Israel shuts down coal power gen units, burns more natural gas

Closure of four coal-fired power generation units in Israel has recently been ordered by the country’s energy minister Yuval Steinitz. They will be replaced instead with two new natural gas-fired combined-cycle power generation units.

Steinitz announced his decision following a public campaign to shut down the 40-year-old units that are part of Orot Rabin, the biggest power generation plant in Israel, near Hadera, north of Tel Aviv.

Steinitz has also cancelled an ILS8billion (US$2billion) scheme to install smoke scrubbers in coal-fired units as part of his decision. However, the plants will be maintained as back-up generators for the grid.

The decision will take at least five years to implement.

Two gas-fired power generation units are still to be designed and built. In addition, new sources of natural gas have yet to be developed and come online.

Steinitz hopes the decision will hasten the realization of the Regulatory Natural Gas Framework since it will create a further natural gas demand of 1.5 to 2 billion cu m per year in the domestic market.

Steinitz’ announcement is part of the energy ministry’s policy to reform the state monopoly, Israel Electric Corp (IEC).

When the decision is implemented, up to three quarters of power generation will depend on natural gas, one of the highest rates in the world, and certainly the highest among member states of the Organization for Economic Co-operation and Development (OECD).

At the beginning of 2016, Steinitz ordered the IEC to use 15% more gas, replacing an equivalent amount of coal.