Government company TAA against the Electricity Authority: "Rejecting Dorad 2 is a dangerous precedent for the entire market"

The government company TAA, the largest shareholder in the Dorad power plant (37.5%), is speaking out against the Electricity Authority's decision not to grant permission for the expansion of the facility. This comes ahead of the hearing the Authority will hold regarding its decision. The plan is to build Dorad 2, next to Dorad 1, with a capacity of 670 megawatts.

The Electricity Authority claims that under the current ownership structure, the project does not meet competition tests due to the holding of the Edeltech company in the station (18.75%). The decision was made because the construction would bring Edeltech to over 20% of the national electricity share, raising concerns about market concentration and the ability of a single producer to influence prices.

In a letter sent today to the Electricity Authority, TAA demands that the Authority correct its decision and approve the construction of Dorad 2:

"The Authority's decision prevents the market from adding 670 megawatts during a shortage and gives Edeltech exactly what it publicly declared it would achieve – thwarting the construction of Dorad 2. The decision leads to an extreme result, a punishment for the innocent and a reward for the guilty," claims TAA.

The state-owned company addresses the assumption that Edeltech is expected to be the operating contractor for Dorad 2 as it is for Dorad 1, and argues that this is baseless. TAA suggests that if this is the Authority's concern, it should issue an order that Edeltech cannot operate Dorad 2. The letter quotes Niv Saver, Deputy CEO of Edeltech, who said at a Calcalist conference in July 2024: "We simply will not allow the expansion of Dorad."

TAA claims that when Edeltech won the tender to build the Sorek station, the Electricity Authority did not take into account the expected impact on granting the permit for Dorad 2:

"Rejecting Dorad 2 will be a dangerous precedent for the entire market – every centralized player will learn that it is enough to acquire minority holdings in a competitor to block its development."

The company calls on the Electricity Authority to decide that Edeltech will not operate Dorad 2 but that a tender for operation will be held, and also to decide on transferring Edeltech's holdings in the station to a trust or selling them on a fixed schedule. In addition, TAA demands that the Authority order Edeltech to reduce its holdings in other stations, including Hagit East, Neot Hovav, and Sorek. The letter is signed by Adv. Meir Heller from the Landau law firm.