Under terms of the joint-venture agreement, Sunday Energy will contribute rights to rooftops and property required to develop projects of 1MW or greater. Ormat and Sunday will form special purpose entities to be financed with 80% non-recourse project finance debt. Ormat will own 70% of these entities and control them. The two companies will split engineering, procurement and construction responsibilities according to their ownership share.
Ormat says electricity from the projects will be sold to Israel Electric Corporation under 20-year power purchase agreements that will generate some $30m a year.
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