SOLAR PV DEAL FOR ISRAEL

Ormat teams with Sunday on Israeli PV project; The investment in the photovoltaic energy systems venture is NIS 720 million.
Merav Ankori, 19 October 2009 (Globes)

"Ormat Industries Ltd…[and] Sunday Energy Ltd. [have] signed a joint venture agreement… to develop, construct, and operate solar-photovoltaic energy systems in Israel with a total capacity of 36 megawatts. The companies estimate the investment in the project at $195 million (NIS 720 million).

"Sunday will contribute the rights to all of its property and roofs required to develop solar energy systems larger than one megawatt to special purpose entities. Ormat will own and control 70% of each entity, and Sunday will own 30%. The companies will act jointly as the equipment procurement contractor and the operator of each project on the basis of their proportional holdings in each entity."

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"…[They] will sell electricity generated from the projects to Israel Electric Corporation (IEC), under 20-year power purchase agreements, which will generate $30 million in annual revenue…

"Ormat noted that it has more than four decades of experience in the development, construction, financing, and operation of hundreds of megawatts of renewable energy projects worldwide… Sunday [is] one Israel's developers of photovoltaic systems, and has the know-how in the design of photovoltaic modules from various suppliers and the capabilities to obtain the necessary regulatory permits for construction and interconnection to the local grid…The first 50-kilowatt system has already been installed and was connected to the national grid in August…"

With the Middle East sun and the right policies in place, Israel will raise its grade this year. (click to enlarge)

[Yehuda Bronicki, Chair/CTO, Ormat Technologies:] "Ormat's commercial activity in the solar energy market is part of a strategic plan to be a leading player in renewable energy. We have a long, rich history in renewable energy…Our connection to solar energy goes back over 30 years to the solar pond project that we developed between 1977 and 1984…[that] created the technological foundation for our geothermal technology, which today positions Ormat as the industry leader. We are pleased to finally add an Israeli solar installation…[It is] an attractive business opportunity…[because of] the reduction in solar photovoltaic modules prices and the increase in their supply on one hand and the expected Israeli feed-in tariff for large solar photovoltaic systems on the other hand."

[Kobi Dinar, CEO, Sunday:] "This is the most interesting and challenging collaboration that Sunday has ever embarked upon, both in terms of scale and its strategic importance…The combination of Ormat's added value and Sunday's capabilities will turn this partnership into a leading solar energy player in Israel, and [help turn] Israel into a global solar energy center. I am sure that the Israeli public will benefit and profit…"