Sources inform ''Globes'' that the economic social cabinet is next week expected to approve a strategic plan for encouraging investment in renewable energy. Minister of Finance Ronnie Bar-On and Minister of National Infrastructures Benjamin Ben-Eliezer head the committee.
The government will invest NIS 400 million in the five-year plan for 2008-12. The plan is intended to encourage R&D and production of electricity by renewable energy sources in order to consolidate Israeli industry's standing as a central player in the global market as the world turns to using renewable energy. The goal is for Israeli renewable energy companies to achieve NIS 500 million in annual sales.
Israeli renewable energy companies had NIS 110 million in exports in 2007. With the increase in building of solar power facilities, sales in 2008 are expected to grow substantially.
The government's renewable energy plan is based on the work by an inter-ministry team and representatives from academe. The main part of the plan calls for the establishment of a 100-dunam (25-acre) renewable energy technology center in the Negev at an investment of NIS 68 million over five years. The center will foster projects from the preparation through the financing stage. 51% of the proposed technology center will be owned by a private company and 49% by the local authority and research institutes.
Bar-On said, "The global energy crisis creates an opportunity for the Israeli economy in the renewable energy industry. The vision of positioning Israel at the forefront of renewable energy R&D runs through the periphery." The Ministry of Finance noted that the plan creates a long-term response for the economy precisely at a time of a slowdown.
Ben-Eliezer recently said, "This is Israel's first step towards increasing energy independence. Israel is committed to becoming a center of excellence for renewable energy. If we succeeded in high-tech and in the information technologies, there is no reason why we can't do it in alternative and renewable energy either."
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2008
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