liliiSlittlilf original contains color illustrations
ENERGY 93
Energy in Israel: Data, Activities, Policies and Programs
Editors: DANSHILO DAN BAR MASHIAH Dr. JOSEPH ER- EL
Ministry of Energy and Infrastructure Jerusalem, 1993 Front Cover: First windfarm in Israel - inaugurated at the Golan Heights, in 1993
The editors wish to thank the Director-General and all other officials concerned, including those from Government companies and institutions in the energy sector, for their cooperation.
The contributions of Dr. Irving Spiewak, Nissim Ben-Aderet, Rachel P. Cohen, Yitzhak Shomron, Vladimir Zeldes and Yossi Sheelo (Government Advertising Department) are acknowledged.
Thanks are also extended to the Eilat-Ashkelon Pipeline Co., the Israel Electric Corporation, the National Coal Supply Co., Mei Golan - Wind Energy Co., Environmental Technologies, and Lapidot - Israel Oil Prospectors for providing photographic material. TABLE OF CONTENTS
OVERVIEW 4
1. ISRAEL'S ENERGY ECONOMY -
DATA AND POLICY 8
2. ENERGY AND PEACE 21
3. THE OIL AND GAS SECTOR 23
4. THE COAL SECTOR 29
5. THE ELECTRICITY SECTOR 34
6. OIL AND GAS EXPLORATION. 42 7. RESEARCH, DEVELOPMENT AND DEMONSTRATION 46
8. ENERGY CONSERVATION 55
9. ENERGY AND ENVIRONMENTAL QUALITY. 60 OVERVIEW
Since 1992. Israel has been for electricity production. The latter off-shore drillings represer involved, for the first time in its fuel is considered as one of the for sizable oil findings in I: short history, in intensive peace cleanest combustible fuels, and may Oil shale is the only fossil i talks with its neighbors. At the time become a major substitute for have been discovered in Isi this report is being written, initial petroleum-based fuels in the future. far in substantial quantities agreements regarding Palestinian Ministry-supported R&D i autonomy have already been In recent years, the oil sector has area has demonstrated the signed, and the prospects for been undergoing profound changes feasibility of electricity prc additional agreements with the aimed at reducing government by direct combustion of oil other partners are good. involvement and opening the sector Plans for an 80 M W unit ai to increased competition. At underway. Peace in the region can bring about present, consumer prices for most profound changes in Israel's energy of the refined products are free of Israel is rich in solar energ; economy: linking up of the grid Government control. The entrance among the world leaders in with those of neighboring countries of new companies to some development and utilizatio: can provide both backup as well as segments of the sectors, stimulated technology. Israeli scientis opportunities in trading of electrical competition and resulted in price engineers designed the woi power; access to close-by sources reductions. In other segments, like largest solar power stations of oil and natural gas will enhance the filling stations, where entry is energy utilization is deeply competition and efficiency in the difficult, the competition is only in Israel and most homes u; oil sector, and cooperation in marginally evident. The Ministry is water heaters. A Governme energy projects will provide new acting to introduce competition into regulation mandates install prospects and innovative this branch by creating favorable such heaters in new houses technologies. For the first time this conditions for the construction of energy R&D is carried out report includes a chapter entitled new stations, and by limiting the Solar Tower at the Weizms "Energy and Peace". duration of the contracts between Institute of Science, and at the station owners and the oil Ben-Gurion Solar Energy ] Following is an overview of Israel's companies. Center. energy economy and of some principal initiatives in its various The gas sector is also undergoing a Wind energy utilization is sectors during the 1992/93 period. reform since 1989. The results are continuous development, i being felt by large consumers first windfarm was commi which acquire gas in bulk and by Imported Energy during 1992. Wind survey household consumers in regions identified some viable site Resources where new companies have entered is likely that additional wi: Israel relies almost exclusively on the market. will be built in the near ful imported fossil fuels, especially oil. Coal was introduced during the Indigenous Energy early eighties mainly to diversify Electricity the energy resources; presently it is Resources Israel's electricity generat the major fuel in electricity Oil exploration in Israel has been supply system is complete production. The Government, carried out since the early fifties. isolated from the neighboi which is interested in further From an economic point of view, countries. Thus, it must tx diversification, is examining the the discoveries so far are small. self-sufficient and indepei possibility of importing natural gas Still, the findings in the Ashdod across-the-border backup cases of sudden system transforms industrial organic waste available to the general public in malfunctions. to biogas. The biogas is utilized to the near future. cogenerate electricity during The Israeli electricity system is on-peak and mid-peak hours and to operated by the Israel Electric heat water. International Cooperation Corporation, which has the exclusive right to generate, transmit Establishment of international links and sell electricity in Israel. This Environmental Aspects are an important facet of the concession expires in 1996 and the national R&D program in the Ministry is devising a new structure Reduction of energy-related energy field. Joint energy-related for the electricity sector. pollution is a priority issue on the R&D projects are carried out under Ministry's agenda. Implementation the framework of international of a Government resolution cooperation with Catalonia (Spain) Energy Conservation requiring lower standards of SOi and with Portugal. emissions has resulted in The Ministry continuously considerable improvements in the The Directorate General for Energy promotes energy conservation by air quality at the problematic Haifa of the European Community providing technical consulting, Bay and Ashdod areas. The (DG17), in cooperation with the supporting educational programs reduction is achieved through the Israel Ministry of Energy and and initiating legislation. Financial selective use of low-sulfur fuels Infrastructure, conducted a Solar support is provided to energy (2.5. Land0.5 percent, Business Seminar to explore conservation projects in the various respectively). Beginning on business opportunities in the solar sectors of the economy. A special January 1994. the 2.5 percent sulfur thermal and the passive solar emphasis is given to projects which fuel will be replaced by a 2 percent construction areas. Subsequent to can directly improve environmental fuel. the Seminar. The Directorate quality. General for Energy of the European Recently, a low sulfur diesel fuel Community established a During 1992. the Ministry was introduced initially in the corporation aimed at exploring supported the installation of a large public transportation sector. It is DG17-Israeli cooperation in anaerobic treatment facility which expected that this fuel will be thermo-solar energy.
