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The National Electricity Sector in Israel

Electricity is the basis for growth and activity in every home and in every economic sector in Israel. The Ministry of Energy and Water Resources has worked consistently throughout the years to strengthen and develop the national electricity sector and to minimize adverse environmental impacts. Along with other Government agencies, the Ministry is taking steps to increase the efficiency of, and promote competition in, the electricity sector, in order to prepare for the additional increase in demand expected as a result of ongoing economic development and population growth.

 
Development of the national electricity sector dovetails with the Ministry's steps for the development of the national natural gas sector, which, combined with advances in technology, reduces the economies of scale in the electricity generation segment and makes competition in it economically viable from a national perspective.

Factors contributing to the increase in the demand for electricity

​According to the electricity demand forecast, rising demand for electricity is expected to continue, and consumption will double in the next 20 years, as a result of several key factors:

 
Population growth: annual population growth in Israel is higher than that prevalent in western countries, due to relatively high birth rates and waves of immigration at various times in the country's history.

 
Rising living standards: in some sectors of the population in Israel, living standards are still lower than those prevailing in some western countries. Rising living standards manifests itself in the purchase of additional electrical appliances (such as dishwashers and dryers) and increases electricity consumption.

 
Climatic changes: the greenhouse effect evidently contributes to extreme climatic fluctuations, resulting in increased electricity consumption for cooling and heating purposes. Peak demand for electricity often occurs on the hottest or coldest days of the year, and because electricity is not an easily storable product, building up and maintenance of an excess power generation capacity is required to prevent the collapse of the electricity grid during peak demand.

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