The Electricity Authority - Gov · 2020. 8. 13. · Report on State of Electricity Sector 2018 7 Preface I am pleased to submit for your perusal the Report on the State of the Electricity

The Electricity AuthorityReport on State of Electricity Sector 2019

The Electricity AuthorityReport on State of Electricity Sector 2019

2 Report on State of Electricity Economy – Year 2019

Report prepared by:

Itai Gutglick, CPA, Head of Accounting Dept.Ms. Nurit Felter-Eitan, Head of Strategy and Information Dept.Ms. Liat Nehamia, Accounting Dept.

Design and printing: Printiv Press, Jerusalem

Assisted in gathering the material:

Mr. Mohammad Haj Yahya, Ms. Mira Grinman, Mr. Daniel Papkin, Mr. Alaa Fakhouri, Mr. Gal Shofrony, Mr. Ariel Almasi, Mr. Larry Leibovici

The description given in this annual report is not intended to be legally exhaustive. It constitutes neither legal advice, nor expression of a binding position on behalf of the Authority with regard to its policy. Rather, the description is intended to provide readers with a general idea with regard to the functions of the Electricity Authority, provisions of the Electricity Economy Law 1996, etc.

3Report on State of Electricity Sector 2018

Table of ContentsChapter 1: State of the Electricity Market 11

Chapter 2: Generation Segment 15

Chapter 3: Fuels 21

Chapter 4: Renewable energy 27

Chapter 5: Emissions 31

Chapter 6: Grid 35

Chapter 7: Supply and consumption 43

Chapter 8: Objectives of reform in Electric Company (IEC) 51

Chapter 9: Structure of the Electricity Authority 57



Words of the Minister of EnergyOver 2019 we made significant progress towards transforming the electricity market into a modern, efficient, professional and competitive one; a sector that shall provide an adequate response both to the needs of the State of Israel and those of private consumers.

Over the last year, we have continued with intensive implementation of the reform in the electricity market – the largest and most important ever conducted in any government-owned company in the history of the State of Israel. We have opened the market to competition in electricity generation, and have begun a process of selling the power plants to private entrepreneurs (the first was the Alon Tavor power station). In addition, we have approved a plan for developing and upgrading transmission and distribution infrastructures throughout Israel.

The year 2019 was focused on significant growth in the use of renewable energy, with emphasis on electricity generation with solar energy. We have led a unique national campaign designed to encourage private consumers to install solar panels on the roofs of private homes and buildings, become electricity producers instead of consumers, and thus reduce their electric bills with no bureaucratic hurdles to overcome.

The Electricity Authority and the Ministry of Energy have promoted many competitive procedures for generation of electricity from renewable energy, leading to creation of 1,000 new megawatts of electricity from renewable energy. We are currently acting towards achieving the objective of 10% use of renewable energy by the end of 2020.

A major endeavor I have instructed to promote is a new ambitious objective of 30% use of renewable energy, instead of the current 17%.

On the last day of 2019, Leviathan, the largest natural gas reservoir ever discovered in Israel, was connected. This historic step is already having an impact on Israel’s energy economy, enabling a reduction in electricity rates to the public, reduction in air pollution, and creation of competition in the economy.

We still face many challenges in Israel’s electricity economy; however, there is no doubt that over the past year we have made significant progress towards creating an efficient, professional and competitive electricity economy, for the benefit of the national economy, consumers, and the general public in the State of Israel.

We shall continue to pursue these efforts in the new term as well.

Dr. Yuval Steinitz



PrefaceI am pleased to submit for your perusal the Report on the State of the Electricity Economy and a summary of the Electricity Authority’s activity for the year 2019. This year too, alongside the report, a detailed, accessible database is being published, to enable all parties to participate in a well-founded, professional discussion of the current state and future of the economy, with full access to all publishable information.

Over the course of 2019, the Electricity Authority has led several important initiatives that shall determine the future of Israel’s electricity economy for many years to come. Among the latter may be noted:

¡ The Electricity Authority has recommended, as part of its response to the Minister of Energy, the conversion of the Electric Company’s coal-powered generation units to natural gas. According to this recommendation, the Minister of Energy has set forth a policy to end the use of coal by the year 2026.

¡ In December 2019, the Electric Company sold the Alon Tavor station to a private owner, thus implementing one of the main milestones of the reform in the electricity economy. The Electric Company has registered a profit of about NIS 1 billion from sale of the site, which consumers have benefited from through the 2020 update of rates.

¡ The Electric Company has been given an incentive package for meeting grid development objectives, as part of the plan to improve and streamline the Company’s activity in the transmission and distributions sections. As part of the package, the Company shall receive a financial bonus for expediting the execution of projects, while being fined for delays in their completion.

¡ The Electricity Authority has initiated an unprecedented move for the construction of small natural-gas-powered generation units by private entrepreneurs, throughout Israel, as part of which about 450 MW of generation units shall be established, and thus increase efficiency of production.


Alongside and in wake of the Authority’s activity, during 2018-2019 continued and increase of main trends in the electricity economy. This is a highly positive development, since it attests to regulatory stability and the confidence the players have in the electricity economy, the guidelines laid out by the Ministry of Energy, and the Electricity Authority. The trends and data in the report apply to the end of 2019; hence, the report does not cover main events of the current year, i.e., the Authority’s work towards the 2030 objective for renewable energy that shall lead lead in turn to updating forecasts for the electricity economy, and the Corona crisis that has affected the economy and shall probably affect trends and economy data as well. Among the main insights for the end of 2019, I would like to stress the following:

¡ Over the course of 2019, about 1,000 MW of renewable energy powered generation facilities came into play, leading to an increase of over a terawatt-hour of electricity generated with renewable energy, in increase of over 50% compared to 2018.

¡ The amount of local pollutants—carbon and nitrogen oxides—emitted from electricity generation facilities has decreased by about 20%. This decrease is attributed to the increased mixture of generation with renewable energy.

¡ During the period of 2018-2019, consumption of electricity in the economy has risen by 4.1% as opposed to 1.9% during 2017-2018, and just 1.3% during 2016-2017.

¡ The market share of the Israel Electric Company in the production section continues to decline, while over the last year its part has decreased from 69% to 66% of economy production, and in terms of power from 80% to 75%. Correspondingly, the Electric Company is focused on grid development. Its investments in transmission and distribution of electricity stood at NIS 2.9 billion in 2019, about NIS 500 million in excess of its investments in 2018.

The attached report reflects the diligent and devoted work of Electricity Authority employees and the Authority Assembly over 2019, including the outcomes of 18 Authority Assembly meetings, in which over 120 substantial decisions were made, and about 40 public hearings were conducted.


the Electricity Authority has continued to pursue its activity a transparent, advanced regulator striving to create an efficient economy, based on transparency and public participation processes, while setting clear, broad-based rules for the economy. The Authority’s activity over this year has continued the trend of balanced distribution of risks among the regulator, consumers, and players in the economy, and an increase in the scope of information made available to it. Among measures taken by the Authority over 2019 in order to achieve these goals was the frequent, ongoing, prompt publication of protocols and agenda of the Assembly, holding of 22 study days and round tables, and provision of a clear and simple explanation of each decision and communication in a frequently published newsletter; launching of a designated website for the public; a broad television campaign to promote renewable energy on rooftops; a seminar for advanced regulation held for government regulators in cooperation with the National Council of Economics and Harvard University.

Once more, I would like to take this opportunity to thank the members of the Assembly, Electricity Authority employees, and all of our partners [in the government ministries and in the electricity economy] for their devoted work for Israel’s electricity economy. Thanks to the work done by Electricity Authority employees, and undertaking of the economy, Israel’s electricity economy in 2019 is more competitive, more efficient, and cleaner than ever, and operates on the basis of a clear outline and plan for its future.

I welcome all readers of this report to continue the import and and fruitful discussion between the Electricity Authority and the economy, so that we may continue to meet our objectives, set new ambitious ones, and move the economy and the country forward.

