Sources inform ''Globes'' that the Public Utilities Authority (Electricity) last week granted an electricity generating license to Mei Golan Wind Energy Development (1988) Ltd., which is planning to build a 200-megawatt wind turbine farm on the Golan Heights at an investment of $300 million.
AES Corporation (NYSE: AES) of the US is due to become a strategic partner in Mei Golan's project, which will cover 140 square kilometers in the northern Golan.
The license is for five years. The license was issued after Mei Golan and AES met the Public Utilities Authority's conditions, including shareholders' equity and a feasibility study with Israel Electric Corporation (IEC) (TASE: ELEC.B22).
The main problem that has delayed the wind farm so far was the obtaining of statutory permits. The Ministry of Defense lifted its objections to the project in February at the request of the Ministry of National Infrastructures, which is promoting it.
The development of wind power has gained strength in Israel in recent months, after the Public Utilities Authority set a tariff of NIS 1.60 per kilowatt/hour for the sale of electricity to the national grid. The price is less than the NIS 1.97 per kilowatt/hour for the sale of electricity generated by solar power to the national grid.
Association of Renewable Energies Companies chairman Eitan Parness said, "Israel has wind potential in other areas besides the Golan Heights. We expect a number of projects on a scale of tens of megawatts, as well as smaller turbines that will be deployed soon."
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009