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Israel Power Report Q2 2018

Israel Power Report Q2 2018

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Despite a fresh commitment in February 2018 by the Energy Ministry to end reliance on coal by 2030, we remainsceptical of the government’s ambition at this stage, in a context where this fuel currently remains the biggest source of energy inthe country’s heavily thermal-dependent fuel mix. Non-hydro renewables are developing only slowly, amid problems in absorbinglarge volumes of solar and resistance on the part of the state utility, while the development of wind power is opposed in some keyinstances by green lobbyists. Gas reserves are increasingly being exploited, but will only become a more significant driver ofelectricity than coal in 2024. Overall, power generation growth will be quite subdued, in what is a mature market.

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