Doral: Electricity Sale Agreement – Revenue up to $ 345 million – Capital Market

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It is reported that subsidiary Doral Global (50.1%) has entered into an agreement for the sale of electricity and green certificates, to a corporation owned by Electric Utility, as part of the first phase of the Indiana project. The company estimates that revenues from the agreement are expected to reach $ 315 to 345 million.

Under the agreement, the company will sell to the customer all the electricity and green certificates produced in the project, whose power is estimated at 480 megawatts (DC), for a period of 15 years from the date of commercial operation of the first phase, which is expected to be ready by 2021.

According to the projected production capacity of the first phase, the total receipts from the sale of electricity and green certificates that are expected to be received under the agreement are estimated at $ 315 to 345 million. This is in addition to income components that will be based on free market prices, both during and after the agreement period.

Last week, the company published its results for the fourth quarter of 2020. As part of this, it reported a transition to a net profit of NIS 850,000, compared with a loss of NIS 2 million in the corresponding quarter last year. Revenues for the quarter jumped by hundreds of percent to NIS 31.6 million, compared with NIS 1.4 million in 2019.

Earlier it reported that its subsidiary Doral Europe (100%), has signed an agreement to initiate and establish projects in the field of photovoltaics with a capacity of 300 megawatts in Romania and an expected investment volume of $ 200 million. The projects, which are in various stages of initiation, will be established with a local partner through the establishment of a joint corporation, 80% of which will be held by the company.

Yaki Neumann, CEO of the Doral Group: “We are pleased to announce the conclusion of an agreement for the sale of electricity and green certificates to a corporation owned by Electric Utility, one of the leaders in the United States. We enter into mandatory schedules within which the company will operate in order to complete all the development and licensing procedures required for the construction of the project, including the completion of financing procedures. We see this as a significant step and believe that this is an important step that will help us establish our operations in the US and create a solid infrastructure for significant growth in the company’s activity in this market in the coming years. ”