The total cost of setting up the projects is about 96.6 million euros and they are expected to generate annual revenues totaling about 11.7 million euros.
Earlier this week, the company signed a strategic partnership agreement with Electrom, one of the leading bodies in the field of renewable energies in Poland.
In line with its strategic plan, and following its entry into activity in the renewable energy market in Poland, this morning Nofar Energy reports on the execution of another significant transaction in Poland and updates on the acquisition of a portfolio of solar projects with a total capacity of 185 megawatts. Earlier this week, the company announced the signing of an agreement with Electrum SP (Z OO), one of the leading bodies in the renewable energy market in Poland, for joint and exclusive holding in a corporation that will initiate, develop, manage and maintain PV and wind projects in Poland with capacity of up to 1,250 megawatts. The expansion of activity in the renewable energy market in Poland joins the projects, companies, and development platforms that the company owns in the United States, Spain, Romania, Italy and Israel.
As part of the additional transaction, Nofar Europe (90%) entered into an agreement to purchase a portfolio of solar projects in Poland with a total capacity of 185 megawatts, which are under construction and development, and are planned to be connected to the electricity grid during 2023-2024. The portfolio includes 14 projects with capacities ranging from 1 megawatts to 68 megawatts. The total projected construction costs of all the projects in the portfolio are approximately 96.6 million euros, and they are expected to generate annual revenues of approximately 11.7 million euros and annual EBITDA of approximately 7.8 million euros.
Nadav Tene, CEO of Nofar Energy “The current deal and the establishment of the partnership with Electrum, which we reported on earlier this week, are being carried out as part of the implementation of our strategic plan which marked Poland as one of the company’s key target markets. And is based on the global organizational structure built over the past year, which includes capabilities for initiation, development, financing, establishment, maintenance and management in the said markets. “Nofar Energy’s unique business model, along with its organizational structure and global deployment, enable the company to continue to develop additional growth platforms in emerging and profitable markets alongside deepening activity on existing platforms, thus ensuring its continued rapid growth.”
The renewable energy market in Poland
In February 2021, the Polish government adopted a strategic plan for energy policy for 2040 (Polish Energy Policy 2040, or PEP2040), under which it was agreed that by 2030 the share of coal in electricity production would be reduced from 66% to 56%, emissions would be reduced by 30% And the rate of renewable energies in electricity production will increase from at least 13% to 23%, along with the construction of wind-powered marine electricity production facilities and an increase in the production capacity of nuclear energy. In order to meet the targets for reducing coal use, the Polish government has pledged that all coal mines in the country will be closed by 2049.
According to estimates, the renewable energy market in Poland is expected to grow significantly in the coming years, among other things in order to meet the policy objectives set. Thus, according to an external consulting company, the construction of about 11.3 gigawatts of renewable energy power plants (solar and wind) is expected by 2025 and about 25.7 gigawatts by 2030 (compared to the current situation), of which about 10.3 Gigawatts of solar facilities, about 9.4 gigawatts of smeared offshore power generation facilities, and the rest of offshore wind power generation facilities. In addition, according to estimates, the generation of electricity from renewable energies is expected to be about 21% in 2025 and about 42% in 2030, compared to about 13% of electricity production from renewable energies in 2021.
.