Let solar energy shine in Israel. We lag Japan, the US – even wintry Sweden.
Lior Baron, 11 Sep 07
Source:Globes.co.il
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000253526&fid=980
More than 5% of the electricity generated in Sweden, Japan, and the US is produced by solar energy. In contrast, Israel, which is ideal in terms of climate for solar power, does not yet generate electricity from solar power on a commercial scale. The failure to promote solar power is shared by all national infrastructure ministers of the past decade, who only looked at the price of electricity, while making no long-term strategies. In most developed countries, it was understood that without government subsidies, it would not be worthwhile for power companies to use the sun to generate electricity.
The following numbers underscore the scale of the government’s failure to promote solar energy. In 2001, the cabinet decided that 5% of electricity generation would come from renewable energy sources (sun, wind, hydropower, and biogas) by 2010. Today, less than 0.2% of electricity produced in Israel comes from renewable sources, and more than 99% comes from coal, crude oil, or natural gas.
Now, perhaps to compensate for the earlier failure, the Ministry of National Infrastructures wants to set a new target of 10% of electricity production to come from renewable sources by 2020. However, pundits say that this is a case of too little, too late, and without the support of the Ministry of Finance, it is hard to see this target being met. The most important project that should be promoted is the solar energy power station in the Negev, which will cost at least $300 million. The power station is slated to generate 100-500 megawatts (MW), enough to supply power to 30,000 households in the south.
A 2002 report by consultancy firm Eco Energy Ltd. recommended the formulation of an energy master plan that would include the use of solar energy as a strategic source for the economy. Eco Energy advised a target of 25% of electricity production from solar power, amounting to 2,500 MW. The report seemed fantastical at the time, but the subsequent rise in oil prices demonstrates that Israel should make reducing its dependence on oil and oil products a priority.
After long delays, the tender for the solar power station at Ashelim is due to be published by early 2008. However, disputes are still raging between the Ministries of Finance and National Infrastructures. The Ministry of National Infrastructures wants the tender to include the construction of the power station, while the Ministry of Finance wants the tender to relates solely to the allocation of land from the Israel Land Administration (ILA), after which the developer may obtain a license to produce electricity on the basis of present policy.
Presumably, this inter-ministerial dispute will be resolved, and the tender will get under way next year. However, unless the government changes its policy on solar energy and allows for the subsidizing of electricity produced by the sun, it is hard to see any substantive change over the next five years. This is especially true for the household sector, where it is not worthwhile generating electricity from solar energy without government subsidies. Elsewhere in the world, solutions to this conundrum have been found through tax breaks and other incentives designed to encourage the purchase and installation of solar power systems.
The loss from the non-use of renewable power sources is two fold, given that Israeli companies such as Ormat Industries Ltd. (TASE: ORMT) and Solel Solar Systems Ltd. are global pioneers in the field and have won contracts worth hundreds of millions of dollars. There is no reason why Israel, which was once a pioneer in the development of alternative energy sources, should not reclaim its status.