Construction agreements for three solar farm projects with integrated storage for NIS 41 million.
The agreement joins a previous project carried out for Doral to establish an integrated storage system, in addition to the latest agreements signed by Nextcom with Meshek Energy
In the field of communications, Nextcom was recently awarded the Accountant General’s Division tender to build communications infrastructure for government offices with potential revenues of NIS 175 million
Nextcom Group, which specializes in the planning, construction and maintenance of infrastructure and solutions for the communications and renewable energy sector, is expanding its activities with the Doral Renewable Energy Resources Group Ltd. and has announced the signing of EPC agreements for the design, procurement, and construction of three solar farm type projects (energy-generation facilities) combined with storage, across two sites in Israel, in a deal valued at approximately NIS 41 million.
The signed construction agreements are not subject to preconditions, and Nextcom, through its subsidiary Nextcom Energy, is expected to begin execution of the engineering phase of the projects immediately, and complete construction during the third quarter of 2023. As part of the construction agreement, Nextcom Energy committed to a 36-month inspection and warranty period following completion of the construction phase and developer handover. In addition, Nextcom Energy entered into maintenance agreements with Doral, under which it will provide ongoing maintenance services for the projects after the completion of construction and handover.
Consideration for the projects will be paid to Nextcom Energy in accordance with milestones defined in the project agreements. Profitability for the projects is expected to be in line with similar Nextcom projects.
These agreements join others signed by Nextcom, the most recent being the establishment of solar farms with integrated storage for Meshek Enrgy, totaling approximately NIS 40 million.
Nextcom is experiencing a period of accelerated growth due to the initiation and execution of large-scale, high value projects in the energy sector. Over the past few years, its subsidiary Nextcom Energy has carried out solar panel construction for private customers, while also building solar farms and floating farms on behalf of entrepreneurs in the energy market, in projects amounting to hundreds of millions of shekels.
The company recently completed the deployment of a floating solar reservoir for the Shikun & Binui company, and a solar system with integrated storage for Doral.
At the same time, in the field of communications, Nextcom recently won a strategic tender by the Accountant General’s Division in the Ministry of Finance to build communications infrastructure for government offices and institutional bodies with potential revenues of NIS 175 million. The contract is expected to generate revenue for the company of approximately NIS 25 million per year, and works are expected to start immediately.