The Decree is Subject to the Approval of the Italian Parliament
Ellomay Capital Ltd. (NYSE MKT: ELLO; TASE: ELOM) ("Ellomay" or the "Company") an emerging operator in the renewable energy and energy infrastructure sector, today announced the execution by the Italian President of a decree presented by the Italian Government that will, if approved by the Italian Parliament, decrease the Feed-in-Tariff ("FiT") guaranteed to existing photovoltaic plants with nominal capacity of more than 200 kW (the "Decree").
The Decree forms part of the Italian Government's efforts to reduce electricity costs and has entered into force with its execution by the Italian President, but is subject to the approval of the Italian Parliament within a period of 60 days.
Pursuant to the available versions of the Decree and announcements made by the Italian Government, operators of existing photovoltaic plants, such as the Company, which received a guaranteed 20-year FiT under current Italian legislation, will be required to choose between a reduction of 8% in the FiT, or extending the 20-year term of the FiT to 24 years with a reduction of approximately 20% in the FiT (based on the remaining years in the initial guaranteed FiT period of the Company's existing Italian photovoltaic plants) (the "Extension of FiT Option"). Governmentally sponsored loans, for the amount of the FiT reduction under the Extension of FiT Option, are expected to be offered to operators which will choose that option. The photovoltaic plant operators, such as the Company, are required to make this choice by November 30, 2014, with effect commencing January 1, 2015.
The Company is studying the Decree and its effects on its results and does not currently have enough information to determine which option it will choose with respect to each of its Italian photovoltaic plants. As noted above, the Decree is subject to the approval of the Italian Parliament and the Company cannot at this point predict whether it will be approved and whether the terms of the Decree will be revised prior to such approval.
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