According to the study, “Israel power market outlook to 2030, update 2018 market trends, regulations, and competitive landscape” the electricity production in Israel has been highly monopolized by the Israel Electric Corporation (IEC). The government has been trying to reduce IEC’s control over most of the electricity production in the country. For a number of years, the government has been in talks with IEC to break down into smaller companies however the negotiations have been futile. Since the enactment of the electricity law, IEC’s major control over the electricity production has resulted in the industry being highly consolidated. Some notable companies working on solar energy in Israel are Bright Source, Solel and Bren miller Energy which all deal with utility scale projects. Additionally, Herzliya based Solar Edge has become a market leader in inverters for non-utility scale photovoltaic solar power. Energy sector, particularly electricity has been highly consolidated with little scope for private companies to enter the market, with the assistance of the government. The overall energy sector in Israel is ready to see a paradigm shift with some startups entering into the renewable market. The prospects for renewable energy market are brighter and look promising as government is aggressively trying to reach its targets of production via renewable energy. Following the trend and Paris Climate Agreement, Israel would promote production and use of renewable energy. The industry overall is expected to grow beyond expectations due to positive factors complementing it from all directions.
Over the years, various Israeli ministries have taken various steps and measures to improve the power sector in the country. Power is a sector that has been a catalyst for economic growth and commercial expansion. Major energy demands in Israel are meet through nonrenewable sources such as petroleum and coal. The total demand for energy in Israel is greater than its production and hence, the country is highly dependent on imports to meet up their energy requirements.
The energy sector especially gasoline industry in Israel is being deregulated. Some of the major changes observed in petroleum sector are: change in prices for end users and privatization of two oil refineries.
Israeli government is planning to develop gas based electricity sector. Numerous independent power producers including combined cycle plants have been issued a license by the regulator. They have also developed cutting edge solar energy technology using both photovoltaic and concentrated solar power. There are 3 main technologies to produce biomass & biogas energy: waste burning, fermentation, and gasification. Israel has only two wind farms, which were built in the 1990s which are active. There are currently numerous projects in the construction stages, but it will take at least two years before the first of these becomes active.
Increasing Population: The growth rate of population in Israel is particularly high even when compared to most western countries. Characterized by increasing immigration into the country, Israel has observed a constant rise in population. Rising population derives the demand for energy requirement in a country.
Rising standard of living: Israel has been placed “Very high standards of living” category of the Human Development Index. These high standards of living translate into greater demand for electric appliances and greater need for power generation.
Climate: The climate in Israel is extreme characterized by hot and humid winter spreading roughly 5 months and severe winters. The persistent change in climatic conditions requires the population to demand more and more power to fulfill their needs.
For more information on the research report, refer to below link:
Ankur Gupta, Head Marketing & Communications