Meir Shamir's Energy Firm Negotiates Major Stake in Menashe Regional Power Plant

Shamir Energy, controlled by Meir Shamir, is in talks to acquire between 30% and 70% of a power plant project in the Menashe Regional Council area. The plant is currently owned by Ari Real Estate and Tzachi Abu (60%) and Jacky Ben Zaken (40%). The deal, if finalized, could value the plant at up to 1.5 billion shekels, contingent on final approvals for the plant's construction.

Sources close to Shamir Energy indicate that Tzachi Abu initiated the negotiations. Recently, the National Infrastructure Committee (NIFC) announced the preparation of the "Orot Yitzhak" power plant plan, setting conditions for permits related to access roads and pressure reduction facilities. This marks a significant step toward statutory approval and planning certainty for the project.

Ari Real Estate and Jacky Ben Zaken won a tender from the Israel Land Authority in September 2025 to purchase 73.6 dunams for 362 million shekels to build the power plant. The site is estimated to support a plant with up to 1,700 megawatts capacity, potentially increasing the land's value to 1.5 billion shekels. The NIFC must decide whether the plant will have 850 MW or 1,700 MW capacity. Local regional councils oppose the plant but prefer one larger facility over multiple smaller ones on adjacent lands.

At least one meeting has taken place between Abu and Shamir, with other parties also interested in the partnership. Under the proposed agreement, Shamir Energy would build, operate, and maintain the plant, hold 70% ownership, and pay rent to Ari and Ben Zaken, who prefer to remain passive investors due to their real estate backgrounds. So far, 72 million shekels have been paid toward the land purchase out of 326 million shekels.

Abu previously explained their model aims for ownership and leasing, providing stable long-term returns while enhancing the asset. The talks with Shamir have been conducted in a trusting atmosphere, and the deal's likelihood is significant if price terms are agreed upon. However, the price may be lower if the agreement is signed before final project approvals.

Shamir Energy is expanding its energy portfolio with the "Kesem" power plant and holdings in Alon Tavor alongside Rafek. Ari Real Estate focuses on land acquisition and commercial developments, including shopping centers in Ashdod, Nahariya, Limassol, and Eilat. Recently, a separate deal involving Ari Real Estate and partners to acquire control of G City, a real estate company owned by Haim Katzman, fell through due to doubts about the partners' ability to meet conditions and requests for contract documents related to Abu's partnership.