State-Owned Sheta'a Challenges Electricity Authority's Rejection of Dorad 2 Expansion
Sheta'a, the state-owned company holding a 37.5% stake in the Dorad power station, has strongly opposed the Israeli Electricity Authority's decision to deny permission for the expansion of the Dorad power plant. The planned project, Dorad 2, would add 670 megawatts of capacity adjacent to the existing Dorad 1 facility. The Electricity Authority argues that under the current ownership structure, the project fails competitiveness tests due to the 18.75% stake held by Adaltak, a company owned by Uri Adelsburg, which initially opposed but later supported the expansion. The Authority's concern is that Adaltak’s share would exceed 20% of the national electricity market, raising fears of market concentration and potential price manipulation by a single producer.
In a letter to the Electricity Authority ahead of an upcoming hearing, Sheta'a demanded a reversal of the decision, warning that blocking Dorad 2 would deprive the market of much-needed capacity amid shortages and unfairly benefit Adaltak, which Sheta'a accuses of seeking to sabotage the project. Sheta'a also disputes the assumption that Adaltak will operate Dorad 2, calling for a directive preventing Adaltak from managing the new plant if that is the Authority’s concern. The letter cites a July 2024 statement by Adaltak’s deputy CEO, Niv Sever, who publicly vowed to block the expansion.
Sheta'a further criticized the Authority for not considering Adaltak’s recent win in the tender for the Shoresh power station when evaluating Dorad 2’s permit. The company warned that rejecting Dorad 2 could set a dangerous precedent, enabling dominant players to block competitors by acquiring minority stakes. Sheta'a insists the Authority should approve Dorad 2 subject to conditions preventing anti-competitive risks, require a tender for its operation instead of granting it to Adaltak, and mandate the transfer or sale of Adaltak’s holdings in other power stations, including Hagit Mizrah, Naot Hovav, Shoresh, and Dorad. The letter was signed by attorney Meir Heller of the Landau law firm.
