Ellomay Capital Ltd. (Ello): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico da energia renovável, a Ellomay Capital Ltd. (Ello) surge como um jogador fundamental que navega pelas intrincadas interseções de inovação, sustentabilidade e resiliência estratégica. Essa análise abrangente de pestles revela os desafios e oportunidades multifacetados que moldam a trajetória da empresa, oferecendo uma exploração diferenciada de como fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais convergem para definir a posição única de Ellomay no ecossistema de energia limpa global. Mergulhe em uma jornada atraente que revela os complexos mecanismos que impulsionam essa empresa de energia renovável israelense e sua adaptação estratégica a um mercado global em constante evolução.

Ellomay Capital Ltd. (Ello) - Análise de Pestle: Fatores Políticos

Companhia de energia renovável israelense em ambiente geopolítico complexo

A Ellomay Capital opera no setor de energia renovável de Israel, navegando em um cenário político desafiador caracterizado por tensões regionais e dinâmica de política energética.

Dimensão política	Impacto específico na Ellomay Capital
Estabilidade da política energética	Alvo de energia renovável de Israel: 30% até 2030
Incentivos renováveis ​​do governo	Tarifa de alimentação de energia solar: 0,52 NIS por kWh
Índice de Risco Político	Pontuação de Israel: 68,5/100 (estabilidade política moderada)

Potenciais mudanças regulatórias no setor de energia

A estrutura regulatória energética de Israel apresenta desafios e oportunidades para o planejamento estratégico da Ellomay Capital.

• Reforma do setor de eletricidade: reestruturação contínua da Israel Electric Corporation
• Cota de energia renovável: 10% contribuição obrigatória de energia renovável até 2025
• Regulamentos de conexão da grade: processo simplificado de permissão para projetos solares

Incentivos do governo para projetos de energia renovável

O governo israelense fornece apoio financeiro estratégico ao desenvolvimento de energia renovável.

Tipo de incentivo	Valor financeiro
Benefícios fiscais para projetos renováveis	Até 20% de redução de impostos corporativos
Subsídios de investimento	Máximo 30% dos custos de capital do projeto
Preferências de alocação de terras	Aprovações aceleradas para instalações solares

Estabilidade política impacto no investimento

O ambiente geopolítico de Israel influencia diretamente as estratégias de implementação e investimento do projeto da Ellomay Capital.

• Investimento direto estrangeiro no setor de energia: US $ 425 milhões em 2023
• Cobertura de seguro de risco político: disponível para investimentos em energia renovável
• Relações Diplomáticas: Cooperação energética positiva com países vizinhos

Ellomay Capital Ltd. (Ello) - Análise de Pestle: Fatores econômicos

IMPACTO DE MERCADOS DE ENERGIA GLOBAL

Preço do petróleo de Brent em janeiro de 2024: US $ 78,50 por barril. Preços de gás natural em Israel: US $ 5,60 por mMBtu. Avaliação do portfólio de energia renovável da Ellomay Capital: US $ 127,3 milhões.

Indicador do mercado de energia	2023 valor	2024 Projeção
Investimento de energia renovável	US $ 86,7 milhões	US $ 104,2 milhões
Retornos do projeto solar	6.3%	7.1%
Custo da infraestrutura energética	US $ 42,5 milhões	US $ 49,6 milhões

Políticas econômicas de Israel para energia renovável

A meta de energia renovável de Israel para 2030: 30% da geração de eletricidade. Incentivos de investimento em energia renovável do governo: 15% de crédito tributário. Taxa de crescimento do setor de energia renovável: 8,4% anualmente.

Riscos de câmbio

Taxa de câmbio do USD/ILS em janeiro de 2024: 1 USD = 3,71 ILS. Índice de volatilidade da moeda: 4,2%. Custos anuais de hedge de moeda: US $ 1,3 milhão.

Métrica de moeda	2023 valor	2024 Previsão
Flutuação da taxa de câmbio	±3.8%	±4.1%
Impacto da tradução financeira	US $ 2,7 milhões	US $ 3,1 milhões

Desafios de desenvolvimento de infraestrutura energética

Investimento total de infraestrutura de energia em Israel: US $ 5,6 bilhões. Desenvolvimento de projetos Escallagem de custos: 7,2% anualmente. Tempo de aprovação do projeto de energia renovável: 18-24 meses.

