IEC Transmission Segment Development Plan 2023-2027 slide image

IEC Transmission Segment Development Plan 2023-2027

Progress in implementation of the electricity sector reform and structural change - cont. Construction of new CCGT units 70-80 at Orot Rabin site ☐ ☐ חברת החשמל Israel Electric Postponement of the commercial operation date of unit 70 to January 2024 and unit 80 to September 2024. On August 11, 2023, the first ignition of unit 70 was carried out in preparation for synchronizing the unit to the electricity grid. Converting coal units to NG usage ☐ ☐ ☐ On May 18, 2023, the company's BOD decided to continue the conversion project of units 1-2 in Rotenberg site only, and to suspend the conversion of units 5-6 in Orot Rabin site. On June 2023, the company's BOD decided to continue the procurement process for converting units 3-4 in Rotenberg site. On August 9, 2023, a gas fire was ignited in Unit 1 in Rotenberg site as part of the system operation tests, prior to the completion of the conversion process. The Company is in ongoing discussions with the Ministry of Energy and the Electricity Authority to fully complete the project. The Company Management's estimate is that after exhausting the discussions with all the authorized State Authorities, the chances of executing the conversion in full (i.e. to all the 6 coal-fired units in the project) outweigh the chances that the conversion will not be executed in full, and the chances of recognizing the full cost of the project outweigh the chances that these will not be recognized. Source: IEC's Financial Statements for 2022FY and for H1.2023 Investor Relations 14
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