New solar energy project in Israel receives financial backingJuly 21, 2014
European Investment Bank issues loan to ambitious solar power project in Israel
Israel has plans to generate at least 10% of all of its electrical power from renewable sources by 2020. In order to accomplish this feat, the country has begun focusing on solar energy. Several solar projects have come to Israel in order to take advantage of the policies that are designed to support the development of solar power systems and investments in Israel’s solar sector are beginning to increase. The European Investment Bank is one of the latest entities to invest in this sector.
New project to be built in Nagev desert by a joint venture from Brightsouce Energy and Alstom
The European Investment Bank has provided a $150 million loan to Israel’s largest solar energy project. The project is taking root in the Negav desert and it will have a maximum energy capacity of 121 megawatts. The project involves the construction of a solar thermal plant that will span some 3.15 million square miles. A joint venture launched by Alstom, a French energy company, and Brightsource Energy will be responsible for the construction of the project.
Israel is looking toward renewable energy to solve potential power crisis in the future
In 2013, Israel’s total installed energy capacity was 13,000 megawatts, of which renewable energy accounted for only 0.87%. The country has long been dependant on fossil-fuels, but ongoing political tensions are putting access to these fuels at risk. If politics continues to play an overarching role in the energy sector, Israel could face a future where its access to fossil-fuels is either severely limited or non-existent. As such, the country has begun to look toward renewable energy to solve this potential future problem. Clean energy also comes with some economic promise as new projects can often spark economic activity.
Middle East continues to be an attractive market in the solar sector
Current estimates suggest that 92% of the new energy capacity that will be installed in Israel this year will come from solar projects. Solar energy has become quite popular throughout the Middle East due to the abundant sunlight that the region receives year-round. Because of this, organizations like the European Investment Bank are willing to providing financial aid for projects that call the Middle East home.