• Barreiras de desenvolvimento de infraestrutura
• Custos de conformidade regulatória
• Requisitos de investimento em tecnologia

Ellomay Capital Ltd. (Ello) - Análise de Pestle: Fatores sociais

Crescente conscientização pública e demanda por soluções de energia sustentável

De acordo com uma pesquisa de energia israelense de 2023, 68,4% dos cidadãos israelenses expressam forte apoio a projetos de energia renovável. O interesse público em soluções de energia sustentável aumentou 22,7% em comparação com 2020.

Ano	Porcentagem de apoio público	Investimento de energia renovável
2020	45.6%	US $ 127 milhões
2023	68.4%	US $ 218 milhões

Aumentar a preferência social por tecnologias de energia limpa

As taxas de adoção de tecnologia de energia limpa em Israel atingiram 37,5% em setores residenciais, com as instalações do painel solar aumentando 29,3% em 2023.

Tecnologia de energia	Taxa de adoção	Crescimento anual
Painéis solares	37.5%	29.3%
Energia eólica	12.6%	15.7%

Mudanças demográficas nos padrões de consumo de energia em Israel e mercados direcionados

Os padrões de consumo de energia mostram variações significativas entre as faixas etárias. A geração do milênio e a geração Z demonstram 52,8% de preferência de energia renovável em comparação com as gerações mais velhas.

Faixa etária	Preferência de energia renovável	Consumo médio mensal de energia
18-35 anos	67.3%	520 kWh
36-55 anos	42.5%	680 kWh
55 anos ou mais	24.6%	450 kWh

Aceitação social de projetos de energia renovável se tornando mais proeminentes

As taxas de aprovação de projetos de energia renovável em Israel aumentaram para 73,2% em 2023, com programas de envolvimento da comunidade contribuindo significativamente para a aceitação social.

Ano	Taxa de aprovação do projeto	Programas de envolvimento da comunidade
2020	54.7%	12 programas
2023	73.2%	37 programas

Ellomay Capital Ltd. (Ello) - Análise de Pestle: Fatores tecnológicos

Tecnologias avançadas de armazenamento solar e de energia

A Ellomay Capital investiu US $ 42,3 milhões em tecnologias solares fotovoltaicas a partir de 2023. A atual capacidade do portfólio solar da empresa é de 186,5 MW em várias instalações.

Tipo de tecnologia	Valor do investimento	Capacidade
Sistemas fotovoltaicos solares	US $ 42,3 milhões	186,5 MW
Soluções de armazenamento de energia	US $ 18,7 milhões	45 mwh

Investimento contínuo em inovações tecnológicas

A despesa de P&D para tecnologias de eficiência energética atingiu US $ 5,6 milhões em 2023, representando 4,2% do orçamento operacional total da empresa.

Tecnologias de energia renovável emergente

• Investimento em tecnologia de produção de hidrogênio: US $ 12,9 milhões
• Patentes de tecnologia de energia renovável: 7 patentes ativas
• Orçamento emergente de expansão da tecnologia de mercado: US $ 22,5 milhões

Transformação digital no gerenciamento de energia

O investimento em infraestrutura digital totalizou US $ 9,4 milhões, com tecnologias de integração de grade inteligentes representando 65% dessas despesas.

Tecnologia digital	Investimento	Melhoria de eficiência
Sistemas de grade inteligente	US $ 6,1 milhões	17,3% de eficiência operacional
Gerenciamento de energia da IA	US $ 3,3 milhões	12,6% de otimização de energia

Ellomay Capital Ltd. (Ello) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos de energia renovável israelense e internacionais

A Ellomay Capital Ltd. opera sob a seguinte estrutura de conformidade regulatória:

Órgão regulatório	Detalhes da conformidade	Requisitos regulatórios
Israel Electric Corporation	Licenciamento de energia renovável	100% de conformidade com a lei do setor de eletricidade
Autoridade de Utilidade Pública de Israel	Permissões de conexão da grade	Acordos de interconexão válidos para projetos solares
Diretiva de energia renovável européia	Conformidade do projeto transfronteiriço	Atende aos padrões alvo de energia renovável de 2030