Best Regards,Dr. Assaf Eilat Chairman of the Authority


Chapter 1: State of the Electricity Market

Market Structure | growth in demand for electricity1

12 Chapter 1: State of the electricity economy

Market Structure

20192025

transport

Production capacity

division

supply

System Administrator

IECIPPHistorical divisionsA new government company

In light of the government decision on reform in the electricity market, an independent company shall be established to manage the system. A considerable part of the Electric Company’s generation capacity will be privatized, and the supply section shall be opened to competition. Transmission activity and most distribution activity shall remain in the

hands of the Electric Company.


Growth of demand for electricity

6.9%6.1%7.3%

8.3%

3.6%

9.8%

2.2%4.0%

3.9%

2.8%3.0%4.1%

6.3%

1.9%

-2.4%

9.6%

2.4%

6.1%

-3.2%

-0.1%

6.4%

3.1%1.3%

1.9%4.1%

3.0%

72.5 83.384.8

-4%-2%0%2%4%6%8%10%12%

0

20

40

60

80

100

Year

Rat

e of

cha

nge

TWh

Growth in scope of economy electricity production Economy production Forecast based on assumption of 3% outcome growth Forecast based on assumption of 3.5% outcome growthAverage growth over 5 years

Over the past five years, demand for electricity has increased by an average of 3% per annum.This rate of growth reflects a slowing down of growth compared to the rate of growth of demand in previous years.

Notes:* The production and consumption forecast is based on the assessments made by the Electric Company’s chief statistician. The forecasts are correct as of the period

preceding the outbreak of the Corona virus.** Until 2017, consumption was calculated according to generation with 8% loss deducted; in 2018 and 2019 according to generation with actual losses deducted,

and consumption forecast calculated according to generation with 7.5% loss deducted due to increase in decentralized generation.*** Forecast for economy consumption, according to forecast for great increase in demand.

14 Chapter 1: State of the electricity economy

Chapter 2: Generation SegmentMarket share – installed capacity | Market share | Actual generation | Installed capacity in the economy as opposed to peak demand | Vacant quotas for

construction of additional capacity2

16 Chapter 2: Generation section

Market share – installed capacity

87% 81% 80% 79% 77% 72%62%

45%

13% 19% 20% 21% 23% 28%38%

55%

0%10%20%30%40%50%60%70%80%90%

100%

2014 2015 2016 2017 2018 2019 2020* 2025*Year

Electric Company Private producers including renewables capacity multiplied by power factor**

Over the next few years, we expect a significant increase in the private market share in the production section, in light of the sale of Electric Company power plant to private producers, as well as construction of new private capacity.

Notes:* Forecast

In wake of the request by the Minister of Energy, the Authority is currently considering the possibility of setting an objective for 2030 – 30% generation with renewable energy. The forecasts in this report relate to the existing objective for 2030 – 17% generation with renewable energy.

** The capacity of renewable energy is multiplied by a power factor of 0.3 up to a total of 3,600 MW and a power factor of zero for any additional capacity beyond that.


Market share – actual production

84% 77% 72% 71% 69% 66%57%

40%

16% 23% 28% 29% 31% 34%43%

60%

0%10%20%30%40%50%60%70%80%90%

100%

2014 2015 2016 2017 2018 2019 2020* 2025*Year

Electric Company Private producers

In 2019, IPPs produced over a third of the electricity in Israel, mainly by natural gas.The IPP share is expected to grow considerably in wake of the reform.

Notes:* Forecast.

In wake of the request by the Minister of Energy, the Authority is currently considering the possibility of setting an objective for 2030 – 30% generation by renewable energy. The forecasts in this report relate to the existing objective for 2030 – 17% generation by renewable energy.


Installed capacity in the economy as opposed to peak demand

13.8 14.515.5

16.7 16.7 16.5 16.8 17.0 17.718.3

9.9 9.8 10.0 10.5 11.3 11.6 11.712.8 12.8

13.9 14.615.7

16.9 16.9 16.8 17.2 17.718.8 19.3

02468

10121416182022

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2025*

GW

Year

Peak consumption - summer Peak consumption - winterInstalled capacity without renewables Equivalent economy capacity **

Installed capacity in the economy in 2019 (excluding renewable energy) is about 3.4 GW higher than peak demand.Notes:* The forecast for peak demand relates to a perennial trend of demand, given extreme temperatures, updated as of August 2017.** The equivalent capacity including capacity of renewable energy is multiplied by a power factor of 0.3, up to a total of 3,600 MW, and power factor of zero for any

additional capacity beyond that.


Installed capacity according to producer and main type of fuel

4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 4.8 0.6

7.5 7.6 7.7 7.7 7.7 7.4 7.4 7.1 5.9

7.3

0.4 1.0 1.9 3.0 3.0 3.2 3.4 4.3 5.8 8.9

1.5 2.3 4.0 6.9

14.1 14.9 16.1 17.5 17.6 17.5 18.3 19.421.7

25.2

13.9 14.6 15.7 16.9 16.9 16.8 17.2 17.7 18.8 19.3

0

5

10

15

20

25

30

2012 2013 2014 2015 2016 2017 2018 2019 2020* 2025*Year

IEC capacity - coal IEC capacity - diesel IEC capacity - gasIEC capacity - gas Pumped storage capacity Renewable energy capacityTotal equivalent capacity**

In the coming years, considerable growth is expected in the capacity of IPPs, mainly due to the introduction of renewable energy and sale of Electric Company plants. In addition, a decrease is expected in the scope of Electric Company coal-powered stations due to closure of units 1-4 at Orot Rabin, and gradual conversion of the remaining

coal-powered stations to natural gas by the year 2026.Notes:* Forecast for capacity using gas and pumped storage includes facilities under construction according to issue 2.6, and forecast for realization of quota by the year

2025, at 200 MW conventional facilities as part of Decision No. 555.** The private equivalent capacity including capacity of renewable energy is multiplied by a power factor of 0.3, up to a total of 3,600 MW, and power factor of zero

for any additional capacity beyond that.


Vacant quotas for construction of additional capacity

123

644500

607

10

156

6948

500

730

10

800

10050

0

100

200

300

400

500

600

700

800

Conventionalfacilities***

Wind turbines - large Wind turbines - small Pumped storage Biogas, landfills andhydroelectric

Halutz facilities

MW

Technology

Realized quota* Vacant quota**

Over the last few years, the Authority is switching from a method of quotas to one of competitive procedures. Entry of photovoltaic and conventional power plants into the distribution grid does not appear in this sheet, despite the fact

that many are expected to be built.Notes:* A realized quota includes both commercially operated facilities and facilities after financial closure.** Pursuant to Decision 10 of Meeting 555.

Chapter 3: FuelsMarket’s Fuel Mix | Electric Company’s sources of gas | cost of gas from Tamar reservoir; price of coal | distribution of production in 2019 according to fuel type3

22 Chapter 3: Fuels

Market Fuel Mix

59% 59% 61% 52% 49% 45% 36% 32% 30% 30% 24%3%

39% 35% 17% 44% 50% 53% 61% 63% 67% 64% 68%83%

15%7%

3% 5% 8%13%

58.4 59.8 63.5 61.5 61.5 65.4 67.4 68.3 69.6 72.5 73.2

84.8

0

10

20

30

40

50

60

70

80

90

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *2020 *2025

TWh

Year

Coal Gas Diesel fuel Other Renewable energy

The share of natural gas is expected to increase significantly and stand at about 83% in 2025. On the other hand, the share of coal, currently about 30%, is expected to decrease to only about 3% in 2025.

Notes:* Forecast, the expected share of renewable energy in generation based on average capacities over the year. Pursuant to the November 2016 decision by the Minister of Energy, until the year 2025, and no later than 2026, coal-powered generation units 5-6 of Orot Rabin

and units 1-4 of Rutenberg power station shall be gradually converted to natural gas.


