Sunday Energy is looking for public capital to jump start 188 megawatts worth of solar projects in Israel
Israel’s home based solar energy efforts seem to be taking a “one step forward and two steps backward” approach in supplying country with at least 10 percent of its total energy needs by the year 2020. With all the publicity surrounding the launching of Arava Power’s new commercial solar energy field at Kibbutz Ketura, and the attempted “blocking” of the launch by rival SBY Solutions, one may wonder why Israel is currently lagging behind many countries in the actual installation of solar energy power projects in the country itself.
Roof top solar panels may be advantageous over field erected ones. Photo: SBY Solar Solutions
But despite these issues, other solar energy development companies are still hoping to “cash in” on the country’s large amount of high intensity solar radiation, and attractive feed-in tariffs.
One of these companies, Sunday Energy Ltd is planning to raise as much as NIS 40 million (US$ 11,764,000) on the Tel Aviv Stock Exchange. The fund raising will be via an IPO offering which will hope to generate much needed capital to a solar energy company that has still yet to turn a profit, according to a recent news article in Globes, Israel’s largest financial news source.
The Globes article reports that the company is in the process of obtaining licenses to generate 188 MW of electricity. Globes also states that Migdal Insurance Company and Financial Holdings, Israel’s largest insurance company, is interested in acquiring a 10% share in Sunday Energy; indicating an interest in the energy company’s renewable energy future.
The down side is that Sunday Energy has lost NIS 8.5 million in its last two years of operation (2009/10) and that it currently has a shareholders equity deficit of negative NIS 7 million.
Sunday Energy and other solar energy companies in Israel hope to receive more cooperation from the Israel government, especially regarding the amount of feed in tariff revenues that the state-owned Israel Electric Company is willing to pay for solar power generated electricity that is sold back the IEC’s national power grid.
The bottom line, in Sunday Energy’s eventual success, as those of other solar energy companies operating in Israel, is to receive more government cooperation. Up to now, however, this cooperation has not been so forthcoming. Arava Power said it had to coordinate with more than 24 ministerial groups to launch their site. Talk about paperwork!
But paperwork and cautious optimism appears not enough to actually “float” the IPO, as current realities in the TAU Stock Exchange index have made Sunday Energy’s executives decide not to offer the shares in an IPO; even at a discounted rate of 25% less than originally planned, as reported in an updated Globes article .
Sunday Energy will simply have to find other ways to overcome its current NS 9 million equity shareholders deficit and make itself more attractive to new investors. In other words: make more “hay” while the sun shines.
Read more on Sunday Energy and other solar energy projects in Israel:
Here Comes the Sun at Kibbutz Ketura
SBY Power Blocks Arava Solar Field Launch Today
Despite Solar Innovations, Israel Lags far Behind Europe and the US in Results
Sunday Energy to Build Large Solar Array on “Damaged” Negev Land