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Leases
 12 Months Ended
Dec. 31, 2022
Presentation of leases for lessee [abstract]  
Leases
Note 14 - Leases
 
Leases in which the Company is the lessee
 
The Company has lease agreements with respect to the following items:
 
  1.
Lands; and
 
  2.
Machinery equipment.
 
  1.
Information regarding material lease agreements
 
Ellomay PS leases land in Israel from private lessors for a period of 24 years and 11 months, on which the Manara PSP is constructed. The contractual period of the aforesaid lease agreements ends in July 2046. Ellomay PS will pay capitalized rents in the total amount of NIS 28,800 thousand (approximately €7.7 thousand) to the private lessors, not including VAT. The discounted rent is linked to the consumer price index and constitutes an advance payment for the entire rental period. In addition, Ellomay PS will pay a regular quarterly rent of approximately NIS 165 thousand per quarter, not including VAT. The quarterly rent will increase by 2% every 3 years and is linked to the consumer price index in Israel. A lease liability in the amount of €10,629 thousand and right-of-use asset in the amount of €10,629 thousand have been recognized in the statement of financial position in April 2021 in respect of leases of land. A total amount of €7,858 thousand was paid to the lessors during 2021 and 2022.
 
  2.
Information regarding material lease agreements entered into during the period
 
Ellomay Solar Italy One SRL, Ellomay Solar Italy Two SRL, Ellomay Solar Italy Four SRL, Ellomay Solar Italy Five SRL and Ellomay Solar Italy Ten SRL leases land in Italy from private lessors for a period of 31 years. The contractual period of the aforesaid lease agreements ends between March 2053 until December 2053. They will pay a regular annual rent of approximately €512 thousand, not including VAT and capitalized rents in the total amount of €1,325 thousand. The yearly rent is linked to the consumer price index in Italy. A lease liability in the amount of €8,861 thousand and right-of-use asset in the amount of €8,861 thousand have been recognized in 2022 in respect of leases of land.
 
  3.
Right-of-use assets
 
   
 
Gelderland
    
 
Italy
    
 
Spain
    
 
Talasol
    
Talmei
Yosef
    
Pumped storage
    
 
Total
  
   
€ in thousands
  
                                           
Balance as at January 1, 2022
    
170
      
-
      
2,755
      
7,587
      
1,503
      
11,352
      
23,367
  
lease agreements entered into during the period
    
-
      
8,861
      
-
      
-
      
-
      
-
      
8,861
  
Depreciation for the year
    
(124
)
    
(128
)
    
(120
)
    
(404
)
    
(117
)
    
(473
)
    
(1,366
)
Other
    
-
      
-
      
(321
)
    
-
      
36
      
228
      
(57
)
Effect of changes in exchange rates
    
-
      
-
      
-
      
-
      
(91
)
    
(694
)
    
(785
)
Balance as at December 31, 2022
    
46
      
8,733
      
2,314
      
7,183
      
1,331
      
10,413
      
30,020
  
 
   
 
Gelderland
    
 
Spain
    
 
Talasol
    
Talmei
Yosef
    
Pumped storage
    
 
Total
  
   
€ in thousands
  
                                     
                                     
Balance as at January 1, 2021
    
355
      
2,874
      
12,517
      
1,463
      
-
      
17,209
  
Lease agreements entered into during the period
    
-
      
-
      
-
      
-
      
10,629
      
10,629
  
Depreciation for the year
    
(185
)
    
(119
)
    
(404
)
    
(110
)
    
(213
)
    
(1,031
)
Other
    
-
      
-
      
(4,526
)
    
(18
)
    
48
      
(4,496
)
Effect of changes in exchange rates
    
-
      
-
      
-
      
168
      
888
      
1,056
  
Balance as at December 31, 2021
    
170
      
2,755
      
7,587
      
1,503
      
11,352
      
23,367
  
 
  4.
Lease liability
 
Maturity analysis of the Company’s lease liabilities
 
       
   
December 31, 2022
  
   
€ in thousands
  
Less than one year
    
745
  
One to five years
    
3,168
  
More than five years
    
18,837
  
         
Total
    
22,750
  
         
Current maturities of lease liability
    
745
  
         
Long-term lease liability
    
22,005
  
 
  5.
Additional information on leases
 
 
(a)
Amounts recognized in profit or loss
 
   
2022
    
2021
    
2020
  
   
€ in thousands
  
Depreciation on right-of-use asset
    
*743
      
774
      
320
  
Interest expenses on lease liability
    
370
      
367
      
494
  

 

* The rest of the depreciation is capitalized to fixed asset.

 
 
(b)
Short-term leases
 
As mentioned in Note 3J regarding significant accounting policies, the Company accounts for short-term leases and leases of low-value assets as expense on a straight-line basis over the lease term, instead of a right-of-use asset and lease liability. These leases include office space in the amount of approximately €275 thousand.