The Electric Company’s sources of gas

3.3 4.3 4.2 4.6 4.7 4.7 4.2

0.5

0.4 0.5 0.7 0.8

0.2 0.3 0.2

0.3 1.5

2.1

0.7 1.2 1.7

2.3 2.7 3.2

2.5

2.7

3.5

1.9

1.4

1.2 1.7

2.3 2.7

3.5 4.0

4.8

4.2

1.9

5.2

4.4 4.4 5.0

5.4 5.6 5.2

0

1

2

3

4

5

6

7

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Am

ount

of g

as in

BC

M

Year

Tamar Liquid gas - LNG Purchases from private producers Purchases of Egyptian gas - EMG Tethys Ocean

Use of liquid gas has increased in recent years. This is mainly because limiting the use of coal has caused the capacity limit of the gas pipe from the Tamar reservoir to take effect during a greater number of hours per year. This trend is expected to change in wake of the commercial operation of the Leviathan reservoir on the last day of 2019.

24 Chapter 3: Fuels

Recognized Cost of gas from Tamar reservoir*

Jan-20, 6.35

4.81

5.57

0

1

2

3

4

5

6

7

8

9

12/2013 12/2014 12/2015 12/2016 12/2017 12/2018 12/2019

$/M

MB

TU

month

IEC (base agreement) Average PEPs** Weighted cost

The cost of gas recognized to the Electric Company is on the rise, and is currently about 32% higher that the cost of gas recognized to IPPs. The Electric Company’s gas purchase contract is expected to be opened in 2021, and

possibly lead to a change in price.Notes:* The Leviathan reservoir commenced its commercial operation at the end of December 2019; hence, the known cost of gas from the Leviathan reservoir does not

appear in this report.The IPP average is the simple average of the known cost of gas of IPPs signed on an agreement with the Tamar reservoir.


Development of coal prices

139

114 105

96

67

75

112

134 123

108

79

60

70

80

90

100

110

120

130

140

150

$ pe

r ton

month

Price of coal on decline since February 2018

26 Chapter 3: Fuels

Distribution of production in 2019 according to fuel type

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Hou

rly g

ener

atio

n in

MW

h

Hours of year

Coal Gas** Renewables

The average load of coal-powered generation in 2019 stood at about 2,500 MW only, out of an installed capacity of about 4,800 MW.

Notes:* Sorted in descending order according to the level of hourly demand in Mwh; demand data, not included losses** Including natural gas and liquid gas

Chapter 4: Renewable energyDevelopment of renewable energy | average renewable generation by season4

28 Chapter 4: Renewable energy

Development of renewable energy**

0.27 0.38 0.59 0.77 0.88 0.95 1.36 1.91

3.655.02

0.24

0.24

0.240.73

1.1% 1.4% 1.9% 2.4% 2.7% 2.8%3.8%

6.0%

10.0%

14.1%

-4%

1%

6%

11%

16%

0

1

2

3

4

5

6

7

2012 2013 2014 2015 2016 2017 2018 2019 2020* 2025*

Inst

alle

d ca

paci

ty in

MW

Year

Photovoltaic capacity Thermo-solar capacity Wind capacity

Other renewable capacity Potential percentage of renewable energyפוטנציאל אחוז מהצריכה לפי הספק סוף שנהconsumption out of annual consumption

Over the next few years, significant growth is expected in the production of renewable energy, thanks to small roof installations, new installations erected through tenders published by the Authority, and additional installations,

construction of which shall be completed within the next few years.Notes:* Forecast of predicted capacity for end of 2020, based on assessments corresponding to the valid regulation, and consideration of its dates of publishing. As a rule,

the forecast for 2025 capacity is based on exhaustion of currently existing quotas.In wake of the request by the Minister of Energy, the Authority is currently considering the possibility of setting an objective for 2030 – 30% generation with renewable energy. The forecasts in this report relate to the existing objective for 2030 – 17% generation with renewable energy.

** The capacities refer to installed capacity at the end of the year.


Generation with renewable energy average seasonal

0

200

400

600

800

1,000

1,200

1,400

1,600

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

MW

Hours of the day

Summer Transition Winter

In the summer of 2019, the average load of renewable energy reaches its maximum in the afternoon, up to a level of 1370 MW.

Notes:* The data are the actual data and do not include normalization due to entry of renewables over the year.

30 Chapter 4: Renewable energy

Chapter 5: EmissionsCO2 emissions from the electricity sector | emission of pollutants from the

electricity sector | CO2 emissions per capita from the electricity sector5

32 Chapter 5: Emissions

CO2 emissions from the electricity sector

46.2 39.0 36.3 37.1 36.7 36.4 35.8 36.5

30.3

63.5 61.5 61.5 65.4 67.4 68.3 69.6 72.5

84.8

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

2012 2013 2014 2015 2016 2017 2018 2019 *2025

Eco

nom

y ge

nera

tion

(TW

h)

Em

issi

ons

(mill

ions

of t

ons

per y

ear)

Year

CO2 Emissions Actual economy generation

Recent years have seen a decrease in emissions. In 2019, despite an increase of 4.1% in generation, the increase in emissions was less than 2%. In the coming years, with the closing of units 1-4 at the Orot Rabin plant, and

conversion of the rest of the coal-powered stations to natural gas, a significant decrease in the volume of emissions is expected.

Notes:* The forecast is based on the specific emissions according to the expected fuel mix.** Emissions data for the period of 2012-2019 have been received from the Ministry of Environmental Protection (MoEP).


Pollutant emissions from the electricity sector

109.990.8

74.8 69.154.2 47.5 44.9 39.1

102.684.1

70.3 67.652.6

37.5 29.9 21.2

63.5 61.5 61.565.4 67.4 68.3 69.6 72.5

0

20

40

60

80

100

120

2012 2013 2014 2015 2016 2017 2018 20190

10

20

30

40

50

60

70

80

Em

issi

ons

(thou

sand

s of

tons

per

yea

r)

Year

Eco

nom

y ge

nera

tion

(TW

h)

Emissions NO2 Emissions SO2 Total electricity generation

Pollutant emissions in the electricity sector have decreased by over 60% within seven years. This is thanks to installation of scrubbers in coal-powered stations, limiting the use of coal, and increased generation with renewable

energy.Notes:* Emissions data for the period of 2012-2019 have been received from the Ministry of Environmental Protection (MoEP).

34 Chapter 5: Emissions

CO2 emissions per capita from the electricity sector

3.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2012 2013 2014 2015 2016 2017 2018 2019 *2025Em

issi

ons

[ton

per c

apita

per

yea

r]

Year

Per capita emissions in the electricity economyThe implicit objective of the government decision: Per capita emissions from electricity generation in 2030**

In 2025, the electricity sector is expected to achieve the 2030 objective for the Market economy, set in the government resolution to reduce emissions. This is thanks to the decrease in use of coal and increase in use of

renewable energy. Notes:* Forecast ** Government Decision No. 542 of September 20, 2015 set an objective of 7.7 million tons per capita for the year 2030. At the time of the decision, the electricity

economy was responsible for 50% of greenhouse gas emissions; hence, the implied objective for the electricity economy constitutes 50% of the government objective, and stands at 3.85 tons per capita.

Chapter 6: GridTransmission grid lines | transformers in the transmission grid | distribution grid lines | transformers in the distribution grid | Electric Company investments | System Average Interruption Duration Index – SAIDI (minutes) for high-voltage

line consumers6

36 Chapter 6: Grid

Transmission grid lines

741.2 741.2 759.5 759.5 760 760 769 788 953 1,109

4,665 4,693 4,729 4,740 4,760 4,827 4,892 4,9205,199 5,212

5,406 5,435 5,488 5,500 5,520 5,587 5,661 5,7086,152 6,321

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2013 2014 2015 2016 2017 2018 2019 2020* 2021* 2022*

Km

roun

ded

out

Year

161 and 115 kW lines 400 kW lines

Recent years have seen a moderate increase in the scope of lines in the transmission segment due mainly to an increase in 161 KW lines.

According to the development plan, by 2022 the scope of 400 KW lines shall increase by about 44% and 161 KW lines by about 7% compared to their scope in 2019.

Notes:* According to the development plan.


