Israel Electric Corporation (IEC) is the main supplier of electrical power in Israel. IEC builds, maintains and operates power generation stations, sub-stations, as well as the transmission and distribution networks. The company is the sole integrated electric utility in the State of Israel and generates, transmits and distributes substantially all the electricity used in the State of Israel. The State of Israel owns approximately 99.85% of the Company.
Now, IEC will provide consulting services to an Indian government company to develop a solar field supplying 8,000 megawatts in Gujarat, India. This venture is it gets off the ground, will be far larger than the solar fields built to date in Israel. The largest solar field in Israel has produces 55 megawatts. In March, IEC signed a memorandum of understanding (MOU) with the government company Hindustan Salt and its subsidiary, for IEC to share its expertise in the development and deployment of the project, subject to the results of the feasibility study.
Israeli regulations prohibit IEC from developing solar fields in Israel, and, as far as is known, it has not built a single solar field abroad. So it is unclear what exactly the company means when it touts its “expertise” in the field. Any international activity on the part of IEC requires approval from the Government Companies Authority (GCA). The GCA is delaying the establishment of a subsidiary that is meant to coordinate business activities abroad. In October, 2012, IEC submitted a request to register the subsidiary in Cyprus, but the GCA rejected it on the grounds that the scale of activity awarded to the company was too large. IEC then reduced the planned framework of activity by 50%, to just $10 million. IEC then approached the GCA again in December, 2012, and asked to register the company in Cyprus, but the request has not yet been answered.
On this oblivious decision, a question has popped up in the Indian market. Is there no company having more expertise and credentials in the field of solar? We guess, there are big names available in the Indian market, who probably are well equipped to do this kind of assignments. However, 8000 MW is a massive number for solar PV installation. Now, let’s see, how this collaboration will move on.
Posted By: Gaurav K. Sharma
Reference : http://www.globes.co.il/en/article-iec-to-advise-indian-co-on-solar-fields-1000930889