Israeli officials announced on Sunday the financial close of the country’s largest solar power plant project, to be built near the southern city of Dimona in the Negev.

Solar project in Israel (photo: Kobi Richter/TPS)

The facility will have a capacity of 265 megawatts and will supply electricity at a tariff of less than 6.5 agorot (about 1.7 U.S. cents) per kilowatt-hour, a record low for Israel’s renewable energy sector.

Energy and Infrastructure Minister Eli Cohen called the project “an important step” toward expanding renewable energy production, increasing Israel’s energy independence, and reducing air pollution.

The facility will span approximately 3,000 dunams (750 acres) in the Dimona area and will use photovoltaic solar technology. It is expected to become Israel’s largest renewable energy installation to date.

The EDF Renewables consortium won the tender after offering the lowest electricity tariff ever recorded in Israel. Construction is expected to begin immediately and take about two years to complete.

Under the public-private partnership model, EDF will oversee the project’s planning, financing, construction, operation and maintenance for 25 years before transferring the facility to the state.

Finance Minister Bezalel Smotrich said the project would help increase electricity supply, reduce emissions and support Israel’s efforts to meet its 2030 renewable energy targets.

The initiative is part of a broader cluster of solar projects in the Ashalim area south of Beersheva led by the Ministry of Energy and Infrastructure, the Accountant General’s Office and the Electricity Authority. Together, the projects are expected to contribute more than 800 megawatts of renewable energy capacity to Israel’s national grid.

Officials said the Dimona project supports Israel’s goal of generating 30 percent of its electricity from renewable sources by 2030 while reducing emissions and expanding clean energy production.