Israel's 120-Megawatt Windfarm in Golan Heights Clearing Final Hurdles

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Israel's northern Golan Heights is the site for a proposed $325 million windfarm project at Emek Habacha. The new proposed 120-megawatt (MW) windfarm will be built east of Road 89 and will have 48 turbines of 2.5 MW each on 130-meter-high towers.

After the developers obtain final approval from the planning commission, they expect to obtain approval of electricity tariffs to enable them to secure the funding for the project. The developers are reported to be in talks with Bank Leumi (TASE:LUMI) (Tel Aviv, Israel) to lead the syndicate that will provide financing. The developers will provide 20% of the project investment from equity.

The promoter of the project's development is Kinetic Energies-Alternative Electrical Energies Limited, which is owned by the U.S investor Isaac Sutton, the chairman of Hadas Arazim Investment House Limited. Other investors come from the U.S. and six communities on the northern Golan Heights. One major investor is Dr. Eli Ben-Dov, who was responsible for wind energy at Israel Electric Corporation (TAE:ELEC>B22) (IEC).

Golan Heights is the site of Israel first windfarm, which was built in 1992. The 6-MW installation is now being re-powered with six 2.5-MW turbines for a total capacity of 15 MW.

New windfarm projects have been frozen until the national outline plans for windfarms for power generation is completed. The Emek Habacha project was approved by the northern regional planning and building commission, after an announcement by the Ministry of Defense that it was lifting its objections to the project. The environmental organizations' representative on the committee objected and proposed moving nine turbines farther away from bird migration routes.

The Ministry of Defense had insisted on having the authority to determine the color of the turbines to make them easier for air force pilots to see. The developers agreed.

Allowing for negotiation of regulatory hurdles, the project is expected to be brought online in 2015.

Another 155-MW windfarm development has been proposed for Golan Heights and awaits the launch of the national plan to go forward.

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