Ellomay Capital Ltd. (ELLO): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of Ellomay Capital Ltd. (ELLO) to see how they actually make money in the shifting energy landscape, and honestly, their model is a smart play in diversification. As someone who spent a decade mapping out power plays at BlackRock, I see a focus on multi-jurisdictional power generation-solar, gas, and pumped storage-that mitigates risk while building a solid base. With total assets nearing €729.3 million as of mid-2025 and about 574 MW of connected capacity across five geographies, their strategy is clear: lock in long-term Power Purchase Agreements (PPAs) for stable cash flow while developing new battery storage. Dive into the full Business Model Canvas below to see exactly how their key partnerships and revenue streams, which hit €20.1 million in H1 2025, translate into shareholder value; it's defintely worth a closer look.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Key Partnerships

You're looking at the structure of Ellomay Capital Ltd.'s (ELLO) alliances as of late 2025. These partnerships are critical for funding, asset development, and revenue certainty across their global renewable energy platform.

Clal Insurance: 49% partner in 198 MW Italian solar portfolio

Ellomay Capital Ltd. closed an investment transaction in June 2025 with Clal Insurance Company Ltd., a leading Israeli institutional investor, for a 49% interest in the 198 MW Italian solar portfolio. Ellomay Capital Ltd. retained a 51% controlling interest. Upon consummation of the transaction, Ellomay Capital Ltd. received approximately €21 million.

The 198 MW Italian Solar Portfolio is composed of:

• 38 MW of operational solar facilities.
• 160 MW of Ready-to-Build projects.

The agreement also involved the issuance of a warrant to Clal Insurance for 416,000 ordinary shares at an exercise price of NIS 69.7 per share, exercisable within 26 months.

Ellomay Luzon Energy: Increasing stake in Dorad Power Plant to 33.75%

On July 22, 2025, Ellomay Luzon Energy Infrastructures Ltd. completed the acquisition of 15% of the outstanding shares of Dorad Energy Ltd. (Dorad). This move increased Ellomay Luzon Energy's total holdings in Dorad Energy Ltd. to 33.75%. The acquisition was based on a value of NIS 2.8 billion for Dorad Energy Ltd. The Dorad Power Plant has a production capacity of approximately 850MW, which represents about 6%-8% of Israel's total current electricity consumption. Approvals were received to increase the capacity from 850 MW to approximately 1,500 MW.

European Institutional Investors: Securing project financing up to €110 million

Ellomay Capital Ltd.'s wholly-owned subsidiary, Ellomay Holdings Luxembourg Sarl, entered into agreements governing the procurement of financing with a reputable European institutional investor, advised by White & Case LLP. This Project Finance is in an amount of up to €110 million, intended to finance the construction and related expenses of the 198 MW Italian Solar Portfolio. The financing is provided through senior secured notes due on December 31, 2047. The notes bear interest at a rate of 4.50% per annum, to be paid semi-annually in arrears.

Statkraft: Long-term Power Purchase Agreements (PPAs) for Italian solar

Ellomay Capital Ltd. announced that three Italian project companies, in which Ellomay Capital Ltd. indirectly holds a 51% interest, signed long-term 9-year Power Purchase Agreements (PPAs) with Statkraft. These PPAs cover 75% of the capacity (at P50) for three operating solar plants in Italy's central-southern zone (CSUD). The combined capacity of these three plants is approximately 38 MW.

Ellomay Capital Ltd.'s remaining Italian solar pipeline includes:

• 160 MW under construction processes (51% owned).
• 124 MW that received construction permits.
• Additional 140 MW expected to receive permits.

EPC and O&M Contractors: Construction and operation of global projects

The Company recognized other income of approximately €1.4 million for the six months ended June 30, 2025, recognized based on agreed compensation expected to be received from the EPC contractor of two of Ellomay Capital Ltd.'s USA solar facilities for loss of income due to delays in construction. Historically, for the 300 MW DC Talasol Project in Spain, Ellomay Capital Ltd. entered into an Engineering, Procurement & Construction (EPC) agreement with METKA EGN Limited for a fixed and lump-sum amount of euro 192.5 million. This agreement included performance of two years of Operation and Maintenance (O&M) services.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Key Activities

You're looking at the core engine driving Ellomay Capital Ltd.'s value creation, which centers on deploying capital into power generation and storage assets across multiple geographies. These activities are where the actual money is made and the future portfolio is built.