October 1993 Moshe Shachal Minister of Energy and Infrastructure OFFICIALS OF THE MINISTRY OF ENERGY AND INFRASTRUCTURE
Minister of Energy and Infrastructure - Moshe Shachal
Director-General - Ron Croll
Chief Scientist - Amnon Einav
Director, Fuel Authority - Joseph Kolitz
Director, Electricity Authority - Dr. Shlomo Brovender
Director, Earth Sciences Research Administration - Dr. Michael Beyth
Deputy Director-General (Administration) - Tamir Barshad
Director, Economics & Planning - Joshua Stern
Director, Energy Conservation Division - Yossef Nowarsky
Director, Research and Development Division - Dr. Avraham Arbib
Director, Licensing and Infrastructure - Omri Lulav
Petroleum Commissioner - Dr. Moshe Goldberg
Director, Engineering Division - Gideon Carmel
Comptroller - Reuven Melamed
Legal Advisor -Ze'evAfik
Spokesman - Yael Ne'eman
Director, Environmental Issues - Dr. Ayala Tamari
Chief Scientist, Earth Sciences - Dr. Yossef Bartov
Director, Geological Survey - Dr. Amos Bein GOVERNMENT COMPANIES* ACTIVE IN THE ENERGY ECONOMY
Name Address Phone Fax
Israel Electric Corporation P.O.B. 8810 4-548548 4-548203 Haifa 31086
Oil Refineries, Ltd. P.O.B. 4 4-788111 4-728319 Haifa 3 1000
Petroleum Services, Ltd. P.O.B. 13285 3-6484124 3-6470046 Tel Aviv 61130
Pi-Gliloth Petroleum Terminals and Pipelines, Ltd. P.O.B. 381 3-6462333 3-6462301 Herzliya B 46103
Eilat-Ashkelon Pipeline Company, Ltd. P.O.B. 20056 3-5611666 3-5610997 Tel Aviv 61200
Tanker Services, Ltd. P.O.B. 29048 3-5171923 3-5102974 Tel Aviv 61290
National Coal Supply Co., Ltd. P.O.B. 21253 3-7512261 3-7510119 Tel Aviv 61212
The Israel National Oil Co., Ltd. P.O.B. 50199 3-5142020 3-5142061 Tel Aviv 61500
Lapidoth. Israel Oil Prospectors, Ltd. P.O.B. 17106 3-6417241 3-6417246 Tel Aviv 61170
Naphtha, Israel Petroleum Co., Ltd. P.O.B. 33366 3-6938359 3-6938355 Tel Aviv 61333
PA MA (Energy Resources Development), Ltd. Mishor Rotem. 7-554711 7-553990 Mobil Post Arava 86800
The Institute for Petroleum Research and HaMashbir 1 3-805112 3-802925 Geophysics Holon 58852
Israel Oceanographic and Limnological Research P.O.B. 8030 4-515202 4-511911 Haifa 31080
Magal - Israel Gas and Oil Enterprises, Ltd. P.O.B. 13199 3-498791 3-498764 Tel Aviv 61131
United Petroleum Export Company, Ltd. (UNEX) P.O.B. 1548 4-678291 4-678290 Haifa 31014
Including mixed companies in which the Government holds 50% or less of the shares 1. ISRAEL'S ENERGY ECONOMY - DATA AND POLICY
INTRODUCTION Primary Energy Sources living. Israelis also use less electricity per capita than Israel's energy economy is based To reduce its independence on Americans or Europeans (Fig. 1-6 on fossil fuels, especially oil. The imported oil. Israel has diversified and Table I -7). However, the trend annual primary energy its energy sources (Fig. 1-3 and towards increasing per capita consumption during 1992 was Table 1-4). In particular, coal use consumption of electricity in about 12.700 thousand TOE1, has intensified, especially in the developed nations has also been consisting of approximately 9.100 electricity production sector (Fig. apparent in Israel. TOE in crude oil and refined 1-4 and Table 1-5). However, Energy use can also be correlated petroleum products, and 3.100 compared to other countries. with economic growth. Israel's thousand tons of coal. 5.600 Israel's energy sources are still growth rale, as measured by per thousand TOE of primary energy relatively undiversified. capita gross domestic product supply was used to produce 24.500 (GDP), is roughly comparable to million kWh of electricity. Israel's indigenous energy that of the European nations (Fig. resources are quite limited: little oil 1-7 and Table 1-8). The 1992 expenditures on fuel has been found, even less natural imports were SI.400 million for gas. and no coal whatsoever. The crude oil and its products, and $270 country's conventional Energy Prices million for coal. hydroelectric potential (as distinct from the proposed Mediterranean- Energy prices in Israel, as in other Dead Sea Canal) is small, and no countries, reflect energy costs and The reliance on oil imports means nuclear power plants have been government policy. Price level* for that international energy prices built. (Efforts to locate oil and gas. gasoline, diesel. fuel oil and have a substantial impact on the as described in Chap. 6. have not electricity in Israel and other Israeli economy. The price levels of yet significantly altered the picture.) countries are compared in Figs. I -8. fuels affect the value of fuel I -9 and 1-10. respectively. imports (Fig. I-1 and Table 1-1). and their portion of the total One indigenous energy resource imports (Fig. I-2andTable 1-2). Israel has in abundance is sunlight. PRINCIPLES OF Used mostly for domestic water ISRAEL'S ENERGY heating, solar energy provides over 400.000 TOE annually, or POLICY TRENDS IN THE approximately 3.59J of the gross ISRAEL ENERGY energy consumption (Table 1-3). The main goal of Israel's energy policy is to ensure that energy is MARKET supplied at the required quantity Energy Use and reliability, at the location and Israelis consume less energy on a time it is needed, and at a minimal The overall 1992 Israel energy per capita basis than Americans or societal cost. picture is presented in Table 1-3. Europeans (Fig. I-5 and Table 1-6). Following are some characteristic This reflects different levels of The following are the main features trends in the Israel energy economy: industrialization and standard of of the energy policy:
I. TOE = Tons of Oil Equivalent = I ()7 kilocalories: amount of heal produced, upon combustion, hy approximately one Ion of fuel oil. Pricing Policy countries. In the framework ol a Investments regional development pact. Israel is The Ministry views pricing policy willing to establish cooperation in A uniform se( ol criteria has been as its mosi important overall means various areas, such as: established for evaluating projects tor ensuring efficient energy use by * Linkage of electric grids and in the energy sector that require various economic sectors. Pricing mutual supply and purchase of investment of public funds. The policy is guided by the principle electricity, criteria are used to assess a that consumer prices lor energy * Installation of thermo-solar power project's value to the national products and services should reflect plants. economy, and ils contribution to the as much as possible their marginal realization of national energy cost to the economy, with respect to * Installation of water desalination policy goals. quantity, reliability and timing. plants. This applies both to oil products and eleclricity. Research and Development Price regulation policy depends on The goal of the Ministry's R&D Environmental Issues policy is to reduce dependence on the specific sector. In sectors with a The potential environmental impact imported fuels and develop the monopolistic structure - for Israeli economy by developing of pollutants generated during example, electricity generation, the renewable and/or indigenous operation of energy systems is an consumer prices are regulated by energy sources. important consideration in energy the Government. In sectors