Israel’s solar+storage tender concludes with final price of $0.0578/kWh

The Israeli government assigned 168 MW of capacity through the tender, instead of the initial plan for 300 MW. It selected three developers for eleven projects, with capacities of 100 MW, 48 MW and 20 MW.

The Israeli Electricity Market Regulatory Authority revealed the final results this week for a 300 MW tender to build solar+storage plants in the Negev Desert.

It assigned 168 MW of capacity, spanning 11 projects submitted by three different developers. Israel-based Doral Energy and Enlight Renewable Energy won 100 MW and 48 MW allotments, respectively. Alumni Capital, meanwhile, secured 20 MW. All of the projects will sell power at a final price of ILS19.9 ($0.0578)/kWh.

The plants will have to begin delivering power to the Israeli grid by the end of 2022. The authority had originally prequalified 15 bidders with bids for 45 projects, or 465 MW of capacity.

“The storage auction results proves that local industry is mature and prices can combat natural gas peakers igniting a public debate regarding the local energy mix,” Eitan Parnass, director of Israel’s Green Energy Association, told pv magazine. “Israel was champion of harvesting solar energy, with water solar heaters made compulsory since the 1980s. Now it seems that Israel takes brave steps to promote solar energy.”

The regulator also said that it will hold a similar tender by the end of this year.

In June, Energy Minister Yuval Steinitz said the country would raise its 2030 renewable energy target to 30%, with solar expected to account for the lion’s share. Israel had around 1.19 GW of installed solar capacity by the end of 2019, according to the International Renewable Energy Agency. Developers installed around 120 MW of solar in the country last year.

The nation supports PV development through tenders for large-scale projects. It also operates an incentive scheme for rooftop PV, with net-metering and feed-in tariffs.

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