The cabinet today approved three gas-fired power plants and two large-scale solar energy projects in peripheral regions of Israel. These major infrastructure projects will now move to the fast-track planning process overseen by the National Infrastructure Committee to keep pace with the massive surge in electricity consumption projected for Israel. This surge is driven by the AI revolution, and the data centers it requires, as well as population growth, economic expansion, and the large-scale adoption of electric vehicles.
The power plants will be built near Jatt (PowerGen), within the Menashe Regional Council (Shamir Energy), and at the Palmachim Industrial Park (IES). The large-scale solar projects will be located near Nahariya (PowerGen) and in the Gaza border (Nofar Energy). Provided they receive final approval, all these power plants will be connected to the power grid by the early 2030s.
Power plants in Menashe, Palmachim, and Jatt
The power plant in Jatt will be near the local wastewater treatment facility and is 100% owned by PowerGen, unlike most of their projects to date, which required partnerships. The power plant will have a capacity of 900 megawatts. Now that the plant has received cabinet approval, the National Infrastructure Committee will need to evaluate its location due to plans to expand nearby communities, such as Jatt, Sde Yitzhak, and Lehavot Haviva. The evaluation will consider the implications of the anticipated future decommissioning of the Jatt wastewater treatment plant, the impact on the Hadera River, and the necessary connections to the electricity, natural gas, and diesel infrastructure.
Another power plant will be built near a wastewater treatment facility in the Menashe Regional Council near the Granot plant. The National Infrastructure Committee will examine the impact on an airport proposed near Hadera, the expansion of nearby communities such as Gan Shmuel and Talmei Elazar, and the development of additional infrastructure in the area. This is the fourth power plant project being advanced by Mivtach Shamir’s energy division Kesem, which has already secured all necessary approvals and is currently under construction, after expansion of the existing power plant at Alon Tavor, and construction of two entirely new plants in Beit Shemesh and Menashe.
A third power plant project is being proposed by a new entrant to the energy market: IES Holdings. The company owns the Palmachim Industrial Park, where industrial space is leased, and plans to build a water desalination plant, a data center, and a power plant. The latter is now receiving government endorsement as it moves toward the National Infrastructure Committee.
Planners will need to assess the allocation of land among the various planned infrastructure facilities, the risks of groundwater contamination, and the integration with the electricity, natural gas, and diesel fuel networks.
Minister of Environmental Protection Idit Silman, voted against building this power plant, though she did not express a position on the other power plant projects.
In addition to the three gas-fired power plants, the cabinet approved two solar farms, which will proceed to the National Infrastructure Committee. The first, developed by PowerGen, will be built on land of Kibbutz Gesher HaZiv and Kibbutz Eilon (near Nahariya). The second, developed by Nofar Energy, will be on land of Moshav Shokeda, in the Sedot Negev Regional Council on the Gaza border. Both solar farms will be agrivoltaic, meaning they will integrate farming with solar energy production. To preserve the environment, no fences will be put up around these facilities.
Published by Globes, Israel business news - en.globes.co.il - on November 11, 2026.
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