where sector planning. The cost and competition exists, like the oil and benefit of various development This policy is carried out by gas sectors, the prices of most of alternatives and their effect on the supporting R&D projects and the refined products are free of environment are carefully demonstration facilities which Government control, except for a evaluated. Insofar as possible, enable the evaluation of some of the few products for which maximum environmental impacts are alternative energy sources available prices are set. Maximum prices arc specified, and their economic costs in Israel such as oil shale, solar, also set for ex-refinery products. quantified: the energy consumer is wind and biomass. then required to bear the social The Government strives to carry costs resulting from the The Ministry's goal is that, by the out its pricing policy on the basis of environmental impact of his year 2000. about 8% of the energy clear and straight-forward formulas activity. which will reduce uncertainty at the will be produced from indigenous energy consumer level and will be sources. fair both to producers and consumers. Energy Conservation Oil Exploration Conservation policy is Exploration policy is based on the International Cooperation implemented mainly through following two principles: Energy is a fertile ground for consumer prices that reflect real a. The government will not act as an international cooperation both as costs, while promoting and entrepreneur; links between neighboring energy supporting energy-saving actions b. Government support to potential systems and in the field of R&D. and technologies. Financial support investors is limited to making is provided for conversion to available the geological data bank, Israel's energy infrastructure is energy saving technologies or to surveys and the infrastructure. isolated from the neighboring technologies which save oil. Table I-I Israel's Fuel Imports
IMPORTS ThoiisaikUot' Value "I'Imports Cunvnl Oi ThouvaiKlsor Metric Tops I (.)!•;''' Million Current (.SSC.II, I'SS IS 1 Cnule Petroleum Coal I utal Mineral (-n|do IVlr.ileum Coal '' Total Oil Products i'"°l Oil Products Mineral l-'uels ll>70 5lOS.s IS4.7 . 6166.0 7O.(i 5.9 - 76.5 249.6 !1>7S 76X5.1 (i.: - 77dS.(i 62X.3 9.6 • 637.9 147? .5 I WO 7.UJX.7 1561.4 0.4 S473.ll I74X.4 31S.0 - 2116.4 .t.WH.7 IWI 6XX7.3 0.0 361.4 S673.2 I6S5.0 3314 21.S 2O3X.7 297X.4 IW2 S265.5 0.0 440. 5 92S4.6 I7S4.5 70.5 51.3 1911.3 2624.4 19X3 "325.7 O.I) 2136.1 SS32.3 1460.0 35.4 I04.X 16(10.2 2114.7
19X4 6942.S 0.0 266').2 SSOS.I 1417.0 3S.4 ' 135.3 4 1590.7 2023.2 IW5 62'M.7 7SI.6 •1!)<'.'.3 4034.6 1210.6 143.') ; 155.7 ^ 1510.2 __ IWid.7 1 IW/> 7359.(, S')S.5 3OS4.I IO26S.2 6%. ) 4 S4.3 _ 143.1 ; 924.3 _. 1114.6
I",S7 66"5.(i 1474.3 _ 3518.1 10433.8 : S2S.3 1X4.0 j [35.5 11 J7.K 4 >*AL- ^J.SS _ 7270.S -74?i? ^_ _J^lL _; '^-A1^ i__ (l7(i-5. __4_ ^-f=±. i lird ^—Ji^LL _^ HIM !l)fi'L_ 7IS4.4 2204.2 ^5 Sources: Central Bureau of Statistics & Policy: Planning Division. Ministry of Energy & Inf'raslructure. Notes: 11) Approximate net calorie values of mineral fuels used to convert from metric ton to TOE (Ton of Equivalent) as follows: about 0.63 for Coal, about 1.07 for Gasoline & Naphtha, about 1.035 for Fuel Oil. uboul 1.05 for Kerosene. (2) Estimate. (31 Deflated bv LSA Producer Price Index. Fig. 1-1 Value of Israel's Fuel Imports C.l.F. Constant Million U.S.S(IWI) 3500 3000 ? 2500 % 2000 |1500 S "Z 1000 u. 500 O 1970 1975 1980 1985 1990 1991 1992 1993 Crude Oil Petroleum Product Coal Table 1-2 Fuel Imports Year > 1970 1975 1980 1984 19X6 19X7 19X8 19X9 1990 1991 USA 3.07 26.40 82.25 60.07 63.14 55.75 39.81 46.76 44.13 56.09 68.74 58.60 Value of Imports Billionof 1>S$ J;tp;m 70.07 59.09 60.51 55.90 39.43 3X.90 43.X4 57.45 55.20 ... .:vy| ... . . _ ;H Current Price HHC 12.36 58.07 175.99 139.57 I3X.55 137.02 94.25 9X.36 84.12 94.99 124.59 125.60 , Israel 0.07 0.64 2.12 1.61 1.59 1.51 0.92 ,.15 1.06 1.25 1.54 1.47 .' USA 7.20 25.60 33.00 22.30 18.50 15.40 10.30 11.00 9.60 11.38 13.30 11.50 l-'uel Imports as Percent of • Japan 20.70 44.30 50.00 46.80 44.30 43.10 29.40 26.40 20.76 20.91 24.41 23.60 Tmal Imports , KKC 10.70 19.50 21.70 22.30 21.80 20.60 12.10 10.30 7.X5 8.14 8.81 8.70 j Israel 4.77 15.40 26.47 17.40 17.3(1 16.30 X.20 8.90 7.07 9.45 10.02 8.72 | USA 7.20 38.00 30.70 29.80 27.00 19.3(1 19.10 13.69 15.42 17.47 14.70 Fuel Imports as Percent of Japan 20.20 45.90 54.00 40.20 35.60 31.80 17.80 17.20 14.69 16.01 19.98 17.60 Total f-.xports. KKC 11.10 19.70 23.70 23.40 22.80 21.20 11.9(1 10.30 8.00 8.37 9.09 9.20 1 1 Israel 8.96 34.80 38.22 29.30 25..O 21.60 11.00 14.50 10.88 11.29 12.71 12.40 Source: United Nations Statistical Office. New York. Fig. 1-2 Fuel Imports as a Percent of Total Imports Japan 1990 USA 1985 EEC 1980 1975 Israel 1970 Table 1-3 Israel's Energy lialance Sheet - 1992 I'luniMWii r<)>i\ ni oil i.ijuivtiii-iu' not. > i Electricity ! Total Energy \ Supply & Uses Coal Crude Oil Natural Hydro Primary Thermal Gross'"1 Net(8) & Other & its Gas & Solar Energy Equivalent Solids Products Energy Equivalent Net161 ; Indigenous Production 30.9 9.6 21.1 404.6 - - 466.2 217.7 Imports 3432.8 11665.3 - - - - 15098.1 15098.1 Exports (1631.7) - - (141.0) (52.9) (1772.7) (1684.6) Marine Bunkers (184.2) - - - - (184.2) (184.2) '• Stock Changes'" (298.9) (710.5) - (13.3) (5.0) (1022.7) (1014.4) Total Energy Requirement 3164.8 9148.5 21.1 404.6 (154.3) (57.9) 12584.7 12432.6 Petroleum Refineries'"' - 8448.6 - - - - (699.9) (699.9) Electricity Generation1 ' (3126.7) (2392.8) - - 5519.5 2072.0 - (3447.5) j Energy Sector Own Use & Losses - - - (449.3) (168.6) (449.3) (168.6) Finn! Energy Consumption 38.1 6055.8 21.1 404.6 4915.8 1845.5 11435.4 8116.6 ! nUvhiih Industry'4' ! 38.1 1674.9 20.9 - 1346.2 505.4 3080.1 2239.3 Transportation ' - 3225.8 - - - - 3225.8 3225.8 Agriculture & Water Supply - 40.9 - - 596.1 223.8 637.0 264.7 i Residential. Commercial & Public - 1114.2 404.6 2973.5 11/6.3 4492.5 2635.3 Non Specified ------,248.5) Sources: Ministry of Energy & Infrastructure-Fuel Authority: Central Bureau of Statistics: Israel Electric Corporation: Oil Refineries: Fuel Companies and our estimation, based on latest available data. Notes: 11) Difference between opening and closing levels of stocks, statistical differences included. (2) Returns and transfers. (3) Public utilities. (4) Including non-energy uses. (51 Motor, rail & air transport, civil aviation and public services included. |6) Including discrepancies between data sources. (71 Primary energy equivalent of electricity, saved by solar energy use for water heating. (8) Electricity presented as its thermal equivalent < I kWh = 860 Kca)). (9) Electricity presented as primary energy equivalent of fuel requirement for electricity generation. (*) Parantheses indicate quantities with negative signs. I'iji. I-J. Israel i'low Churl - 1992 (Thousand Tons of Oil liuuivulvnt) PRIMARY I.N1RGY GROSS DOMES IK Ni:i UNAI. ENERGY SUPPLY ENIiRCiY CONSUMPTION CONSUMPTION 14.5.11 I2.S85 8117 22V 3464 3127 1845 1116 ELECTRICITY 505 265 GENERATION 5520 ACiRICUl.TURI- & WAIKR SUPPLY COAL STOCK 154 HYDRO & SOI.AK ENERCIY I • 405 156 2387 NATURAL GAS • 21 21 0.2 21 • 3b 3b RESIDENTIAL. OIL COMMI-RCTAI.