At the Forefront of Israel’s Green Electricity Market

In September 2022, the Electricity Authority published a decision on regulating the activity of production and storage facilities connected or integrated into the distribution network. The regulation was published as part of a gradual transition to a decentralized, competitive, and efficient electricity market in Israel, reducing the regulatory burden and emphasizing the significant integration of renewable energy sources.

The market regulation aims to govern the activities of production facilities in the distribution network, particularly their ability to sell electricity directly to suppliers. As part of the regulation, from 2023, production facilities included in the regulations or other competitive processes are allowed to switch to market regulation (including facilities that have completed their tariff period and are not currently subject to other regulations). Starting in 2024, energy can be sold directly from a production facility to private suppliers.

In January 2022, Doral received an electricity supply license as part of its activity as an ‘electricity supplier’. The Company signed electricity supply agreements with a variety of business customers and began to sell electricity to its customers. From 2024, Doral will allocate ‘green’ electricity produced in some of its facilities directly to end customers to whom it supplies electricity.

Entering the electricity supply field represents a significant growth engine for Doral, alongside promoting green electricity procurement, given the increasing demand from private consumers and businesses for electricity from renewable energy.

In addition, the Company issues I-REC green certificates¹ for electricity generated in its facilities to sell to third parties. Moreover, the green certificates are used by the Company to mitigate the total electricity consumption at its headquarters and facilities as part of its decarbonization plan until a direct green electricity consumption format is established.

In this context, the electricity consumed by the Company in its offices in 2023 was fully offset against green certificates issued by the Company for electricity produced at its facilities.

¹ “Green certificates” – IREC (International Renewable Energy Certificate) are certificates issued by the International I-REC Organization. They meet the international standard for green certificates and their usage, with one green certificate registered for the actual production of 1 megawatt-hour.

² the percentage of smart meters installed in the renewable energy facilities maintained by Doral Company is ~ 98%.