(Source: Datamonitor)
Ormat Technologies has announced that its subsidiary Ormat Systems has signed a joint venture agreement with Sunday Energy, an Israeli private company, to develop, construct and operate solar-photovoltaic energy systems in Israel with a total capacity of 36MW.
Under the joint venture agreement, Sunday Energy will contribute the rights to all of its property and roofs required to develop solar energy systems above 1MW to special purpose entities (SPEs).
Ormat will own 70% of each SPE and will also have control of it. Under the terms of the agreement, Ormat and Sunday Energy will act, jointly, as the engineering, procurement and construction contractor and the operator of each project in accordance with each company share in the SPEs.
The estimated capital expenditure for 36MW of solar power systems is approximately $195 million. The electricity generated from the projects will be sold to Israel Electric Corporation under long-term power purchase agreements (20 years) and will generate approximately $30 million in annual revenues.
The SPEs expect to finance their capital expenditure with 80% non-recourse project finance debt.
Lucien Bronicki, chairman and chief technology officer of Ormat Technologies, said: "Ormat's commercial activity in the solar energy market is part of a strategic plan to be a leading player in renewable energy. We have a long, rich history in renewable energy that includes activity in solar energy that we believe we can leverage to bring unique benefits to this project."
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