Israeli CSP project of 110 MW achieves financial close

Spanish engineering company Abengoa SA (BME:ABG) and Israeli infrastructure group Shikun & Binui have closed the non-recourse project financing for a 110-MW solar thermal power project in Israel.

Construction work on the roughly USD-1-billion (EUR 921m) Ashalim concentrating solar power (CSP) station in Western Negev Desert is expected to start by the end of the month, Abengoa said today. The two project partners have secured financing from development financial institutions such as the Overseas Private Investment Corp (OPIC) and the European Investment Bank (EIB) as well as from local commercial lenders Bank Leumi and Bank Hapoalim.

The Ashalim plant will feature parabolic trough technology with a 4.5 hour thermal energy storage system using molten salts. Upon completion, the facility will be able to generate enough electricity to meet the annual power needs of over 69,000 homes.

The Israel Electricity Corp will be buying the plant’s output under a 25-year power purchase agreement (PPA) that was inked in late 2013.

(USD 1.0 = EUR 0.921)

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