Bezeq Gen Signs $1.2 Billion Agreement with Prime Energy: Long-Term Deal to Supply Electricity from Storage and Solar Facilities

Bezeq Gen, the private electricity supplier owned by Bezeq and Power Gen, has signed a significant agreement with Prime Energy, controlled by Yaron Kikoz and Hav AL. The deal, valued at approximately NIS 1.2 to 1.3 billion, will span 20 years and involves the purchase of electricity from Prime Energy’s storage and solar facilities.

Under the agreement, Bezeq Gen will directly purchase 320-megawatt hours of electricity, with additional supply provided by Power Gen. The total expected annual sales volume is around NIS 60 million, primarily sourced from Prime Energy’s existing and future storage facilities, totaling 400 megawatt hours, along with contributions from solar generation.

Market Reaction
Following the announcement, Prime Energy's stock surged approximately 14% on the Tel Aviv Stock Exchange, reflecting investor confidence in the company’s strategic positioning and the anticipated revenue from the long-term deal.

Power Gen's Role in the Energy Sector
Managed by Yoav Har-Evan, Power Gen serves as the energy division of Generation Capital, focusing on providing electricity to private customers, including households. This agreement comes as part of broader reforms in the electricity sector, which have increased competition and opened the market to private households.

Bezeq, under the leadership of Nir David, will leverage its customer recruitment capabilities and existing service infrastructure, while Power-Gen will supply electricity and expertise.

Recent Developments in Prime Energy's Valuation
In a related development, the Lahav Group announced a deal in June to acquire a 30% stake in Prime Energy for NIS 150 million, a valuation significantly higher than the company’s previous market capitalization of NIS 84 million. Currently, Prime Energy's trading value has increased to NIS 180 million, reflecting growing investor interest and confidence in its prospects.

As Prime Energy continues to expand its storage facilities, the new agreement positions Bezeq Gen to enhance its offerings in the competitive electricity market, further solidifying its role in the evolving energy landscape.