Israel's Ministry of National Infrastructure, Energy, and Water Resources is requiring Israel Electric Corporation (IEC) (TASE: ELEC.B22) to reduce its use of coal at the coal-fired power plants in Hadera and Ashkelon by 15%, until the company completes its project for cutting emissions that it has been working on in recent years. This requirement follows a demand more than a month ago for a 10% reduction in coal use in units 5 and 6 in Hadera.
Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz asserted that reducing the use of coal would lower air pollution produced by the plants in 2016 by 15%, while increasing the demand for natural gas.
"This decision, which will go into effect next Friday, will facilitate a significant change in electricity production, while reducing air pollution, increasing the demand for less polluting natural gas, and maintaining Israel's energy security," Steinitz claimed. "Our decision to cut the use of coal to a minimum will enable us to obtain a substantial backup for electricity production in Israel's electricity sector in case of emergencies or malfunctions."
Ministry of Environmental Protection figures indicates that IEC's power plants in Hadera and Ashkelon annually cause 155 and 59 extra deaths, respectively.
The Ministry of National Infrastructure, Energy, and Water Resources asserts that as a result of cutting coal-fired electricity production and increasing the production of electricity using natural gas, the new leaders of the Public Utilities Authority (Electricity) will consider a revision of the electricity rates. In view of the fact that coal is significantly cheaper than natural gas, the Ministry of National Infrastructure, Energy, and Water Resources believes that the rate will rise by at least 1.5% next year.
Ministry of National Infrastructure, Energy, and Water Resources director general Shaul Meridor said, "As part of maintaining a balanced energy sector, the Ministry of National Infrastructure, Energy, and Water Resources must balance various considerations for determining the economy's composition of fuel: ensuring a regular supply of energy, reducing air pollution, and the price for the consumer."
Meridor added, "Installing scrubbers is a long and difficult project, and therefore, in order to reduce air pollution while it is taking place, the minister decided on a dramatic 15% cut in the use of coal."
Minister of Environmental Protection Avi Gabbay welcomed the decision by the Ministry of National Infrastructure, Energy, and Water Resources, and said that his ministry "would continue to take measures for reducing pollution produced by the coal-fired power plants."
IEC said that it was "studying the instruction and preparing to put the minister's decisions into effect."
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2015
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