Transformers in the transmission grid

10 10 11 11 11 11 11 11 11 12

141 143 142 147 149 150 147 152 157 163

42 43 48 49 51 52 57 58 60 62193 196 201 207 211 213 215 221 228 237

0

50

100

150

200

250

2013 2014 2015 2016 2017 2018 2019 *2020 *2021 *2022

Num

ber o

f sys

tem

s

Year

Switching stations Electrical substations Private transformation systems

In recent years, the number of transformers has increased at a moderate pace.According to the development plan, the number of Electric Company substations shall increase by about 10% by the

year 2022, compared to 2019.Notes:* Electric Company transformers according to the development plan; private transformation systems according to the forecast for station construction.

38 Chapter 6: Grid

Distribution grid lines

26.6 26.9 27.0 27.5 27.7 28.2 28.7

32.2 33.1 33.9 34.6 35.4 37.2 38.0

58.9 60.0 60.9 62.1 63.165.4 66.7

10

20

30

40

50

60

70

2013 2014 2015 2016 2017 2018 2019

Thou

sand

s O

f Kilo

met

ers

Year

Length of high-voltage lines Length of low-voltage lines

Recent years have seen a moderate increase in the scope of distribution grid lines.


Transformers in the distribution grid

47.5 49.1 48.8 49.4 50.1 50.5 51.2

10

15

20

25

30

35

40

45

50

55

2013 2014 2015 2016 2017 2018 2019

Thou

sand

s O

f Dis

tribu

tion

Tran

sfor

mer

s

Year

Since 2015, the number of transformers in the distribution grid has been growing at a moderate pace

40 Chapter 6: Grid

Electric Company (IEC) investments

0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.8 0.5 0.7 0.9 1.10.7 0.8 1.1 1.1 1.2 1.0 0.9 1.2 1.3

1.4 1.51.81.6

2.6 2.4 2.1

3.83.7

2.0 1.7 1.71.8 1.3

1.72.8

3.9 4.1 3.8

5.85.3

3.6 3.7 3.53.9 3.7

4.6

0

1

2

3

4

5

6

7

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

NIS

bill

ions

Year

Transmission Distribution Generation

Recent years have seen a trend of growth in Electric Company (IEC) investments in the transmission and distribution segments.

The investment in the production segment constitutes mainly investment in emission reduction facilities. In 2019, the investment included 0.3 billion NIS invested in the construction of new combined-cycle generation units as part of

implementation of the reform.


System Average Interruption Duration Index – SAIDI (minutes) for high-voltage line consumers

111.9

173.7

0

50

100

150

200

250

300

350

400

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Min

utes

Year

High-voltage lines used mainly for high-voltage consumers High-voltage lines used mainly for low-voltage consumers

Over the period of 2013-2015, SAIDI increased due to several isolated storm events.Notes:* Data for 2019 have not yet been published

42 Chapter 6: Grid

Chapter 7: Supply and consumptionMarket share in the supply segment | structure of recognized costs for the domestic tariff | development of the domestic tariff | consumer complaints to the Electricity Authority | capacities and costs of shedding arrangements |

types of consumers7

44 Chapter 7: Supply and consumption

Market share – supply*

84% 82% 82% 81% 79% 79%

16% 18% 18% 19% 21% 21%

0%10%20%30%40%50%60%70%80%90%

100%

2014 2015 2016 2017 2018 2019Year

IEC IPP

The market share of private suppliers in the supply segment constitutes about 20% of consumption in Israel. Opening the supply segment to competition as part of the reform is expected to increase the share of private supply.


Structure of known costs for the domestic tariff

60%65% 65% 60%

8%5% 5%

5%

18% 17% 17%17%

6%14% 13% 13% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020Year

Generation and fuel Transmission Distribution Supply System administrator

In 2020 the “supply” component of the tariff was first segmented, as the relative part of generation and system management.


Development of the domestic tariff

38.88

49.78

41.17

54.03

45.58

47.16

50.31 47.89

57.86

50.51

44.51

55.61

48.65

44.84

35

40

45

50

55

60

Ag/

kWh

Date

Nominal domestic rate Actual domestic rate (at November 2019 prices)

Notes:* Since January 2019, the household rate consists of an energy component and a capacity component. The following graph shows the cost of energy only; the cost

of capacity is calculated, in addition, according to the size of the consumer’s connection.


Consumer complaints to the Electricity Authority

146 155 125 175 138

328

193292

325 254203

325322

328

308

387

0

100

200

300

400

500

600

700

800

2012 2013 2014 2015 2016 2017 2018 2019

Num

ber o

f com

plai

nts

Year

Number of justified complaints Number of unjustified complaints

The number of complaints in 2019 was higher than the average number of complaints in recent years, mainly due to the massive campaign to bring in renewable energy. In 2017 there were many complaints due to the initial operation

of the Shoval system, as well as the strike that took place that year.Notes:* As of May 2020, 25 complaints from 2019 are still being treated.


Capacities and costs of power shedding arrangements

410 415 400 415 415 415 415 395

65278 304 346 346 346350 359 325

260 270 284280 280 286 286 260

111 million nis1,020 mw


125 million nis1,074 mw 98 million nis

973 mw35 million nis

999 mw


59 million nis1,047 mw 44 million nis

1,001 mw

0

200

400

600

800

1,000

1,200

1,400

2011 2012 2013 2014 2015 2016 2017 2018

MW

Year

Frequency shedding Voluntary shedding

Over the last few years, total capacity in the power shedding arrangements has not substantially changed; however, costs of the arrangements are on the decline.

Notes:* Data for 2019 have not yet been published


Consumption according to sectors and producers

18.6 18.5 20.1

14.7 14.7 14.7

2.6 3.0 3.15.4 4.9 4.77.2 9.3 10.21.8 2.1 2.01.0 2.1

2.25.65.8 6.31.71.7

1.960.564.4

67.1

0

10

20

30

40

50

60

70

2017* 2018 2019

TWh

Domestic Commercial Commercial IndustrialIndustrial Pumping of water Pumping of water AgricultureAgriculture East Jerusalem and PA General

In recent years, consumption of industrial consumers of IPPs has increased at the expense of the Electric Company’s industrial consumers.

Notes:* Data of 2017 do not include self-generation of independent producers at extra-high voltage.


Chapter 8: Objectives of reform in Electric Company (IEC)

Installed capacity of the Electric Company according to type of technology | number of Electric Company employees | financial leveraging of the Electric

Company | the Electric Company’s financial debt to EBITDA8

52 Chapter 8: Objectives of reform in Electric Company

Installed capacity of the Electric Company according to type of technology

Eshkol HagitReadingRamat Hovav

Orot Rabin (1-4) Orot Rabin(7-8)

4.8

0.6

1.4

0.9

0.5

0.5

4.7

3.9

1.3

2.8

12.8

8.7

0

2

4

6

8

10

12

14

2019 Sale as part of reform** Scrapping/termination ofuse

Construction*** 2025*

GW

Coal-powered Industrial gas turbines Jet-powered gas turbine Gas turbines in combined cycle Steam-powered converted to natural gas

The Electric Company’s (IEC) installed generation capability is expected to decrease by 2025, from 12.8 GW to 8.7 GW.Notes:* Forecast** As part of the reform, over the period of 2020-2023, the stations at Ramat Hovav, Reading, Eshkol and part of Hagit shall be sold to IPPs. In 2019, the Alon Tavor

site was sold to private producers. The stations at reading and the unit at Eshkol with capacity of 228 MW are expected to be scrapped in 2023; and additional station at Eshkol of similar capacity is expected to be scrapped in 2025.

*** Units 1-4 at Orot Rabin will be closed in 2022, with two combined cycle gas turbine units expected to be installed to replace them.**** Pursuant to the November 2019 decision by the Minister of Energy with regard to policy principles for the gradual conversion of generation units 5-6 of the Orot

Rabin power station and units 1-4 of the Rutenberg power station by the year 2025, and no later than 2026, on the Electricity Authority’s recommendation. According to the Minister’s outline plan, by the end of 2025, five of the stations shall be converted to natural gas, and Orot Rabin 6 shall be converted in the beginning of 2026. Capacity of the stations is expected to remain unchanged


Number of Electricity Company (IEC) employees

13,330 13,209

12,083 12,004 12,337

12,648 12,593 12,830 12,956 12,806

12,077 11,633 11,583

11,139 10,986

9,300

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *2026

Num

ber o

f job

s

Year

The trend of downsizing the Electric Company’s workforce continued over 2019. Notes:* According to the restructuring plan, the number of regular employees in June 2026 shall not exceed 6,400. In addition, from December 2023 on and during the rest

of the reform period, the number of temporary employees shall be in the range of 2,600 to 2,900.


