Enlight Renewable Energy Solutions Ltd. (TASE:ENLT) plans to build a 55-megawatt photovoltaic (PV) solar energy farm in the western Negev at a cost of NIS 600-700 million, after signing an agreement with several communities in the area to lease their land for the project.
The company has leased a contiguous 800-dunam (200-acre) site from the communities. The company can cancel the leasing agreement until it obtains a permit for a contiguous 500-dunam (125-acre) piece of land. The project will include the construction of substations to connect the PV farm to the national grid.
Enlight estimates its proceeds from the sale of electricity at NIS 80 million a year for 20 years.
Enlight has not yet obtained all the necessary permits for the project, including its share of the PV quota from the Public Utilities Authority (Electricity) or the electricity rate.
Construction will take two years from the financial closing, and the company said that it was in talks on financing alternatives. Enlight estimates the cost of developing the project and obtaining the permits at NIS 3 million, and estimates the total development and licensing time for the project at three years.
Enlight adds, that the Israeli government's target for the generation of 10% of the country's electricity from renewable sources by 2020, and the expected drop in construction costs of PV equipment and plants, provide reasonable grounds for its cost estimate for the project. It said that, assuming that the project materializes, it will obtain financing for 80% of the project, and finance the balance from its shareholders' equity, which is the normal proportion in the renewable energy industry.
Enlight is a subsidiary of Shaul Elovitch's Eurocom Group. Enlight's share price rose 6.3% in morning trading to NIS 0.34, giving a market cap of NIS 70 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2011
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