Ormat Signs 36-MW Solar Deal in Israel

Ormat Technologies Inc. announced that its Israeli subsidiary, Ormat Systems Ltd., has signed a joint venture agreement (JVA) with Sunday Energy Ltd., an Israeli company, to develop, construct and operate solar-photovoltaic energy systems in Israel with a total capacity of 36 megawatts (MW).

Under the JVA, Sunday will contribute the rights to all of its property and roofs required to develop solar energy systems above 1 MW 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 will act, jointly, as the EPC contractor and the operator of each project in accordance with each company share in the SPEs.

The estimated capital expenditure for the 36 MW of solar power systems is approximately US $195 million. The electricity generated from the projects will be sold to Israel Electric Corporation Ltd. under 20-year power purchase agreements and will generate approximately $30 million in annual revenues. The SPEs expect to finance their capital expenditure with 80% Non-Recourse project finance debt.

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