2023-12-11 19:08:04
Dalia Energy to Purchase Eshkol Power Plant for NIS 9 Billion
Today, the electric company signed an agreement for the sale of the Eshkol power plant in Ashdod to Dalia Energy. The agreement, sealed by Electric Company CEO Meir Spiegler and Dalia Energy CEO Oved Debi, specified that the Eshkol station will be transferred to the buyer in exchange for NIS 9,001,181,818. The payment will be made to the Electric Company by the winner upon the completion of the financial closing procedure and transfer of possession of the site, which is expected to take place in June 2024.
The Eshkol power plant stands as the largest in Israel operating on natural gas with an installed capacity of approximately 1,693 megawatts. It operates two state-of-the-art gas turbines and four old units that will be closed within a few years. The sales process also includes promoting an option for the construction of a modern gas turbine with a capacity of up to 850 megawatts on the site.
This transaction marks the fourth power plant that the electric company has sold to the private sector as part of the reform of the electricity sector. Previous sales include the Ramat Hovav power plant, sold for approximately NIS 4.25 billion to Shikon and Binui and Adeltech; the Alon Tabor station, sold for approximately NIS 1.9 billion to the MRC group; and the Hagit Mizrah station, sold for approximately NIS 1.602 billion to Shikon and Binui and Adeltech.
“The sale of the Eshkol plant adds a significant layer to the competitive energy market, from which the public will benefit,” said Meir Spiegler, CEO of the Electric Company, expressing his satisfaction with the deal. “This is an active power plant with extensive development potential.”
Dalia Energy CEO Oved Debi added, “Dalia Energies will work to improve the Eshkol power plant and establish the most efficient power plant in the economy at the Eshkol site, while creating many synergies with the company’s existing activities.”
The completion of the sale of the Eshkol site is subject to the fulfillment of several conditions, including the receipt of production licenses from the Electricity Authority and merger approval from the Competition Authority. Upon completion of the station sale procedure, the Electric Company will no longer be a monopoly in the electricity production segment, as its market share will fall below 40% of electricity production.
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