Israel has announced a tender for the construction of a 100 MW solar power station using photovoltaic technology near the Ashalim settlement in the Negev desert. This project will be developed in collaboration with the private sector under the Public Private Partnership (PPP) method for financing, planning, construction, and operation.
The concessionaire who wins the tender will be responsible for these aspects for 25 years before transferring the power station back to the state. The initiative aligns with the government’s goal of achieving 30% electricity production from renewable sources of the total electricity consumption by 2030 and reducing emissions in Israel.
This project is part of a series of PPP projects aimed at establishing renewable energy power plants, which are being promoted by the Accountant General in collaboration with inter-ministerial teams. These projects include two thermo-solar and two photovoltaic power plants that already supply over 300 MW to the electricity grid.
The addition of the PV3 project, along with the five projects in the Ashalim area, is expected to provide over 400 MW of renewable energy to the grid, contributing to the national goals for renewable energy production.
Nine Teams to Compete in the Tender
Nine teams that met the initial selection criteria will compete in the tender. The tender was issued by the inter-ministerial tender committee for solar energy projects, comprising the ministries of finance, energy and infrastructure, the electricity authority, and the state-owned company Inbal. Mr. Amit Marzaei, manager of the infrastructure and PPP projects unit in the accountant general’s department, is heading the committee.
According to a statement by the head of the Israeli Electricity Authority, Amir Shavit, the new plant is scheduled to be operational by the first quarter of 2027. “We are happy that actors from the local and international markets are already interested in the new tender,” said Shavit.
The new solar power plant near Ashalim will sell power to the grid at a tariff of ILS 0.08 ($0.0223)/kWh, which the government said is the cheapest price paid for energy and solar power in Israel to date.
Ashalim: A Hub for Solar Energy in Israel
The Ashalim area currently hosts two PV plants and two CSP plants. The four projects currently inject about 300 MW into the Israeli grid. The PV plants have a combined capacity of 121 MW and were built by Belectric and EDF Renewables. The CSP plants have a combined capacity of 191 MW and were built by Megalim Solar Power and Negev Energy.
In April 2023, it was announced that energy company Teralight would be building one of Israel’s largest solar parks, the Ta’anach PV project, in the Jezreel Valley, northern Israel. Ta’anakh solar will have 250 MW of installed capacity and 550 MWh of solar-plus-storage.
In May 2023, the Israel Land Authority launched a tender to lease 28,000 acres (11,331 hectares) in the Negev Desert for the deployment of large-scale solar power plants. The country mainly has PV at its disposal to increase its generation capacity, with around 5 GW already installed.
Israel is one of the world leaders in solar energy adoption, as it has abundant sunshine and limited fossil fuel resources. The country aims to reach 16 GW of solar capacity by 2030, which would account for about 80% of its electricity demand.