Financial leveraging of the Electric Company

18.1 17.5 15.5 14.8 16.4 16.7 17.6 20.8 24.8 24.7

62.8 66.474.3 71.0 74.3

66.6 66.8 64.3 61.1 62.9

78% 79% 83% 83% 82% 80% 79% 76%71%

72% 68% 66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

10

20

30

40

50

60

70

80

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *2021 *2025

NIS

bill

ions

Year

Equity capital Liabilities Financial leveraging

In 2019, the trend of decline in financial leveraging was halted, mainly due to a decline in the rate of capitalized interest on retirement commitments which led to reduction of the Company’s equity capital, and due to new

accounting provisions on leasing which increased the company’s liabilities. In 2018, a significant part of the decrease was due to the assets settlement.

Notes:* According to reform objectives.


Electric Company’s financial debt to EBITDA

46.8 44.6 43.2 42.138.3 36.1

7.5 7.2 7.6 7.4 8.0 8.1

6.22 6.235.68 5.65

4.824.44

5.50

4.60

0

1

2

3

4

5

6

7

8

0

5

10

15

20

25

30

35

40

45

50

2014 2015 2016 2017 2018 2019 *2021 *2025

Rat

io o

f fin

anci

al d

ebt t

o EB

ITD

A

NIS

bill

ions

Year

Financial debt EBITDA Financial debt to EBITDA

Continued trend of decline in ratio of financial debt to EBITDA.The reform’s objective was achieved in 2019.

Notes:* According to reform objectives.


Chapter 9: Structure of the Electricity Authority

Roles of the Electricity Authority | composition of the Authority Assembly | Decisions and Hearings

9

58 Chapter 9: Structure of the Electricity Authority

Roles of the AuthorityIn wake of legislation of the Economic Policy Law for the budget year (2015 and 2016), (hereinafter: the Law or the Economic Plan Law) an authority was established, merging the Electricity Administration and the Public Utility Authority – Electricity. The Authority is the sole professional body in the Ministry of Energy dealing with the electricity economy.

In sections 21-21a of the law it is set forth that:

"21. The Electricity Authority is hereby established within the ministry, to operate in accordance with the goals of this law and policies of the minister and the government, pursuant to their authority under the law, in the area of the electricity economy; it shall implement their policies pursuant to the provisions of this law and supervise fulfillment of the provisions pursuant to this law and the licenses, and fulfill the roles assigned to it under this law and imposed upon it pursuant to any other law.

21a. (a) The Authority shall be the professional body in the ministry in charge of the electricity economy, and assist the minister in forming his policy as stated in section 57a.

(c) When forming principles of policy, the minister shall consult with the Authority as the professional body in charge of the electricity economy, including with regard to costs incurred by implementation of policy; the Authority’s position shall be published on its website, after policy principles have been published on the ministry’s website pursuant to the provisions of section 57a(b).

(c) The Authority shall advise the government in forming its policy on the electricity economy, if asked to do so by the minister.”


Main areas of authority pursuant to the law

¡ Determining policy and policy principles on the electricity market ¡ Approval of the development plan ¡ Setting regulations on licensing ¡ Approval of certain licenses

The Minister

¡ Implementation of the government and minister’s policy on the electricity market

¡ The professional body advising the minister by force of the law on formation of policy

¡ Regulator of the electricity market ¡ Determining rates and criteria ¡ Granting of licenses ¡ Actions of the Director of the Electricity Administration (independent

statutory authority)

The Authority


Composition of the Authority AssemblyPursuant to the Electricity Economy Law, the Authority consists of five members: Chairman of the Authority; Director General of the Ministry of Infrastructures who shall serve by force of his position or a representative of the Minister of Energy appointed by the government from among ministry staff; the Director of Budgets in the Ministry of Finance to serve by force of his positions or a representative of the Minister of Finance appointed by the government from among ministry staff; two public representatives appointed by the government as proposed by each minister. In wake of the Amendment to the Electricity Economy Law 2015, an observer on behalf of the Minister of Environmental Protection has been added to the Authority Assembly.

The Authority’s composition reflects the balance between institutional representatives appo in ted f rom among government ministry personnel and public representatives, with the numerical ratio between them remaining identical.

Dr. Assaf Eilat – Chairman of the Electricity

Authority

Mr. Udi Adiri - Assembly Member, Director General of

the Ministry of National Infrastructures, Energy and

Water

Mr. Haim Fernandez - Public representative at the

proposal of the Minister of Finance

Mr. Gil Proactor An observer from the Ministry of

Environmental Protection

Mr. Harel Shlissel - Assembly Member, Head of Energy Sector in the Budget Department in the Ministry

of Finance

Dr. Bracha Halaf - Public representative (since 2/2020)

on behalf of the ministry of National Infrastructures,

Energy and Water


Members of the Electricity Authority Assembly 2019Dr. Assaf Eilat Chairman of the Electricity Authority (appointed on May 5, 2016)From 2012, filled several positions in the Israel Competition Authority In his last position Eilat served as chief economist and substitute antitrust commissioner. As part of this job he managed a professional team of 35 economists dealing in competition, regulation and government, alongside representing the Antitrust Authority in central government committees on subjects such as imports, credit data and banking.In the past, Eilat served as VP of Compass Lexecon in San Francisco, and filled teaching positions at Stanford University, the Open University of Israel, and the Hebrew University.Eilat holds a bachelor’s degree in Law and Economics (with honors) from the Hebrew University, passed the bar exam in 2003, and holds a PhD in Economics from Stanford University, specializing in Antitrust, Industrial Organization and Applied Micro Economics.Lives in Herzliya, married and father of two.

Mr. Ehud (Udi) Adiri Director-General of the Ministry of EnergyFrom 2013 to 2017, Adiri served as deputy to director of budgets in the ministry, in charge of infrastructures: Transportation, energy, quarried substances, water and agriculture. Adiri worked on building and administering the budgets of the government bodies operating in these areas, and initiated structural changes and reforms while moving national projects forward.During 2010-2012 Adiri coordinated the energy area in the Ministry of Finance and promoted structural changes in this area. During 2008-2010 Adiri coordinated the transportation area in the Budgets Division.Ehud (Udi) Adiri was born in 1977. He is married and father of three, and lives in Hod Hasharon.Adiri is a graduate of Tel Aviv University in Economics (magna cum laude) and History (summa cum laude); holds a Masters in Economics (2010) from Tel Aviv University and a Masters in Public Administration from Harvard University (2013). Adiri served in the IDF Armored Corps as a conscript and then in the regular army and reserve duty as a combat soldier and officer with the rank of Major.


Members of the Electricity Authority Assembly 2019Mr. Harel ShlisselAssembly Member Head of Energy Sector in the Budget Department in the Ministry of Finance (Entered his position in July 2019)Since July 2019 serves as Head of Energy Sector in the Budget Department in the Ministry of Finance. Shlissel began working in the budget department in 2016, as public transportation economist.Previously served as personal assistant to the Governor of the Central Bank of Israel Dr. Karnit, as well as Deputy Governor of the Bank of Israel Dr. Nadine Baudot Trajtenberg.Holds a BA in Philosophy, Economics & Political Science (with honors) and an MA in Financial Economics, both from the Hebrew University of Jerusalem.Shlissel served in the IDF as a combat soldier and commender in Maglan unit.Lives in Tel Aviv, and married to Noa.

