Major Milestone in Israeli Energy Sector as Eshkol Power Station Sold in NIS 9 Billion Deal

In a groundbreaking development today, the Israel Electric Corporation (IEC) finalized the sale of the Eshkol power station to "Dalia Energy" and George Horesh's "Union" group for an impressive NIS 9 billion. This marks one of the largest deals in the nation's economy, with the exact amount, 9,001,181,818 NIS, set to be transferred to the Electric Company upon the completion of the transaction, expected within the next 5-6 months.

Upon the conclusion of this deal, the market share of the Electric Company is poised to dip below 40%, signifying the end of its monopoly in the electricity sector. The purchasing entities, Dalia Energy (80%) and Eshkol Energy (20%), which is jointly owned by Horesh, Dalia Energy, and Union, will play a significant role in shaping the future of the energy landscape.

Shlomo Arbiv, representative of the IEC board of directors, expressed, "The sale of the Eshkol power plant of the IEC is a central anchor in the promotion of competition in the electricity sector, guaranteeing its development and fostering competition for the benefit of the consumer public, as stipulated in the reform of the electricity sector in July 2018."

Meir Spiegler, CEO of the Electric Company, lauded the complexity of the tender process, highlighting the faith in the Electric Company and the commitment to safeguarding public interest. He stated, "The sale of Eshkol adds a significant layer to the competitive energy market, benefiting the public through lower electricity rates."

Oved Debi, CEO of Eshkol Energy Power, outlined plans for smooth integration and emphasized Dalia Energies' commitment to becoming a reputable private electricity producer, focusing on efficiency and competitive pricing. "Dalia Energies will work to improve the Eshkol power plant and establish the most efficient power plant in the economy at the Eshkol site," he affirmed.

The tender process at the Electric Company was spearheaded by Amir Livna, VP of Strategy, Innovation, and Structural Change, along with key members of the Tender Committee and legal counsel provided by Gershon Berkowitz.

This strategic move is expected to shape the energy sector in Israel, paving the way for increased competition, innovation, and improved services for consumers.