Ormat Technologies’ Israeli subsidiary is collaborating with Israel’s Sunday Energy on $195 million worth of solar photovoltaic (PV) energy systems in Israel.
The new joint venture signifies the Reno, Nevada-based geothermal developer’s commercial entry into the solar energy market and its first major commitment to Israel’s solar PV market.
The agreement with subsidiary Ormat Systems includes building and operating solar PV systems with a total capacity of 36 megawatts. The projects are expected to primarily be financed from non-recourse project finance debt.
Private Israeli solar PV developer Sunday is expected to contribute rights to its property and roofing needed to develop the solar energy systems, with the capacity to generate up to 1 MW. Global renewable energy project developer Ormat would own 70 percent of each system and also control it.
The companies plan to act as joint engineering, procurement and construction contractors of each project.
Electricity from the systems is to be sold to Israel Electric under 20-year power purchase agreements, expected to generate about $30 million in annual revenue. The state-owned utility is the sole supplier of electricity in the country.
In July, Sunday Energy, which hopes to become an international power plant provider, announced completion of a solar installation for Israel’s Carmey Avdat winery.