Israel energy report by Enerdata



IEC plans to build a nuclear power plant at Shabta in the Negev, as well as a large CSP solar power plant.

Whereas Israel’s capacity is increasing the Middle East experienced a substantial cut in its primary production. However, despite its surplus reduced by 10% the Middle East remained the world’s largest net exporter of energy.


The Israel energy market report is a reliable source for understanding the key issues and dynamics shaping the Israeli energy industry. With timely, up-to-date energy industry data and demand forecasts, this report will help you identify and exploit challenges and opportunities in the Israeli energy sector. The report details the sub-sectors of the energy industry (Crude Oil, refined oil products, Natural Gas, Coal, Electricity and Renewable) in Israel.

In this report you will find:

-Overview of energy industry sub-segments: oil, gas, coal, power, renewable
-Recent energy and climate change policy development, and an assessment of its impact
-Key companies active in the Israeli energy industry, along the value chain of each sub-segment
-Up-to-date insight on market structures, regulatory developments, and asset developments
-Market dynamics and trends, detailed by energy and by sector
-Historical data and trends relating to production, consumption, imports, exports and reserves for each industry sub-segment
-Projects under development in the country, including power plants, refineries, LNG terminals, gas pipelines
-Key drivers of change and future issues for each energy type


-Identify key companies activities and strategy in the Israeli market
-Work with data-driven market research
-Follow market dynamics and future industry trends
-Assess how national regulations impact the Israeli energy industry
-Gain a clear view of the development of renewable energies in the energy market

More Info
									Israel energy report

Latest update: October 2010

Table of Contents

LIST OF GRAPHS & TABLES                                            2

INSTITUTIONS AND ENERGY POLICY                                     3

ENERGY COMPANIES                                                   3

ENERGY SUPPLY                                                      5

ENERGY PRICES                                                      6

CONSUMPTION                                                        6

ISSUES AND PROSPECTS                                               6

GRAPHS & DATA TABLES                                               9

Israel Energy Report – Copyright© Enerdata – All rights reserved       1

List of Graphs

Graph   1:   Installed Electric Capacity by Source (2008, %)
Graph   2:   Power Generation by Source (2008, %)
Graph   3:   Consumption trends by Energy Source (Mtoe)
Graph   4:   Total Consumption Market Share by Energy (2008, %)
Graph   5:   Final Consumption Market Share by Sector (2008, %)
Graph   6:   Primary Consumption since 1970

List of Tables

Table 1: Economic indicators
             Population, GDP growth
             Imports & exports
             Inflation rate, exchange rate

Table 2: Supply indicators
              Oil & Gas proven reserves
              Electric & refining capacity detailed by source
              Production by energy source
              Power production by source
              External trade by energy

Table 3: Demand indicators
             Consumption / inhabitant
             Consumption trends
             Total consumption by energy
             Final consumption by energy and by sector
             Electricity consumption by sector
             Energy security indicators
             Energy efficiency indicators
             CO2 emissions

Table 4: Energy Balance
             Total energy balance
             Detailed energy balance by energy

Israel Energy Report – Copyright© Enerdata – All rights reserved   2
INSTITUTIONS AND ENERGY                                            Gas
                                                                   Since 2000, gas has been a priority for the
POLICY                                                             Israeli Government. The objective is for
                                                                   electricity production from gas, which is a
The Ministry of National Infrastructures                           cleaner and cheaper energy source than coal
supervises the energy sector. It does so                           and oil, to reach 60%.
through the “Fuel Authority” in the case of
the oil sector, and through the “Electricity                       Electricity
Authority” in the case of the electricity                          The Electricity Law regulates the licences, the
sector.      The       “Natural           Gas         Projects     competition and the tariffs. In keeping with
Management”           is      in    charge           of     the    the Electricity Law of 1996, IEC lost part of
development of gas projects.                                       its monopoly on production; in the long run,
                                                                   independent producers should produce 20%
The Israeli Public Utility Authority (PUA)                         of the total production (currently 0.7%).
regulates the electricity sector and controls                      Since January 2005, IPPs can build power
the electricity company, IEC.                                      plants and sell their electricity directly to
The Natural Gas Authority was created, in
accordance with the 2002 law on the natural                        No single company will be able to control
gas industry, to regulate the gas sector.                          more than 70% of the country’s electricity
                                                                   production/transmission as of 2008, and no
The energy policy can be characterised by the                      more than 50% as of 2010.
following        aspects:           the            progressive
liberalisation of the oil sector; the large-scale                  Efficiency
substitution of coal with oil, especially for the                  The Infrastructure Resources Management
production      of    electricity;        a    R&D        policy   Division (IRMD) is the unit of the Ministry
centred on the only two abundant domestic                          responsible for energy efficiency activities, as
energy sources, namely solar energy and oil                        well as the implementation of renewable
shales; the opening of the electricity sector                      energy projects. In 2009 the country fixed an
to    independent          producers          (10%);       and,    objective of 20% electricity savings by 2020,
finally, the introduction of natural gas to                        i.e. 16 TWh.
supply power plants. Israel’s considerable
R&D efforts in the field of solar energy and oil                   Renewables
shales have allowed the country to play a                          By 2020, the government plans to produce
leading role worldwide.                                            10% of electricity from renewable energy
The objective of the oil sector liberalisation                     In order to stimulate the production of
was to split up the various segments of the                        electricity   from   renewables,   mainly   from
oil market, namely imports, refining and                           wind, the country has introduced different
distribution.        Before        the        reform,       the    measures      such   as   investment   subsidies
distribution    companies          had        to    buy    their   (grants of up to 30% of the cost) and the
products from Oil Refineries Limited (ORL).                        obligation     to    purchase   the    electricity
Now, the distribution companies are able to                        produced by the national electricity company
directly import crude oil and oil products.                        at a price fixed by the Government.
Likewise, consumers too can directly import
or buy from the refining company ORL and,
finally, ORL can directly import semi-finished

Israel Energy Report – Copyright© Enerdata – All rights reserved                                                 3
ENERGY COMPANIES                                                   Gas
                                                                   The gas transport company, Israel National
                                                                   Gas Lines (INGL), ensures the high pressure
                                                                   gas transport (> 16 bar) and its distribution
The oil sector is not vertically integrated.
                                                                   to large consumers (>12 cm /year).
First of all, there are companies involved in
exploration/production activities. The most
important      ones          are    the      two        private
                                                                   The production, transport and distribution of
companies,      Naphta         Israel     Petroleum        and
                                                                   electricity are carried out by a national utility,
Isramco, and former public company, Israel
                                                                   the Israel Electricity Corporation (IEC),
National       Oil    Co          (INOC),     which        was
                                                                   which was created in 1923. IEC is a public
purchased by Naphta in 1997. However, the
                                                                   company (the State owns 99.8%); its status
exploration/production             activities      are     still
                                                                   should      soon   be   reviewed. The      company
underdeveloped          in    comparison           with    the
                                                                   should be transformed into a holding: the
country’s low resources.
                                                                   production will be divided into 3 entities, and
                                                                   4-5    distribution subsidiaries       will also be
The      country’s    largest        refinery      of     Haifa
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