Dalia Energy, controlled by Meshek Energy (TASE: MSKE) (50%), has been declared the winner of the repeat auction for the Eshkol power station, the Israel Electric Corp. (IEC) has announced. Dalia submitted a bid of NIS 9 billion, the only bid in the auction to buy the power station.
There were no bids this time from the Noy Fund and OPC Energy (TASE: OPCE) consortium, which bid NIS 7.1 billion in the first auction, which was eventually canceled after Dalia Energy was unable to pay the NIS 12.4 billion that it bid.
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After threats of court action when Dalia revised its bid downwards, the IEC tenders committee preferred to cancel the first auction and issue a repeat auction with a minimum bid of NIS 9 billion.
The Eshkol power station is the largest in Israel fueled by natural gas, with an installed capacity of 1,693 megawatts. It is the most important of the IEC power stations to undergo privatization, after the sales of the Ramat Hovav and Hagit East plants to Shikun & Binui and Edeltech for NIS 4.25 billion and NIS 1.6 billion respectively, and of the Alon Tavor plant, sold for NIS 1.9 billion to the MRC group.
The Eshkol power station site covers 440 dunams (110 acres) of privately-owned land, sufficient for considerable development, including construction of the planned Eshkol 2 power plant and extensive energy storage capacity. Moreover, after the government’s decision to promote a maritime power cable along the coast from Ashkelon to Tel Aviv, the Eshkol power station has great potential.
IEC CEO Meir Spiegler said, “After the sale the IEC’s market share will fall to about 40% of electricity production for the grid.”
Published by Globes, Israel business news – en.globes.co.il – on November 9, 2023.
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