Skypower mulls bid for Negev solar project

Sources inform ''Globes'' that Canadian renewable energy company SkyPower Corporation may participate in the tender for the Negev solar power plant at Ashalim. The $600-700 million tender is due to be published by the end of the month.

A SkyPower delegation recently visited Israel and held preliminary talks about cooperation with some of the Israeli companies planning to bid in the tender. SkyPower also asked for full information about the project from the Ministry of Finance, the Ministry of National Infrastructures, and the Ministry of Environmental Protection.

SkyPower is one of Canada's largest renewable energy companies. It specializes in the development, construction, and management of wind farms and solar energy power stations. The company is currently involved in 70 renewable energy projects in various stages of development, with aggregate capacity of 7,000 megawatts (MW). Most of the projects are in Canada and the US.

The BOT (build, operate, transfer) tender is for a 250-MW solar power station that will produce 2.5% of Israel's electricity needs. Other potential builders of the plant include Israeli solar power companies Solel and Luz II, a subsidiary of BrightSource Energy, Israel Corp. unit IC Green Energy Ltd., and Housing and Construction Holding Co. Ltd. (Shikun u'Binui). Spanish energy giant Abengoa and Babcock & Brown Capital Ltd. of Australia have also expressed interest in participating in the tender.

IC Green Energy to enter Negev solar power plant tender

Sources inform "Globes" that Israel Corp. subsidiary IC Green Energy will participate in the BOT (build, operate, transfer) tender for the Negev solar power plant at Ashalim.

IC Green Energy (ICG), headed by CEO Yom Tov Samia, was founded in 2006 by Israel Corp. to serve as its renewable energy arm. So far, ICG has examined a number of overseas projects in the field of alternative fuel and electricity generation. According to its web site, the company is focused on biofuel (biodiesel & ethanol), solar energy and the production of biofuel and energy from biomass.

Israel's first tender for a solar power plant will be for the construction of two power stations that will generate 250 megawatts altogether, amounting to 2.5% of Israel's power production. The project is valued at $600-700 million.

Other potential builders of the plant include Israeli solar power companies Solel and Luz II, a subsidiary of BrightSource Energy. Spanish energy giant Abengoa and Babcock & Brown Capital Ltd. of Australia have also expressed interest in participating in the tender.

For additional background information on this project, see:

"Israel Plans 250-MW solar power plant"

"Australian fund considers Negev solar plant bid"

Australian fund considers Negev solar plant bid

Sources inform ''Globes'' that Babcock & Brown Capital Ltd. of Australia is considering participating in the tender to build a $600-700 million solar power station in the Negev. The tender is due to be published in 2008.

Babcock & Brown wants an Israeli energy company as a partner. The Australian investment company is the second international company expressing an interest in the tender; Spain's Abengoa Bioenergy SA has contacted the Ministry of National Infrastructures about it.

The 250-megawatt solar power station will be built at Ashalim in the central Negev under a BOT (build, operate, transfer) contract.

Babcock & Brown's portfolio already comprises thirteen operating power stations representing over 3,300MW of generation and a further 1,700MW under construction. The firm announced in June 2007 that it was opening an office in Israel to be headed by the former privatization chief Eyal Gabbai.