Developing new solar and battery energy storage (BESS) projects is a major focus, especially in the US and Italy. The pipeline development costs for the six months ended June 30, 2025, were approximately €2.9 million. This activity is translating into tangible assets:

• Italy Solar: 160 MW commenced construction processes (as of June 2025).
• Italy Solar: 134 MW have reached Ready to Build status.
• Texas Solar/BESS: Approximately 27 MW connected/in process, with an additional 22 MW under construction.
• Israel BESS: The Talmei Yosef Project is intended for 10 solar MW and 22 MW/hour batteries.

The company is actively operating and maintaining a multi-technology power generation fleet globally. This fleet provides immediate revenue and EBITDA:

Securing long-term Power Purchase Agreements (PPAs) locks in revenue stability for a portion of the fleet. For instance, for the Talasol project in Spain, 80% (or 75% based on P-50) of its production is sold through a PPA. Separately, for the Talmei Yosef project in Israel, Ellomay Capital Ltd. is in advanced negotiations with a local virtual electricity supplier for a long-term PPA.

Managing project finance and capital structure optimization is evident in recent deal structuring. For the 198 MW Italian Solar Portfolio financing, Ellomay secured up to €110 million in project financing. This financing carries a Loan to Cost (LTC) ratio of approximately 60% for 23 years at a fixed annual interest of 4.5%. Also, the 28 MW solar project in Spain reached financial closing in May 2024 for €10 million over 16 years at approximately 3% fixed annual interest.

The crucial activity of Expanding the Manara pumped storage project from 156 MW to 220 MW is ongoing despite external factors. The current project capacity is 156 MW, with an option to expand to 220 MW. Negotiations are underway with the Israeli Electricity Authority to realize this expansion. The expected cost for the 156 MW project was EUR 467 million, with expected annual revenues of EUR 74 million and expected annual EBITDA of EUR 32 million (at 100% ownership). The expected commercial operation date for the 156 MW project has been extended to the First Half of 2029 due to the war situation.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Key Resources

You're looking at the core assets that power Ellomay Capital Ltd.'s business right now, late in 2025. These aren't just line items; they're the physical and intellectual capital driving returns.

The balance sheet strength is clear: Ellomay Capital Ltd. reported total assets of approximately €729.3 million as of June 30, 2025. That's the foundation you need to see before digging into the operational details.

The primary resource is the diverse, operating, and developing power portfolio. Ellomay Capital Ltd. has a connected capacity of approximately 574 MW spread across five geographies, which is a significant operational footprint. [cite: Requested data point]

Here's a quick look at how that capacity breaks down across the main energy types:

• Solar Power assets in Italy, Spain, and the USA.
• Natural Gas exposure via an indirect interest in Dorad Energy Ltd. in Israel.
• Biogas facilities operating in the Netherlands.
• Pumped Storage development in Israel.

This diversification is a key resource in itself, helping to smooth out regional or commodity-specific volatility. For instance, the Dutch biogas plants produce green gas with capacities of approximately 3 million, 3.8 million, and 9.5 million Nm3 per year across three project companies.

The tangible asset base, as of mid-2025, looks something like this:

Securing the revenue from these assets is another critical resource: long-term contracts. You see this clearly in the Italian portfolio, where the 38 MW of operating solar has a 9-year Power Purchase Agreement (PPA) with Statkraft. Defintely, the newer Ellomay 11 project secured a 20-year two-way Contract for Difference (CfD), which locks in a supported price of €67.7/MWh for 75% of its capacity.

Finally, the human capital is essential for deploying these projects. Ellomay Capital Ltd. relies on its experienced management team, which includes CEO Ran Fridrich, with deep expertise in project development and finance across Europe, the USA, and Israel. This team is actively managing the pipeline, including the 156 MW Manara Cliff Pumped Storage Project, which is in advanced stages despite some wartime delays.