Dr. Bracha HalafAssembly Member Public Representative by recommendation of the Minister of Energy (Entered her position in February 2020)Dr. Bracha Halaf is Manager of Investments of Qure Ventures, a Digital Health-focused VC that invests in digital health startups. Previously employed at the Ministry of Energy 2010-2018 as scientific advisor to the Director-General of the Ministry, and then senior area manager of oil substitutes and in 2015 appointed as Dr. Halaf holds a doctorate in biophysics from the Weizmann Institute of Science, and an M.Sc and B.Sc in chemical engineering from Ben-Gurion University in the Negev. She completed a course for directors and other senior corporate officeholders from Tel Aviv University and, in addition, Dr. Bracha Halaf is a graduate of the Wexner Foundation Program for senior executives in the public service at the Harvard Kennedy School’s Center for Public Leadership in the USA.


Members of the Electricity Authority Assembly 2019Mr. Yosef EnglanderAssembly Member Public Representative by recommendation of the Minister of Energy (Finished his job in July 2019)Industrial Management Engineer, entrepreneur, owner of Yael Israel Entrepreneurship Ltd., dealing in management and execution of complex, large scale projects in construction and entrepreneurship. Owner of S.Y. Alon Construction Company Ltd., specializing in TAMA 38 projects, and owner of TAMA 38 Funds, a fund for financing real estate projects. Highly experienced in industry and complex IT systems. In the past he dealt in managing, selecting, implementing and assimilating complex ERP systems in large industrial organizations (including: Soltam, Had-Assaf Industries, Packer Concern, Philips, and more). Lives on Merhavia, married and father of two daughters.

Mr. Haim FernandesAssembly Member (finished his job in July 2019) Public Representative on behalf of the Minister of Finance (Finished his job in December 2019)Serving as VP Finance and Purchasing of Leumit Health Services over the last eight years. Previously worked nine years in the Budgets Department of the Ministry of Finance. In his last position he served as Deputy Director of Budgets in charge of the industry, communications, water, tourism and energy areas. Holds a BA in Economics and Communication from the Hebrew University and MBA, major in financing, from the Hebrew University.Lives in Modi’in, married and father of four.


Vision of the Electricity Authority

¡Who we areThe Electricity Authority is the body in charge of regulating the electricity economy in Israel. The Authority acts in the aim of promoting an electricity economy that is competitive, efficient, reliable and safe for consumers. For this purpose, the Authority is leading policy steps and a wide range of regulatory tools and fees, in broad cooperation with both governmental and private players.

¡Our missionTo create a new horizon for the economy, out of commitment to making electricity accessible to all consumers, an outlining ground-breaking policy that will change the existing order of things. This includes increasing competition by creating environmental standards, through renewable energy and protecting private consumers, and ensuring high-quality, reliable service.

¡What we believeOptimally opening the electricity economy while taking advantage of the professional independence granted to the Authority; that it is capable of being the “enabler” that effectively balances all interests in the economy, thus creating clean, available energy while providing solutions to all consumers.


¡What we want To create a reality in which business is conducted in a transparent, cooperative way while simplifying regulation and competitive procedures in the economy; transformation, in which Israeli society will experience energetic independence and a stable prospect for generation and consumption of electricity. We may thus create a multitude of private producers, including households, ensuring innovative, advanced green technologies.The more we extend competition in the electricity economy towards private consumers, we will know that not only have we aligned, stabilized, supervised, developed and regulated the electricity economy, but we have also reached out, touched, and made an impact on the State of Israel, on the national and social levels.


Advanced, transparent regulation for en efficient economyThe overall purpose of a regulator is the establishment and bolstering of a vibrant, dynamic economy. In such an economy, players are prepared and attempt to become involved in various areas of activity and thus express trust in the regulator, the conduct of the other players, and their ability to profit from participation in the market. There are many different hurdles on the way to achieving this goal; however, for simplicity’s sake they may be defined as being on the continuum between certainty and efficiency. The players in the economy expect to enter a secure, organized world on the one hand, and expect the regulatory framework to be able to change in accordance with technological, economic and international changes on the other hand. This perpetual challenge lies at the regulator’s doorstep. Not only must he act in this spirit, he must also make the players believe that he does so.In order to attain this active economy, the balance between providing certainty and efficiency require, in our opinion, three main pillars:Partnership and openness – the rules of the economy and the way matters are conducted enable anyone interested in doing so to participate in the economy. This shall include transparency, public inclusion procedures and hearings in processes that affect the economy; reduction of entry barriers to the absolute minimum, access to information, willingness to meet and listen to all types of parties, etc.

Clear rules – the regulator’s activity is performed based on a clear legal foundation, reflected in a uniform set of documents. This shall include clear definition of areas of responsibility, types of considerations that lie within the regulator’s jurisdiction, action within the framework of an accessible document of criteria, explanation of decisions, publishing of the regulator’s judgment, and more.Breadth – the economy shall be managed on the basis of broad-based rules, uniform for all players, while avoiding as far as possible the provision of any specific aid. This shall include reducing the use of special personal licenses, application of uniform tools for competition/tenders, avoiding individual settling of accounts or sewing tailor-made suits for particular players, solution of regulatory and operational problems in as broad a way as possible, and more.The Electricity Economy Law defines the Authority’s responsibility and considerations, i.e., that it is not supposed to take considerations beyond the economy we are entrusted with. Nor is the Authority interested in gaining expertise or influence in other professional areas. The more the regulator assimilates this principle and acts accordingly, the greater the efficiency and certainty for all those involved.Our task as regulators is not a simple one. However, the economy relies on us to act, in in his area, to provide certainty and efficiency in the aim of moving the State of Israel forward.


Advanced, transparent regulation for en efficient economyThe Electricity Authority attributes value to transparency and sharing of information with the electricity economy, players and consumers alike. This, in the belief that bi-directional communication between the Authority and the economy is vital in order to create trust between the regulator and the economy, and advance Israel’s electricity economy. Thus, the strategy and information department acts to promote measures to enhance accessibility, information, inclusion, and building of trust between the Authority and the economy.

Among the measures taken by the department over 2019: ► An advanced regulation seminar was held for senior

government regulators in cooperation with Harvard University and the National Council of Economics, and the assistance of the Wexner Foundation.

► Publishing of Electricity Authority Assembly protocols, and expected agenda of the assembly.

► Periodic publishing of all indexes that influence the electricity rate.

► Holding of 22 study days and round tables vis-à-vis the economy on current matters on the agenda.

► Extensive public hearings on issues of substance.

► A designated committee for providing solutions for independent private producers (IPPs).

► A frequent newsletter for the economy, on matters being dealt with by the Electricity Authority.

► Each decision made in 2019 is accompanied by an attached page with clear and simple explanation of the meaning and substance of the decision.

► Construction of a designated site for public use, and a broad televisions campaign to promote renewable energy on rooftops.

► Preparation of a simulator for the public, that calculates the expected income earned from a solar installation.


Corporate responsibilityAs part of our social responsibility as a company, and by force of the Electricity Authority’s status as a government office serving the public and as an example to all, we believe that personal example is of great value in social action, and that the employment initiative shall affect the lives of individuals, and promote social projects, including private ones after work hours.

The Electricity Authority, as a matter of policy, has acted over the years to hire employees with disabilities to its ranks, and employ people from various diverse backgrounds, with emphasis on mutual respect and equality with one’s fellow man.

As a rule, we put a lot of thought into adding moral value,g whether by marking the holidays of various minority groups for all employees in the Authority, or taking the “working plan day” held annually from the office to organizations that believe in social initiative, solidarity, and contributing to and assisting one’s fellow man.

In recent years we have held the working plan day at institutions such as: Geha Mental Health Center, Shalva National Center, and the Ben Shemen Youth Village. Currently, alongside the professional work performed in the first part of the day, we have included lectures by the institution managers, as well as

volunteering by Authority employees within the organization: For example, renovation of the petting zoo at Ben Shemen Youth Village.

The policy of the welfare program in the Electricity Authority calls for contribution to the community and options of employment for disabled people, as well as purchase of holiday gifts from organizations that employ disabled people, who in many cases prepare the gift packages themselves.

Other social initiatives in recent years: ► Adoption of a holocaust survivor: Authority employees have

collected products and materials sent in special gift packages.

► A departmental initiative for volunteering in the community in the Chasdei Naomi NPO.

► Staying over at a social guest house in Yeruham, and social activity in the Beduin sector as part of the annual office study plan.

