Solel Solar Systems to build $1b solar power station in Negev
It will produce 500 MW of power for Negev communities. The state will buy the electricity.
Dalia Tal 29 Jul 04 14:51
Following a decision by the Public Utilities Authority (Electricity) to approve premiums for private electricity producers to develop clean energy sources, Solel Solar Systems solel.com has decided to build a solar power station in the Ashalim area in the Negev.
The power station will initially produce 150 Megawatt of power for 50,000 homes. Upon completion, it will produce 500 MW of power for Negev communities.
Under the plan, Solel will establish a consortium to finance and build the power station, which it estimates will cost $1 billion. The state has promised to buy the electricity under the terms of a contract to be signed by the parties.
The agreement will include the cost of the energy plus a premium for producers of clean energy. The premium is intended to attract more companies to the market. The cost of the first stage of the project is $250 million.
Solel Solar Systems executive VP Eli Mandelberg said the premium approved by the Public Utilities Authority spurred the project, which had already been approved by the National Planning and Building Board.
Two years ago, the National Planning and Building Board rejected a project for a solar power station near Dimona, due to the area's scenic sensitivity and the objections of environmental organizations, which demanded that an alternative site be found.
Mandelberg says that while Israel has plenty of sunlight available for exploitation, it has little land, and most of the Negev is occupied by the IDF and consequently is unavailable for use. This fact hinders the construction of solar power stations.
Solel was founded in 1992 after acquiring all the rights of solar energy developer Luz. Most of Solel's managers had founded Luz.
Solel has built nine solar power farms to date in California's Mohave Desert, which produce an aggregate 354 MW of electricity, supplied to 500,000 homes.
Solel also builds solar powered hot water and air conditioning systems, and has installed these facilities in Japan, Span, Singapore and Hawaii. The company plans to install a system at a large Israeli hospital. The systems are built under the Build, Operate, Own (BOO) method. Mandelberg says the solar powered hot water and air conditioning systems prices are competitive with gas and diesel-powered systems, and that the technology has great potential.
Published by Globes [online] - www.globes.co.il - on July 29, 2004
the system is quite expensive around $2,500 per KW |