Finance: draft 13-week cash view by Friday.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Value Propositions

You're looking at the core strengths Ellomay Capital Ltd. (ELLO) offers to its customers and partners, which really boils down to de-risked, long-term, clean power generation. It's about spreading bets and executing on complex builds, which is key in this sector.

Geographical and technological diversification for risk mitigation

Ellomay Capital Ltd. mitigates risk by operating across distinct energy markets and technology types. As of mid-2025, the footprint spans Europe, Israel, and the USA, specifically mentioning operations or development in Italy, Spain, the Netherlands, Israel, and Texas, USA. This isn't just about geography; it's about mixing revenue sources from solar, biogas, and hydro storage projects.

Here's a snapshot of the operational and development diversification:

Stable, long-term energy supply through PPAs and base-load gas power

Securing long-term revenue certainty is a major value proposition, especially given the volatility in European power prices. You see this clearly in the Italian solar portfolio.

• Signed 9-year Power Purchase Agreements (PPAs) with Statkraft for three operating Italian solar plants.
• These PPAs cover 75% of the P50 capacity for these assets, totaling approximately 38 MW.
• Financing for the 198 MW Italian Solar Portfolio has senior secured notes due on December 31, 2047, bearing interest at 4.50% per annum.

The indirect interest in Israel provides a different kind of stability. Ellomay Capital Ltd. holds a 9.375% indirect interest in Dorad Energy Ltd., which operates one of Israel's largest private power plants with a production capacity of approximately 850 MW, covering about 6%-8% of Israel's total current electricity consumption.

Clean energy generation from solar and biogas assets

The core business is generating clean power. As of the first half of 2025, total assets stood at approximately €729.3 million. The company is actively bringing capacity online.

For instance, revenues for the six months ended June 30, 2025, were approximately €20.1 million, with increases attributed to new Italian solar facilities connected to the grid in early 2025. Specifically, an 18.1 MW Italian solar facility connected in January 2025 contributed to this.

The development pipeline is substantial, aiming to convert ready-to-build projects into operating assets:

• The Italian Solar Portfolio includes approximately 160 MW that reached ready-to-build status, for which construction agreements were executed.
• The Company has approximately 50 MW of additional solar projects intended for construction in the USA during 2025.

Development expertise to bring complex, large-scale projects to grid connection

Bringing large projects to the grid requires significant financial structuring and execution capability. A prime example is the financing secured for the Italian Solar Portfolio.

Ellomay Holdings Luxembourg Sarl secured project financing of up to €110 million for the 198 MW Italian Solar Portfolio. This financing is structured via senior secured notes issued in multiple tranches during construction. Furthermore, the Israeli Manara Cliff Pumped Storage Project, with a capacity of 156 MW, is in advanced construction stages, demonstrating capability in complex, large-scale infrastructure development.

Contribution to grid stability via natural gas and BESS development

While primarily solar-focused, Ellomay Capital Ltd. addresses grid stability concerns through its gas asset interest and planned Battery Energy Storage Systems (BESS).

The Dorad power plant in Israel, which uses natural gas, received approval to increase its capacity by an additional 650 MW. Separately, the company plans to install batteries in solar projects across the USA, Spain, and Italy to manage energy transfer from off-peak to peak hours. This BESS integration is a direct response to grid volatility, such as that seen in Spain due to renewable energy surpluses.

Finance: draft 13-week cash view by Friday.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Customer Relationships

You're structuring the relationships Ellomay Capital Ltd. maintains with its key stakeholders, which is crucial for securing long-term revenue stability in the power sector. Here is the breakdown of those customer relationships as of late 2025.

Dedicated Key Account Management for Utility and Institutional Off-takers

The relationship management focuses heavily on securing long-term, creditworthy counterparties for power sales and attracting institutional capital. The collaboration with Statkraft, noted as one of Europe's most respected and experienced offtakers, strengthens the foundation of key deals.

