The Ministry of National Infrastructures has established a NIS 3.5 million fund, called “Startergy” to finance alternative energy start-ups. The ministry believes that the fund will act as an incentive for the private sector to invest in alternative and renewable energy start-ups in Israel.
Minister of National Infrastructures Benjamin Ben-Eliezer said, “Making Israel into a center for alternative and renewable energy is a strategic goal. Within a decade, a tenth of Israel’s electricity consumption will be generated from renewable energy.” He predicted that the multi-year energy conservation program would save NIS 4 billion a year by 2020.
Ministry of National Infrastructures director general Hezi Kugler said that the Startergy fund’s initial financing would finance half the cost of research projects up to a ceiling of NIS 500,000, and that entrepreneurs would raise the rest from state-public sources, venture capital funds, or private investors. The grant is negligible. For the sake of comparison, the Ministry of Industry, Trade and Labor grants for incubator companies amount to $400,000-500,000 per project, and investors only have to provide 15% in matching funds.
Even so, the Startergy fund is welcome, since cleantech start-ups often struggle to obtain initial financing.
Israel is struggling to make progress towards its renewable energy targets. No progress is being made planned 500-megawatt solar energy power station to be built in the Negev.
Published by Globes [online], Israel business news - www.globes.co.il - on April 5, 2007
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