& 41 PUBLIC USE ' CRUIM: DOMESTIC 10 1114 Oil. PETROLEUM PRODUCTS 6056 anil Us 1675 IMPORTED 11.665 PRODUCTS 3226 2239 INDUSTRY' CRUDE l-XPORTOh CHTROI.HUM OH. STOCK I'KTROI-KUM PRODUCTS STOCK PRODUCTS' 3226 MAR1NK KXPORTS Oh KNI-RGY SKCTUR BUNKI-RS Kl.irTRICITY OWN USI: & I.OSSHS "' (NKT) " 4662 TRANSPORTATION" 58 Notes (Bused on latest available UuuD: 1. Including imports, indigenous production & slock change. 6. Motor rail & airtransport, civil aviation and public 2. Total primary supply excluding exports, marine bunkers, services included. stock change & statistical difference. 7. Solar energy use for waler heating. 3. Gross energy consumption excluding energy sector's own S. Including sale !o the territories. use & losses. 9. Thermal equivalent of electricity exports. 4. Including non-specified consumption. 10. Including conversion losses in electricity generation; 5. Including non-energy uses. own use & losses in petroleum refining; and own use & losses in transmission & distribution of electricity. Table 1-4 Energy Consumption by Primary Source Countn Hnerj!> Sources 1973 I97S I9X(I ! 19X4 ,9X5 19X7 I9XX ,9X9 199(1 ' ,991 1992 1993 (4 1 Total Hnerav Consumption- Mini. 1723.2 IS73.9 1X1)1,0 I(i79.4 1752.X 1771.4 1772.2 1X47.X 1955.4 1919.9 ' 1433.2 1962.2 I9K9.7 ..i»huh Coal'1' 20.3 2I.X 24.0! 2fi.7 27.3 27.K: 27.1 27.7 27.5 27.5 27.5 27.0 27.0 27.0 I'nited Oil 47.0 ! 4X. 1 44 .<]'.. 41.9, 41.3 40.9 42.4! 41.4 . 41.2 40.5 39.4 3X.4 3X.4 3X.4 States Natural Cias 29.9 "•4.5 24.3' I-J.l M V 2 1.9 22.7 •MX 23.X 23.X - ———r- Nuclear l-iieri:\ 1.3 4.1 : 3.9 4.X 5.2 h.dj (i.5 I h.X 7.(i 7.5 X.3 x.x X.X K.X H\dro. (ieoihernial. Solar1"1 1.5 1.5; 1.7 2.2 - -I : 2.1 IX l.h I.X 2.0 i 2.0 2.0 2.0 Total KiK'i'i!\ Consumption- Mini. 11179.(1 1115.7 1I2X.4 10(i9.5 1 100.1 1139.3 1155.2 1177.4! II911.9 1210.5 I21(I^T 1242.4 1242.4 1251.1 1 ..i«i,ki. Coal' ' 2 Total Eneri<\ Consumption- \rmi (id 7.4 7.9 X.5 S.d X.5 x.xi 9.7 10.1 10.6 11.11 112 12.7 13.1 ••i »hkii Coal'1' O.I II.0 0.0' 12.4 19.7 21.X; •>1 l' "^ (1 •UHT' 21.2 21.4 22.9 25.0 27.3 Israel Oil 9S.1 4X1 9fv9 S4.9: 77.5 75.0 i 72.9 j 73.X i 75.9 75.3 75.C> 73.9 72.1 69.7 Natural Gas 0.7 0.7 1.7 0.7 ; II S () s ' 0.4! 0.4! 0 ' (M 0.3 (1.2 0.2 0.3 , ,! 1 Solar'1' I.I 1.2 1.4! 2.0, -•7 3.4 11! 3." 3.2 2.4 "U 2.7 2.7 Sources: Industrial Counties-Organization for Economic Cooperation and Development. Paris: Israel-Central Bureau of Statistics. Notes: (11 Including other solid luels. (2) Including net import (export) of electricity. (3) 199! including hydro. (4) Data for 1993 for Israel and for 1992/93 for other countries are estimated. Fig. 1-4 Breakdown of Energy Consumption by Source 1973 1980 1990 1993 100 80 60 40 20 USA EEC Israel USA EEC Israel USA EEC Israel USA EEC Israel Coal Oil Natural Gas Nuclear Hydro, Solar Table 1-5 Electricity Generation by Primary Source Yciii>i 1973 ! I97X I'M) I9K3 IVX-1 IVK5 I9N6 19X7 Elecmcil) Generation Coal Nuclearbnerg\ Hvdro. Gcotherniiil. Solar1- Elci.tricit\ Gencralion European ,„ u,lkl, Co;l| Ecunomic Communits Hvdro.Gedthcrnial. Solar1- : r.lccincitv Generation T 1 -IKX I 47: • 4! i i »>J5 ii: I u.4j^ : x Sources: Industrial Countries-Organization lor Economic Cooperation and Development. Paris: Israel-Central Bureau of Statistics: Electric Corporation. Notes: 11) Teriwalt hour (TWH) = 1 .OOO.OOO.OdO kilowatt hours (kWh). (2) Israel Electric Corporation only: the data up to 19X6 apply to budget year ( April I si-March 31 st). Including other solid fuels. (3) Data for 1993 for Israel and for 1992-93 for other countries are estimated. Fig. 1-5 Breakdown of Electricity Generation by Source 1973 1980 1990 1993 100 80 60 40 20 0 •» USA EEC Israel USA EEC Israel USA EEC Israel USA EEC Israel c a| r^Tl ° • Oil 1 j Natural Gas I Nuclear | | Hydro, Solar /5 Table 1-6 Per Capita Energy Consumption Indicator Year> 1473 I97X 14X0 19X3 19X4 14X5 I y8f> 19X7 I9XX 19X9 1990 1991 1992 OFCD >•> 4 SI 4 Sd * - - — Tons of ISA s 1' s 42 ')! ' "40 41 7 SI sr, "u l Oil EqimalenuTOEl Japan :'«, ? SI 2 w ;.„ ! IKI ! ^2 ' 4" iy Vft5 76 EEC- < H vS 1 IK 1 2r> Wl * 4" Wl ; S4 1.V1 vdll 5 Israel 2 :HI 2 o2 02 2(i- 1•r :m 2 is ::<• , : 12 :.» 2.4^ ; OECD [(HI IKI II 1 So 101 loo 4o 1(14 104 10 Per Capita Index of IVr Capita Mm (Hi Hi X-.HI >t| 00 ,,, in •in ^n 7(1 '/4 Vl >4 40 44 711 ISA II W.O '15 20 V4.10 hnor«\ Enenij Cotisinnption Japan mi mi loj 20 IDS (,l III 50 117 20 liydii ] 'JO Consumption Base: 1973= 100 EEC- 11II11 H > II mi ws«i III III) Israel IIHMIII II 1 00 I'll Id 1— '""•'•"" "' " -•••-••- OECD * ~ Sources: Industrial Countries-Oreani/.ation for Eeonomic Cooperation and Development. Paris: Israel-Central Bureau of Statistics. Notes: ( I I Data for 1993 for Israel and for 1992/93 for other countries are estimated. Fig. 1-6 Per Capita Energy Consumption Ti»i\ ojOil iit/iiivtilciu ('l'(iE) Tons of Oil Equivalent USA Japan EEC Israel 1973 Table 1-7 Per Capita Electricity Generation "7 Indicator Ycar> I97X 19X0 I9X.1 19X4 I9XS 19X6 19X7 I9XX 19X9 1990 1991 1992 1993 ill Thousands kWh Per Capita Per Capita Index ol'Per Capita I Electricity i Electricity Consumption : Consumption; Base: 197.1= KM) Annual Growth Rate-Percent Sources: Industrial Countries-Organization tor Economic Cooperation and Development. Paris; Israel-Central Bureau of Statistics. Notes: (11 Data for 1993 for Israel and for 1992/93 for other countries arc estimated. Fig. 1-7 Per Capita Electricity Generation Thousands kWh Table 1-8 Per Capita Gross Domestic Product i Indicator Year > I97X 19X0 19X3 19X4 19X5 19X6 19X7 I9XK 19X9 1990 IWI 1992 1993 in OIXD s s >ttt •i it in i HI * In- In-i 11 2 1 I U II '• I:I 1.' 1 12-1 Thousand I'SSal ' 1!SA 14 f) TK I7K |7'l 19X5 Prices* Official j_ Japan ,SII s 'I 'i ii in • Hl- III II • II * \11 1-II 1 W. 14 ; 147 ; Exchange Rates T T i KKC T ,,' 1 Israel ; Ii 1 Il: ii i ft 4 ' ! - 1 L OECD j ii: i 114 1 llsi. ,:,.,j,:4, It] f, 114 K lift? J4H j Per Capita - 1 Index of Per Capita |ii7i, III-4 115 J j H7 J II'M IN'' i;* i i;:*. Gross I 1 17(1 l"< Gross Domestic Product l Domestic I4HI.1I mil' 1 hin MX! , Ull l-lt. t •' ll.l.' IM 1 l «MI Base: 1973- UK) 1 Product KHItl im? i '? ^ j EBC__;. 17«. It : t _T Israel i f •if} ' iiii'i cm n: 4 , Ill K ix it ; ..4» C II 4 II ^ li ' 'II 21 1 4 11 ? 1 1 i: Kftll ' V Annual Growth j USA 1 H i n - Rate-Percent <>4 4 1 ... 1 Ii i * :o iu 11 4 •! 