The Israel Electric Corporation has raised its estimates for
Israel's power needs in the next two decades based on an
analysis that indicates that another $600 million is needed
for two more gas turbines in addition to the original budget
for new power plants. It also found that the $1.1 billion
coal-fired generator planned for 2017 must be pushed up to
2008, according to a report in Ha'aretz.
The National Infrastructure Ministry forecast a 4.5 percent
annual increase in power consumption, but the IEC now
expects it to exceed 5 percent. Another factor mandating
more power generation is an upward revision of population
growth figures that the Central Bureau of Statistics
published.
Under the revised plan, by 2005 five combined cycle gas
turbines (CCGT) plants of 370 megawatts each will be
required. Three are to be built by the IEC, and two by
private developers. This plan has been approved by the
National Infrastructure Ministry.
The IEC further calls for another seven gas turbines to be
built between 2005 and 2010 -- two more than the original
plan. This ministry has not approved this revision yet.
The gas plants are easy to fire up and easy to shut down and
are very useful to supply relatively sudden power needs.
The IEC also maintains that the coal power plant, which
according to the original plan was to be set up in 2017-
2018, must be ready to go by 2010. It is either that or
three gas turbines, the IEC said.
An analysis prepared by the National Infrastructure Ministry
found that there is no financial justification to build a
coal power plant, but the IEC and the ministry are still
discussing the matter. IEC sources believe such a plant will
eventually be built since the coal plant provides cheap and
reliable power. It is easy to sign long-term contracts for
coal supply from friendly countries.
If the IEC's plan is adopted, 15 gas turbines -- or 12 gas
turbines and a coal power plant -- will be built by 2010 at
a total cost of $4 billion.
Addressing this data, IEC CEO Yaakov Razon said that the IEC
does not have enough locations in which to set up these
plants. "We hardly have land for seven gas turbines, and we
have to build 15," Razon complained.
Haifa and Ashkelon have both been named as potential
locations for the coal power plant, but Ashkelon will
probably be the winner. Ashkelon Mayor Benny Vaknin called
on prime minister elect Ariel Sharon to start building the
additional coal power plant south of the city without
delay.
The chairman of the IEC union, Yoram Oberkowitz, said the
additional plant in Ashkelon was needed because it would
guarantee hundreds and even thousands of jobs for city
residents.
