The fossil fuel firm said its plans are part of a company-wide goal to expand its private energy production business, Israeli newspaper Globes reported.

Paz officials have discussed both forming a new company to focus on solar energy as well as managing its solar business through a new division.

The company is also reportedly in preliminary talks to join a consortium that is in the process of bidding for the $650 million tender to build the solar energy power plant at Ashelim in the Negev region. No official agreement has been signed in regard to that endeavor.

The company decided to go with solar to compete with its peers like Israel Corp., which builds solar power and is also a bidder for the plant at Ashelim.