Israel Renewable Energy Policy Handbook, 2022 Update

Israel aims to achieve net carbon neutrality by 2050. The government has announced to terminate the electricity production in all coal fire power plants by 2026 and compensate the same through electricity production from natural gas and renewable energy sources. Furthermore, the country aims to reduce Green House Gas (GHG) emissions by 85% by 2050 as compared to 2015 levels.

The Israel renewable energy policy handbook offers comprehensive information on major policies governing the renewable energy market in the country. The report also discusses renewable energy targets and plans along with the present policy framework, giving a fair idea of the overall growth potential of the renewable energy industry. Moreover, the report provides major technology-specific policies and incentives provided in the country.

What are the market dynamics in the Israel renewable energy market?

Israel’s power sector is a fossil fuel-driven market, particularly natural gas. With the discovery of a natural gas field off the coast of Israel, it was initially assumed that renewable energy would take a blow in terms of growth. However, Israel continues to have an interest in expanding renewable energy, while exporting the natural gas explored from its resources.

The Ministry of Energy and Water Resources in Israel is promoting the generation of electricity from renewable energy sources, particularly solar, wind, and biomass (such as solid waste fermentation, gas from landfills, and fermentation of sludge in wastewater treatment), in collaboration with the Ministry of Finance and the Public Utility Authority (PUA). Over the years, the Ministry of Energy and Water Resources has initiated and promoted surveys and estimates of Israel’s primary renewable energy sources (sun and wind), which constitute a vital tool for planners and decision-makers in the energy sector, potential developers and investors, energy researchers, and the public. On August 3, 2016, Israel’s legislative body, the Knesset passed a bill to eliminate taxes on residential solar and wind installations.

What are the major policies and incentives in the Israel renewable energy market?

The major policies and incentives in the renewable energy market in Israel are Independent Electricity Generation Policy, Government Decision 171/2021 – Transition to a Low Carbon Economy, National Waste Strategy, Net Metering, and Renewable Power Tenders/Auctions.

Independent Electricity Generation Policy

The Ministry of Energy and Water Resources encourages independent entrepreneurs to become involved in electricity generation by constructing power generation facilities of various technologies, to increase the power generation capacity and strengthen competition. The policy states that the construction of new stations will contribute to the stability of the national electricity sector, reduce electricity rates for business and private consumers, and assist in the development of the economy. The aims of the policy include increasing the electricity generation capacity and creating a suitable reserve in the national electricity sector; encouraging electricity generation using efficient technologies or technologies of environmental value; creating mechanisms that will encourage the construction of electricity generation installations by independent entities, and creating conditions for fair competition while encouraging different producers to sell electricity to end consumers.

Government Decision 171/2021 – Transition to a Low Carbon Economy

In 2021, the Israeli government introduced Government Decision 171/2021 titled ‘Transition to a Low Carbon Economy. The decision reiterates the country’s commitment towards achieve net carbon neutrality. The decision also updates the GHG emission reduction target previously set by Government Decision 542. The updated target has also been added to the country’s NDC to align policies

National Waste Strategy

Israel introduced National Waste Strategy in 2021 to enable the waste sector more sustainable by 2030 and achieve a circular economy by 2050. The strategy addresses the treatment of Municipal Solid Waste (MSW) thoroughly and includes key abatement measures like zero landfilling of untreated organic waste and paper and cardboard by 2030, sealing active landfills, installing methane collection and destruction/utilization systems, and so on.

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Market report scope

Scope

• The report covers policy measures and incentives used by Israel to promote renewable energy.
• The report details promotional measures in Israel both for the overall renewable energy industry and for specific renewable energy technologies that have potential in the country.

Reasons to Buy

The report will enhance your decision-making capability in a more rapid and time-sensitive manner. It will allow you to:

• Develop business strategies with the help of specific insights about policy decisions being taken for different renewable energy sources.
• Identify opportunities and challenges in exploiting various renewable technologies.
• Compare the level of support provided to different renewable energy technologies in the country.
• Be ahead of the competition by keeping yourself abreast of all the latest policy changes.