Dalia receives ownership of the Eshkol power plant
03, June 2024

The Israel Electric Company (IEC) transferred control after Dalia won the tender to privatize the Eshkol power plant as part of the company’s reform, for NIS 9 billion. 

On June 3, 2024 official control of the Eshkol power plant passed from the IEC to Dalia Power Energies, after it won the tender to privatize the plant in exchange for approximately NIS 9 billion.

The Eshkol plant is the largest power plant to be privatized as part of the 2018 reform of the IEC, which was designed to open the electricity market to competition. Upon completion of the sale, the IEC returned to Dalia the original guarantee for participating in the tender in the amount of NIS 100 million. The bulk of the financing for the purchase of the station was provided by a consortium led by Bank Hapoalim (70%) and Bank Mizrahi (30%), who provided a loan for the transaction of more than NIS 6 billion.

The Eshkol plant has an installed capacity of about 1,600 mw, which constitutes approximately 8% of the electricity production capacity in the country and runs on natural gas. The plant is situated near Ashdod, near the ports and includes an area that can be turned into a logistics center.

Last week, Dalia, under the management of Oved Debby, reported the purchase of natural gas to operate the plant from the Leviathan reservoir in the amount of approximately 0.5 BCM per year. The agreement will be valid for 7 years in exchange for approximately $650 million. The transaction is in addition to another agreement signed by Dalia for the supply of natural gas to the station from the Karish reservoir controlled by Energian.

Dalia received production licenses from the IEC for about 20 years for the combined cycle units at the plant. However, the plant also operates 4 steam generating units with low efficiency (requiring more natural gas to produce the same amount of electricity than other units). The steam units are considered especially polluting, therefore the license to operate them is given for only 3 years under various limitations. Also, Dalia has the option to build an additional power generation unit with a capacity of 850 mw in the vicinity of ​​the plant.

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(Article in Hebrew)

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