Idan Ofer's OPC Wins Largest Share in Israel's Electricity Supply Tender

OPC, controlled by Israeli businessman Idan Ofer, secured the largest allocation in the Israel Electricity Authority's second tender for private electricity suppliers. The company was awarded 200 megawatts (MW), representing 40% of the 500 MW available for distribution. Six companies won allocations in total, with Dalia Energies receiving 100 MW, Adletech 80 MW, Innova Energy 55 MW, the national water company Mekorot 40 MW, and Cellcom Energy 25 MW.

This allocation enables the winning suppliers to add new business and household customers to the competitive electricity supply market starting next month. The price for purchasing capacity from the system operator Noga was set at 10.2 agorot per kilowatt-hour through a uniform second-price auction. The tender is part of a transitional mechanism designed to accelerate competition in the electricity sector until sufficient storage and photovoltaic facilities allow suppliers to freely purchase electricity in the market.

Mekorot, Israel's largest electricity consumer with annual electricity expenses estimated at around one billion shekels, increased its allocation from 25 MW in the first tender to 40 MW this time, bringing its total to 65 MW. This is expected to reduce its annual energy costs by approximately 20 million shekels. While the savings are modest, Mekorot's participation reflects its efforts to leverage competitive opportunities to lower operational expenses.

Five of the six winners primarily serve business customers, with Cellcom Energy being the only company with significant activity in the household market. This is the second tender conducted by the Electricity Authority to expand competition in the supply segment, following a first tender about six months ago that allocated 520 MW. The tender determines the initial capacity distribution among players but does not necessarily dictate which supplier will ultimately sell electricity to consumers, as companies may enter commercial agreements to transfer usage rights.