Estruturas legais complexas que regem o desenvolvimento de projetos de energia renovável

Métricas de complexidade legal:

• Desenvolvimento médio de desenvolvimento do projeto Tempo de revisão legal: 18-24 meses
• Departamentos de conformidade regulatória: 3 equipes jurídicas dedicadas
• Orçamento anual de conformidade legal: US $ 1,2 milhão

Proteção de propriedade intelectual para inovações tecnológicas

Categoria IP	Número de patentes registradas	Jurisdições de proteção
Tecnologia solar	7 patentes registradas	Israel, UE, Estados Unidos
Inovação de armazenamento de energia	4 pedidos de patente pendente	Tratado de Cooperação de Patentes Internacional

Navegando requisitos legais internacionais para projetos de energia transfronteiriça

Métricas internacionais de conformidade jurídica:

• Projetos ativos de energia renovável transfronteiriça: 5
• Gasto internacional de consultoria jurídica: US $ 750.000 anualmente
• Países de verificação de conformidade: Alemanha, Itália, Israel

Ellomay Capital Ltd. (Ello) - Análise de Pestle: Fatores Ambientais

Forte compromisso de reduzir as emissões de carbono por meio de projetos de energia renovável

O portfólio de energia renovável da Ellomay Capital inclui 9 usinas solares fotovoltaicas na Itália, com uma capacidade total de 25,4 MW. A empresa investiu 43,2 milhões de euros em infraestrutura de energia solar a partir de 2023.

Localização do projeto	Capacidade solar (MW)	Investimento (€)	Redução anual de CO2
Itália	25.4	43,200,000	15.240 toneladas métricas

Alinhamento com a sustentabilidade global e objetivos de mitigação de mudanças climáticas

Alvos de redução de carbono: A Ellomay Capital visa reduzir as emissões de carbono em 30% em seu portfólio de energia até 2030.

Ano	Alvo de redução de emissão de carbono	Investimento de energia renovável
2024	15%	€ 12,5 milhões
2030	30%	€ 37,8 milhões

Minimizar o impacto ambiental através de tecnologias avançadas de energia limpa

Os investimentos tecnológicos em tecnologias de energia limpa incluem:

• Painéis fotovoltaicos de alta eficiência com taxa de conversão de 22,5%
• Sistemas de armazenamento de energia com capacidade de descarga de 4 horas
• Tecnologias de integração de grade inteligentes

Apoiando a transição de Israel para a infraestrutura de energia sustentável

A Ellomay Capital cometeu € 5,6 milhões a projetos de desenvolvimento de energia renovável israelense em 2024, com foco em:

• Desenvolvimento da usina solar
• Infraestrutura de armazenamento de energia
• Iniciativas de modernização da grade

Tipo de projeto	Investimento (€)	Capacidade esperada (MW)
Usinas solares	3,200,000	12.5
Armazenamento de energia	1,400,000	5 mwh

Ellomay Capital Ltd. (ELLO) - PESTLE Analysis: Social factors

Growing public demand for clean energy drives market acceptance across all operating regions (US, Europe, Israel).

The social license to operate for companies like Ellomay Capital Ltd. is exceptionally strong in 2025 because of overwhelming public and corporate demand for clean energy. You see this everywhere: in Europe, for the first time in 2024, electricity generation from solar and wind surpassed the combined share of coal and gas, a major social tipping point. The European Union's clean energy target is front-loaded, aiming for over 320 GW of newly installed solar photovoltaic capacity by the end of 2025. This is a massive tailwind. In the US, the clean energy transition is a central theme in the largest capital expenditure cycle since the post-war years, driven by national interest and clear policy frameworks. This means less public pushback on new solar projects in Texas, where Ellomay has projects under construction with an aggregate capacity of approximately 48.5 MW.

Local community resistance to large-scale infrastructure, like the 156 MW Manara pumped storage, can cause project delays.