► Collection of materials and food products for the Latet organization.


Convening of the Electricity Authority Assembly and segmentation of its resolutions

1 2 0 19

3752

72

44 50 5061

3748

17

27

15

15

51 4350 50

64 45

55

45

48

23

40 36

40

11

14

5144

52 50

65

54

9297

120

67

9086

10197

123

1812

1612

20

37 36 3324 24

3022

2720 18

0

20

40

60

80

100

120

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Num

ber o

f dec

isio

ns a

nd n

umbe

r of m

eetin

gs

Year

Licenses Obligation to consult RenewablesConsumerism Rates Market regulation and reformOther Number of meetings

Other


Electricity Authority Decisions of 2019

Meeting No. Date Subject Subject of decision554 21.1.2019 Licenses Amendment of a conditional license for construction of a solar-

powered generation facility through a land tender.

554 21.1.2019 Grid Connections and electrical infrastructure works; national projects for the electricity grid.

554 21.1.2019 Rates Setting a rate for an upcoming deal with an extra-high voltage producer.

554 21.1.2019 Renewable energy

Publishing an invitation to submit proposals for setting the rate for generation of electricity using photovoltaic technology, in facilities connected to high and low voltage.

554 21.1.2019 Market regulation

Preliminary decision with regard to the Electric Company for collecting the Egyptian debt, and a compromise agreement.


Publishing of invitation to submit proposals for setting the rate for production of electricity using photovoltaic technology in installations connected to extra-high voltage

555 6.3.2019 Licensing Granting a production license to Israel Solar Thermal Power Ltd.


Meeting No. Date Subject Subject of decision555 6.3.2019 Licensing Reduction of guarantee in license for Alon Energy Centers Limited

Partnership.

555 6.3.2019 Licensing Amendment of conditional licenses for construction of wind turbine farm.

555 6.3.2019 Licensing Amendment of license for distribution of power to the Jerusalem District Electricity Company Ltd. (JDECO).

555 6.3.2019 Licensing Approval for transfer of the license of Etgal Ashdod Ltd.

555 6.3.2019 Licensing Approval for attachment of assets in production license of IPP Sorek Ltd.

555 6.3.2019 Licensing Approval for transfer of license of Big Solar Beit Shemesh Ltd.

555 6.3.2019 Licensing Amendment of license for Ellomay Capital Ltd. (pumped storage)

555 6.3.2019 Licensing Approval for transfer of the production license of Chetz Ecology Ltd.


Regulation for producers connected to the ultra-high-voltage grid, established without a competitive procedure


Meeting No. Date Subject Subject of decision555 6.3.2019 Market

regulationPrinciples for recognition of gas costs for private producers operating on natural gas

555 6.3.2019 Licensing Amendment of licenses for electricity generation with solar technology connected to the distribution grid


Recognition of the compromise sum – She’an Development vs State of Israel

555 6.3.2019 Grid Connection of generation units to the transmission grid


Connection of wind turbine farm


Approval of recommendation on principles of emergencies policy

556 1.4.2019 Licensing Amendment of electricity license for thermo-solar technology for winner of Ashalim tender – Megalim Solar Power Ltd.


Results of competitive procedure No. 3

556 1.4.2019 Consumerism Connections to the electricity grid in the distribution section – the Authority’s clarification on connection of consumers


Meeting No. Date Subject Subject of decision556 1.4.2019 Reform Value of land at Alon Tavor site

556 1.4.2019 Consumerism Amendment of definition of holidays from demand hours files in the rate tables book

556 1.4.2019 Licensing Provision of conditional license for construction of open cycle conventional power station – Tzomet Energy

556 1.4.2019 Licensing Amendment of conditional license for Ruach Bereshit

556 1.4.2019 Licensing Approval for transfer of holdings in conditional license of Ruach Bereshit

556 1.4.2019 Licensing Amendment of conditional license for thermo-solar technology

556 1.4.2019 Licensing Amendment of conditional licenses for cogeneration technology

557 7.4.2019 Licensing Amendment of Negev Ashalim license

558 13.5.2019 Licensing Reduction of guarantee in conditional license for IPM Beer Tuvia Ltd.

558 13.5.2019 Licensing Cancellation of conditional license for pumped storage technology


Results of Procedure No.1 for setting the rate for electricity generation with rooftop photovoltaic systems


Meeting No. Date Subject Subject of decision558 13.5.2019 Rates Setting the rates that shall apply to Halutz Facility for Brenmiller,

with photovoltaic and storage technologies

558 13.5.2019 Grid Publishing transaction rules and criteria for new producers in the transmission grid

558 13.5.16 Criteria Financial support criteria

558 13.5.2019 Criteria Application of financial support criteria to the PV 2 solar power station


Results of competitive procedure No.1 for facilities to be connected to extra-high voltage


Incentifying the Electric Company to keep schedules set in the development plan

558 13.5.2019 Criteria Deployment of a production unit smaller than 16 MW on the premises of an extra-high voltage consumer

558 13.5.2019 Criteria Amendment of criterion 35 as 35-1 in the registration and connection of generation facilities to the distribution network.


Meeting No. Date Subject Subject of decision559 24.6.2019 Licensing Amendment of conditional license for construction of Tamar power

station for generation using cogeneration technology (Rotem Plain Station)

559 24.6.2019 Licensing Amendment of conditional license

559 24.6.2019 Licensing Approval for transfer of control and attachment of assets in production license of Israel Solar Thermal Power Ltd.

559 24.6.2019 Licensing Amendment of conditional license for Ellomay Pumped Storage (2014) Ltd.

559 24.6.2019 Licensing Cancellation of license for Winds Valley, Limited Partnership

559 24.6.2019 Criteria Change of criterion 42 – frequency shedding

559 24.6.2019 Criteria Amendments to criterion 123 – rules for activity of self-producer

559 24.6.2019 Criteria Amendments to criterion 93 – general loading plan and publishing of marginal half-hour price


Amendments to criterion 120-120a and rates table 4-6.5 on the matter of regulating the activity of natural gas generation facilities connected to the distribution grid



regulationUpdate of decision from meeting 551 – regulating the activity of natural gas generation facilities connected to the distribution grid

559 24.6.2019 Consumerism Publishing of criterion 7a, planning surveys and connection surveys for the public

559 24.6.2019 Consumerism Application of new mechanism for calculating interest for delay and interest for lateness


Application for pumped storage


Request by the Electric Company for approval of other activity – Cybergym

559 24.6.2019 Consumerism Rates of expanded services


Electricity Economy Regulations (conventional independent power producer)

560 22.7.2019 Licensing Amendment of conditional license for pumped storage of PSP Investments Ltd.

561 4.8.2019 Licensing Granting of distribution and supply licenses to Amit Energy & Electricity Revivim Ltd.


Meeting No. Date Subject Subject of decision561 4.8.2019 Licensing Granting of conditional license for construction of electricity

generation facility powered by renewable energy

561 4.8.2019 Criteria Amendment of application of criterion 214


Extension quota for small sized photovoltaic generation facilities of up to 15 kW

563 2.9.2019 Licensing Granting of conditional license for construction of electricity generation facility powered by renewable energy

563 2.9.2019 Licensing Amendment of conditional licenses for construction of wind turbine farm

563 2.9.2019 Licensing Amendment of conditional licenses for construction of wind turbine farm

563 2.9.2019 Licensing Approval for attachment of assets of Etgal Ashdod Ltd

563 2.9.2019 Licensing Approval for attachment of assets of Marom Solar Projects

563 2.9.2019 Licensing Approval for attachment of assets of Marom Solar Projects 7 Beit Alfa



regulationUpdate of decision on the matter of regulating the activity of natural gas generation facilities connected to the distribution grid


Criteria and rates for addition and replacement of power with photovoltaic facilities larger than 100 kW


Recognition of costs to the Electric Company with regard to the compromise agreement between the Electric Company and cartel companies


Publishing of invitation to submit proposals in procedure No. 2

564 16.09.2019 Criterion Amendments to criteria 35 26-1 to 35 26-5 on the matter of connection to extra-high voltage and ultra-high voltage, after comments by the Ministry of Justice

565 23.9.2019 Licensing Approval for transfer of control in production license of Sunshine Renewable Energy Three Ltd.

