Israel Electric Corp. has signed contracts to build a $1.3 billion 240 megawatt solar energy project in China.
The facility, to be situated in northern China, will consist of three photovoltaic solar energy arrays. Israel Electric Corp. will not invest equity in the project.
The solar array represents Israel Electric Corp.’s first foray into solar renewable energy and is awaiting the Israeli Government Companies Authority’s approval. The project is Israel Electric Corp.’s largest foreign undertaking.
The Israel Electric Corp. will build the facility in conjunction with its joint venture partner, a Chinese businessman, with the 240-megawatt PV solar arrays being constructed on the Chinese partner’s private land, Globes business daily reported.
A Chinese manufacturer will supply the project’s photovoltaic panels. Israel Electric Corp. will own 50 percent of the engineering, procurement and construction company that will build the project, the Chinese partner will own 25 percent as required by Chinese law, and a large foreign contractor of solar arrays will own the remaining 25 percent.
Israel Electric Corp.’s other foreign energy ventures include designing a coal-fired power station in South Africa in conjunction with France's Alstom SA, a wind energy project in Bulgaria and power station construction in Cyprus and Greece.
By. Charles Kennedy, Deputy Editor OilPrice.com