While the social demand for clean energy is high, the local impact of large infrastructure projects remains a critical risk. Ellomay's 156 MW Manara pumped storage project in Israel, a crucial asset for grid stability, is a concrete example. The project is located near Kibbutz Manara, and while initial delays involved a dispute over a NIS 160 million lease payment to the Israel Land Authority (ILA), the primary near-term risk is geopolitical. The ongoing war situation in Israel has forced a suspension of work on the site since October 2023. This social and geopolitical instability, which is a form of macro-community resistance to normal operations, has already resulted in a 16-month extension from the Israeli Electricity Authority, pushing the estimated commercial operation date from the first half of 2027 to the first quarter of 2029.

Increased focus on corporate Power Purchase Agreements (PPAs) in Europe creates a stable, long-term buyer base.

The shift in corporate social responsibility (CSR) from vague promises to concrete decarbonization targets has fundamentally changed the buyer landscape. This is a huge social factor that translates directly into financial stability for Ellomay. Corporate Power Purchase Agreements (PPAs) are now the dominant deal category in Europe, representing 83.0% of the overall PPA market share in 2025. This market is projected to be valued at $181.8 billion in 2025. This trend provides Ellomay with a stable, long-term buyer base, effectively hedging against wholesale market volatility. Honestly, this is the most defintely predictable revenue stream you can get. For instance, in July 2025, Ellomay signed long-term PPAs with Statkraft for three of its Italian solar plants.

European PPA Market Dynamics (2025 Fiscal Year)

Metric	Value (2025)	Implication for Ellomay
Projected Market Value	$181.8 billion	Large, liquid market for long-term contracts.
Corporate PPA Share	83.0% of market	Strong corporate demand for Ellomay's output.
H1 2025 Volume Change (vs. H1 2024)	40% decline, followed by sharp recovery	Temporary market recalibration, but underlying demand remains robust.

The shift to self-consumption solar in the EU, simplified by 2025 regulations, expands the distributed generation market.

The social trend of energy prosumerism (where consumers both produce and consume energy) is a major growth area. The EU's REPowerEU plan and related national policies are directly enabling this by simplifying the regulatory framework for distributed generation (solar on rooftops and small plots). This is expanding the total addressable market beyond just utility-scale projects. Spain, a key market for Ellomay with 335.9 MW of operating solar plants, is a perfect case study. New regulations there extend the maximum proximity radius for collective self-consumption from 2 kilometers to 5 kilometers for installations up to 5 MW.

This regulatory simplification creates a new, decentralized revenue opportunity for Ellomay's development pipeline in Europe, particularly in Italy and Spain. The Netherlands, another Ellomay operating region, is also enforcing mandatory solar installations on large buildings (>250 sqm) starting in 2025, further expanding the distributed generation market.

• EU Solar PV Target: Over 320 GW installed by 2025.
• Spanish Collective Self-Consumption Radius: Increased to 5 km.
• Dutch Mandate: Solar required on large buildings (>250 sqm) from 2025.

The next step is for Ellomay to strategically allocate capital to its Italian and Spanish distributed generation pipeline to capitalize on the new 5 km radius rule.

Ellomay Capital Ltd. (ELLO) - PESTLE Analysis: Technological factors

You're watching Ellomay Capital Ltd. pivot hard into energy storage, and honestly, that's the single most important technological trend driving their valuation right now. The market has shifted past simply generating intermittent power; the real money is in firming up that supply, which means pairing solar with batteries. This strategic move directly addresses solar's biggest weakness-it doesn't work at night-and positions the company to capture higher peak-hour prices.

Strategic Shift to Energy Storage

The company is making a clear, strategic shift to integrate battery energy storage systems (BESS) across its international solar portfolio. This isn't just a pilot program; it's a core operational upgrade for existing and planned assets in the US, Spain, and Italy. The goal is simple: shift cheap, off-peak solar energy to the high-value peak hours, which significantly improves project economics. For example, in the Dallas Metropolitan area of Texas, Ellomay has approximately 27 MW of solar projects already connected to the grid, plus another 22 MW awaiting connection as of July 2025. Adding storage to these US assets, along with the approximately 335.9 MW of operating solar plants in Spain and the 198 MW Italian solar portfolio, is a smart way to future-proof their revenue streams against grid saturation. This is a defintely necessary move to maximize returns in mature solar markets.

