Electricity Tariff Update
Coal Usage Over Time
חברת החשמל
Million Ton
15
10
10
5
0
14.0
% of coal out of
Total Electricity
Market Fuel Mix
70%
60%
11.8
61%
10.9
10.7
50%
52%
49%
9.1
8.2
8.3
44%
40%
7.8
7.2
37%
32%
30%
30%
26%
23% 22% 20%
6.4 6.3
30%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
10%
0%
Israel Electric
Implementing Government policies
The State of Israel signed the Paris Agreement in 2016.
Reducing coal usage: on January 3. 2018 both minister of Energy and
Infrastructure and minister of Environmental Protection approved that
IEC would reduce its coal usage for electricity generation instantly at a
rate of 30% comperes to base year 2015. In 2023, coal electricity
generation will be reduced by appx. 55% comperes to base year 2015.
Conversion of coal-fired units to NG: on November 20, 2019, the
minister of Energy established the policy principles for gradual
conversion of units 5-6 at Orot Rabin site and units 1-4 at Rothenberg
site to use NG instead of coal, by 2025 and no later than 2026 in order to
stop routine coal usage.
IEC is financially protected from change in fuel mix by the electricity
tariff
Future of coal
The current coal capacity is 4,840 MW of which:
■ 1,440 MW units 1-4 at Orot Rabin site - until December 31, 2025,
will be operated in risk mode only, according to the requirements of
the System Manager (Noga). Starting from January 1, 2026, the
continuation of production in these units. Including in a risk
situations, is subject to the instantiation of measures to reduce
emissions in accordance with the emission permit for site dated
January 29. 2024.
■ 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
11/24/2019
■ The System Manger's (Noga) position states that coal production
capacity must be preserved in order to continue functional
operation in emergency situations, in the electricity market, in all
production units (both units 1-4 at Orot Rabin site and rest of units
that will be converted to NG).
Source: IEC's Financial Statements for 2012FY-2022FY, The Electricity Authority - Report on State of Electricity Sector Year of 2022
1) The emissions reduction cost does not include interest during the construction period
Investor Relations
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