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.