Electricity in Israel

A Hot Tip about Energy in Israel

Last updated: 24 Feb 2011


Israel Electric Corporation (IEC) IEC owns, maintains and operates 17 power stations sites, including 5 sites for steam driven power stations, and the national transmission and distribution systems. With an aggregate installed generating capacity of 11,649 MW, the company holds 98% of the country's generating capacity. As a state-owned company, IEC is included in Israel's WTO/GPA agreement . As such, IEC is required to use public tender procedures for procurement of equipment needed for new construction, maintenance, upgrading and conversions of its systems. While some projects are tendered out in open tender procedures, in most cases, a selective tendering process requires potential suppliers to pre-qualify to be included in IEC's approved suppliers' list.


Renewable Energy

In 2009, the Israel Ministry of National Infrastructures government issued two tenders for solar power stations to be located in the South of the country. Israel has numerous technology firms developing renewable energy sources and there is much room for cooperation and participation in Israeli projects. The annual Eilat Renewable Energy conference and exhibition (www.eilatenergy.com) provides a good opportunity for U.S. renewable energy companies to present their technologies.


Independent Power Producers (IPP)

The Electricity Law provides the framework for the increase of IPPs from 0.6% to 20% of Israel’s installed generating capacity. The national pipeline infrastructure for the supply and distribution of natural gas is almost complete and enables major industries to set up independent power stations to provide for their energy needs and sell the remainder to the national grid. The regulatory problems that kept the industry from developing have largely been removed, especially after the recent major off-shore natural gas discovery and the new purchase agreements between Israel Electric and its gas suppliers at a higher cost closer to the utility. The Public Utility Authority for Electricity has granted some two dozen of licenses to developers of private power stations. The large number of projects in various planning stages offer good opportunities for U.S. manufacturers, in particular of cogeneration equipment.


Natural Gas Transmission

The Israel Natural Gas Pipeline Company continues to develop a national gas transmission network. Israel procures natural gas from Egypt and from an Israeli offshore gas field. With the recent discovery of the Tamar natural gas field, new underwater pipelines will need to be constructed. MNI may continue to develop plans with potential overseas suppliers and foreign governments for the supply of natural gas and the building of a pipeline from Turkey to Israel along the Mediterranean coast.


Best Prospects/Services

Electrical Power Generation, Transmission and Distribution Equipment



Israel Electric Corporation is making substantial investments in expansion and improvements to its generation, transmission and distribution systems. To meet projected future electricity demand, Israel Electric will invest at least $1.2-1.3 billion annually. Good opportunities exist also in the IPP sector. The Public Utility Authority for Electricity, the regulatory body, has, over the past few years, issued numerous licenses for IPPs including to Dorad for an independent 800MW power station and for combined cycle plants at major industries and desalination plants. Israel remains a good market for U.S. suppliers of equipment and services to the energy sector. With a favorable dollar exchange rate, U.S. equipment suppliers enjoy a price advantage over EU-based manufacturers.


IPP’s, in particular cogeneration plants. Renewable energy power stations, i.e. a solar energy plants, wind turbine generators, renewable energy technologies.



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Posted: 18 August 2010, last updated 24 February 2011

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Electricity in Israel   By U.S. Commercial Service Israel