Photo: Hagit power plant / Yosi Weiss / Wikimedia Commons / CC BY-SA 4.0
A major new power plant planned for central Israel has cleared a financing hurdle, moving the project toward construction. The Sorek plant is expected to begin commercial operation in 2029, adding electricity capacity near the country’s largest population and business centers.
The project secured about NIS 4.8 billion in financing led by Bank Discount and Mizrahi-Tefahot, Calcalist reported Wednesday evening. The report put the overall project at about NIS 5.6 billion and its planned generating capacity at about 850 megawatts.
Financing pays for construction, not today’s bills
The milestone is financial close, not the start of electricity production. The money supports construction of the plant; the announcement does not mean households are receiving new power now or that electricity bills have been cut.
Calcalist said the plant is targeting commercial operation in November 2029. It identified Edeltech, Menora Mivtachim and Keystone as the companies behind the project and said Israeli contractors would carry out construction under a self-managed building arrangement.
A report reproducing the Finance Ministry tender committee’s announcement described a roughly 36-month construction period and a combined-cycle natural-gas plant near the Sorek desalination facilities and the Shafdan wastewater treatment complex. The project is intended to strengthen electricity supply in the Tel Aviv metropolitan area and central Israel.
Gas supply lined up for the operating plant
Calcalist reported that Energean will supply natural gas under an agreement signed in September for about 15 years, covering up to 7.7 billion cubic meters and valued at an estimated $1.4 billion. Gas deliveries are expected to begin when commercial operations start.
For businesses and households, the significance is longer-term supply capacity. The plant still has to be built before that planned capacity can serve the grid.
JBizNews Desk | Israel Business
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
