DUN'S 100 - 2016

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Electricity, Infrastructure &
Energy
540
2016 | DUN’S 100 DUN’S 100 | 2016
DUN’S 100 | 2016 2016 | DUN’S 100
Industrial Companies 2 1 Electricity Producers & Infrastructures
RANK
The Israel Electric Corporation Ltd.
The Israel Electric Corporation (IEC) is a
public and government-owned company,
generating and supplying electricity to all
sectors; 99.85% of the shares are government-
owned. Its activities include the generation,
transmission and transformation, distribution,
supply and sale of electricity. IEC owns and oper-
ates 17 power stationswith 63 generating units: 18
steam-driven and 45 gas turbines, of which 14 are
combined-cycle units. Its installed capacity stands
at13,617MW. The Companysuppliesreliable high-
quality electricity, complies with leading service
standards, maintaining economic, commercial and
environmental principles. IECemploys 12,371 and
provides service to 2.7M customers.
2015 – Development Activities
Over the last decade, IEC invested more than NIS
40 Bn developing the local electricity sector. The
existing transmission system of 161 kV overhead
lines expanded and a number of uprating projects
was completed. The 161 kV super-high overhead
and underground lines totaled 4,621 km., 115KV
lines, 106 km; and the 400 kV extra-high lines,
760 km. The transformation system includes 11
switching stations and 190 substations (48 private-
ly-owned). By year’s end, the transmission capacity
in the 161/400 kVswitching stations totaled 12,175
MVA. The transmission capacity from high to me-
diumvoltage at IEC substations expanded by 1.3%
to 17,206 MVA, while privately-owned transmis-
sion capacity totaled 3,190 MVA. The distribution
system included 26,961 km. medium-voltage lines;
48,825 distribution transformers of total capacity
24,476 MVA, and 20,298 km. low-voltage lines.
By the end of 2015, the medium and low-voltage
underground lines totaled 23,367 km. (49.4% of
total distribution).
Era of Smart Energy – the Smart Grid Project
The accelerated technological development in
communication and information systems enables
development of a new concept, theSmart Grid, pro-
viding a response to restrictions and challenges in
energy development. Implementation of the Smart
Grid vision depends on business incentives and
characterization of the electricity sector. It is the
integration between communication systems, in-
formation and electricity, using sensors, advanced
monitoring, bi-directional communication, comput-
erization, and automization to improve flexibility,
efficiency, reliability, safety, and security of the
electricity network. IEC leading the energy market
in Israel, developed diverse implementations in
recent years with a broad outlook towards fulfilling
the Smart Grid vision.
The Smart Metering Project
The main technology of smart metering is using of
smartelectricitymeterstransmitting over lowvoltage
electricity lines (PLC) transferring consumption data
to a national monitoring center. Real-time regional
electricity status is supplied on two operational lev-
els: the network and the customer’s meter. This is
managed by themainmonitoring systemoperating
from the Company’s national meter unit enabling
management of large companies and residential
consumptions. In recent years, IEC has carried out
a technologicalSmart Metering pilot in Benyamina,
Givat Ada and the Caesaria Industrial Park, inwhich
4,500 smart meterswere installed. The pilot will be
extended to additional residential sectors.
IPPs – High and Extra-High Voltage
In 2015, new IPPs were introduced with the com-
missioning of the Dalia Energy Power Station (912
MW at Zafit-Haruvit); two co-generation power sta-
tions: Ashdod Energy (64.5 MW at Ashdod indus-
trial zone), and Ramat Negev (126.4 MW at Ramat
Hovav industrial zone); and two PV power stations:
Ktura (40 MW) and Halutziot (55 MW). Technical
coordination is underway for the construction of
nine additional private power stations. In addition
to IPPs’ extra-high voltage installed capacity of 297
MW, the high and extra-high voltage capacity of IPPs
totaled 2,858 MW. Eight power stations are under
construction of total capacity of 1,010 MW.
Revenue, Capital Raising & Company Rating
In 2015, Company revenue decreased by 8.88%
and totaled NIS 23,058 M. The year ended with a
profit of NIS 341M. During 2015, Company rating
remained unchanged except for an adjustment to
the rating outlook of the local series not backed
by government guarantee, from stable to positive
(Midroog).
Company rating overseas (correct to 31.12.15):
1. Moody’s: Baa3/stable outlook;
2. S&P: BBB-/stable outlook.
Company rating locally (correct to 31.12.15):
1. S&P Maalot: ilAA/stable outlook;
2. Midroog: Bonds not backed by government
guarantee are rated outlook. Bonds
backed by government guarantee are rated .
Capital Raising: The Company raised NIS 2 Bn to-
wards investment in the electricity sector and debt
recycling. Debt Redemption:The Company paid off
a total of NIS 7.6 Bn in loans and bonds.
Electricity Demand and Peak Load
Peak demand occurred on 9.9.15 at 12,905 MW –
8.3%more than the previous peak of 2012. 78.1%
(10,065MW) was supplied by IEC. The overall gen-
eration capacity of company units was 50,674M
kWh, a reduction of 2.03% compared with 2014.
In 2015, 57.6% was generated by coal; 41.6% by
natural gas; 0.72% by diesel oil; 0.12% by fuel oil;
and 0.01% by methanol. Electricity consumption
rose by 1.4%, totaling 50.6 Bn kWh. The increased
consumption resulted from the extreme winter and
summer and erased the decreased forecast for
2015, an increase of more than 50%due to private
electricity generation.
Natural Gas (NG) in the Electricity Sector
In 2015, The Company utilized two sources of natu-
ral gas. The Tamar field accounted for 97% of the
gas and the backup is the import of liquid natural
gas (LNG), stored on the LNG regasification ship,
ready to flow through the transmission system via
the marine buoy located off the Hadera shore.
IEC purchase of fuel totaled NIS 8.4 Bn compared
with NIS 8 Bn in 2014. Electricity generation by
IEC decreased by 2% and totaled 77% of the total
generation. IPPs and PV installations generated the
remainder.
Promoting Intelligent Use of Electricity & Energy
Efficiency
IECcontinued topromote thenationalplan for saving
electricity, to prevent situations requiring demand-
side management and to minimize the addition of
generation units, while instilling sensible electricity-
use habits and conserving the environment. The
client-circle that joined demand-side management
expanded, and the total load recruited stood at 976
MW. The Company continued to guide customers
towards energy efficiency and invested NIS 4.5M
to promote energy efficiency in its operational and
Esta b l i s h e d
1923
L i n e o f B u s i n ess
Electricity Generation, Transmission,
Distribution, and Supply
Ofer Bloch
President & CEO *
Since June 2015
Yiftach Ron-Tal
Chairman of the Board *