The Eshkol Power ENergies consortium, consisting of Dalia Power Energies and Taavura, has won the auction of the Israel Electric Corporation (IEC) Eshkol power plant with a huge bid of NIS 12 billion, up 43% from the bid submitted by OPC Energy.
The share price of Meshek Energy (TASE: MSKE), which owns 40.7% of Dalia Power Energies, fell by 14.6% after announcing the auction result, while the share price of OPC Energy rose by 2.51%.
The Eshkol power plant is the largest in Israel that runs on natural gas, with an installed capacity of 1,693 MW. One of the most important IEC power plants is to undergo privatization, after selling the Ramat Hovav and Hagit East stations to Shikun & Binui and Edeltech for NIS 4.25 billion and NIS 1.6 billion, respectively, and the sale of the Alon Tavor plant for NIS 1.9 billion to the Moroccan Red Crescent Group.
The fifth is the Reading Power Station in Tel Aviv, which is awaiting a government decision on its future.
The Eshkol Power Station site covers 440 dunams (110 acres) of privately owned land, sufficient for major development, including the construction of the planned Eshkol Power Station II and extensive energy storage capacity. Moreover, following the government’s decision to promote a submarine power cable along the coast from Ashkelon to Tel Aviv, the Eshkol Power Station has great potential.
“I intend to participate in the acquisition amount and use it to lower the price of electricity and the cost of living,” said Minister of National Infrastructure, Energy and Water Yisrael Katz. “We are on our way to becoming an energy powerhouse, and all citizens of Israel will benefit from safe, available and cheap power.”
IEC CEO Meir Spiegler said, “For the first time in the hundred years since its founding, IEC will cease to have a monopoly on the energy production sector, with its market share shrinking to 40% of the total energy production in the economy.”
Published by Globes, Israel business news – en.globes.co.il – on June 15, 2023.
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