Electricity Generation

Electricity consumption in the Israeli economy is provided by power stations that generate electricity using different energy sources. Construction of additional power stations that increase generation capacity requires the allocation of land resources, incurs fuel import and purchase costs, increases the dependence on international markets, and requires raising of capital and financing costs, as well as causing environmental damage.

In Israel, there are five coastal power stations operating on coal, natural gas and heavy fuel oil, as well as a set of inland stations based on jet, heavy duty and combined cycle gas turbines, some of which are diesel oil powered and are due to be converted to natural gas in the future.

Coastal power stations

Israel’s five largest and oldest power stations were built adjacent to the coast, to ensure a supply of cooling water. The stations are operated by the Israel Electric Corporation.
Orot Rabin: Coal, next to Hadera
Reading: Natural gas, North Tel Aviv
Rotenberg: Coal, next to Ashkelon
Eshkol: Natural gas, next to Ashdod
Haifa: Natural gas, next to Haifa

Natural gas, diesel and combined cycle powered power stations

Jet gas turbines

Kinarot
Haifa
Caesarea
Orot Rabin, Hadera

Ra'anana
Eshkol
Eitan
Rotenberg, Ashkelon
Hartuv
Eilat

Heavy-duty gas turbines

Ramat Hovav
Eilat

Tzafit
Atarot

Alon Tavor
Gezer

Combined-cycle turbines

Eshkol
Gezer
Haifa
Ramat Hovav
Tzafit
Hagit
Alon Tavor

Projects underway
Ramat Hovav: Steam additions. Expected time of completion: July 2013
Tzafit: Steam extensions. Expected time of completion: July 2012
Alon Tavor: Gas turbine. Expected time of completion: July 2013 (in accordance with development plan).
Alon Tavor: Steam addition. Expected time of completion: August 2014 (in accordance with development plan)
Eshkol: Steam additions. Expected time of completion: December 2013
Hagit: Steam additions. Expected time of completion: August 2013
Ashalim: construction of thermo-solar and photovoltaic power stations. Expected time of completion: 2013
Timna: Construction of a solar power station. Expected time of completion: 2014
Ashkelon: Construction of a dual-fuel power station running on natural gas (coal backup). Expected time of completion: 2018
Independent producers: approval of conditional licenses and generation licenses for independent electricity producers using various technologies.

Independent Electricity Generation

The Ministry of Energy and Water Resources encourages independent entrepreneurs to become involved in electricity generation by constructing power generation facilities of various technologies in order to increase the power generation capacity and strengthen competition. The construction of new stations will contribute to the stability of the national electricity sector, reduce electricity rates for business and private consumers, and assist in the development of the economy. The Government policy target is to achieve approximately 20% of electricity generation in Israel by independent entities.

Highlights of the independent electricity generation policy

Increasing the electricity generation capacity and creating a suitable reserve in the national electricity sector.
Creation of mechanisms that will encourage the construction of electricity generation installations by independent entities.
Creation of conditions for fair competition while encouraging different producers to sell electricity to end consumers.
Encouragement of electricity generation using efficient technologies or technologies of environmental value.

Licensing
The Electricity Administration assists the Minister in the review and approval process of licenses granted by the Public Utility Authority – Electricity. to independent electricity producers using conventional installation technologies, cogeneration, pumped storage and renewable energy sources, subject to compliance with the conditions required under the relevant regulations and the criteria of the Public Utility Authority – Electricity.

The submission of a license application is subject to the National Electricity Sector Regulations (Conditions and Procedures for Licensing and Obligations of Licensee) 1997.
Regulations for transactions between an independent electricity producer and an essential service provider are stipulated in the National Electricity Sector Regulations (Transactions with an Essential Service Provider) 2000.
Details about power generation licenses and conditions for selling of electricity by independent producers can be found in the National Electricity Sector Regulations (conventional independent electricity producer) 2005.
Details on how to submit applications for licenses in the national electricity sector and a list of provisional and permanent licenses can be found on the website of the Public Utility Authority – Electricity.

Cogeneration

Cogeneration is a technology that combines two processes, electricity generation and heat production, with the aim of achieving more efficient fuel utilization. Generation of electricity by diesel power or turbines is characterized by low efficiency and heat loss through exhaust gases and engine cooling. Cogeneration exploits these heat sources and recycles them for thermal processes. This results in a total efficiency of 65%-85% compared to 20%-40% in a single purpose process, and up to 58% in combined cycle generators. In addition, the total cost for generating power and heat in a cogeneration system is lower than the costs of generation with two separate processes.

The Ministry of Energy and Water Resources encourages the installation of cogeneration systems in manufacturing plants and facilities that consume electricity and hot water or steam, such as hospitals and factories.

Common uses of cogeneration
Electricity for self consumption and/or supply to the national grid and sale to the Israel Electric Corporation;
Mechanical energy produced as an alternative to electricity is utilized for powering heavy-duty mechanical equipment;
Thermal energy is used for generating steam and hot water;
Residual heat emitted is utilized for heating air, for industrial products and as thermal oil.

Conversion to Natural Gas and Combined Cycle Generation

The Ministry of Energy and Water Resources has encouraged the conversion of the power generation capacity installed at heavy-fuel-oil- based thermal power stations to natural gas. The conversion of the Eshkol Power Station in Ashdod the Reading Power Station in Tel Aviv and the Haifa Power Station is already complete. Conversion will also be completed in Orot Rabin Power Station (units 1-4).

The conversion to natural gas will reduce air pollution and greenhouse gas emissions created in the electricity generation process and will reduce the cost of production. Electricity generation in combined-cycle type stations excels with a high efficiency of 55%-60%, compared to 38%-42% for heavy fuel oil and coal-powered stations.

Reduction of Sulfur Content in Electricity Generation Inputs

The Ministry of Energy and Water Resources is taking steps to reduce sulfur dioxide (SOX) emissions during electricity generation by installing SOX purgers in coal-based electricity generation facilities. A reduction in sulfur emissions reduces air pollution and the harm caused to public health, and reduces the cost of healthcare, saving the economy direct economic costs. The oldest coal-based electricity generation units (1-4 in Orot Rabin) will be transformed into natural gas operated, coal backed generators. The planned Ruthenberg units 5-6 will also be installed as natural gas operated, coal backed power plant.

In this context, a plan has been approved to install equipment for purging sulfur oxides and for reducing nitrogen oxide emissions from existing coal units, at a cost of approximately 2 billion dollars. The plan will be completed by 2017.

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