The National Infrastructures Committee decided today to approve the construction of the Reindeer Energy Eastern Power Station and expansion of the OPC power station in Hadera.
Nevertheless, the decision is not the end of the matter. Government minister have three weeks in which to file objections to the plan, because they did not approve the two power stations in May last year. If the ministers who oppose the plan, such as Minister of Energy and Infrastructure Eli Cohen and Minister of Transport Miri Regev, do file objections, that will return the matter to the government.
The planned Eastern Power Station of Reindeer Energy is a power station with an output of 1,300 megawatts meant to be constructed between roads 6, 444, and 55 in the jurisdiction of the Sharon South Regional Council. In May last year, the construction of the 780 megawatt Kessem power station, just four kilometers away, was approved. According to a 2021 estimate, the Reindeer and Kessem power stations will together meet only 20% of peak power demand in 2030.
Regev’s opposition is on the grounds that the new power station will interfere with road construction in the area, specifically widening the lateral Road 55 and connecting it to roads 444 and 6, which she argues is important for connecting Judea and Samaria to the rest of Israel. The plan is backed by the Ministry of Finance, which says that competition in electricity production will produce large savings for the economy, and that new power stations are required to ensure Israel’s energy security. Should the government once more decide not to approve the power stations, that will put an end to the plan.
Israel is behind on its targets for power production from renewable sources, but even senior executives in the renewable energy companies acknowledge the fact that the growth in demand for electricity will require the construction of new conventional power stations. The growth in demand is party driven by the rate at which charging stations for electric vehicles are being rolled out in Israel, and the rate is only expected to increase.
As mentioned, the National Infrastructures Committee also approved the expansion of the OPC power station in Hadera, owned by OPC Energy (TASE: OPCE). Since July 2020, this gas-fueled power station has operated using cogeneration technology, producing electricity and useful heat at the same time, with an output of 144 megawatts.
Published by Globes, Israel business news - en.globes.co.il - on March 18, 2024.
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