Israel's first private electricity supplier, OPC Energy, has signed a letter of intent to acquire control of CPV, an American company that develops and maintains power plants, for $700-800 million.
CEO of OPC Energy Giora Almogi said Wednesday that OPC has recognized the potential of the US electricity market, with an emphasis on expanding operations into the field of renewable energy.
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According to Amogi, the US Energy Information Administration expects that coal-fired power plants and power stations based on fuel oil and diesel that produce some 130,000 MW will close by 2030, but that wind and solar-based power stations will be constructed that will produce over 230,000 MW of energy.
"There is growing momentum for increased development of renewable energy and a focus on a lower carbon approach to electricity supply," Almogi explained, adding that the US energy market was also modernizing its electricity grid and replacing coal and uneconomic nuclear assets with "efficient, highly flexible natural gas power plants."
Almogi said that CPV was a "pioneering company in its field" and operated in the biggest electricity markets in the US. Almogi also noted that since it was founded, CPV has constructed power plants with a total installed capacity of approximately 14,800 megawatts (MW), including approximately 9,950 MW of conventional stations in several markets, and wind-based power plants with a total capacity of approximately 4,850 MW.
"The deal also puts OPC directly into the areas of green energy, and especially into the areas of solar energy and wind energy," Almogi said.
OPC could obtain a holding in CPV of about 70%, and intends to bring in a number of Israeli capital investors. The company said it was negotiating with Migdal, Clal and Poalim Capital Markets.
The deal is pending regulatory approval.
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