Ellomay Capital Ltd.renewable energy producer and developer, says it has entered into a joint development agreement (JDA) for solar power projects in Texas.
The JDA was implemented with a project development company with experience in energy project development, land acquisition, capital markets and commercial management. JDA is responsible for the initial development, design, construction and financing of two solar power projects with a combined capacity of 23 MW DC. The first projects are in an advanced stage of development, with capital costs of $25-27 million.
The company’s share of the capital costs of the first projects is estimated to be approximately $18-20 million, with the remainder expected to be covered by tax capital sources. The sites of the first projects are rented with long-term leases from special companies under the control of the development team.
One of the projects with a capacity of about 13 MW DC is expected to be completed within six months. JDA also offers the development of three other solar projects with a total capacity of approximately 30 MW DC.
The ERCOT Distributed Generation (DG) scheme is applicable to projects being developed under JDA for projects with a maximum AC capacity of 10 MW. The applicable electricity market is the ERCOT North zone market.
Under DG’s system, ERCOT allows generating facility owners to sell electricity to qualified service entities at market rates at real-time or daily rates at projects’ local nodes and/or behind metered customers designated under PPAs.
“The implementation of the JDA follows a very careful and in-depth analysis of the US solar market and fulfills Ellomay’s strategy to enter the US market in a careful and gradual manner,” said Ran Fridrich, CEO of Ellomay. “Ellomay identified potential partners to co-develop solar projects in the state of Texas, with a particular focus on sites in the Dallas metro area, a densely populated area with rapid economic growth and high potential for future growth in electricity demand.”