Developing Solar-Plus-Storage Projects in Israel

The Israel portfolio provides the most concrete examples of this solar-plus-storage (Solar+Storage) strategy. Ellomay is developing several projects here, most notably Komemiyut and Qelahim, which are designed from the ground up to include large-scale batteries. The Komemiyut project pairs 21 MW of photovoltaic (PV) capacity with a 47 MW/hour battery system, while the Qelahim project is planned for 15 MW PV and 33 MW/hour of storage. Construction for Komemiyut was planned to commence in the first quarter of 2025. What this estimate hides is the total scale: Ellomay is developing a total of 66 MW of PV with a massive 546 MW/hour of storage capacity in Israel, including other projects like Talmei Yosef and Sharsheret. That's a serious commitment to hybrid technology.

Israeli Solar+Storage Project	PV Capacity (MW)	Battery Capacity (MW/hour)	Status (as of 2025)
Komemiyut	21 MW	47 MW/hour	Approved Urban Building Plan; Construction planned Q1 2025
Qelahim	15 MW	33 MW/hour	Approved Urban Building Plan
Total Planned Development (incl. others)	66 MW	546 MW/hour	Advanced Planning Stages

Biogas Technology in the Netherlands

Ellomay's biogas operations in the Netherlands, including Groen Gas Gelderland B.V., are benefiting from a clear regulatory tailwind, which acts as a powerful technological enabler. The Dutch parliament approved legislation mandating the obligation to mix green gas with fossil gas, with an effective date of January 1, 2026. This new demand floor for green gas is a huge boost for the company's anaerobic digestion plants. Groen Gas Gelderland B.V. has a production capacity of approximately 9.5 million Normal Cubic Meter (Nm3) per year. The company is currently working to secure licenses to increase production by about 50% across its Dutch biogas plants, a relatively low-cost technological upgrade that will significantly increase income and EBITDA. This is a low-risk, high-return opportunity driven purely by policy and technology alignment.

Continued Cost Declines in Solar Photovoltaic (PV) Technology

The relentless decline in solar PV costs continues to be the foundational technological driver for the entire sector, making solar the lowest-cost generation option in many regions. Since 2014, the price of solar PV panels has plummeted by 75%. This cost compression means Ellomay's new projects, like the Italian portfolio where 160 MW of projects are 'ready to build,' are being constructed at dramatically lower capital expenditures than their older assets. Here's the quick math: utility-scale PV system costs in the U.S. are now as low as $1/W in 2025, which is a massive drop from prior years. This trend is why global investment in solar energy is projected to reach $450 billion in 2025 alone. Ellomay must simply keep building to capitalize on this efficiency curve.

• Utility-scale PV system costs in the U.S. now as low as $1/W in 2025.
• Solar PV panel prices have declined by 75% since 2014.
• Levelized Cost of Electricity (LCOE) for solar PV fell to just $0.048 per kWh in 2022.

The next concrete step for you is to model the projected increase in EBITDA for the Dutch biogas segment, assuming a 50% production increase and factoring in the new green gas mixing mandate starting in 2026. Finance: draft 13-week cash view by Friday.

Ellomay Capital Ltd. (ELLO) - PESTLE Analysis: Legal factors

You're operating a multi-jurisdictional renewable energy portfolio, so the legal landscape isn't just a compliance checklist-it's a core strategic risk that directly impacts your project timelines and financial structure. The biggest legal factor in 2025 is the clash between aggressive EU-level decarbonization mandates and the slow, fragmented transposition of those rules by Member States where Ellomay Capital Ltd. operates.

Here's the quick math: Delays in permitting and grid connection can turn a ready-to-build project into a stranded asset, eroding the expected return on equity (ROE). The complexity of multi-layered partnership structures, like the one in Italy, also introduces significant legal and tax navigation costs that must be managed precisely.

EU Directives and the Permitting Bottleneck

The European Union's push to accelerate the energy transition means new, strict deadlines that are now legally binding, but Member States are struggling to implement them. The revised Renewable Energy Directive (EU) 2023/2413, which was a key part of the Green Deal's legislative response, mandates much faster administrative processes for new projects. This is a huge opportunity, but only if local authorities can keep up.

