, under the trading symbol "ELLO" and with the Tel
Aviv Stock Exchange under the trading symbol "ELOM." Since
2009, Ellomay Capital focuses its business in the energy and
infrastructure sectors worldwide. Ellomay (formerly Nur
Macroprinters Ltd.) previously was a supplier of wide format and
super-wide format digital printing systems and related products
worldwide, and sold this business to Hewlett-Packard Company during
2008 for more than $100 million.
To date, Ellomay has evaluated numerous opportunities and
invested significant funds in the renewable, clean energy and
natural resources industries in Israel, Italy
and Spain, including:
- Approx. 22.6MW of photovoltaic power plants in
Italy and 85% of 2.3MW of
photovoltaic power plant in Spain;
- 7.5% indirect interest, with an option to increase its holdings
to 9.375%, in Dorad Energy Ltd. Israel's largest private power plant, with
production capacity of approximately 800 MW, representing about 8%
of Israel's total current
electricity consumption;
Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi
Raphael and Mr. Ran Fridrich. Mr. Nehama is one of
Israel's prominent businessmen and
the former Chairman of Israel's
leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both
have vast experience in financial and industrial businesses. These
controlling shareholders, along with Ellomay's dedicated
professional management, accumulated extensive experience in
recognizing suitable business opportunities worldwide. The
expertise of Ellomay's controlling shareholders and management
enables the company to access the capital markets, as well as
assemble global institutional investors and other potential
partners. As a result, Ellomay is capable of considering
significant and complex transactions, beyond its immediate
financial resources.
For more information about Ellomay, visit
http://www.ellomay.com.
Information Relating to Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties. All statements, other
than statements of historical facts, included in this press release
regarding our plans and objectives of management are
forward-looking statements. The use of certain words,
including the words "will," "estimate," "project," "intend,"
"expect," "believe" and similar expressions are intended to
identify forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. We may not
actually achieve the plans, intentions or expectations disclosed in
our forward-looking statements and you should not place undue
reliance on our forward-looking statements. Various important
factors could cause actual results or events to differ materially
from those that may be expressed or implied by our forward-looking
statements, including publication of additional details concerning
the third alternative and other regulatory developments. These and
other risks and uncertainties associated with our business are
described in greater detail in the filings we make from time to
time with Securities and Exchange Commission, including our Annual
Report on Form 20-F. The forward-looking statements are made as of
this date and the Company does not undertake any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact:
Kalia Weintraub
CFO
Tel: +972-(3)797-1111
Email: anatb@ellomay.com
SOURCE Ellomay Capital Ltd