Sources inform ''Globes'' that French utility EDF Energies Nouvelles is buying three thermosolar projects in full from Arava Power Company for an estimated NIS 25-30 million. EDF Energies Nouvelles, a subsidiary of EDF SA (Euronext: EDF), has a non-shop agreement to hold negotiations with Arava Power on the deal.
The deal involves three thermosolar projects under construction: a 7.8-megawatt project at Mishmar Hanegev; an 8.8-megawatt project at Berur Hayal, and a 7.4-megawatt project at Kerem Shalom. The three ventures have already obtained approval for provisional electricity rates from the Public Utilities Authority (Electricity), and they must secure financing by May 21. This suggests that the deal with EDF Energies Nouvelles will be closed within days.
This is EDF Energies Nouvelles' second large deal in Israel since it began operating in the country two years ago. In October 2011, it obtained projects for the generation of 39.5 megawatts of electricity from Dalkia Israel Ltd., a unit of Dalkia SA, a joint venture of EDF and Veolia Environnement SA (Euronext; NYSE: VE).
EDF Energies Nouvelles declined to comment on the report about the advanced negotiations with Arava Power. EDF said, "The company is currently seeking to promote five projects in southern Israel."
When the deal with EDF Energies Nouvelles is closed, Arava Power is due to complete the development and sale of all eight of its mid-sized thermosolar projects in southern Israel. Yesterday, it reached a deal with Noy Infrastructures Fund to become a partner in five projects at Shoval, Elifaz, Maslul, Yotvata, and Grofit.
Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2012
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