Dalia Energy, controlled by Meshek Energy and led by CEO Oved Debi, has signed two major agreements with Chinese engineering giants to design, procure, and construct two new high-efficiency H-type power plants in Israel. The total investment for both projects is estimated at NIS 7.1 billion.
The agreements were signed with CHEC (China Harbour Engineering Company), HEI (Harbin Electric International), and THCC (Tianjin Electric Power Construction Company)—three firms with extensive experience in building power generation and infrastructure projects worldwide, particularly in combined-cycle power plants utilizing Siemens H-class turbines.
Two Major Projects: Dalia 2 and Eshkol Avshel
The first project, Dalia 2, will be constructed at the existing Tzafit site and is planned to deliver 850 megawatts (MW) of electricity. The project’s total cost is NIS 3.8 billion, and its commercial operation date (COD) is targeted for December 2028.
The second project, Eshkol Avshel, will also deliver 850 MW and will be built at the Eshkol power station site, at a cost of NIS 3.3 billion. The targeted COD for Eshkol Avshel is June 2029.
Both power plants will use combined-cycle technology, capturing waste heat from gas turbines to produce additional electricity via steam turbines — significantly increasing efficiency and lowering emissions.
Availability Fee Incentives for Early Completion
The agreements include financial incentives linked to project timelines. According to Electricity Authority regulations, the power stations will qualify for an availability fee of 3.31 agorot per kilowatt if they secure financial close and tariff approval by June 2026.
Additionally, early completion of the projects could result in further revenue gains: for each month ahead of the December 2029 deadline, Dalia Energy will receive a 0.75% increase in the availability fee.
These incentives are designed to ensure the timely delivery of new power capacity to Israel’s electricity grid amid rising national demand and ongoing efforts to modernize the energy infrastructure.
Siemens to Supply Core Equipment
Siemens, a global leader in power generation technology, will serve as the main equipment supplier for the two projects, providing the H-class gas turbines that will form the core of the combined-cycle plants.
The new plants are expected to significantly boost Israel’s power generation capacity, improve grid stability, and support the country's transition toward more efficient and environmentally friendly energy production.
Construction is set to begin following final regulatory approvals and financial close, which Dalia aims to achieve within the next year.
