Alstom signs service contract worth around $472MM for Tzafit gas-fired plant in Israel

Source: Alstom

Alstom has signed an operation and maintenance contract for about twenty years, worth around EUR330 million (US $472 million) with Dalia Power Energies Ltd for the 835 MW gas-fired Tzafit power plant in Israel. This service contract follows the agreement signed earlier in June 2011 between Alstom and Dalia Power Energies to construct two 417 MW gas-fired combined cycle units on an engineering, procurement and construction (EPC) basis. It will be booked in the second half of the 2011/12 fiscal year.

The scope of the service contract includes complete day-to-day operation and maintenance of the two gas-fired combined cycle units, located 40 km south-east of Tel Aviv. Each unit is based on Alstom’s GT26 gas turbine, steam turbine, generator, control system and heat recovery steam generator (HRSG). The Tzafit power station is expected to enter commercial operation in 2014.

Once completed, Tzafit will contain the most efficient and flexible power generation units in the entire national generation fleet. To date, the plant is the biggest project ever to be executed in Israel by an independent power producer and will add 835 MW to the country’s national grid, corresponding to 7% of the country’s current installed base.

The service contract will guarantee that the plant generates electricity with unparalleled efficiency and reliability, thus significantly improving the market fuel utilisation and security of electricity supply. Commenting on the win, Hans-Peter Meer, Senior Vice President, Alstom Thermal Services said, “Alstom’s strength as a plant integrator allows us to provide solutions from the construction of a plant to complete plant management across its entire lifecycle. The agreement to build the Tzafit plant and operate it is the beginning of a long-term partnership with Dalia Power that will guarantee a world-class power plant to meet Israel’s energy needs.”

Alstom operation and maintenance contracts ensure superior operational performance of more than 70 power plants worldwide. The services cover more than 150 gas turbines, securing reliable production of approximately 46 GW of electricity globally.

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