The Public Utilities Authority (Electricity) may reject the request of Israel Corporation (TASE: ILCO), controlled by Ofer Holdings Group, to build a second NIS 2 billion power station at Mishor Rotem, because of problems in obtaining a commitment from Israel Electric Corporation (IEC) (TASE: ELEC.B22) to hook up the power station to the national grid within a reasonable amount of time.
Sources inform ''Globes'' that, in the past few weeks, the Public Utilities Authority has considered cancelling the licenses of other private power companies to build conventional, cogeneration, and pumped storage power stations. Projects possibly on the chopping block include the cogeneration plant at Alon Tavor by Delek Group Ltd. (TASE: DLEKG) unit Delek Infrastructures and Projects Ltd. and Nilit Ltd., and the pumped storage power station at Kochav Hayarden planned by Kardan NV (TASE: KRNV;AEX:KARD) unit Tahal Group International BV
OPC Rotem Ltd., owned by Israel Corporation (80%) and Veolia Environnement SA (NYSE: VE; Euronext: VIE) subsidiary Dalkia Israel Ltd. (20%) is due to build a 440-MW plant at Mishor Rotem, after winning a government tender. Two months ago, Israel Corp. applied to build a second power station of the same size on an ajacent 70-dunam (17.5-acre) site it bought at Mishor Rotem.
Israel Corp. filed the application the day before the expiration of regulations for building private power stations and the sale of electricity to IEC. Sources familiar with the Mishor Rotem project told "Globes" that Israel Corp. was hasty in filing the application.
Published by Globes [online], Israel business news - www.globes-online.com - on April 6, 2011
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