Econergy Renewable Energy, an investor, developer, and operator in renewable energy projects has entered into a partnership with Terna Energy, a developer, constructor, owner, and operator of renewable energy projects, to construct a solar portfolio with a capacity of 460 MW as part of a new pipeline of projects in the Greek market.

The agreement with Terna will see Econergy acquire 49% of the share capital of a Greek company that owns two companies in Greece, each developing solar projects of 240 MW and 220 MW. The total investment for the construction of the projects is estimated at around €265 million (~$283.14 million), of which Econergy’s shares are approximately €130 million (~$138.90 million). The two projects, located in the Kilkis region of Greece, will constitute one of the largest solar portfolios in Greece as Econergy gains its first foothold into the Greek market.

Econergy anticipates the projects to reach the ready-to-build phase by Q3 of 2023, with construction work expected to begin in Q4 of 2023. Construction is expected to be completed by 2024 when the project will be connected to the network.

Econergy’s entry into the Greek market aligns with its strategy to expand its operations throughout Europe and underlines the strength of its development pipeline. The Greek electricity market presents Econergy with the potential for significant growth in the coming years due to its long-term tariff tenders, the possibility of selling electricity on the free market at attractive prices, and the relatively high solar radiation in Greece.

Eyal Podhorzer, Econergy’s CEO, said: “We are delighted to be entering the Greek market through this partnership with Terna. We will continue to expand our operations in the Greek market through the establishment of a local team with experience and connections and the development of additional projects. We will continue to progress our portfolio in Greece and across other European markets as we look to play a leading role in the continent’s energy transition and reducing our reliance on foreign fossil fuels.”

According to Mercom’s recently published Q1 2022 solar funding and M&A report, large-scale solar project acquisition activity remained strong, with over 23 GW of solar projects acquired in Q1 2022 compared to 13.1 GW in Q4 2021.