565 23.9.2019 Licensing Amendment of conditional licenses for construction of wind turbine farm.

565 23.9.2019 Licensing Cancellation of production license for Sugat Sugar Refineries Ltd


Meeting No. Date Subject Subject of decision565 23.9.2019 Licensing Granting of license for Shneor Ze’elim Limited Partnership

565 23.9.2019 Licensing Amendment of conditional licenses using cogeneration technology, and rate arrangement on the matter of failure to comply with dual-fuel requirement

565 23.9.2019 Consumerism Updates, changes and additions to consumerism criteria – September 2019

565 23.9.2019 Criteria Amendment of criterion 35 20-4 (type permit for production facilities up to 630 kW)


Criteria and rate for acceptance tests for electricity producer with natural gas in the distribution grid


Decision on the matter of setting a rate for construction of facility, to obtain permit for operation and synchronization tests for low-voltage photovoltaic generation facilities


Decision on the matter of update of rate for performing acceptance test for low-voltage consumption facility

565 23.9.2019 Licensing Granting of conditional license for construction of electricity generation facility powered by renewable energy


Meeting No. Date Subject Subject of decision566 26.9.2019 Renewable

energyExtension of the deadline for synchronization and maximum deadline for synchronization for the winners of competitive procedrue No.1 for rooftop installations


Extension of maximum deadline for procedure No. 2

567 4.11.2019 Licensing Granting of licenses for production and supply to Alon Energy Centers combined cycle power station

568 18.11.2019 Licensing Approval for attachment of assets for Tzomet Energy Ltd

568 18.11.2019 Licensing Granting of production licenses for conventional technology power stations – M.R.C. Alon Tavor Power Ltd.


Application of rate for performing acceptance test and synchronization tests for receipt of operation permit for photovoltaic generation facilities


Results of competitive procedure for setting and allocating power rate for natural-gas-powered facilities connected to the distribution grid

568 18.11.2019 Criteria Preliminary voluntary feasibility survey


Meeting No. Date Subject Subject of decision568 18.11.2019 Renewable

energyResults of Procedure No. 2 for setting the rate for electricity generation with rooftop photovoltaic systems


Results of procedure No. 4 for setting the rate for generation of electricity using photovoltaic technology, in facilities connected to high and low voltage

569 25.11.2019 Licenses Granting of production and supply licenses to cogeneration technology power station of I.P.P. Ramat Gavriel Ltd.


Compliance with gap quoted for open cycle facilities constructed as part of decision 914


Amendment of winning capacity of procedure No. 2 for setting the rate for electricity generation with rooftop photovoltaic systems


Amendment of winning capacity in competitive procedure No.1


Update of transmission system development plan for absorption of renewable energy

571 12.12.2019 Licensing Granting of self license not connected to the grid (Nobel Energy Mediterranean Ltd.)


Meeting No. Date Subject Subject of decision571 12.12.2019 Licensing Cancellation of conditional license for construction of power station

for the Tamar company (Rotem Plain Station)

571 12.12.2019 Licensing Approval for attachment of assets in conditional license of Ruach Bereshit Limited Partnership


Compromise agreement between the Electric Company and the Egyptian gas companies

572 23.12.2019 Consumerism Clarification by the Authority on the matter of connecting consumers to the grid, further to Amendment 16 to the Electricity Economy Law

572 23.12.2019 Consumerism Procedure for checking consumer complaints

572 23.12.2019 Consumerism Response of distributor with energy supply limitations


Setting rate and terms of eligibility for rate for photovoltaic facilities on rooftops and water reservoirs


Update of size of facility and expiration date for regulation of small-sized generation using photovoltaic technology

572 23.12.2019 Rates Basis of systemic rate for period of 2020-2024


Meeting No. Date Subject Subject of decision572 23.12.2019 Rates Annual update for 2020 electricity rate for Electric Company

consumers


Extension for validity of rate for wind farms with capacity in excess of 50 kW for the distribution and transmission grid, and allocation of costs of the technological solution

572 23.12.2019 Rates Amendment of availability rate for open cycle producers established as part of 914


Setting rate and terms of eligibility for rate for ground-based and non-ground facilities


Regulation of activity of Ramat Hovav generaton units after sale of the site by the Electric Company

572 23.12.2019 Licensing Granting of conditional license for construction of open cycle power station (Dalia Power Energies Ltd.)


Electricity Authority Hearings of 2019

Subject of hearing Deadline for submitting comments

1 Invitation to propose procedure No.1 – rooftop installations 10.01.2019

2 Principles for recognition of natural gas costs for private producers operating on natural gas

16.01.2019

3 Amendment of criterion 190 17.01.2019

4 Regulation for ultra-high-voltage producers established without competitive procedure

21.01.2019

5 Complementary hearing for criterion 35 07.02.2019

6 Complementary hearing – Brenmiller 18.02.2019

7 Value of land at Alon Tavor site 19.02.2019

8 Peak load hours 17.03.2019

9 Transaction rules and publishing of criteria 07.04.2019

10 Incentifying the Electric Company to keep schedules set in the development plan

01.04.2019



11 Criterion 7a – publishing connection and planning surveys 14.04.2019

12 Integration of generation installation smaller than 16 MW 17.04.2019

13 Financing- supporting criteria for PV 2 tender 19.04.2019

14 Amendment to application of pumped storage 19.04.2019

15 Amendment of criterion 35 01.05.2019

16 Change of criterion 42 – frequency shedding 01.05.2019

17 Rates of expanded services 01.05.2019

18 Complementary hearing for criterion 7a 22.05.2019

19 Decision proposal for hearing – late interest 06.06.2019

20 Criterion 24 – arrangements of payment for billing among vital services providers

10.06.2019

21 Acceptance tests 22.07.2019

22 Update of decision from meeting 551 – regulating the activity of natural gas generation facilities connected to the distribution grid

24.07.2019



23 Criterion and rates for addition and replacement of power with photovoltaic facilities larger than 100 kW

01.08.2019

24 Cost control for compromise agreement on GIS 11.08.2019

25 Update of rate for performing acceptance test for low-voltage consumption facility

27.08.2019

26 Criteria and additions to consumerism criteria – August 2019 27.08.2019

27 Setting a rate for performing acceptance test for receipt of permit and synchronicity test for low and high voltage photovoltaic generation facilities

27.08.2019

28 Terms for type permit for low-voltage photovoltaic facilities 29.08.2019

29 Invitation to submit proposals for setting and allocating power rate for natural-gas-powered facilities connected to the distribution grid

29.08.2019

30 Deviations from consumption plans 05.09.2019

31 Call for proposal: Integration of continuous metering system for domestic sector consumers

31.10.2019

32 Cost of emission reduction facilities 03.11.2019



33 Update of basis of systemic rate for period of 2020-2024 03.11.2019

34 Application of rate for performing acceptance tests for receipt of permit and operation for synchronization tests of photovoltaic generation facilities

05.11.2019

35 Compromise agreement between the Electric Company and the Egyptian gas companies

05.11.2019

36 Preliminary feasibility survey 07.11.2019

37 Regulation of generation unit activity at Ramat Hovav 10.11.2019

38 Gap for facilities in cycle built in wake of decision 914 17.11.2019

39 Rate for wind farm with capacity in excess of 50 kW connected to the distribution and transmission grids

01.12.2019

40 Rate for surplus capacity – Alon Energy Centers 11.12.2019

41 Call for proposal: Supply pilot 11.12.2019

42 Extension of deadline for synchronization and maximum deadline for synchronization for the winners of competitive procedrue No.1 for rooftop installations

11.12.2019



43 Recognition of costs incurred due to indemnification of local committees 11.12.2019

44 Granting option of putting up accountant's undertaking as alternative to guarantee

11.12.2019

Documents

The Electricity Authority - Gov · 2020. 8. 13. · Report on State of Electricity Sector 2018 7 Preface I am pleased to submit for your perusal the Report on the State of the Electricity