After a six-month delay, the Public Utilities Authority (Electricity) plenum yesterday approved a 120-megwatt quota for small rooftop photovoltaic facilities. It also lifted restrictions on public institutions to install small photovoltaic facilities.
Small photovoltaic facilities are defined as producing 15-50 kilowatts of electricity for business purposes. The quota will be allocated on September 1. Israel Electric Corporation (IEC) (TASE: ELEC.B22) will commit to buying electricity from the producers at NIS 1.51 per kilowatt/hour. The tariff will be reduced by 7% every September 1.
The Public Utilities Authority plenum decided not to limit the installation of photovoltaic facilities smaller than 15 kilowatts, defined for household use. These electricity producers can sell electricity to the national grid (IEC) at NIS 1.67 per kilowatt/hour. The reason for not limiting these facilities and offering a higher tariff was the market failure of these facilities to date. Only 15 megawatts, a third of the original quota has been allocated to households.
In contrast, the original 35-megawatt quota for business photovoltaic facilities was filled by late 2009. The tariff for these facilities in the quota was the same as for households: NIS 2 per kilowatt/hour.
The Public Utilities Authority eased one of the conditions for public institutions for the installation of photovoltaic facilities, by postponing the requirement to announce the installer to a later stage in the licensing process. Until now, public institutions had to announce the installer in advance. The institutions said that this requirement delayed the installation of photovoltaic facilities by up to three months, because, in contrast to private entities, they are mandated to select the installer by tender.
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010