- Israel will be launching a 1,000 MW solar power tender with the first phase tentatively scheduled for January 2017
- Solar power plants can be set up at any location in the country and the developers won’t be required to obtain conditional licenses to build the facilities
- Bidders will have to provide a guarantee of $20 per kW in the proposal stage and $70 per kW in the winning stage
- The PUA plans to hold at least six rounds of competition for low, high and extra-high voltage projects at predetermined times
Israel is planning a big move towards solar power with the country’s Public Utility Authority (PUA) getting ready to tender over 1,000 MW. The PUA plans to launch the first phase of the tender in January 2017.
Israel’s market has been a feed-in tariff market so far. With the tender the PUA intends to bring in transparency and efficiency into the process while minimizing cost to the public.
The news comes after the country announced it will float a solar tender for up to 500 MW capacity (see Israel Plans Its Biggest PV System).
The Jerusalem Post reported the news and quoted PUA Chairman Assaf Eilat as saying, “This is great news for the energy sector in Israel and is expected to accelerate, in a short time, the volume of renewable energy produced from just 2% today to full compliance with the government’s objectives.”
Israel wants to have 10% of its total electricity supply from renewables by 2020. The PUA pointed out that the new quotas are being released after two years of stagnation in the solar field.
Israel installed around 250 MW in 2014 and about 200 MW in 2015, bringing its total capacity to 870 MW at the end of 2015, according to the Global Solar Outlook 2016-2020 from SolarPower Europe.
The winners of the tender process will be allowed to set up solar power plants across the country and won’t need to commit in advance about the location. Developers won’t need to obtain conditional licenses to build the facilities. Bidders will face penalties if the commercial operation date for the project is not met – they need to provide a guarantee payment of $20 per kWh in the proposal stage and $70 per kW in the winning stage.
The PUA plans to hold at least six rounds of competition for low, high and extra-high voltage projects at predetermined times. The winners will have to complete low and high voltage facilities within 18 months and extra-high voltage within 36 months.