Israel Unveils New Energy Strategy Focused on Gas, Data Centers, and Nuclear Power
Israel has released a new five-year energy strategy, prioritizing natural gas for domestic supply and export, alongside developing data centers and exploring nuclear energy. The plan, led by Ministry of Energy Director General Yossi Dayan, was delayed by the ongoing conflict and inter-agency disagreements. Its primary goal is to secure gas for the domestic market for the next 25 years, with surplus gas slated for export to Egypt, Jordan, and European nations. The strategy also aims to ensure energy security under various conditions, foster competition, and maintain stable prices.
Currently, Israel extracts gas from the Tamar, Leviathan, and Karish fields, with the Katlan field expected to launch in 2027. Gas sales have already generated approximately 30 billion shekels for the state, with potential future revenues reaching 300 billion shekels from estimated reserves of 1,000 billion cubic meters (BCM). Energy Minister Eli Cohen highlighted gas as a strategic asset bolstering Israel's regional standing and noted that gas has lowered electricity prices by 18% compared to OECD averages. The export agreement with Egypt alone is projected to bring in over 50 billion shekels.
Israel is expanding gas exploration, launching a fifth licensing round for exploration and presenting additional tenders in the United States. Major companies like BP, SOCAR, and Chevron joined exploration efforts during the war. New wells are planned at greater depths, with expectations of discovering crude oil as well.
The strategy also emphasizes data centers, with international tech companies showing interest in building facilities in Israel. The government plans to allocate 1-3 gigawatts of gas-generated electricity, representing about 20% of total gas power, to these centers. The Electricity Authority and the National AI Center will manage this allocation transparently, aiming for job creation, economic benefits, and enhanced data security.
However, the Forum of Private Electricity Producers warns that sufficient and continuous gas supply, especially during peak demand, is crucial for developing new generation capacity and data centers. Separately, the strategy includes advancing nuclear energy as a power source, with a dedicated commission already studying the feasibility. The overarching approach involves simultaneously expanding the gas sector, developing renewables, and investigating nuclear power.
