The Eshkol plant, which currently operates two gas turbines and four steam units, generates electricity from natural gas. Credit: Rangsarit Chaiyakun/Shutterstock.

Israeli power company Dalia Energy has secured a finance agreement worth 5.3 billion shekels ($1.5bn) from Bank Hapoalim.  

The financial arrangement will fund the construction of a 850MW power plant at the site of the existing Eshol gas-fired power station in Ashdod, Israel, as reported by Reuters. 

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The deal, while non-binding, is a significant step towards the development of the new facility, which is expected to receive approximately 0.065 shekels per kilowatt-hour for two decades from the commencement of operations. 

In an important move in 2024, Dalia Energy acquired the Eshkol power plant from the state-owned Israel Electric Corporation as part of a structural reform.  

The Eshkol plant, which currently operates two gas turbines and four steam units, generates electricity from natural gas. 

Dalia chief executive Oved Debi stated: “Dalia, will strengthen – with the establishment of the Avshal power plant – its position as an important electricity producer for the economy and will respond to the growing energy needs of Israel while expanding competition in the electricity sector for the benefit of the public”. 

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The upcoming power plant, to be named Avshal, is a tribute to Avshalom Haran, a founding director of Dalia Energy, who tragically lost his life at the age of sixty-five during the Hamas attacks of 7 October 2023.  

The construction of the Avshal plant will occur concurrently with the Dalia 2 power plant, which is projected to have 850MW capacity.  

Hapoalim’s corporate banking head Itamar Furman was quoted by Reuters confirming that the bank seeks to lead major infrastructure project financing for a greener future and increased competition in the electricity market.