The nature of these relationships can be summarized by the counterparties involved in recent agreements:

• Statkraft signed long-term (9-year) Power Purchase Agreements (PPAs) for 51% of approximately 38 MW of operating solar plants in Italy.
• The July 2025 private placement of ordinary shares for approximately NIS 50 million involved commitments from several Israeli institutional and classified investors, including an affiliate of Menora Mivtachim Holdings Ltd.
• The December 2025 private placement of Series G debentures involved commitments from Israeli classified investors, raising gross proceeds of approximately NIS 136.5 million.

Long-term Contractual Relationships via PPAs (e.g., Talasol 80% PPA)

Long-term contracts provide the backbone of revenue predictability, which is essential for financing large infrastructure assets. The structure of these agreements varies by project and jurisdiction.

Here's a look at the contractual stability across key assets:

For the Ellomay 11 project, the total supported price is €67.7/MWh, with expected total revenues over the 20-year duration estimated at approximately €180,000,000. The tariff indexing for this project is 100% indexed from July 2025 until Commercial Operation Date (COD), and 20% indexed to the Italian CPI thereafter.

Transactional Sales for Electricity Sold on the Spot Market

While long-term contracts dominate the secured revenue base, a portion of production is exposed to merchant pricing, which represents the transactional customer relationship with the wholesale electricity market.

• The Ellomay 11 project is structured such that the remaining 25% of its total production will be sold under merchant pricing.

Investor Relations for Capital Raising and Shareholder Communication

Ellomay Capital Ltd. actively engages with its investor base, primarily through capital markets activities on the Tel Aviv Stock Exchange (TASE) and NYSE American, to fund growth. The total assets as of June 30, 2025, stood at approximately €729.3 million.

Key capital raising activities in 2025 include:

• February 2025 Israeli public offering of Series G Debentures yielded net proceeds of approximately NIS 211.7 million (about €56.7 million at issuance).
• July 2025 private placement of 926,000 ordinary shares at NIS 54 per share, raising gross proceeds of approximately NIS 50 million.
• December 2025 private placement of Series G debentures, raising gross proceeds of approximately NIS 136.5 million (par value NIS 130,000,000).

Financial performance metrics relevant to shareholder communication for the first half of 2025 include revenues of approximately €20.1 million and cash provided by operating activities of approximately €5.1 million for Q1 2025. For Q2 2025, revenues were approximately €11.3 million, and EBITDA was approximately €3.2 million.

Regulatory Engagement for Project Permits and Grid Connection

Engaging with regulatory bodies is a critical relationship for securing the right to build and operate assets, effectively turning development pipeline into contracted capacity. This involves securing permits, grid access, and favorable tariff structures.

Milestones in regulatory engagement include:

• The Dorad power plant received approval from the National Infrastructures Committee and a positive connection survey to increase capacity by an additional 650 MW.
• Zoning approval was secured for the Talmei Yosef Storage Project in Batteries, intended for approximately 400 MW/hour of high voltage storage regulation.
• The Company estimates approximately 53 MW of Italian solar projects are expected to receive construction permits in the near term.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Channels

You're looking at how Ellomay Capital Ltd. (ELLO) gets its power and gas to market, which is really about where they connect their assets. It's a mix of direct sales, grid connections, and specific gas market channels. Here's the breakdown based on what they reported through mid-to-late 2025.

National and Regional Electricity Grids (Spain, Italy, Israel, USA)

The physical delivery of electricity flows through the established grids in the regions where Ellomay Capital Ltd. operates its solar and storage assets. The scale of these connections is substantial across their portfolio.

• Spain operating solar capacity: Approx. 335.9 MW, which includes 51% of the 300 MW Talasol plant.
• Italy operating solar capacity: 51% ownership in approx. 38 MW.
• USA operating solar capacity (Texas): Approx. 27 MW connected to the grid, with an additional 22 MW awaiting connection.
• Israel: An approx. 9 MW photovoltaic power plant.
• Italy pipeline: 160 MW under advanced construction, 130 MW at Ready-to-Build status, and approx. 53 MW expected to receive near-term construction permits.

