Azrieli Invests in Major Israeli Solar-Storage Project

• Azrieli Group partners with Shikun & Binui for a groundbreaking solar-plus-storage project, advancing Israel's renewable goals and securing clean energy for 20 years.

Azrieli Group has agreed to purchase 50% of the Ramat Beka solar-plus-storage project from Shikun & Binui Energy in Israel's Negev Desert. The project, featuring 126 MW of solar capacity and a 350 MWh battery system, is set to begin operations between 2028 and 2029. Azrieli will finance half of the development costs and receive the entire electricity output for 20 years, with Shikun & Binui expecting revenue of ₪1.5 billion to ₪2 billion from the deal. The project aims to support Israel's renewable energy goals and enhance grid investments in the south.

For Azrieli, known for its real estate ventures, this investment aligns with its 2050 net-zero commitment and ESG strategy. The agreement includes an option for Azrieli to purchase electricity from other Shikun & Binui projects at discounted rates, strengthening their partnership. The Ramat Beka project will provide dispatchable clean power during peak times, contributing to Israel's target of sourcing 30% of its electricity from renewables by 2030. Shikun & Binui will manage the project's construction and operations, while Azrieli will share in future profits, reflecting a global trend of real estate firms securing renewable energy at fixed prices.

How does Azrieli's investment in Ramat Beka align with its ESG and net-zero goals?

• Alignment with Net-Zero Goals: Azrieli's investment in the Ramat Beka project directly supports its commitment to achieving net-zero carbon emissions by 2050 by securing a long-term supply of renewable energy, reducing reliance on fossil fuels.
• ESG Strategy Enhancement: The project aligns with Azrieli's Environmental, Social, and Governance (ESG) strategy by investing in sustainable energy infrastructure, demonstrating a commitment to environmental stewardship and responsible business practices.
• Renewable Energy Integration: By participating in a solar-plus-storage project, Azrieli is actively contributing to the integration of renewable energy sources into the grid, which is a key component of its sustainability objectives.
• Partnership and Collaboration: The agreement with Shikun & Binui strengthens Azrieli's strategic partnerships in the renewable energy sector, allowing for potential future collaborations and access to discounted electricity rates from other projects.
• Contribution to National Goals: The investment supports Israel's national target of sourcing 30% of its electricity from renewable sources by 2030, aligning Azrieli's corporate goals with broader national and global sustainability efforts.
• Financial and Environmental Returns: The project offers both financial returns through shared profits and environmental benefits by providing dispatchable clean power, enhancing Azrieli's portfolio with sustainable assets.
• Real Estate Sector Trend: This move reflects a growing trend among real estate companies to secure renewable energy at fixed prices, ensuring energy cost stability and sustainability in their operations.