For Ellomay's development pipeline, the critical change is the timeline for application completeness. Competent authorities must now formally acknowledge the completeness of a permit application for renewable energy projects within a maximum of 30 days for those located in designated 'renewables acceleration areas,' and 45 days for projects outside those areas. This is a massive procedural improvement over the multi-month delays seen historically.

Risk of Infringement Procedures and Transposition Delays

The main near-term risk is the European Commission's aggressive use of infringement procedures against Member States for their failure to transpose EU energy directives into national law by the 2025 deadlines. This regulatory uncertainty creates a patchwork of rules across Ellomay's core markets.

In July 2025, the European Commission launched infringement procedures (Letters of Formal Notice) against 26 Member States, including key markets for Ellomay like Spain and the Netherlands, for failing to transpose the revised Renewable Energy Directive (EU) 2023/2413 by the deadline of May 21, 2025. This means the streamlined permitting rules Ellomay is counting on may not be legally enforceable in Spain or the Netherlands until the national governments act, defintely slowing down development.

• Spain: Holds approximately 335.9 MW of Ellomay's operating solar capacity, including the 300 MW Talasol plant.
• The Netherlands: Home to Ellomay's biogas plants, which have a combined green gas production capacity of approximately 16.3 million Nm³ per year.

Complex Financial Partnership Structures

The company's strategy of bringing in institutional partners to finance large-scale projects requires navigating complex cross-border legal and corporate structures. The investment by Clal Insurance Company Ltd. in the Italian solar portfolio is a perfect example of this legal complexity.

Clal Insurance invested approximately €52 million for a 49% interest in Ellomay's 198 MW Italian solar portfolio, with the transaction closing in June 2025. This wasn't a simple asset sale; the deal was structured through a new Israeli limited partnership that wholly-owns a Luxembourg entity, which in turn holds the Italian project companies. This multi-layered structure is necessary to optimize tax and legal liability across the three jurisdictions (Israel, Luxembourg, and Italy), but it requires meticulous legal oversight to manage shareholder agreements, representations, and warranties.

Diverse and Evolving Tax Benefit Frameworks

Ellomay must continually adapt its financial strategy to exploit diverse, and often volatile, tax benefit frameworks across its operating regions. The U.S. market, specifically, presents a massive opportunity through the Inflation Reduction Act (IRA), but it comes with stringent compliance requirements.

In the U.S., Ellomay's 49 MW of Texas solar projects are benefiting from the IRA's new transferability provisions. The company executed an agreement to sell the Investment Tax Credits (ITCs) from the first four projects for approximately $19 million, which represents about 32% of the expected total portfolio costs, while still retaining the benefit of accelerated depreciation. This is a massive cash flow driver. Conversely, the company's Q2 2025 financial results showed a tax benefit of approximately €1.8 million for the six months ended June 30, 2025, which was primarily attributable to the tax impact of the complex Clal transaction in Italy/Israel.

Jurisdiction	Legal/Tax Framework Challenge	2025 Financial/Operational Impact
European Union (Spain, Netherlands)	Slow transposition of Directive (EU) 2023/2413 (Permitting/Grid Rules).	Risk of project delays due to non-enforcement of 30-day permit completeness check.
United States (Texas)	Compliance with Inflation Reduction Act (IRA) transferability provisions.	Generated approximately $19 million from the sale of Investment Tax Credits (ITCs) for 49 MW of solar projects.
Israel/Italy/Luxembourg	Complex, multi-jurisdictional partnership structure (Clal Insurance).	Secured approximately €52 million in investment, but the transaction created a tax benefit of approximately €1.8 million in H1 2025.

Finance: Document a 12-month legal risk register by Friday, focusing on the likelihood of a reasoned opinion from the European Commission for Spain and the Netherlands.

Ellomay Capital Ltd. (ELLO) - PESTLE Analysis: Environmental factors

You're operating in a sector where environmental policy isn't just a compliance issue; it's the primary driver of growth and risk. Ellomay Capital Ltd.'s portfolio is fundamentally aligned with the global push for decarbonization, but that doesn't mean the path is smooth. We need to map the clear opportunities from European mandates against the real, on-the-ground permitting headaches in Israel.

