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Last update - 00:00 06/08/2008 Solar energy could raise electricity prices By Avi Bar-Eli Construction of three new solar energy stations at Ashalim in the Negev, along with recently announced incentives for installing solar panels on rooftops, could cost an additional NIS 350 million annually for electricity production, raising prices by up to 1.5%. With the plethora of plans for producing electricity with renewable energy, such as sun or wind, we sometimes forget that such production is dozens or even hundreds of percentage points more expensive than producing electricity based on coal or natural gas. Electricity rates are currently based on average production expenses of about NIS 0.40 per KW/hr. To provide incentives for private production of electricity through solar technology, the state needs to ensure higher prices, to cover the high production costs and provide an effective risk premium. Manufacturers of electricity with thermal solar devices that produce 0.1 to 20 megawatts will receive NIS 0.90 per KW/hr when sold to the electricity grid, while larger producers of more than 20 megawatts will earn about NIS 0.70. Advertisement In addition, new incentives for self-production of electricity with photovoltaic technology that came into force last month entitle owners of facilities that produce 15 to 50 KW of electricity an even higher rate of NIS 2.01 per KW/hr for electricity sold to the grid. The process of building three solar power stations at Ashalim began five months ago, and the state has issued minimum prerequisites for participation in the tenders. Two thermal solar stations with a production capacity of 80 to 125 MW each and a photovoltaic station with a capacity of 15 to 30 megawatts will be built through BOT tenders. These, together with incentives for private production of up to 50 megawatts, lead the National Infrastructure Ministry to project that by 2013, 330 megawatts of electricity, or about 3% of all electricity, will be produced with solar energy. Using current rates as a basis for the sale price for electricity to be produced by the projects reveals that the purchase of thermal solar electricity involves an extra cost of NIS 105 to 160 million annually (depending on production capacity), and electricity produced by photovoltaic technology will cost an extra NIS 35 million to NIS 70 million annually (depending on production capacity). The extra cost involved in buying electricity privately produced by photovoltaic devices is estimated at up to NIS 120 million annually. Based on these figures, electricity produced from solar power stations and private production could cost up to NIS 350 million more than production of the same amount of electricity by coal- or natural-gas-powered stations annually. Incorporation of this extra cost into the cost of electricity to home and industrial consumers (taking into account increasing consumption of electricity in Israel) will result in an increase of 1.5% in the cost of electricity. But the extra costs should be substantially higher in reality, amid government plans to build a new solar energy station every year over 20 years. It is worthwhile to consider the plan in light of the costs that Israeli consumers will be asked to bear as a result of the rising cost of electricity. The National Infrastructure Ministry plans to produce 20% of the economy's electricity with renewable energy sources by 2020. By then, the cost of solar energy technology should be lower. In a poll conducted by the Public Utilities Authority - Electricity on its Web site, 57% of the participants said they would be willing to pay more for electricity produced by green technologies. In the poll, 31% said their willingness to bear additional costs is based on the size of the increase. In addition, 12% said they would not be willing to pay more for clean electricity. Notably, the poll cannot be considered as representative, as only 160 people have responded so far. Bookmark to del.icio.us   Mikaeel Jackson Report: Pop star Michael Jackson converts to Islam. Peace now Abbas calls on Obama to enact Arab peace plan as soon as he takes office.   1.   ...and the earth is flat! 09:58  |  Goy 06/08/08   2.   Vacuous, outrageous reasoning 17:13  |  Naftush 06/08/08   3.   one way or the other 21:31  |  potobac 09/08/08   4.   if the blooming idiots in DC would go to the source of solar 18:15  |  glenna 29/08/08

Read & React 20,000 Jewish pilgrims to descend on Hebron amid settler violence Responses: 235 Experts argue: How close is Iran to its first nuclear weapon? Responses: 158 Video: Prof. Avi Shlaim says settlements turn Israel into Apartheid state Responses: 215 Debate over Museum of Tolerance - an exchange Responses: 32 PLO official Yasser Abed Rabbo: The Palestinian people need Obama's help Responses: 89 Gideon Levy: Israeli left was born in sin and died because of a lie Responses: 111 More Headlines 03:04 Defense establishment paper: Golan for Syria peace, plan for Iran strike 02:22 Candidate for U.S. security adviser wants NATO force in West Bank 02:23 Obama's Mideast peace platform is coming into focus 05:04 As he heads to Washington, Olmert prepares his comeback 06:44 Hebron on Shabbat / Despite everything, this city is still Palestinian 07:26 Belgian travel show ad features Hitler in stripper costume 04:30 Israel in pole position at Chess Olympiad 01:36 Ethiopian immigrants: Why place us so far from job possibilities? 06:08 Despite prior objections, Treasury to give in on pension fund safety net 07:18 Hollywood in Netanya: Ben Stiller and Chris Rock in coastal Israeli city for 'Madagascar 2' premiere 05:25 Swimmer Jaben suspended for a year after positive drug-test results Previous Editions Select Day 21 nov 20 nov 19 nov 18 nov 17 nov 16 nov 14 nov 13 nov 12 nov 11 nov 10 nov 09 nov

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