The renewable energy company Nofer Energy, which is led by the chairman and founder Ofer Yanai and the CEO Nadav Tana, reported this morning (Monday) on entering into a power purchase agreement (PPA) for another significant project in Spain.
This is about the sale of about two-thirds of the electricity produced in the Sabinar I project (155 MW) at a fixed price for a period of 9 years, starting from October 1 this year. Now the supplier of the company’s advanced projects in Spain as part of the partnership with Keren Noi (through the subsidiary partnership Noi Nofer Europe in which Noi Keren owns 57%, Nofer 38% and local partners 5%) stands at 407 megawatts at an average price of 82.3 euros per megawatt of electricity: the Olmedilla project (169 MW) which was connected to the electricity grid a few weeks ago and is in commercial operation, the Sabinar I project (155 MW) which is expected to be connected to the electricity grid in the coming weeks and the Sabinar II project (83 MW) which is under construction. A few months ago the company signed an agreement for the sale of electricity for the Olmedilla project.
Benofer points out that the electricity sale agreement for the Sabinar I project was signed with a well-known company in Spain, which is a significant electricity consumer, and with whom the electricity sale agreement was also signed in relation to the Olmedilla project. The electricity sales agreements produce a mix of revenues which sets the electricity prices for periods of between 3 and 9 years at prices significantly higher than the estimates at the time of entry into the projects.
According to Nofer, the construction cost of the three projects is about 348 million euros, and they are expected to generate annual revenues of about 73 million euros, annual EBITDA of about 64 million euros and annual FFO of 57 million euros.
As mentioned, the average electricity tariff that the company expects in 2023 for all projects, after the signing of the electricity sales agreements, stands at 82.3 euros per megawatt.