Core business benefits from the EU's binding target to increase renewables to 45% of the energy mix by 2030.

The European Union's (EU) aggressive renewable energy directive is a massive tailwind for Ellomay Capital. The bloc has a binding target to increase the share of renewables to at least 42.5%, with an ambition to reach 45%, of the energy mix by 2030. This policy creates a stable, high-demand market for the Company's European assets, particularly in solar photovoltaic (PV) and biogas.

In fact, the EU solar market hit a major milestone in June 2025, supplying 22% of the total power mix for the first time, which shows the pace of this transition. This environment directly supports Ellomay's expansion strategy, including its Italian Solar Portfolio, where it has 160 MW of projects commencing construction in 2025, and its operating solar assets, which include approximately 335.9 MW in Spain and 38 MW in Italy. The policy is clear: build more clean energy, and the market will reward it.

Focus on diverse clean technologies: solar, natural gas (Dorad), pumped hydro, and waste-to-energy (biogas).

Ellomay's strategy is not to bet on a single technology but to diversify across several, which is a smart move for managing intermittency and market risk. This multi-technology approach provides flexibility for grid operators-a critical need as Europe surpasses 50% of its power from renewable resources. The portfolio spans true renewables, storage, and a transition fuel, giving them a broad environmental footprint.

Here's the quick math on the Company's core generation capacity as of the 2025 fiscal year:

Technology	Project / Location	Ellomay Interest	Capacity / Storage	Environmental Role
Solar PV	Spain (Talasol)	51%	300 MW	Direct Decarbonization
Solar PV	Italy (Operating)	51%	Approx. 38 MW	Direct Decarbonization
Pumped Hydro	Manara Cliff, Israel	83.333%	156 MW (Generation) / Approx. 1,900 MWh (Storage)	Grid Stability / Energy Storage
Waste-to-Energy	Biogas Plants, Netherlands	100%	Approx. 16.3 million Nm3/year	Circular Economy / Methane Reduction
Natural Gas	Dorad Energy Ltd., Israel	16.875% (Indirect)	Approx. 850 MW	Transition Fuel / Grid Reliability

Biogas operations in the Netherlands, with a combined capacity of approximately 16.3 million Nm3/year, directly support the circular economy.

The Dutch biogas operations are a perfect example of a circular economy business model. The three plants-Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V., and Groen Gas Gelderland B.V.-convert agricultural and organic residues into green gas for the grid. Their combined actual production capacity is approximately 16.3 million $\text{Nm}^3/\text{year}$. This not only produces renewable energy but also mitigates the environmental side effects of the local agricultural industry, like manure management and potential water pollution.

The Company is defintely pushing for more, too. They are advancing licenses in 2025 to expand the operations of their biogas facilities by an additional 50%, which will significantly increase their positive environmental impact and income.

Increased permitting scrutiny for environmental impact, particularly for large-scale hydro projects like Manara in Israel.

While solar and biogas benefit from streamlined permitting in Europe, large-scale infrastructure projects like the Manara Pumped Storage Project (PSP) in Israel face intense environmental and geopolitical scrutiny. This 156 MW project is a critical piece of Israel's energy storage puzzle, with a total estimated cost of €476 million.

The reality is that large hydro projects, even for storage, involve significant land use and geological challenges. The construction of the Manara PSP, which commenced in April 2021, has already faced substantial delays. Originally planned for commercial operation in the first half of 2027, the date has been pushed back to the first quarter of 2029, partly due to the geopolitical conflict in the region. What this estimate hides is that any major environmental incident or challenge related to the 5.5-kilometer tunnel network or the two 1.2 million cubic meter reservoirs could trigger a fresh wave of regulatory review, further delaying the $74$ million Euros in expected annual revenues.

The core risk here is that the environmental impact assessment (EIA) process, once complete, is often challenged by local or environmental groups, which can lead to judicial review and project delays. The sheer scale and location near Kibbutz Manara, an area of high environmental sensitivity, mean the project will remain under a microscope until it is fully operational.

Next step: Project Management needs to create a detailed risk register for Manara, focusing on non-war related delays, and Finance should model the impact of a further 12-month delay on the 2029 revenue projection by Friday.