Sustainable energy company Abengoa and Israeli infrastructure group Shikun & Binui have announced financial closure on the Ashalim solar power project.
The non-recourse project financing agreement combines financing from development financial institutions such as the Overseas Private Investment Corporation (OPIC) and the European Investment Bank (EIB); in addition to local commercial banks such as Bank Leumi and Bank Hapoalim. The total investment of the project will be approximately USD 1 billion.
Ashalim will supply clean electricity to the Israel Electricity Corporation under a 25-year power purchase agreement (PPA) signed in late 2013. It will also be able to store electricity for use whenever required after sunset and will be the largest solar power plant in Israel, capable of providing power to more than 69,000 households. The plant will incorporate parabolic trough technology with a 4.5 hour molten salt thermal energy storage system.
Construction of the plant is expected to start before the end of July 2015. It will be located in the Western Negev Desert, 35 kilometres south of the city of Beer Sheva, close to the village of Ashalim and is expected to create 633 jobs during the construction phase with 60 permanent operation and maintenance jobs thereafter.
“Ashalim power plant forms part of Abengoa’s efforts towards constant innovation in the solar sector” said Santiago Seage, CEO of Abengoa. “It marks an important milestone for the internationalization of our activity.”
Moshe Lahmani, Chairperson of the Board of Directors of Shikun Binui Group, added that Ashalim is a leading mega project which will provide clean electricity to the citizens of Israel as well as providing significant technological and economic development to the Negev.
Shikun Binui Renewable Energy as a leading company in construction of mega-projects, in Israel and abroad.
Abengoa applies innovative technology solutions for sustainability in the energy and environment sectors, generating electricity from renewable resources, converting biomass into biofuels and producing drinking water from sea water.