Ormat Technologies Inc. says its Israeli subsidiary, Ormat Systems Ltd., has signed a joint-venture agreement with Sunday Energy Ltd., an Israel-based private company, to develop, construct and operate solar-photovoltaic energy systems in Israel with a total capacity of 36 MW.
Under the terms of the agreement, Sunday Energy will contribute the rights to all of its property and roofs required to develop solar energy systems above 1 MW to special purpose entities (SPEs).
Ormat will own 70% of each SPE and will also have control of it. Under the terms of the agreement, Ormat and Sunday will act jointly as the engineering, procurement and construction contractor and the operator of each project in accordance with each company share in the SPEs.
The estimated capital expenditure for 36 MW of solar power systems is approximately $195 million. The electricity generated from the projects will be sold to Israel Electric Corp. Ltd. under a 20-year power purchase agreements and will generate approximately $30 million in annual revenues. The SPEs expect to finance their capital expenditure with 80% nonrecourse project finance debt.
SOURCE: Ormat Technologies Inc.