Israeli electricity market

The State of Israel is in the midst of a revolution in the electricity market. Following the government's decision to encourage competition in the field of electricity generation in the country, the rules of the game have changed, and now allow independent power producers to enter the market and offer electricity for cheaper prices.  The trend today is striving towards reducing the costs of electricity for the consumer, and producing more efficient and cleaner energy by using natural gas and maximizing the protection of the environment.

Israel Electric Company

Israel Electric Company was founded in 1923 and consisted of a single power station in the then small city of Tel Aviv. IEC started out as a privately held company that provided electricity to a few thousand individual consumers. In 1926, the company had expanded its market, as the Mandatory Authorities gave it a franchise with the exclusive right to produce, deliver, distribute and sell electricity throughout the land of Israel for 70 years. Years passed, and we got used to seeing IEC as the only player in the Israeli electricity sector. All this began to change in the early 1990s, with the approaching date of expiry of the IEC franchise (March 1996). The decision-makers saw this as an historic opportunity to make changes in the Israel electricity sector – a revolution to encourage competition and enhance the market’s efficiency. The government's decision on the matter stipulated that the state should act so that at least one-fifth (!) of Israel's electricity production capacity, at any time, will be generated by private producers. There are currently three major private power plants in Israel and a few minor ones, which operate to promote competition in the energy and electricity sectors, and to implement the economic reforms in the energy and infrastructure fields.

Private power plants

The market share of private power plants, based on the use of natural gas, is expected to reach 20% of Israel’s electricity production capacity by 2016. Although nowadays private power plants provide electricity to commercial and industrial entities, private producers seek to broaden the scope of private power supply, and provide new user experience to households as well. With the help of competitive pricing, transparency and reliable customer service, we want to bring the revolution in the electricity and energy sector to the home market, and thereby reduce electricity prices throughout Israel in the future. Dalia Power Energies Ltd. is proud to be the largest private power plant in Israel, and to illuminate Israeli consumers with the power supply of the future, offering a product that is clean, efficient and cheap. Thus begins every revolution – with a spark.