Gilatz Investments Ltd. (TASE: GLTS) will acquire, through its subsidiary, a solar energy park now under construction in Spain, for €31.6 million (NIS 161.3 million).
The 72,600-square meter solar park will be located near Cuenca, a city located 150 kilometers south east of Madrid, and will cost €30 million to develop. It will produce a total of 3.84 megawatt hours through a network of solar receivers the company will build there.
Gilatz said the electricity produced by the park, which is expected to open in September, will be sold to a local energy company, Union Fenosa.
Gilatz controlling shareholder Roni Biram said, "The park will work on photovoltaic energy, which produces energy by utilizing sunlight. This consists of simple silicon panels mounted on the ground, which covert sunlight into electricity. This is the simplest form of solar technology and it has now been in used worldwide for several decades. It has been shown to have long-term operating efficiency with minimal maintenance costs."
Biram continued, "Countries in Europe have undertaken to increase alternative energy sources, and the EU has set as a target that 14% of all electricity generated should come from alternative sources by 2012. As a result, Spain has embarked on a intensive program to encourage entrepreneurs to build solar plants, wind-generated turbines, and other forms of alternative energy production resources, with subsidies from the Spanish government."
Published by Globes [online], Israel business news - www.globes-online.com - on June 5, 2008
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