4 1 4; 1 j Israel I r in i i ' 1 4 II 1 l)t> 4 l 2 N III II 4 "4 II 7 ; i Sources: Industrial Countries-Organization for Economic Cooperation and Development. Paris: Israel-Central Bureau of Statistics. Notes: < 11 Data for 1993 for Israel and for 1992/93 for other countries are estimated. Fig. 1-8 Per Capita G.D.P. Thousand of VS$( 19X5) Fig. 1-9 Breakdown of Premium Gasoline Prices: W. Europe - Israel 1987 1988 1989 1990 1991 1992 _j Excluding Tax (W. Europe) Including Tax (W. Europe) Excluding Tax (Israel) Including Tax (Israel) Fig. 1-10 Breakdown of Gas Oil Prices: W. Europe - Israel 0.8 0.7 0.6 ~ 0.5 _J - £ 0.4 - 6*5 n—• -%::* •U— n o -m 0.1 -11 -il 0 111 1987 1988 1989 1990 1991 19912 Exc'luding Tax (W. Europe) 1ncluding Tax (W. Europe) Excluding Tax (Israel) 1ncluding Tax (Israe1) 19 Fig. 1-11 Breakdown of Fuel Oil Prices: W. Europe - Israel 120 - • • 100 80 60 S $ Pe r To n 3 40 20 0 -20 1987 1988 1989 1990 1991 1992 Excluding Tax (W. Europe) Including Tax (W. Europe] 1M W | Inicluding Tax (Israel) Eexcluding Tax (Israel) Fig. 1-12 Israel's Primary Energy Sources 1980 - 2000 1980 1990 96.7% 3.3% 74.5% 1995 2000 62.3% 52.3% 4.4% 7.4% 33.3% 40.3% 9% -WindandBiomass Alternative and Indigenous Sources: CfMKlOT™ 9% - Hydroelectric and Geothemul 22%-Oil Shale 60%- Solar Energy [ | Crude Oil \Wi\ Alternative & Indigenous Sources Coil 2. ENERGY AND PEACE In the framework of peace pacts levels. From a systems-operation "clean" electrical power to the between Israel and its neighbors, point of view, a neighboring grid close-by areas of Israel, Jordan, cooperative development projects can provide backup against supply Egypt and possibly Saudi Arabia. can create a lasting interest in peace failures. In addition, if peak power This project could be preceded by and are therefore crucial to its is not simultaneous in the countries a 1-10 MW pilot/demonstration realization. A Ministry-appointed involved, trade in electrical power plant in a neighboring country. committee prepared suggestions for can largely eliminate the need for cooperative energy-related projects activation of high cost reserve b) Natural gas pipeline - that were presented to the parties generation plants. to enable direct transport of involved in the peace talks. natural gas from nearby sources. Red Sea-Dead Sea Canal Following are the principles which c) Seawater desalination - guided the committee in the Utilization of the differences in the erection of a seawater desalination selection of the suggested projects: levels of the Red Sea and the Dead plant (near Gaza or the Red Sea) to Sea for hydro electrical power provide 120,000 cubic meters per 1. The benefits of cooperation must generation as well as recreational day of drinking water be shared among the parties sites along the canal's path. The involved. Thus, for each side there alternative Mediterranean-Dead d) Geotbennal energy - must be a substantial level of Sea Canal is also still under utilization of geothermal water in benefit that justifies cooperation. consideration. the Arava region of die Negev desert for greenhouse agriculture 2. The scope of the projects should Link up and reactivation of for Israel and Jordan. be fundamental, thorough, and pipelines long-term. e) Integrated Maniple Energy The Eilat-Ashkelon Pipeline (see Module (ITEM) - a module based 3. The importance of oil in Chap. 3) can serve as a land bridge on known technologies for solar international relations is expected for oil shipments between Red Sea energy heat conversion, biogas to play an important role in the and Mediterranean ports, similar to generation from biomass, saline Middle East peace process. the Su-Med pipeline system in water desalination, cooling and Egypt which links the Bay of Suez refrigeration for utilization in 4. Cooperation in economic and and the Mediterranean. isolated villages. science-based projects is essential There is also a possibility of for the development of the f) Seismological cooperation-for reactivating or rebuilding the TAP region's infrastructure and earthquake prediction. scientific endeavors. line which connected the Mediterranean ports to the oil g) Utilization of oil skate - for Following is a partial list of producing countries and was operational before the 1948 war. electricity and steam production, potential projects which can be and for fast heating retorting. beneficial to all parties. Specific projects include: h) Geological cooperatiM- Link up of transmission grids a) Solar thermal power plant - mapping of mineral resources. The link up of the Israeli and the based on Luz technology at the neighboring grids would be of Ein Evrona site (11 km north of i) Solar pond-for seawater benefit to all partners on various Eilat). The plant would supply desalination. 21 iz' s 3. THE OIL AND GAS SECTOR This is to be done at minimal The "Contractual Sector" OIL economic and strategic risks, while ensuring reliable and safe supply of The Government determines the oil products. In this way. Israel's oil total amount of crude oil imported BACKGROUND sector would adopt an efficient and within the framework of this sector, competitive structure, characteristic the quantities imported by each of Oil. in its various refined forms, is to free market economies. the oil companies and the supply the principal fuel in Israel's energy The oil sector encompasses the sources. The purchases are fully economy. In 1992. approximately following functions: indemnified by the Government. 72*7r of the national energy needs were supplied by oil. The MOE1 (Ministry of Energy & Israel's energy policy maintains PURCHASING OF Infrastructure) is acting to reduce that the oil supply system must CRUDE OIL the volume of the "contractual" ensure that crude oil. in proper imports. During 1993. these amounts, is imported: that the crude imports are being limited to 3.7S oil is refined to the products Crude oil from overseas sources is million tons annually needed; that the products reach the purchased in two ways: (approximately a third of the oil consumers and that adequate stocks imports), from Norway, Egypt and of crude oil and refined products I. Purchases based on long term Mexico. are maintained. contracts (the "contractual sector") between the State of Israel and the Toward 1994, the MOEI is During 1992. these imports totaled producer nations, or their soliciting bids from the oil about 11.6 million tons, designates. companies for oil purchases in the approximately 20Ac/c higher than "contractual sector" from Norway the previous year. The value of II. Purchases from suppliers in the and Egypt. The long term contract these imports was US $ 1.450 free market (the"free sector"). with Mexico will not be renewed. million C.I.F. - an increase of 12.5<7r from 1991. Israel also exports surplus refined products. During 1992. 1.6 million tons of oil products were exported. In recent years, the oil sector in Israel has been undergoing profound changes resulting from the implementation of reform measures. The main goal of these measures is to channel the energy economy into a track that would guarantee: * minimizing the economic and social cost: * facilitating more efficient energy services: * incorporating environmental quality considerations. Fig. J-l The Haifa Oil Port 23 This new tender changes (he Government instructed the oil Although both crude and refined structure and the operational rules companies in the "contractual products may be imported, in in the "contractual sector": sector" to maintain reserves of practice, mainly crude is imported, predetermined quantities of crude probably because the option of a. the sector is open to new oil and refined products. The purchasing refined products from companies in addition to the major capital, operation and maintenance ORL is more attractive. established ones. expenses related to these reserves are appropriated in the national b. the predetermined allocations of budget. A Government-appointed