Dalia Energy has announced plans to build a new power plant in Ashdod, Israel. The project will cost 5.3 billion shekels ($1.5 billion) and is being financed by Bank Hapoalim. The plant, called “Avshal,” will be constructed on the site of the current Eshkol power station. It will have a capacity of 850 megawatts.
The new plant will sell electricity at a fixed price of 0.065 shekels per kilowatt-hour for 20 years, starting when the plant becomes operational. The construction is part of Israel’s efforts to meet rising energy demands and increase competition in the electricity market.
Dalia Energy previously purchased the Eshkol power station from the Israel Electric Corporation. The Eshkol facility currently operates two gas turbines and four steam units, which generate electricity using natural gas. The Avshal plant will replace the older systems, providing updated infrastructure for energy production.
Construction of the Avshal plant will take place alongside another project, the “Dalia 2” power plant. Dalia 2 will also have a capacity of 850 megawatts, bringing the company’s total planned output to 1,700 megawatts from the two new facilities. Both plants aim to address Israel’s growing energy needs while expanding competition in the sector.
Other renewable and clean energy initiatives are also being explored in Israel. The Ashalim Solar Thermal Power Station in the Negev Desert combines photovoltaic and concentrated solar power technologies. It has an installed capacity of approximately 121 megawatts, contributing to Israel’s solar energy goals. Additionally, the use of biogas for electricity generation is being promoted through small-scale projects at wastewater treatment plants.
Dalia Energy’s CEO, Oved Debi, emphasized the importance of clear regulations to encourage investment in infrastructure projects. He also noted the need to resolve challenges in energy supply to support the growing demand. Bank Hapoalim’s head of corporate banking, Itamar Furman, explained the role of major infrastructure projects in fostering a more sustainable energy market in Israel.
