The solar plant will have an installed capacity of 265MW and forms part of Israel’s renewable energy expansion plans.

Israel has completed the financial arrangements required to construct its largest solar power facility near Dimona in the Negev Desert.

The Energy and Finance ministries, together with the Electricity Authority, confirmed the project will move forward following the approval of its final deal.

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The planned facility, to be built by EDF Renewables, will deliver an installed capacity of 265MW and cover approximately 3,000 dunams (equivalent to 740 acres).

The solar power station will operate using photovoltaic technology and is projected to offer the lowest cost for electricity in the country, with rates set below NIS0.065 ($0.022) per kilowatt hour.

EDF secured the tender with this record-low bid in August 2024.

Construction is expected to start immediately and is scheduled for completion in about two years.

The Dimona project forms part of broader governmental efforts to expand renewable energy production, specifically in pursuit of sourcing 30% of Israel’s energy needs from renewables by 2030.

The facility will be operated under a public-private partnership (PPP) structure, granting the company responsibility for all phases including design, financing, construction, operation, and maintenance for a 25-year period. After this period, ownership of the facility will transferred to the state.

The plant will not include storage facilities in its initial phase, restricting electricity production to off-peak hours.

Israel Energy and Infrastructure Minister Eli Cohen was quoted by Jewish News Syndicate (JNS), as saying: “This power plant is good news for the State of Israel as a whole, and for the South in particular.

“The southern region, with its abundant sunshine, has the potential to become a hub for clean energy production located near server farms, which is a significant advantage.

“In this way, we are strengthening Israel’s energy security, creating high-quality jobs and positioning Israel—already a technological powerhouse—as a global leader in artificial intelligence.”

Government officials have indicated that this project, along with other renewable energy ventures in the Ashalim area, could collectively provide over 800MW of capacity.