MARITIME the oil imports between the major committee is examining various TRANSPORT oil companies has been annulled, options of cutting down these and the sector is open to reserves and transferring part of Oil arrives from overseas by competition. them to large energy consumers. oil-tankers. The principal transporter is Tanker Services - a c. the cost-plus reimbursement company owned by ORL and by the system is replaced by a The "Free" Sector Paz. Delek and Sonol oil predetermined fixed support. Within this sector, crude oil and companies. All "contractual** refined products may be imported imports and part of the "free" d. the maritime transport of these by: imports are shipped by Tanker imports is not limited to Tanker Services; however, oil may be Services (see section "Maritime * Authorized oil marketing shipped by other tanker services as Transport" in this chapter) but companies. well. open to all ships approved by the * Each oil consumer may import MOEI. his own consumption. In order to introduce competition * The Oil Refineries (ORL), is into this branch, the MOEI Is In order to ensure fuel supply allowed to import more than its soliciting bids from tanker during emergencies, the own consumption. operators for the transport of "contractual** crude oil imports. PUMPING, TRANSPORT AND STORAGE OF CRUDE OIL Crude oil storage facilities are distributed throughout the country and are connected by a pipeline system to the unloading ports and to the refineries. The pipeline system ensures flexibility in the circulation of oil between the storage facilities and the refineries, from Eilat in the south to Haifa in the north. These activities are carried out by Eilat-Ashkelon Pipeline Co. (EAPC) and Petroleum Services. These infrastructure companies have to provide their services to all customers on an equal basis at a price determined by the Ministry of Fig. 3-2 An Oil Tanker at the Red Sea Energy and Infrastructure. The Eilat-Ashkelon pipeline system has a throughput capacity of 45 million tons of crude oil per year. inn Thus, in addition to catering to the ,*.*.. A. -jllSK Israel oil sector, it can also serve as 1992 Production Refined Products a land bridge for oil shipments (Metric Tons) between the Red Sea and Mediterranean ports, similar to the Liquefied Petroleum Gas (LPG) 290,000 Su-Med pipeline system in Egypt Gasoline and Naphtha 2,254,000 (which links the Bay of Suez and Kerosene 1,013,000 the Mediterranean). Subsequent to the multilateral peace negotiations Gas Oil 2,374,000 (see Chap. 2), The Eilat-Ashkelon Fuel Oil (heavy and light) 3,672,000 Pipeline Co. is considering increasing the throughput of this Bitumen 198,000 pipeline in order to accommodate a Paraffins 58,000 potential increase in operations Sulfur 25,000 volume. Total 9,884,000 The Government is interested in expanding the existing port facilities to enable efficient and considering substituting this pipeline system. low-cost unloading and storage of concession by a system of licences imported refined products. Various appropriate to a free-market * overland distribution by tanker expansion alternatives in the Oil economy. trucks - a form used by oil Port of Haifa, the Israel Electric companies which do not have Corporation facilities at the Port of Additional options that will reduce storage facilities or whose Ashdod and the EAPC facility at ORL's monopoly and create consumers are not connected to Ashkelon are under examination. competition are presently being ORL by pipeline. considered. These include the division of the ORL into two separate entities, one at Haifa and REFINING the other at Ashdod, as well as MARKETING OF Crude oil refining is carried out by creating more favorable conditions REFINED PRODUCTS ORL - a company owned jointly by for importing of refined products. At the local marketing level, all oil the Government (74%) and by products are supplied by the oil private investors (26%) - at the marketing companies from the Haifa and Ashdod facilities. The PUMPING, STORAGE following distribution terminals: refined products and the 1992 AND TRANSPORT OF production data are given in Table * Haifa and the north: Oil 3-1. REFINED PRODUCTS companies that have supply The refined products are distributed centers, use them to distribute the ORL has to provide its services to from ORL in the following forms: refined products. These centers are all customers on an equal basis. The located near the Haifa refineries. refining prices are determined by * pumping through the KAMAD Companies without such centers the Ministry of Energy and pipeline network, which covers the use the Haifa refineries. Infrastructure only for the country, to storage and distribution "contractual sector". Recently, the facilities owned by the Paz, Delek * Other areas: Distribution of MOEI changed the terms of its and Sonol oil companies, by Pi - refined products is carried out agreements with the ORL. Gliloth Co. and by Petroleum through Pi-GJHoth Co. (jointly Services. KAMAD is owned by owned by Delete, Sonol, Paz and The ORL is operating according to Petroleum Services. Petroleum Services) which a concession granted by the British operates four distribution rule (before the State of Israel was * pumping directly to major terminals in Herzliya, Jerusalem. established). The MOEI is consumers through the consumers1 Ashdod and Be'er-Sheva. Additional special-purpose tanker truck operators, fuel retailers b. Expenditures for supply and terminals are: and Israel Railways. marketing services as well as the profit margin. a. The UN EX (United Petroleum Export Co.) terminal in Ashdod. PRICING OF THE c. Taxes, customs and excise. used mainly for fuel oil: REFINED PRODUCTS Prices of the refined products are Maximum prices for ex-refinery b. The Aviation Services terminals free of Government control. products are determined in which supply jet fuel oil Excluded are gasoline % octane accordance with paragraph "a" (kerosene) for civil aviation. This and unleaded gasoline, for which above. company, which is owned by Paz. the Government determines Delek and Sonol. is the sole maximum consumer prices. These supplier by virtue of a long-term prices include the following Sale at the Retail-Level agreement with the Airport components: Authority. The supply of the refined products a. Basic price of the refined product, at the retail level is done by 550 In order to facilitate competition in which consists of a pedestal filling stations throughout the this branch, this exclusive contract component, based on a published country, or directly by tanker will be terminated. Aviation international reference price, plus trucks. These products include Services will become an an increment which is determined gasoline 91 octane, gasoline 96 infrastructure company that will by the Government. The reference octane, gasoline 98 octane, have to supply its services at a prices for the various products are unleaded gasoline, diesel fuel (gas Ministry-determined tariff. based on those listed in the oil) and kerosene. The present periodical "PLATT'S OILGRAM annual rate of constructing new stations stands at about 10. and OVERLAND PRICE RFPORT". in ihe section entitled "PLATTS EUROPEAN there is an estimated shortage of TRANSPORT MARKET SCAN", for "Cargoes 200 stations. The ground transport of the refined C.I.F. Med. Basis Genoa/Lavera". products from the distribution Large consumers in the industrial, terminals to the customer is carried The reference price component is agricultural and commercial out by the oil companies, private updated on a monthly basis. sectors, as well as public institutions, acquire their supplies directly from the oil companies through branch offices or agents. Some of these consumers solicit bids for the supply of refined products from the various oil companies, taking advantage of competition and the market opportunities which emerged with the entrance of new oil companies. However, such competition is not evident at the filling station level. This can be partially attributed to the fact that, at present, most of the filling stations in Israel are committed to the three long-established oil companies, either through ownership or through long-term contracts (some Fig. ?