Sunday Energy, Moshav Sde Zvi sign solar deal

Sunday and Ormat are due to build the first 5-MW solar array of the project.

Photovoltaic array integrator Sunday Energy Ltd. have signed an option agreement with Moshav Sde Zvi in the Negev to build a 45-megawatt photovoltaic array on an 800-dunam (200-acre) site on the moshav at an estimated cost of NIS 800 million. Construction of the array is contingent on signing a contract.

Sunday and Ormat Industries Ltd. (TASE: ORMT) are due to build the first 5-megawatt array when the government approves solar energy projects greater than 50 kilowatts. Construction of the other 40 megawatts is still open. The initial array is part of the companies' cooperation agreement from October to finance and build photovoltaic arrays across the country with an aggregate output of 36 megawatts at an estimated cost of NIS 700 million.

At the "Globes" Israel Business Conference earlier this month, Minister of National Infrastructures Uzi Landau said that bureaucratic delays are holding up authorization of mid-sized solar panel arrays with outputs between 50 kilowatts and 5 megawatts. He added that he expects the problems to be resolved soon.

Sunday CEO Kobi Dinar said, "We've effectively signed with Moshav Sde Zvi a rental contract that will enable us to submit an application for a license in principle to build the project. It's necessary to present the regulator access to land in order to obtain a license."

The initial investment in Sde Zvi solar array is estimated at NIS 90 million. Dinar believes that banks and Israeli and foreign financial institutions will provide the financing.

Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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