Financing Agreement for two New Power Stations

Published on: August 15, 2012

Minister of Energy and Water, Uzi Landau signed an agreement in Tel Aviv yesterday for the financing of two power stations to produce electricity, steam, and industrial services for Machteshim-Agan Industries Ltd, at an estimated cost of of 1.3 billion NIS.  Ramat Negev Energy is building one power station in the Machteshim compound in Ramat Hovav at a capacity of about 110 megawatts.  Ashdod Energy is building the second power plant at Agan Chemical Industries at a capacity of about 55 megawatts. Both power plants will begin to operate commercially in the second half of 2014.

Dr. Uzi Landau said: “The private electricity market is advancing rapidly and has become a significant player in electricity production.  The entry of new power plants into the market is important for providing stability and reliability in the electricity sector in the second half of the decade. The task I set for the ministry is ‘2020-20,’ meaning that by the year 2020, Israel will have 20% reserve in order to prevent future power shortages such as we experienced this summer and are likely to experience next summer.  The Ministry has worked tirelessly to pave the way for private electricity producers so that Israel’s citizens have reliable electricity in the long term. This ceremony is the fruit of such labors.  The Energy and Water Ministry will watch the building process carefully to ensure that no unnecessary bureaucracy causes any delays.”