The new power station that Dorad Energy Ltd. will inaugurate in a few weeks is less efficient than the corresponding power stations of Israel Electric Corporation (IEC) (TASE: ELEC.B22) and other independent power producers. Sources inform ''Globes'' that a test by an independent consultancy firm found that Dorad's energy exploitation ratio was 49.3% at partial capacity and 46.4% at full capacity, compared with Israel's most advanced power station, IEC's Model F, which has an energy exploitation ratio of 55-58%. IEC's previous generation power station, Model E, which began operating 15 years ago, has an energy exploitation ratio of 49-51%.
Dorad's natural gas 840-megawatt (MW) power station is under construction on land in Ashkelon owned by one of its partners, Eilat Ashkelon Pipeline Company, and will provide 7% of Israel's electricity production. The company has signed power purchasing agreements with the Ministry of Defense, Mekorot National Water Company, Isrotel Ltd. (TASE: ISRO), Fattal Hotel Management Ltd., and Africa Israel Hotels (TASE: AFHO). Its customers will reportedly pay 7% less for the electricity than IEC prices.
In contrast to other power stations in Israel, Dorad has 12 70-megawatt gas and steam jet turbines made by General Electric (NYSE: GE), which were supplied by Dorad shareholder, Turkey's Zorlu Industrial and Energy Facilities AS, which owns 25% of the company. The configuration was designed to give Dorad production flexibility during peak hours, when prices are high. The company also claims that the power station's unique configuration guarantees better reliability than other power stations, and that it can stay in operation even during a major breakdown.
Dorad said, "The exploitation and production tests carried out by McHale & Associates Inc. showed that the power station's exploitation and production were higher than what the contractor promised. Dorad's power station was planned and built to provide especially high reliability, which will greatly improve Israel's electricity reliability. The power station's structure ensure that in the event of a breakdown in one of the turbines, the power station will lose only 60 MW of its 840 MW and will be able to resume full production within 72 hours.
"The exploitation at a Model F-type power station comes at the expense of reliability, and a similar breakdown at a turbine will cause an immediate loss of 400 MW and shut down the power station for hours to months. Dorad also maintains high available during off-peak hours, in contrast to the Model F co-generation technology, where the exploitation falls during off-peak production.
"As for generation capacity, Dorad has sold all of its generation capacity."
Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2014
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