Direct Power Purchase Agreements (PPAs) with institutional off-takers

Securing long-term contracts is key for stability, and Ellomay Capital Ltd. has been actively locking in revenue streams. You can see this strategy clearly in their Italian portfolio.

• Italian PPA coverage: A recent 9-year PPA with Statkraft covers 75% of the capacity (at P50) for three operating solar plants totaling approx. 38 MW.
• Talasol PPA hedge: A financial power swap covers approx. 80% of the Talasol Project's output for a 10-year period.
• New Italian Project Revenue Certainty: The recently awarded 79.5 MWp Ellomay 11 project has an expected total revenue of approx. €180,000,000 over its 20-year duration, supported by a fixed price tariff of €67.7/MWh.

Spot Market Sales for residual electricity production

When power isn't covered by a PPA, it hits the merchant or spot market. This exposes Ellomay Capital Ltd. to price volatility, as seen in past periods.

Green Gas Distribution Networks in the Netherlands

The Dutch operations channel biomethane into the gas grid, with profitability significantly tied to regulatory support mechanisms for green certificates.

The blending obligation for green gas is set to commence in January 2027, and agreements are already signed for green certificates at a price of approx. €1 per certificate. This is expected to boost profitability at the current production capacity, which is expected to increase from 16 million cubic meters of gas per year.

The combined nameplate capacity across the three project companies is substantial:

• Groen Gas Gelderland B.V. capacity: Approx. 9.5 million Nm3 per year.
• Groen Gas Oude-Tonge B.V. capacity: Approx. 3.8 million Nm3 per year.
• Groen Gas Goor B.V. capacity: Approx. 3 million Nm3 per year.

Project-specific financing institutions for debt and equity

Securing project finance is a critical channel for funding development and construction, often involving a mix of debt and equity partners specific to each asset class or region.

For the 198 MW solar projects in Italy, Ellomay Capital Ltd. executed a financing agreement with a Loan-to-Cost (LTC) ratio of approx. 60%, structured over 23 years at a fixed annual interest rate of 4.5%. Clal Insurance entered as a partner with a 49% stake in this portfolio for an investment of approx. EUR 53 million.

Historically, for the Oude Tonge Project in the Netherlands, Coöperatieve Rabobank U.A. provided financing tranches, including loans of €3.15 million and €1.7 million at a fixed annual interest rate of 3.1% for the first five years.

As of June 30, 2025, Ellomay Capital Ltd.'s total assets stood at approximately €729.3 million.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Customer Segments

Institutional Investors and Project Co-investors (e.g., Clal Insurance)

• Clal Insurance received a 49% interest in the 198 MW Italian solar portfolio in June 2025.
• Clal committed to invest approximately €52 million in the Italian solar portfolio.
• Ellomay received approximately €21 million upon consummation of the Clal transaction.
• A European institutional investor is providing up to €110 million in project financing for the 198 MW Italian Solar Portfolio via senior secured notes at 4.50% per annum interest, maturing on December 31, 2047.
• In July 2025, a private placement to Israeli institutional and classified investors raised gross proceeds of approximately NIS 50 million.
• The share price in the July 2025 private placement was set at NIS 54 (approximately $16.3).

Green Gas Distributors and Certificate Buyers in the Netherlands

Israeli End Consumers (indirectly via Dorad Power Plant)

• Ellomay holds a 9.375% indirect interest in Dorad Energy Ltd.
• Dorad's production capacity is approximately 850 MW.
• Dorad's capacity represents about 6%-8% of Israel's total current electricity consumption.
• Approvals were received to increase Dorad's capacity from 850 MW to approximately 1,500 MW.
• Ellomay Luzon Energy is expected to purchase 7.5% of Dorad's shares based on a total Dorad value of NIS 2.8 billion.

National and Regional Utilities/Grid Operators (primary off-takers)

• The 300 MW Talasol PV Plant in Spain has its output covered by a PPA for approximately 80%.
• The 28 MW Spanish solar project secured financing for 16 years at a fixed annual interest rate of approximately 3%.
• In Italy, a 198 MW solar portfolio includes approximately 38 MW already connected and operating.

