Star Pumped Storage Ltd., in which Tahal Group holds a 40.5% stake, has signed a principle construction agreement
with a joint consortium, comprising Sinohydro Corporation and Alstom Hydro France (which was acquired by GE).
Star Pumped Storage Ltd. holds a license to build and operate a 340 MW power plant in Kochav Hayarden, Israel, based on the pumped storage technology.
The Agreement encompasses a full EPC (engineering, construction and procurement) turn-key assignment for the Project, representing a total amount of NIS 1.7 billion (approximately EUR 394 million). In addition, an operating and maintenance agreement was signed with GE Renewable Energy Ltd. only, in the amount of NIS 16 million (approximately EUR 3.7 million) per year, for a period of up to 18 years, including possibilities to end earlier as stipulated in the agreement.
The terms of the two agreements are subject to the approvals of the banks financing the Project and to the completion of the financial closing for the entire project (which is expected in the third quarter of 2016).
Tahal is proud to lead the Star Pumped Storage project. This national infrastructure project will have a huge impact on the Israeli Electricity Sector: it will back up the National Grid with 340MW available in less than 2 minutes, contribute to the Grid's stability and spare the need to build additional conventional power station.
The project's scope includes two reservoir of 3 million m3 each. The water will be drained from the upper reservoir to the lower reservoir through two turbines with a capacity of 170MW each, which will produce the electricity as a result of their movement. The turbines will also be used to raise the water up during night time, utilizing the electricity production surpluses.
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