The Israeli government has introduced new provisions that authorize bilateral PPAs between independent power producers and final clients.

“The new rules apply only to power plants connected to the high voltage grid, which in Israel is from 620 kW to 16 MW,” Eitan Parnass, the director of the Green Energy Association of Israel, told pv magazine. “These contracts be closed in a free market environment with no intervention whatsoever from government's entities.”

Only solar developers will be able to take advantage of the new regulatory framework, as wind power projects are still limited by current regulations. Unlike PV arrays, wind projects still benefit from the feed-in tariff (FIT) scheme.

Israeli renewables developer Doral Group, meanwhile, has secured its first PPA from real estate company Melisron. The agreement will go into effect in January 2024.

“The amount of electricity consumed by Melisron as part of the transaction represents about 10% of the total green electricity produced by Doral's PV facilities that are expected to connect to the Israeli grid in the next two years, which is approximately 1 GW, with an energy storage capacity of about 1.8 GWh,” the developer said, without providing details.