Large Industrial and Commercial Electricity Consumers (via PPAs)

• Solar + storage projects in Israel (Komemiyut and Qelahim) each include 21 MW solar and 50 MW/hour batteries.
• In the USA, Ellomay has approximately 27 MW of connected solar projects and an additional 22 MW awaiting connection to the grid.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Cost Structure

You're looking at the costs Ellomay Capital Ltd. incurs to keep its renewable energy portfolio running and to fuel its development pipeline. Honestly, for a company like Ellomay, the cost structure is heavily weighted toward project-level financing and the upfront work of getting new solar and battery storage projects shovel-ready.

Here's a quick look at the major expense categories based on the first half of 2025 results (six months ended June 30, 2025). It's important to remember that project development costs often shift into capital expenditures once construction starts, which is a key dynamic here.

Project development costs for the six months ended June 30, 2025, hit approximately €2.9 million, up from about €2.3 million for the same period in 2024. This increase is mainly tied to development expenses for solar projects in the USA and Italy. You see, getting those projects to the point where they can start construction is where a lot of that early cash goes.

General and administrative expenses were reported at approximately €3.4 million for the first half of 2025, an increase from roughly €3 million in H1 2024, largely due to higher consultancy expenses. That's a fixed cost you have to cover regardless of project success, so it's something to watch closely.

Operating expenses, which cover the day-to-day running of existing assets, totaled about €9.2 million for the six months ended June 30, 2025. That's actually a slight decrease from the €9.5 million in H1 2024. The main reason for the drop is lower costs related to the acquisition of feedstock for the Dutch biogas plants, though this was partially offset by starting to record operating expenses for the 19.8 MW Italian solar facility after it achieved its preliminary acceptance certificate.

Financing expenses are a major component, though they aren't aggregated in the same way as the line items above for the six-month period. For the first quarter of 2025 (three months ended March 31, 2025), we can see the specific interest burdens:

• Financing expenses in connection with projects finance: approximately €1,487 thousand.
• Financing expenses in connection with debentures: approximately €1,883 thousand.

Regarding capital expenditures for construction of new solar and BESS capacity, while a specific CapEx figure for construction in H1 2025 isn't explicitly stated as a single number, the pipeline activity points to future spending. For instance, agreements were in place for 160 MW ready-to-build projects where construction was expected to start in Q1 2025, contingent on financing agreements, which signals where the large capital outlays are headed. Also, note the forfeiture of guarantee of NIS 1.8 million related to waiving rights on certain battery projects, which is a sunk cost in the development phase.

Ellomay Capital Ltd. (ELLO) - Canvas Business Model: Revenue Streams

The revenue streams for Ellomay Capital Ltd. (ELLO) are derived from the generation and sale of renewable energy, as well as the monetization of tax incentives.

Revenues for H1 2025 totaled approximately €20.1 million, representing an increase of approximately 3.5% compared to the corresponding half in the prior year.

The core revenue components include:

• Sale of electricity under long-term PPAs (fixed price)
• Sale of electricity on the spot market (variable price)
• Sale of green gas and green certificates (Netherlands)

The structure of electricity sales in 2024 indicated that 80% of the production from the Talasol project was sold under a fixed price Power Purchase Agreement (PPA), with the balance sold directly to the grid at spot prices.

For the Netherlands operations, agreements have been signed for the sale of green certificates issued under the new regulation at a price of approximately €1 per certificate. The Dutch subsidiaries generate approximately 16 million green certificates a year based on current production capacity.

A significant, non-recurring revenue event involves the monetization of US tax benefits. Ellomay Capital Ltd. expects to receive approximately USD 19 million from the sale of Investment Tax Credits (ITCs) linked to its Texas solar projects, which represents approximately 32% of the expected total portfolio costs for those assets. The company retains 100% of the operating profits from these projects.

Here is a summary of key financial figures related to revenue streams:

The structure of electricity sales in 2024 showed that the revenue from the sale of electricity was approximately €18.7 million for the nine months ended September 30, 2024.

The company's total revenues for the full year ended December 31, 2024, were approximately €40.5 million.