Afcon expands activity in Poland: acquires solar project

by time news

Renewable Energy Company Afcon Renewable Energy, a subsidiary of Afcon Holdings, Acquires a solar project at an advanced initiation stage in Poland. The project, with a capacity of 101 MW, will be purchased through the company’s partnership with Migdal and Menora and with a total investment expected to be around 55-67 million euros, which will be financed mostly by credit and bank loans and the balance in the partnership’s investment. The equity required for the project is expected to stand at 16-20 million euros.

In addition, a services agreement was signed that the local entrepreneur will provide to the company until a financial closure is reached.

Afcon estimates that the construction of the projects will begin towards the end of 2022 and commercial operation is expected in the second half of 2023.

The company states that the seller is a leading entrepreneurial company in Poland, specializing in the development of solar projects, and that the project is located in the southwestern part of the country, where radiation data are among the best in Poland.

Israel Reif, Chairman of Afcon, said: “This is a significant addition to our portfolio of projects in Poland. This is a project with the best radiation data in Poland and is expected to start generating annual revenues of over 8 million euros. The new project is expected to be among the largest solar projects in Poland and will add to Afcon renewable energies significant solar power in high radiation areas. In this way, Afcon will become a significant player in the Polish market, in the field of renewable energies. “

Poland’s electricity market, the largest in Eastern Europe, is one of the most developing markets in continental Europe today with government targets for the transition to over 30% renewable energy by 2030 from just 13% today.

Afcon Holdings Traded at a value of NIS 1 billion after an increase of 88% in the past year.

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