Israel’s largest solar project secures financing, construction to begin
Israel has finalised financial arrangements for its largest solar power project near Dimona in the Negev Desert, with approvals from the Energy and Finance ministries and the Electricity Authority.
The 265 MW photovoltaic plant will be developed by EDF Renewables across around 3,000 dunams (740 acres). The project will supply electricity at below NIS 0.065 (about $0.022) per kWh, the lowest tariff recorded in the country. EDF Renewables had secured the project through a competitive tender in August 2024.
Construction is expected to begin immediately, with commissioning targeted within two years. The initial phase will not include energy storage, which limits generation to daylight and off-peak hours.
The project will follow a public-private partnership (PPP) model, under which EDF Renewables will handle design, financing, construction, operation, and maintenance for a 25-year period. Ownership will transfer to the state at the end of the concession term.
Energy and Infrastructure Minister Eli Cohen stated that the project supports regional development and leverages strong solar resources in southern Israel, including proximity to energy-intensive facilities such as server farms. Finance Minister Bezalel Smotrich said the project will strengthen electricity supply and support emissions reduction.
The Dimona project contributes to Israel’s target of sourcing 30% of its electricity from renewable energy by 2030. Along with other PPP renewable projects in the Ashalim area, the developments are expected to add more than 800 MW of combined capacity.
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