The Eshkol Power ENergies consortium, consisting of Dalia Energy and Taavura, has won the auction of Israel Electric Corporation’s (IEC) Eshkol power station with a huge bid of NIS 12 billion, 43% more than the bid by under-bidder OPC Energy.
The share price of Meshek Energy (TASE: MSKE), which holds 40.7% of Dalia Energy, is down 14.6% following the announcement of the auction result, while OPC Energy’s share price is up 2.51%.
The Eshkol power station is the largest in Israel fueled by natural gas, with an installed capacity of 1,693 megawatts. It is the most important of the IEC power stations to undergo privatization, after the sales of the Ramat Hovav and Hagit East plants to Shikun & Binui and Edeltech for NIS 4.25 billion and NIS 1.6 billion respectively, and of the Alon Tavor plant, sold for NIS 1.9 billion to the MRC group.
The fifth is the Reading power station in Tel Aviv, which awaits a government decision on its future.
The Eshkol power station site covers 440 dunams (110 acres) of privately-owned land, sufficient for considerable development, including construction of the planned Eshkol 2 power plant and extensive energy storage capacity. Moreover, after the government’s decision to promote a maritime power cable along the coast from Ashkelon to Tel Aviv, the Eshkol power station has great potential.
"I intend to take part of the acquisition amount and use it to reduce the price of electricity and the cost of living," Minister of National Infrastructure, Energy, and Water Israel Katz said. "We are on the way to becoming an energy power, and all of Israel’s citizens will benefit from secure, available and cheap power."
IEC CEO Meir Spiegler said, "For the first time in the hundred years since it was founded, IEC will cease to be a monopoly in the power production segment, with its market share shrinking to 40% of total power production in the economy."
Published by Globes, Israel business news - en.globes.co.il - on June 15, 2023.
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