The European Investment Bank (EIB) is providing a loan worth €150 million (£119.2m) for a thermo-solar power plant in Israel.
Once constructed the 121M project, located in the Negev desert, will be the largest solar plant in the country, the Bank said.
It will generate enough electricity equivalent to the needs of a medium-sized city in Israel.
The EIB stated: “The project is also an important step towards the fulfilment of the objectives of the EU as well as Israel’s national priority objectives relating to combating climate change and supporting renewable energy.”
It is a joint venture between Israeli solar technology company Brightsource Energy and French firm Alstom.