Market Intelligence
Energy Israel

Israel’s Electric Utility Company's $1-1.5 Billion Annual Procurement Plan

The Procuring Entity - IEC

Established in 1923 and 99% owned by the State of Israel, Israel Electric Corporation (IEC) is currently the sole vertically integrated electric utility company in Israel, operating in all segments: generation, transmission, distribution and supply. It is also the second largest procurement organization in Israel with approximately 5,000 active suppliers worldwide. In 2022, 51% of the electricity generated in Israel was supplied by IEC, through 15 power stations and a total installed capacity of 10.5 GW. 

Since Israel is considered an “electricity island,” as its energy system is not connected to the grids of neighboring countries, it must guarantee its ability to meet future demand. Following a 2018 reform in the electricity market, IEC is gradually reducing its share in the generation sector and focusing on upgrading the transmission and distribution infrastructure (in which it will retain its monopoly). 

The Opportunity – $1-1.5 Billion Annual Procurement by IEC

The IEC is planning to invest $1-1.5 billion annually, between 2023-2027, towards developing its transmission and distribution infrastructure. This will enable IEC to respond to the increase in electricity demand and to speed up renewable energy absorption.

Some of the key transmission and distribution equipment targeted by IEC includes: Transformers, Electronic Meters, Power Cables, Towers, H.V. Switching Equipment, Protection Systems, Zero-Point Earthing Equipment, and more. 

Further, IEC is looking to procure 17 Battery Energy Storage Systems (BESS) based on NMC/LFP Lithium-ion technology, via EPC tenders. Two of three anticipated BESS tenders will be published in November-December of 2023:

  • 10 BESS with storage capacity of 10 MW for 4 hours (40 Mwh)
  • 3 Mobile BESS with storage capacity of 2 MW for 4 hours (8 Mwh)
  • 4 BESS Systems (connected, total 160 Mwh) with storage capacity of 10 MW for 4 hours (40 Mwh)

Next Steps

U.S. companies interested in further information regarding these opportunities may contact the U.S. Commercial Service in Israel at: Naama.Altman@trade.gov.
 

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