EDF Renewables, a subsidiary of the French state energy company EDF, has won an Israeli Government tender to build and operate a new 100MW solar plant.

The subsidiary submitted a bid of NIS0.07/kWh ($0.019), the lowest price ever recorded in an energy tender in Israel.

The previous lowest record had also been submitted by EDF for a 40MW solar power plant in Ashalim, a small settlement in the Negev Desert in the south of Israel. The Ashalim plant currently sells power to the grid at a tariff of NIS0.08/kWh.

“The tender results demonstrate that emission reduction and achieving renewable energy goals go hand in hand with lowering electricity prices, which is great news for Israeli citizens,” said Yehli Rotenburg, the accountant general of Israel.

Energy Ministry Director General Yossi Dayan said that the results of the tender show that renewable energy can help lower electricity production costs, which in turn will help lower the cost of living in Israel.

The high cost of living has plagued the citizens of Israel in recent years, with the war against Hamas exacerbating the issue. Last year, the Times of Israel reported that in 2022, prices in Israel were 38% higher than the OECD average. The uptake of solar power could help reduce the energy price component of the cost of living crisis.

The new solar power plant will be built near Ashalim under a public-private partnership agreement. PV Magazine, citing the Israeli Electric Authority, reported that the plant is scheduled to be operational by the first quarter of 2027.

EDF has already completed four other solar projects in the region, including the 14MW plant at Pduyim, the Mefalsim 13MW plant and the Kfar Maimon 7MW project.