Sunflower Renewable Energy Expands Into Spain in €90 Million Deal
After Econergy and Prime Energy last week, Sunflower is continuing the acquisition drive by Israeli renewable energy companies in Europe. The company, controlled by Keystone Capital, signed a memorandum of understanding to acquire a portfolio of solar projects in Spain with a capacity of 137 megawatts, for €90 million, about NIS 310 million. If the acquisition is completed, this will be Sunflower’s first activity outside Poland and Israel.
Of the portfolio, projects with a capacity of 85 megawatts are already connected to the power grid and generating revenue. The remaining projects, with a capacity of 52 megawatts, are in final construction and grid-connection stages and are expected to connect to the power grid in the coming weeks. According to Sunflower, the portfolio has potential for an additional storage capacity of about 500 megawatts. Subject to completion of the deal, the company is aiming to sign development agreements to build storage facilities starting next year.
The parties signed an exclusivity agreement to complete the transaction by early August. As of the end of March, Sunflower held installed projects in Poland and Israel with a cumulative capacity of 94 megawatts. Of this capacity, 50 megawatts are wind projects in Poland and another 20 megawatts are solar projects in the country. In Israel, the company has an additional 16 megawatts of projects that are under construction or ready for construction.
In April, Sunflower signed a nonbinding memorandum of understanding to acquire a portfolio with a capacity of 305 megawatts, plus 6.6 gigawatt-hours of storage, in Germany, Poland and Italy. The portfolio is at various stages of development. In July last year, the company signed a memorandum of understanding to acquire a portfolio of projects with a capacity of 88 megawatts in Poland, 48 megawatts in the first stage and another 40 megawatts at a later stage. As of March, the company was still in talks to complete the first stage.
The company estimated that completion of the deal in Poland and the current deal in Spain would bring its generating project portfolio to 300 megawatts by the end of 2026, more than triple its current capacity.
Sunflower ended the first quarter of 2026 with revenue of NIS 22 million, down 32% from the corresponding period. The decline was due to a transaction in which the company sold 13 megawatts of projects to Prime Energy in December for NIS 77 million. In addition, the strengthening of the shekel against the euro and the zloty led to an increase in financing expenses, which totaled NIS 4.8 million compared with NIS 2.2 million in the same quarter last year. The company posted a net loss of NIS 3.1 million for the quarter.
In January, a deal to merge Afcon’s energy arm into Sunflower was taken off the table, following disagreements over the valuation of the transaction. Sunflower’s stock has risen 69% over the past year, but it has underperformed the Tel Aviv Cleantech Index, in which it is included, which rose 126%. The company has a market value of NIS 378 million.
