Expected to cost around $1.05bn, the project will be financed by the European Investment Bank and the US Overseas Private Investment.
The thermo-solar power plant is expected to contribute to the country’s goal to generate 10% of the power from renewable sources by 2020, reported Reuters.
Located in Ashalim in Israel’s southern Negev desert, the project involves construction of two solar-thermal power stations under a build, operate and transfer program.
Israel senior deputy accountant general and interministerial tender committee chairman Yariv Nehama was quoted by the Jerusalem Post as saying: "This agreement is a milestone for renewable energy projects in the country.
"The project is unusual in its scope and technological innovation, which combines capacity with energy storage."
Upon completion in the first half of 2018, the project is expected to complement a similar Megalim Solar Power-owned 121MW power plant, which is under construction at Ashalim.
Megalim Solar Power is a joint venture between Bright – Source Energy, Alstom and the Noy Fund.
Power generated from the new project, along with the under construction power plant, is expected to account for 2% of the country’s electricity generation capacity.
The thermo-solar plants use sun rays to produce heat that will pass through water to generate steam. The steam is used to generate electricity, unlike photovoltaic plants which convert sunlight directly into electricity.
The country is also planning to issue a tender for the construction of a photovoltaic power plant at Ashalim.
Image: Israel aims to generate 10% of its power from renewable sources by 2020. Photo: courtesy of Franky242 / Freedigitalphotos.net.
