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.
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.