It’s the second Siemans-Israel solar news in as many months: the German energy giant Siemens, according to the Israeli business newspaper Globes, is not only interested in acquiring a stake in Solel Solar Systems, as we’d reported earlier, the company is believed to be negotiating a a second solar contract in Israel with Arava Power.
The reported deal is worth several tens of millions of dollars, says a source.
For background, Kibbutz Ketura owns 40% of the company and a group of US investors own 60%. Great at marketing themselves, Arava owns cooperation agreements with about 20 cooperative villages and kibbutzes in Israel. Compared to other solar power companies, Arava Power controls the the largest amount of land available for installing its solar power farms. Writes Globes:
Solar industry sources say that Siemens wants to invest in just such a partnership in order to be able to supply equipment for the planned solar power fields, and not merely as a financial investment. Siemens’ interest in Solel Solar is different from its interest in Arava Power.
Solel Solar develops and manufactures thermosolar panels and technology, so Siemens wants to acquire the company, not just become a shareholder. However, in the case of companies planning to build solar power projects, such as Arava Power, Siemens prefers acquiring a stake with the goal of selling its equipment, as well as generating profits from electricity sales.