Israel Raises Desalination Prices Amid Algae Bloom Crisis

Israel's Water Authority has significantly increased the price paid to private companies for desalinated water, by up to 50%, in response to an ongoing algae bloom crisis that has impacted desalination operations. The state-owned company Mekorot, which purchases desalinated water from private operators, is now paying approximately 4 shekels per cubic meter, a substantial rise from the usual rate of 1.5 to 2.7 shekels per cubic meter. This price hike is intended to incentivize private firms to continue operating their desalination plants despite the risks of damage to equipment, such as membranes, caused by the algae.

All six major desalination plants in Israel are privately owned and operated, following the sale of the Ashdod plant's operations by Mekorot years ago. The Hadera plant is the only one unaffected by the algae, while Sorek B and Palmahim plants are operating under contaminated conditions. Sorek A, owned by Dan Capital, recently resumed operations.

The crisis highlights concerns about the privatization of essential water infrastructure. "Adam Teva V'Din," an environmental advocacy group, criticized the management of the water economy, arguing that the "emergency premium" paid during crises demonstrates the need for greater investment in backup water sources like drilling, which acts as an insurance policy against such disruptions.

IDE, which operates the Sorek B plant, stated that they did not request the price increase, asserting that the Water Authority made the decision unilaterally and that the company is operating at maximum capacity out of national responsibility. Blogen declined to comment, and the Water Authority has not yet responded.