Ashalim Thermo-Solar Power Plant P3

Ashalim, Israel
Alternative DeliveryConcessionsESGFinancingOperations & MaintenanceP3
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Location: Ashalim, Israel
Owner: Negev Energy—Ashalim Thermo Solar Ltd.—S&B Owns 50%
Construction Company: Shikun & Binui
Project Status: Construction ended in 2018, and it is now being operated for 28 years
Ashalim is Israel's largest renewable energy project. Located near the town of Ashalim in the Negev Desert, this project is a 121-MW thermo-solar power plant that uses Concentrated Solar Power (CSP) technology. The power plant includes a unique state-of-the art energy storage facility which allows for the accumulation of up to 4.5 hours' worth of energy for use during dark hours. The project was delivered under a P3 DBFOM framework and it includes a concession agreement that allows Shikun & Binui to operate the plant for 28 years (including the construction period). The project also introduced new infrastructures including a 32 km natural gas pipeline, a 161KW electricity line and a new water pipeline.
Ashalim
The thermo-solar power plant at Ashalim is Israel's largest renewable energy project.

Financing

In 2015, early into construction, the Abengoa group (who at that point owned 50% of Negev Energy—the company that served as the developer/concessionaire of Ashalim) went into significant financial difficulties and was forced to leave the project. To get the project back on track, Shikun & Binui needed to step in and take the lead. Shikun & Binui Energy holds 50% of Negev Energy which served as the developer/concessionaire of the project.

Construction

Shikun & Binui was responsible for 67.5% of the design and construction of this project. The content of the Engineering, Procurement and Construction (EPC) work included the design and construction of the following:
  • Process steel piping works (160 miles)
  • Boilers
  • Tanks and heat exchangers
  • Cooling towers
  • Logistics infrastructure and warehouses
  • Roads (10 miles)
  • Earth infrastructure works
  • Thermal oil storage and piping
  • Evaporation ponds


EPC also involved the procurement and installation of:
  • Turbines
  • Sewage and water piping infrastructure
  • Industrial electrical works and substation
  • Instrumentation and control works
And finally, the following systems were installed:
  • Water softening and treatment system
  • Fire detection and extinguishing system
  • Thermal storage system
  • Steam system



This project also includes a natural gas power plant which produces 15% of the energy on site. The successful effort of Shikun & Binui, allowed the project to continue almost seamlessly while new partners were added both the EPC and the developer and we managed a complex re-finance that allowed the project to continue under the original contracts. The project was completed on budget and on spec with negligible impact to the original schedule.

Operations & Maintenance

This project is currently in the operations phase, Shikun & Binui is part of the team that continues to operate and maintain this asset. The maintenance period is 28 years. The power plant covers an area of about 1,000 acres and provides power to approximately 60,000 households. The power plant commissioning was as an important milestone in realizing the national goal of generating 10% of Israel’s power through renewable energy by 2020.

ESG Efforts

In order to leave a lighter footprint, Shikun & Binui is dedicated to applying ESG principals to our projects. Here are some examples of ESG at Ashalim:
  • Environmentally developed the village of Ashalim 
  • Helped establish education projects for the disadvantaged/minority community residing in the adjacent Arab-Bedouin village, Bir Hadaj
  • Built special animal access portals in multiple locations across the project’s surrounding fence
  • Sourced employees for the work from the southern area of Israel (over 50% of construction employees and 34% Bedouins) and assuaged some of the chronically low local employment in the region
  • Enhanced regional development by promoting environmental planning and boosted tourism with a unique scenic observation