In the latest deal in the Israeli solar energy market, Paz Oil Company Ltd. (TASE:PZOL) unit Paz Solar Ltd. has signed an agreement to build two photovoltaic power plants, generating a combined ten megawatts, on land of Kibbutz Sde Boker in the Negev. This is Paz Solar's first venture into the building mid-sized photovoltaic power plants (up to five megawatts) on kibbutzim and moshavim.
Paz Solar will design and build the power plants, and operate them for 20 years on a 200-300 dunam (50-75 acres) site. Construction of the power plants was made possible following the publication of regulations for the building of five-megawatt solar power plants and the sale of electricity from them to the national grid. Power producers are guaranteed fixed payments over 20 years.
Kibbutz Sde Boker, located in the central Negev plateau is one of the optimal sites for solar energy systems. The site is close to Ashelim, the site of a planned solar energy plant. Paz is bidding in the tender for that plant with Spain's Guascor Group SA.
Paz Oil set up Paz Solar a year ago as a wholly-owned subsidiary of its industries and services division.
Paz Oil said, "The choice of Sde Boker was based on geography, solar conditions, and because we found a real business partner in the kibbutz. We're in a period when the solar energy industry is undergoing rapid development, and as a longstanding company, Paz has advantages in financing, building, and operating these power stations for years."
Kibbutz Sde Boker secretary Arieh Wind said, "For Sde Boker, this is a significant measure and I am hopeful that the authorities will permit the rapid construction of these power stations. We chose Paz as part of a long-term perspective and professional considerations, proof of capabilities, and financial soundness."
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2009
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