Beginning tonight (Tuesday to Wednesday) the Ashdod Port Company commenced consumption of low-cost electricity cheap electricity from Dalia Power Energies Ltd., at a lower price than charged by the Israel Electric Corporation, which has been providing it with electricity for almost 50 years.
In negotiations conducted in recent months between the two companies, agreements were reached regarding the percentage of the discount that the Port Company will receive from the Electric Corporation’s tariffs, as well as the terms related to the granting of the discount.
In the letter sent yesterday morning by Eitan Meir, President of Dalia Energies, to the acting CEO, Isaac Blumenthal, he wrote: “Tonight at midnight, we are commencing commercial operation of the power plant, enabling the Ashdod Port to consume low-cost energy with savings in electricity expenses, while retaining the same level of availability and reliability of supply. I wish to thank you personally for choosing to join our customers”.
In recent years, with the entry of natural gas to Israel and growing competition in the electricity economy, natural gas-based private power plants were built, offering lower-cost electricity to business customers, who are major electricity consumers. The private plants use the existing electricity transport infrastructure and compete with the Israel Electric Corporation on the production component of electricity rates. The production costs for the new, efficient private plants are lower than those of the Israel Electric Corporation, enabling them to offer cheaper prices.
The agreement between the Port Company and Dalia is for a 10-year period, commencing tonight, as noted, at the terms stipulated in the agreement. The Port Company estimates that the purchase of lower-cost electricity will lead to annual savings of approximately one million shekels in the Port’s electricity costs.
In addition to the monetary savings, when the supply begins, the Port Company will shift to consumption of an electricity source that is 100% clean natural gas, thereby reducing its impact on the environment. The electricity currently produced by the Israel Electric Corporation is based mostly on coal (approx. 60%) and partly on natural gas (approx. 40%). The power plants using natural gas emit concentrations of pollutants, such as: sulfur dioxide, nitric oxides and particles that are 85%-95% less than coal-based plants.
Basing the operations of the Ashdod Port Company on clean electricity will also lead to a tangible reduction in the carbon footprint (the term describes the total greenhouse gas emissions contributing to global warming).