Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz today announced his decision to have the private sector build the power stations to replace the coal-fired units in Hadera. He said, "The decision was needed in order to meet the timetable I set for terminating the use of the coal in units 1-4 in Hadera," although Steinitz told the Knesset six months ago that the work would be given to the Israel Electric Corporation (IEC) (TASE: ELEC.B22) for exactly the same reason - "in order to shorten the timetable, so that we will be able to meet the timetables, and possibly even shorten them slightly."
In his remarks to the Knesset, Steinitz made it clear that this measure would be part of the IEC reform, and that the plants would be transferred for operation by the private sector after they were built. It was commonly assumed that this declaration was a gesture of good will in order to persuade the IEC workers' committee to consent to the report, which involves reducing the number of workers at IEC by 3,000 and the gradual transfer of all electricity production to the private sector. The reform is still being held up, while the private electricity producers have exerted massive pressure on Steinitz to change his decision, including threats of legal action for violations of the Electricity Sector Law. Already last February, in response to a "Globes" report on the subject, the Ministry of National Infrastructure, Energy, and Water Resources stated, "At this stage, it has not yet been determined who will build the future power stations."
According to Steinitz's statement today, units for producing 700 megawatts will be built near Hadera, while the Public Utilities Authority (Electricity) will present its views on the construction of 700 megawatts more in production capacity by the beginning of 2018. Units 1-4, which have 1,440 megawatts in production capacity, are scheduled for being shut down by 2022 at Steinitz's decision, provided that three gas pipelines from the sea to the shore and substitute power plants are built.
Steinitz added today, "The commitment to the public's health, together with ensuring Israel's energy future, underlies this promise. The fact that the project to replace coal will be divided into two tracks bolsters security that the timetables will be met, even if one of the projects is delayed. The proposal will be submitted to the cabinet for approval in the coming weeks."
Published by Globes [online], Israel Business News - www.globes-online.com - on May 28, 2017
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