Israel's Arava Power Prepares to Build 15 Solar Farms

Israeli solar developer Arava Power (APC) announced long-term contractual agreements signed with 15 agricultural cooperatives to build mid-size solar farms.

Combined, the photovoltaic projects are expected to provide a total of 100 megawatts (MW) of solar energy at an investment of 2 billion NIS (US$533 million).

APC CEO Jon Cohen: “We specialize in mid-size solar fields and
rooftop solar installations. The knowledge and unique experience that
we have acquired, in addition to our partnership with Siemens, provide
our partners with the best conditions for building these fields. The
PUA has created a competitive market for 300 megawatts–and anyone who
has the experience, knowledge, and ability will be at an advantage over
the rest.”

Cohen called on the Ministry of Infrastructures and
the PUA to increase the approved quantity of solar energy produced in
mid-size fields to 1,000 MW: “We are implementing Prime Minister
Netanyahu’s vision to cease use of fossil fuels within a decade and
develop alternative energies for itself and the world. The goal to
produce 300 solar megawatts is an important step towards implementing
the government’s decision to produce 5% of Israel’s energy consumption
from renewable  sources by 2014, but it’s not enough: In order to
achieve this goal, at least 1,000 megawatts are needed, and the market
indicates that only mid-size solar fields can fill the gap faster than
any other source.”

Arava Power President Yosef Abramowitz says, “We’re in a huge growth
period. In each of the 15 mid-size field locations, we are also
planning to build a large-size field, adding another 500 megawatts to
Arava Power’s pipeline. Together with our partners from Siemens, we are
weighing additional proposals from investors.”

In August 2009, Siemens (NYSE: SI) acquired a 40% stake in Arava Power for $15 million.

Siemens Israel CEO Eliezer Tookman, said, “Siemens brings to the table vast knowledge and experience in complex project management from a technical standpoint, as well as training local technical teams in general, long-term strategic commitment, and expertise in maintenance and operation of projects and products for decades at the highest level. We anticipate and are readying ourselves for this task of building multiple fields, and hope that it’s only the beginning of a solar revolution in Israel.”

In late December 2009, Israel’s Public Utilities Authority (PUA) decided to allow mid-size solar fields at a nationwide capacity of 300 MW. Analysts expect that this cap will be filled quickly, as the market has a larger potential.