In a bit of good news for the solar industry, an increase in quotas for electricity production using solar panels has been approved. After two years of waiting, during which the solar industry came to a complete standstill, the government voted in favor of increasing the quotas for photovoltaic (PV) solar roof power production.
The cabinet decision makes it possible to divert quotas amounting to 300 megawatts initially allocated for environmentally friendly power production using other means (wind and treated waste) to power production using PV technology.
The government also approved the conversion of 180 megawatts in Mishabei Sadeh and Ze'elim initially allocated for solar panels using thermo solar technology (a conversion that the Ministry of Finance says will save the economy NIS 2 billion), a 30-megawatt PV quota at Ashelim, and a 30-megawatt quota in Judea and Samaria.
The only reason why approval of the quota was delayed until now was an objection lodged by Minister of Finance Yair Lapid to the 30-megawatt quota in Judea and Samaria. Lapid did not agree with the clause guaranteeing compensation to owners of facilities in Judea and Samaria in the event of a permanent political settlement with the Palestinians, and therefore nothing was done for two years.
The renewable energy targets were set in a 2009 government decision, which set a 5% interim target for renewable energy production in 2014 and a 10% target for 2020. As of now, however, renewable energy accounts for only 1% of total annual energy consumption (98% of that comes from PV solar facilities).
The world is also progressing towards solar energy production. According to figures published by the International Energy Agency (IEA) in September, it is predicted that by 2050, solar energy will become the main source of electricity, and that solar systems will account for 6% of global energy consumption by 2030.
Green Energy Association of Israel CEO Eitan Parnass said, "The Israeli government is giving the solar market a shot in the arm. After two years of stagnation, solar facilities amounting to NIS 3 billion will be built in the coming years. This is a lifeboat for the solar industry, which has been waiting for additional quotas to be approved since 2012. We applaud Minister of Energy Silvan Shalom, who has been pushing the matter with determination since he took up his post, and who is taking steps to move the environmentally friendly energy industry in Israel forward. The projects are expected to be constructed mainly in outlying areas, and will provide jobs and sources of income in the places that need them the most."
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2014
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