Ormat Systems Ltd. announced on Monday that it has signed a Joint Venture Agreement with Sunday Energy Ltd. to develop, construct and operate solar-photovoltaic (PV) energy systems in Israel with a total capacity of 36 MW. The joint venture represents Ormat's commercial entry into the solar energy market and its first major project in the solar photovoltaic market in Israel.

The estimated capital expenditure for the package is approximately 720 million shekels ($195 million). The electricity generated from the projects will be sold to Israel Electric Corporation Ltd. under long-term power purchase agreements (20 years) and will generate approximately $30 million in annual revenues.