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Israel Electric Utility Company Procurement Plan

Israel’s electricity market is undergoing momentous changes in the wake of a 2018 structural reform. As part of the reform, Israel Electric Corporation (IEC), a state-owned utility company, will invest heavily in upgrading its transmission and distribution infrastructure. Significant opportunities exist for U.S. suppliers of grid equipment. This brief report highlights the recent procurement plan published by the IEC and presents actionable opportunities for U.S. companies to pursue.

Background on IEC – the Procuring Entity

Israel Electric Corporation (IEC) is 99% owned by the state of Israel, and is currently the sole vertically integrated electric utility company in Israel, operating in all segments: generation, transmission, distribution and supply. Most of the electricity generated in Israel in 2020 (64%) was supplied by IEC. IEC is the second largest procurement organization in Israel with approximately $1.5 billion worth of goods and services (excluding fuels) purchased annually and 5,000 active suppliers worldwide.

Israel’s Electricity Reform – Market Context

In 2018 the Israeli government approved a long-anticipated structural reform, aiming to encourage competition in the market, and enable the IEC to invest in its transmission and distribution infrastructure (in which it will retain monopoly). Furthermore, the reform is looking to address Israel’s rapid increase in demand for electricity. Since Israel is considered an “electricity island,” not being connected to the grids of neighboring countries, it must guarantee its ability to meet future demand. The reform will be implemented over the course of 8 years (2018-2026). 

The Opportunity – IEC’s $2.5 billion Procurement Plan 

IEC is planning massive investments in the procurement of equipment for new power generation units and the expansion of its transmission and distribution infrastructure. The utility recently published a five-year (2022-2026) procurement plan valued at more than $2.5 billion across multiple categories, including: transformers, switchgear, protection systems, zero-point earthing equipment, D.C. equipment, power cables, towers, insulators and more. The company is actively seeking U.S. suppliers. Many of the technical specifications that the company requires for grid equipment are derived from International Electrotechnical Commission (IEC) standards.

Next Steps

  • American grid equipment manufacturers may visit the IEC website to register as potential suppliers. This allows the IEC to actively reach out to select companies regarding any closed tenders. 
    • Note: within 2-3 weeks IEC will confirm receipt of the form and add your company to its database of potential suppliers. If you haven’t received confirmation, please follow up with the following point of contact to ensure receipt of your form: Tal Cohen, Supplier Relations Manager, IEC, at: +972-76-8634544.
  • American suppliers may sign up for IEC announcements regarding new international tenders (published almost daily). 
  • American companies interested in additional information regarding this opportunity, including how the U.S. Government may be able to extend support, should contact the U.S. Commercial Service in Israel: Naama.Altman@trade.gov.