Finance Ministry Freezes Incentives for Large Solar Plants in Israel

Israel's solar industry displays its wares in Eilat
Israel’s solar industry will showcase its wares next week at the Eilat-Eilot Renewable Energy Conference.

Just a week before the 4th annual celebration of Israel’s renewable energy industry in Eilat, the country’s slow progress toward generating green energy hit another bureaucratic snag and zigzag. The Ministry of Finance froze implementation of the feed-in tariffs the Electricity Authority approved last month for a 500 MW quota of  large solar power plants. Minister of Infrastructure Uzi Landau angrily accused the Ministry of Finance of “the targeted killing of the solar industry” and argued that the treasury’s action was contrary to government policy.

The feed-in tariffs approved last month were NIS 1.08/KWh for plants of 10-60 MW capacity, and NIS 0.99/KWh for plants of 60+ MW.  Solar developers were disappointed with these tariffs, arguing that they are low by world standards.

On the other hand, the treasury’s Budgets Division contends that the tariffs are exorbitant – some NIS 0.40/KWh higher than conventional electricity production – and warns that the subsidized rates for solar-generated power could drive the price of electricity up by 20%.

A ministerial committee on renewable energy – which met this week for the first time since its formation two years ago – decided to send this issue back to the government for review and rejected Landau’s proposal to lift the freeze in the meantime.

The chairman of the Eilot Regional Council, Udi Gat, said in response: “The freeze is a critical blow to the renewable energy industry. The large fields will enable the generation of electricity – immediately and effectively.”  Dorit Banet, the co-managing director of the Eilat-Eilot Renewable Energy Initiative, added: “With all due respect for the hysteria from the gas discoveries, we need to also generate renewable and green energy throughout the country and especially in the periphery.”

Image: Jesse Fox

:: TheMarker (Hebrew)
:: Calcalist (Hebrew)

More Green Prophet reports on solar energy in Israel:
Israel Signs Landmark Solar Energy Agreement with Arava Power
Eilat-Eilot Conference: The Ins & Outs Of Renewable Energy In Israel
Solar Energy’s Not So Sunny Side

.

Ira Moskowitz
Ira Moskowitzhttps://www.greenprophet.com/
When his kids were small, Ira would point to litter on the ground and tell them: “That makes me angry!” He still gets angry about pollution, waste and abusive treatment of our world, but is encouraged by the growing awareness of environmental issues and has been following the latest developments in cleantech with great interest. Ira grew up in the green hills of western Massachusetts and moved to Israel in the early 1980s after completing an MA in Middle Eastern Studies. He has worked as a software developer and journalist, and translates works of Hebrew fiction and non-fiction to English. Ira is trying to age gracefully, but refuses to surrender his youthful belief in the potential for change, including a collaborative future for the peoples of the Middle East. To contact Ira, email ira (at) greenprophet (dot) com.
1 COMMENT
  1. First let me say I support harnessing solar power, however, there is some economic and technical logic to this approach.

    Innovative work in solar technologies from the efficient production of non food crop or arable land use biofeul along with advanced thin film solar technologies is coming on so fast it may make a delay in implementing what has now become old solar technology a wise move.

    Its a difficult question, we may be emotionaly ready to cut the chord with carbon but the economics of a natural gas bonanza on your doorstep simply must be taken into consideration.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

TRENDING

Astro uses AI to help procure land for renewable energy

For oil-rich, environmentally vigilant Gulf states, Astro isn’t just another startup story. It is a blueprint for accelerating an energy transition that is now existential, not optional.

Earth building with Dead Sea salt bricks

Researchers develop a brick made largely from recycled Dead Sea salt—offering a potential alternative to carbon-intensive cement.

Farm To Table Israel Connects People To The Land

Farm To Table Israel is transforming the traditional dining experience into a hands-on journey.

How Renewable Energy is Revolutionizing the Way We Power Our World

Solar has become the star of the transition thanks to modular hardware and straightforward installation. It fits dense cities and remote towns alike. Many companies are turning to rooftop arrays and carport systems - and exploring commercial solar installation as a practical way to lock in future savings.

Leading Through a Dual-Energy Transition: Balancing Decarbonisation with Energy Security

Experience in one area of the energy industry isn't enough to guarantee readiness across all the others. That's where a structured program like an MBA in energy can come in. Today's advanced curricula explore energy economics, finance, policy, and strategic management alongside the technical subjects. And when pursuing an energy MBA online, professionals can skill up and retrain without having to step out of the labor market -- an important perk at a time when skilled professionals are already in short supply.

Qatar’s climate hypocrisy rides the London Underground

Qatar remains a master of doublethink—burning gas by the megaton while selling “sustainability” to a world desperate for clean air. Wake up from your slumber people.

How Quality of Hire Shapes Modern Recruitment

A 2024 survey by Deloitte found that 76% of talent leaders now consider long-term retention and workforce contribution among their most important hiring success metrics—far surpassing time-to-fill or cost-per-hire. As the expectations for new hires deepen, companies must also confront the inherent challenges in redefining and accurately measuring hiring quality.

8 Team-Building Exercises to Start the Week Off 

Team building to change the world! The best renewable energy companies are ones that function.

Thank you, LinkedIn — and what your Jobs on the Rise report means for sustainable careers

While “green jobs” aren’t always labeled as such, many of the fastest-growing roles are directly enabling the energy transition, climate resilience, and lower-carbon systems: Number one on their list is Artificial Intelligence engineers. But what does that mean? Vibe coding Claude? 

Somali pirates steal oil tankers

The pirates often stage their heists out of Somalia, a lawless country, with a weak central government that is grappling with a violent Islamist insurgency. Using speedboats that swarm the targets, the machine-gun-toting pirates take control of merchant ships and then hold the vessels, crew and cargo for ransom.

Leopoldo Alejandro Betancourt López Turned Ocean Plastic Into Profitable Sunglasses

Few fashion accessories carry the environmental burden of sunglasses. Most frames are constructed from petroleum-based plastics and acrylic polymers that linger in landfills for centuries, shedding microplastics into soil and waterways long after they've been discarded. Leopoldo Alejandro Betancourt López, president of the Spanish eyewear brand Hawkers, saw this problem differently than most industry executives.

Why Dr. Tony Jacob Sees Texas Business Egos as Warning Signs

Everything's bigger in Texas. Except business egos.  Dr. Tony Jacob figured...

Israel and America Sign Renewable Energy Cooperation Deal

Other announcements made at the conference include the Timna Renewable Energy Park, which will be a center for R&D, and the AORA Solar Thermal Module at Kibbutz Samar, the world's first commercial hybrid solar gas-turbine power plant that is already nearing completion. Solel Solar Systems announced it was beginning construction of a 50 MW solar field in Lebrija, Spain, and Brightsource Energy made a pre-conference announcement that it had inked the world's largest solar deal to date with Southern California Edison (SCE).

Related Articles

Popular Categories