Regulator Greenlights Plan for Israel’s Largest Private Power Plant
The natural gas-powered station will be built by Reindeer Energy, a joint partnership between Siemens AG and the Phoenix, at an investment of between NIS two billion and NIS three billion
The plant, to be established as a national infrastructure project, is expected to supply up to 1,300 megawatts, around 10% of the current capability of the Israel Electric Corporation, Israel’s largest electric power supplier. The largest private plant operating in Israel today has a 910-megawatt capacity.
Phoenix Group holds approximately 40% of Reindeer, while the remaining 60% is held by Siemens and by Reindeer’s founders, Itay Rochman and Moshe Krieger. Centerbridge Partners and Gallatin Point Capital completed a deal to buy control of Phoenix just a few days ago, meaning they are receiving an almost complete project in terms of regulatory approval. The only approval still pending is that of the Israeli government, when one is finally formed.
Since plans for the plant were first announced, many have called on the Ministries of Health and Energy to cancel it, out of concerns that it would negatively impact many people who live in the vicinity. The energy ministry and NIC, on the other hand, maintain that the plant is crucial for the purpose of supplying Israel, and especially Israel’s central district, with enough electricity.