Negev Energy, a partnership between Shikun & Binui Renewable Energy (SKBN) and a unit of Abengoa SA (ABG), won a tender to build and operate a solar plant in southern Israel.
The 121-megawatt Ashalim facility is due to start operating in the second half of 2017 and will sell power at 0.76 shekel a kilowatt-hour, Israel’s Finance Ministry said today in an e-mailed statement. The cost of the project is $1.1 billion, Shikun & Binui said in a separate filing to the stock exchange.
Israel is expanding its solar industry to meet electricity demand while reducing reliance on fossil fuels. The country installed 41 megawatts last year, increasing capacity to about 226 megawatts amid plans to source 10 percent of its power from renewables by 2020, Bloomberg New Energy Finance data show.
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