Dear Clients and Friends,
On January 10, 2017, the Israeli Electricity Authority ("EA") published a Call for Bids, subject to public review, in the first bidding round for determining a rate for producing electricity with Photovoltaic technology.
The total quota allocated in this bidding round is 150-300 MV, for installations connected to the distribution grid (high voltage and low voltage). The bidders shall propose the applicable tariff they expect to be paid for each KW/h supplied to the electric grid.
The tariff for all winning proposals shall be at that of the lowest proposal not chosen. The tariff shall be paid over a period of 23 years from the date of commercial operation (linked to a fixed indexation formula chosen by the bidder).
The Call for Bids includes the criteria which shall apply to the bidders, bidder declarations, guarantees forms, sample power purchase agreement, sample winning notice including tariff approval, licensing procedure with respect to the participants required to have a production license, a sample license, a proposal application form, and general explanations on how to conduct the competitive procedure.
Comments and requests for clarifications regarding the Call for Bids will be received to later than January 24th, 2017 at 2PM (Israel time). The final date for submitting bids is 28 February, 2017 at 2PM (Israel time).
The Call for Bids and its schedules (in Hebrew) can be found here.
For more information, please see our previous client update here.
Energy and Natural Resources Department
Herzog Fox & Neeman