Canadian Solar and Menora Mivtachim will invest a total of $60 million to fund a joint venture in solar project development.
The joint venture will initially finance projects already awarded by the Israeli Electricity Authority in previous PV tenders, with further PV projects expected to be developed in the future.
“This partnership will leverage Canadian Solar’s proven track record in developing and building solar power projects,” said Chairman and CEO Shawn Qu, “with Menora Mivtachim’s financial strength and credibility to create an industry leader in the local market.”
Canadian Solar has found success in several markets through similar models to this, where it has launched project development activities through a locally based subsidiary, or partnered with a major financial institution in the target country.
Examples of this include Recurrent Energy in the U.S., which has connected more than 800 MW of solar in California since being acquired by Canadian Solar in 2015, and a deal in Japan, where Canadian Solar has leveraged a JPY 5.4 billion ($47 million) financing deal with Goldman Sachs to develop 52.5 MW of new PV in the first half of 2017 alone.
At the start of 2017, Israel had around 900 MW of PV installed, mostly in the rooftop segment. The country has now issued the first two tenders of a planned series of six before the end of 2018, in the first tender, 235 MW of new PV capacity was allocated.