Gilatz Investments Ltd. (TASE: GLTS) has purchased a second solar field now under construction in Spain for €33.6 million. The company acquired its first Spanish solar field earlier this month.
The 160,000-square meter solar field is located at Le Herara in Albacete Province, 250 kilometers southeast of Madrid. It will produce 4 megawatt/hour by solar receptors. Gilatz also acquired the 40-year lease to the property for €36,000 a year.
Gilatz will sell the electricity to Spanish utility Ibedrola for 25 years at €0.4315 per kilowatt/hour, linked to the Spanish Consumer Price Index (CPI) and thereafter at €0.3452 per kilowatt/hour for an unlimited period.
The EU has declared the goal of generating 14% of all electricity by alternative energy by 2012. As part of this program, Spain is urging private developers to build solar power plants, wind turbines, and other means, and subsidizes the cost of the electricity generated. Spain also requires power companies to buy electricity from solar power plants at a subsidized tariff. The power companies will buy the electricity at a higher tariff for 25 years and at a lower tariff for an unlimited period.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2008
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