-? Water Balance Tanks at the Haifa Oil Port - of these contracts are for 98 years!). Water from These tanks is piped into the oil tankers after the oil has been This, and the slow rate of licensing unloaded, in order to maintain the ship's balance. and building new filling stations. 26 limits the entry of new companies infrastructure companies and will combustible fuels, natural gas is into this sector, and the consequent eliminate all cost-plus agreements one of the most competition which they would which are presently in effect. environmentally-friendly. This, and otherwise generate. the fact that there arc large, 3. Establishment of additional worldwide reserves of this fuel, The Government is examining ways pumping, transport and storage make it a prime choice as a to change this situation and to facilities to stimulate competition substitute for pelroleum-based fuels facilitate competition in this and price reductions for these in the future. market. In this framework, ihe services. These reductions may Israel is interested in acquiring Government issued a resolution reduce the prices of imported natural gas supplies from which limits the contract periods refined products and make them neighboring countries through a between the oil companies and the more economically attractive. pipeline system, or by tankers in the filling stations to 7-10 yenrs. form of Liquefied Natural Gas 4. Facilitating competition in the (LNG). In addition, the MOEI is taking filling stations branch. measures towards creating The estimated national favorable conditions for 5. Revoking the monopolistic status consumption of natural gas. after constructing new stations. These oftheORL. the conversion of some power include lifting of the zoning plants presently using fuel oil and restrictions which dictate minimum gas turbines using gas oil. could be distances between tilling stations some 4.75 million TOE annually. and relaxing the allocation GAS procedures of State-owned land for new filling stations. BACKGROUND THE REFORM OF THE Liquefied Petroleum Gas (LPG) is GAS SECTOR CONTINUATION OF used in Israel for cooking, heating Until mid-1989. this market was and as an industrial feed material in highly controlled and the prices of THE REFORM PROCESS the petrochemical and other gas were determined on a cost-plus The aim of the complete reform of industries. LPG is produced by the basis. The market was shared by the oil sector is to ensure freedom ORL during the crude oil refining four companies (Pazgas. of entry into the importing, supply process and consists of a mixture of Amisragas. Supergas and and marketing branches of the several gases, mainly propane and Pctrolgas). and new companies sector, and to reduce Government butane. were not permitted to participate. involvement to a minimum. Among This offered no incentive for the matters which have yet to be In 1992, about 290.000 tons of gas competition and efficiency. addressed are: were produced in the refining process. This constitutes an In the second half of 1989. the 1. Reform in the oil standards to increase of 34% compared to the Ministry of Energy and facilitate an easier environment previous year. Infrastructure initiated legislation for importing refined products. related to the gas market. The laws Domestic natural gas in relatively provide that: 2. Reducing the range of agreements small quantities is extracted at the and transactions between the Rosh-Zohar drilling site by * Any company or entity, which Government and the oil companies Naphtha, Israel Petroleum Co., a complies with the relevant which purchase oil within the Government-owned company and licensing and safety laws and framework of the "contractual is distributed by Magal - Israel Gas regulations, may import and sector", and between the and Oil Enterprises Co., a private market LPG. Government and companies that enterprise. The 1992 production of supply pumping, transport and natural gas was approximately * ORL must supply and sell LPG to storage services. 20,000 tons. any authorized operator in the LPG market. In addition, ORL In this framework, the MOEI will The Government is interested in must permit entry to its grounds to administrate an economically- importing natural gas from reliable any operator who complies with based pricing system for all sources. Compared with other safety and security standards. 27 In January 1990. the control on gas being notified by the customer and GASSAFETY prices was lifted. In June of (hat must return the deposit for them year, following a sharp rise in gas within 30 days. Following a near mishap in a large price, control was reapplied and a gas storage facility near a price ceiling was imposed. * Tenants in an apartment house residential area, and in order to In order to stimulate competition with a central gas supply system forestall similar mishaps in other and open-market conditions, the may switch suppliers if at least central facilities, the MOEI has Government terminated all two-thirds of them wish to do so. decided to develop new storage arrangements and transactions with facilities, away from populated the major gas companies. In The implementation of these areas. A new state-wide program, addition, it issued regulations, regulations created competition and which outlines the land allocations providing that: consequent price reductions. The required for these facilities, is in results are being felt by large preparation. This program takes * Customers may acquire LPG from consumers which acquire gas in into consideration the gas safety the supplier of their choice and bulk, and by household consumers standards and the future may switch suppliers at will. The in regions where new companies development of the population ex-supplier must remove his gas have entered the market. centers. containers within 10 days after The Israel Institute of Petroleum and Energy The Israel Institute of Petroleum and Energy, whose 35 corporate members include Israel's leading petroleum and energy firms, sponsors research, disseminates information, and fosters professional activities. The Institute's professional committees deal with fuel testing, transport of petroleum products, filling stations, tribology, safety and fire fighting, gas, coal, packaging of petroleum products, rotating equipment, prevention of water-resources pollution, and professional training. The Institute's Unit for Prevention of Water Source Contamination by Fuels helps prevent and contain oil spillages. The Institute's Information Center provides the petroleum industry, government agencies, and researchers with comprehensive and up-to-date information on oil and energy developments, with special emphasis on economic and political aspects. The institute publishes a newsletter in Hebrew, as well as Israel Energy News, a quarterly English language magazine. The School of Petroleum and Energy Sciences organizes seminars and courses on petroleum and energy - related subjects. The school also cooperates with Tel-Aviv University in administering the University's Gordon Center for Energy Studies. 