Construction work on the $1bn project in Western Negev Desert is expected to begin by the end of this month.
The non-recourse project financing was secured from the Overseas Private Investment Corporation and the European Investment Bank as well as from local commercial lenders Bank Leumi and Bank Hapoalim.
The Ashalim plant will feature a parabolic trough technology with a 4.5 hour thermal energy storage system using molten salts.
After completion, the facility will generate enough energy to power over 69,000 homes and reduce 463,000 tons of CO2 emissions per year.
The Israel Electricity Corporation will buy the energy generated from the plant under a 25-year power purchase agreement.
Abengoa CEO Santiago Seage said: "Ashalim power plant forms part of Abengoa’s efforts towards constant innovation in the solar sector. It marks an important milestone for the internationalization of our activity."
Shikun Binui Group chairperson of the board of directors Moshe Lahmani said: "Ashalim is a leading mega project which contributes clean electricity to all the citizens of Israel and also provides significant technological and economic development to the Negev."
