Dalia Energy Secures Financial Closure for Ashkelon Power Project in Ashdod

Dalia Energy has taken a significant step forward in advancing its multi-billion shekel "Ashkelon Avshal" power project in Ashdod. Following the recent receipt of a building permit for a new production unit at the Ashkelon power station site, the company announced that the Israel Electricity Authority approved the project's financial closure. Bank Hapoalim will serve as the lead arranger for the senior debt, which totals approximately 5.2 billion shekels.

In addition to approving the financial closure, the Electricity Authority also sanctioned a dedicated availability tariff for Dalia Energy, set at about 5.5 agorot per kilowatt-hour (kWh) for the 20-year license period. This availability tariff represents a payment from the state to electricity producers for keeping production units ready, even when they are not actively supplying power to the grid.

The Ashkelon Avshal complex is one of two major electricity generation projects Dalia Energy is simultaneously developing. The other project, Dalia 2, located at the Tzafit site, plans to establish a similar capacity production unit of around 850 megawatts, with an estimated investment of 4 to 5 billion shekels. The availability tariff for Dalia 2 is significantly lower, at 3.31 agorot per kWh, and will apply for 25 years from the start of its operation.