Greece's Terna, Israel's Econergy to team up for solar projects worth 265 mln euro

Israeli utility-scale renewable energy company Econergy said it is entering the Greek market through a deal with local Terna Energy [ASE:TENERGY] to jointly develop a portfolio of solar power plants in Greece - an investment project worth an estimated 265 million euro ($279.7 million).

Under the agreement, Econergy will acquire a 49% stake in an unnamed Greek business, which owns two companies currently developing local solar plants with capacities of 240 MW and 220 MW respectively, the Israeli renewables developer said in a statement on Sunday.

Econergy's share of the sum needed for the construction of the projects comes to around 130 million euro.

The plants will be located near Kilkis, in Greece's Central Macedonia region. The projects are estimated to be ready to build in the third quarter of 2023, with construction anticipated to start in the final quarter of that year.

The photovoltaic parks are projected to be connected to the grid upon completion by the end of 2024.

"The Greek electricity market presents Econergy with the potential for significant growth in the coming years, due to its long-term tariff tenders, the possibility of selling electricity on the free market at attractive prices, and the relatively high solar radiation in Greece," the Israeli firm said. It added that the move, part of its plan to expand its operations in Europe, will lead to establishing a local team in Greece, with further projects envisaged there and in other European markets.

Terna, part of Greek holding group Gek Terna, owns and operates wind farms in Greece, Bulgaria, Poland and the US. It also has 8.5 MW of operational solar plants in Greece as well as a pipeline of pumped storage and hybrid projects, according to its website.

($ = 1.055 euro)

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