GCA Financial Targets for Government Companies
Coal Usage Over Time
חברת החשמל
Israel Electric
14.0
Million Ton
% of coal out of Total Electricity Market Fuel Mix
61%
11.8
52% 10.9
10.7
49%
44% 9.1
8.2
8.3
7.8
37%
7.2
32%
6.4
6.3
30% 30%
26%
23%
Implementing Government policies
■The State of Israel signed the Paris Agreement in
2016 and has significantly limited the usage of coal
for electricity generation
■ An emissions reduction project in the larger coal
units was executed at a significant cost of NIS 7.1
billion (1)
■ Government target of Israel is to be "coal free" by
2030. The Israeli Electricity Market will stop
routine coal use until 2025 and no later than 2026
following the Israeli Minister of Energy's policy
principles on 11/24/2019
■IEC is financially protected from change in fuel mix
by the electricity tariff
2012 2013 2014
2015
2016
2017 2018 2019
2020
2021
2022
Source: IEC's Financial Statements for 2012FY-2022FY, The Electricity Authority Report on State of Electricity Sector Year of 2021
1) The emissions reduction cost does not include interest during the construction period
Investor Relations
35
35
The Future of Coal
■ The current coal capacity is 4,840 MW of which:
1,440 MW will be mothballed in 2023/24
following the Israeli Minister of Energy decision on
2/8/2021
• 3,400 MW are expected to be converted to NG by
the end of 2025 following the Israeli Minister of
Energy's policy principles on 11/24/2019View entire presentation