The Electricity Market Regulatory Authority of Israel (PUA) has awarded 608.95 MW of solar PV capacity with energy storage in auction results announced late December 2020. This is the country's 2nd solar and storage auction, after it auctioned 168 MW in the 1st such tender in July 2020 when it secured a tariff of ILS 0.199 per kWh (see Israel Auctions 168 MW Solar Capacity With Storage).
According to the information shared by the authority, it has secured a tariff of ILS 0.1745 ($0.054) per kWh for this capacity to be grid connected on completion, 12% less than the previous round. According to the authority, the 'attractiveness offered' in this round indicates great confidence in the country's electricity economy.
It received 55 bids from 10 participants representing a cumulative capacity of 870 MW, but the authority finally chose 33 bids from 7 companies to award 608.95 MW. As for the storage component, PUA expects storage facilities with a total capacity of over 2,400 MWh to be built.
Doral Renewable Energy Resources Group Ltd., that secured the largest share of PV and storage in the last auction, once again secured the biggest share with 200 MW. Other winners were:
Winners will be expected to commission the projects by 2023 combined with a storage facility of at least 4 hours.
"The results of the auction are a huge success, in terms of the low price we received, which is lower than the first auction conducted this year, and in terms of the amount of electricity that will be stored," said Energy Minister Dr. Yuval Steinitz. "This is a significant step that will allow us to reach the goal I set – about 30% of electricity production from solar energy by 2030, and transporting Israel within a few years to the first place in the world in the production of electricity from the sun."
In October 2020, the Israeli cabinet approved a target of 30% renewable energy share in the country's total energy mix to be achieved by 2030 (see Israel Approves 30% Renewable Energy Target For 2030).
Earlier in June 2020, the Ministry of Finance, Israel received interest from 27 companies for a 300 MW solar power plant planned to come up in Negev Desert as the country's 'largest' PV facility (see 27 Companies Line Up For 300 MW Israel PV Project).