Enlight Renewable Energy and Electra Power have entered into a significant Memorandum of Understanding (MOU) to establish a joint venture aimed at providing clean energy to residential consumers and small businesses in Israel.
Electra Power, a prominent player in the Israeli residential gas market, brings its well-established infrastructure for marketing, distribution, and customer service, serving around 400,000 customers throughout the country. On the other hand, Enlight is a leading Israeli renewable energy producer with a robust presence in solar, wind, and battery energy storage projects locally and globally.
The Israeli electricity market is set to open up to competition in January 2024, marking a historic shift that will enable independent energy suppliers to compete with the incumbent Israeli Electricity Company. Electra Power and Enlight are strategically positioned to leverage their strengths within the Israeli market, aiming to become a leading supplier of clean energy to residential consumers.
Electra Power has already spearheaded the commercial launch of electricity supply to households since early 2023, attracting tens of thousands of new residential customers who have embraced cost-effective and diverse power options. With full market liberalization approaching in 2024, the partnership between Enlight and Electra Power is expected to further expand the demand for affordable and environmentally friendly electricity in Israel.
Per the MOU, Electra Power will hold a 65% stake in the joint venture, while Enlight will own the remaining 35%. Both companies will jointly manage the venture, and Enlight retains the option to increase its ownership by an additional 5% upon achieving specific investment objectives. Additionally, both parties commit to a minimum volume of renewable energy generation to be marketed to the joint venture’s clients. The establishment of this partnership is subject to the finalization of definitive agreements and regulatory approval from the Israel Competition Authority.
Chen Melamed, CEO of Electra Power, expressed enthusiasm for this milestone, highlighting the venture’s commitment to delivering clean energy to Israeli households and establishing themselves as innovative and customer-centric energy suppliers.
This collaboration underscores a significant step towards a cleaner and more competitive energy landscape in Israel, offering consumers access to sustainable power options as the market evolves.