Dalia Energy secures $1.5bn financing for new Israeli power plant

Israeli power company Dalia Energy has obtained a finance agreement worth 5.3 billion shekels ($1.5bn) from Bank Hapoalim to construct an 850MW power plant at the Eshkol gas-fired power station site in Ashdod, Israel, as reported by Reuters.

The non-binding agreement marks a significant milestone for the Avshal plant, which will earn approximately 0.065 shekels per kilowatt-hour for 20 years after operations begin.

In 2024, Dalia Energy acquired the Eshkol power plant from the Israel Electric Corporation as part of structural reforms. The plant currently operates with two gas turbines and four steam units, relying on natural gas for power generation.

Dalia Energy CEO Oved Debi stated that the Avshal plant will enhance the company’s role as a key electricity producer while meeting Israel’s growing energy demand and fostering competition in the electricity sector.

The new plant is named in honor of Avshalom Haran, a founding director of Dalia Energy, who died during the Hamas attacks on 7 October 2023.

Construction of the Avshal plant will proceed alongside Dalia 2, another 850MW project.

Source: Power Technology