Bezeq and Generation Fund Announce Groundbreaking Partnership in the Electricity Sector

Bezeq, Israel's largest telecommunications company, and the Generation Fund revealed the signing of a memorandum of understanding for a strategic collaboration. The partnership aims to establish a joint subsidiary with equal holding stakes, dedicated to the marketing, sale, and supply of electricity to domestic and small business consumers.

The anticipated joint venture, a significant entrant in the competitive electricity supply market, will leverage the strengths of both partners. Bezeq will spearhead marketing, sales, and service aspects, drawing from its vast experience and expansive customer base. PowerGen, a company fully controlled by the Generation Fund, will contribute its extensive energy assets, including natural gas power plants, gas engines, solar installations, and storage capacities, ensuring a diverse and sustainable energy supply.

The joint company's business plan outlines an ambitious goal of acquiring 400,000 customers by the end of 2030, underlining its commitment to making a substantial impact in the evolving electricity supply landscape.

Market analysts from BDO estimate that by 2030, competitors in the electricity sector could capture a market share valued at approximately NIS 10 billion. The joint venture between Bezeq and PowerGen positions itself as a key player poised to seize a significant portion of this market share.

This strategic move marks a departure for Bezeq from its traditional core activities into high-growth sectors. Ran Goraon, CEO of Bezeq, expressed confidence in the venture's potential to become a leader in the electricity supply industry. He emphasized the unique business opportunity presented by the structural changes in the electricity market, promoting the supply of affordable and environmentally friendly electricity.

Erez Belsha, CEO of Generation, highlighted the venture's role in revolutionizing the electricity sector, emphasizing the long-term preparation leading up to this partnership. Belsha sees the collaboration as a crucial step in realizing Generation's strategic plan to establish a dominant position in supplying electricity across various customer segments.

Both CEOs expressed optimism about the venture's ability to not only lower electricity costs for Israeli citizens but also create a unique private electricity company that adds value to the market, end customers, and investors. The partnership between Bezeq and Generation is poised to shape the future of the electricity supply industry in Israel for years to come.