28 4. THE COAL SECTOR Fig. 4-1 Unloading of Coal at the Hadera Coal Port BACKGROUND Coal is the principal fuel in the oil and to increase fuel diversity. Since its introduction, the use of Israeli electricity generating The choice of coal was based, coal has increased steadily system: during 1992, approximately mainly, on three factors: (Fig.4-2), especially in electricity f'.5 million tons of coal generated production. 60% of the annual electricity 1. Cost production. In 1993, coal Coal prices are competitive with Industrial use of coal is presently consumption is likely to increase by fuel oil prices. carried out in four plants that have 5%. The value of the coal imports converted to coal, including the two to Israel during 1992 and the 2. Reliability cement factories in Ramla and expected value for 1993 are US a. World coal reserves are abundant Hartuv, which are among the $250 million and $230 million, and larger than those of oil; largest energy consumers in Israeli respectively. Israel imports coal b. Coal-exporting countries are, in industry. The limited conversion to from a number of sources (Table general, friendly to Israel. coal is due to the relatively low oil 4-1) and aspires to increase its coal prices, and the substantial suppliers list. 3. Environment investment required to convert The sulfur content of the coal existing plants to coal-burning. Coal was added to the national available to Israel is lower than energy basket in the early eighties that in most of the imported crude Nevertheless, in spite of the in order to reduce dependence on oil. currently low oil prices, the 29 Fig. 4-2 Import of Coal to Israel 1981-1992 At present, the NCSC is the exclusive supplier to the Israel Klectric Corporation (IHC) by virtue of long-term agreements between these companies. The I EC as the dominant consumer, is involved, in effect, in approving new supply sources through the quality acceptance tests for the coal that it purchases. The status of the I EC" and its agreements with the NCSC make the Israel coal market effectively a closed one. Nevertheless, industrial coal consumers are free to acquire I'ISO their supplies from the NCSC or from any other authorized supplier. Import licences are granted on the Ministry of Energy and procurement, transport and storage. basis of the supplier's business Infrastructure expects an increasing This company also sponsors reliability and his compliance with trend in the use of coal in electricity coal-related R&D and promotes environmental standards. production (Table 4-2). and is conversion to coal. encouraging a similar trend in The NCSC provides incentives for industry, especially in large plants. The Ministry's role in the coal the conversion to coal in the This is due to the intrinsic sector consists of setting guidelines industrial sector by guaranteeing instability in the oil markets, as for the NCSC activities, granting the long-term supply of coal at a well as (he long-term price trends. coal import licences, and fixed price differential lower than supervising the prices of coal and that of the alternative fuel oil. This services supplied by the NCSC. In STRUCTURE OF THE is aimed at reducing uncertainties addition, it determines the inherent in the initial investment in COAL SECTOR minimum inventory level for coal burning equipment. At present, the coal system revolves electricity production and around the National Coal Supply coordinates the administrative Corp.(NCSC). a company owned aspects of coal use, including MARITIME TRANSPORT jointly by the Government (74r/f) foreign trade, overseas transport, and the Israel Electric Corporation emergency supplies, environmental (267,). The NCSC deals with all control and economic infrastructure The NCSC. with its two chartered aspects of coal supply, including planning. ships and two contracts of afreightment, handles the transport of coal to Israel at a volume of approximately 5.5 million metric TABLE 4-1 - COAL SUPPLIERS TO ISRAEL tons per year: when necessary, the NCSC charters additional ships. Source Percent of Imported Coal S. Africa 55-60 The long-term charters are for: Colombia 10-18 Australia 5-10 " Hadera" - Deadweight: 166.000 tons U.S.A. 10-20 "Leon"- Deadweight: 129.000 Others 5 tons HANDLING AND 'iii. 4-3 Coal Storage at the Rutenberjj Power Station STORAGE The largest coal users in Israel are the two IEC coal-fired power plants: "Maor David" in Hadcra and "Rutenberg" in Ashkelon. The handling and storage infrastructure is closely interconnected with these two power stations. The Hadera Port and the "Maor David" Power Station The 14(K) MW Hadera power station consumes approximately IO.(KK) tons of coal daily. The coal arrives at the Hadera Port, adjacent to the power station, in large bulk carriers. The ships are docked at the north end of the off- loading jetty, built some two kilometers from the The "Rutenberg" Power from Pier 9 to NCSCs coal terminal. shore. Station and the Coal The jetty, which can handle ships of System at Ashdod 3. The coal terminal - covers up to 175,000 tons deadweight, has The 1100 MW Rutenberg plant, approximately 300,000 square two massive cranes that unload the Israel's newest power station, meters, 200,000 of which are used coal from the ships' holds and then consumes approximately 8.(KK) tons for storage; the maximum storage place it on a covered conveyor belt of coal daily. The coal destined for capacity at the site is 680,000 tons. which carries it along a 1.700 meter this station is supplied by the bridge to the coal storage area in the Ashdod Coal System. 4. A railroad spur connects the coal power station yard. The jetty, which terminal and the power station, a is 3(X) meters long, is the only one The coal system includes: distance of 38 km. Israel Railways of its kind in the world. has acquired special wagons and 1. Pier No. 9, at the Port of Ashdod. locomotives for the transport of So far, Hadera has proven to be a where the coal is unloaded. the coal. safe port with a safe berth, with only minimal delays resulting from 2. An enclosed conveyor belt of 3.5 The complex, including its inclement weather. kilometers length carries the coal unloading, handling and storage TABLE 4~2 -ii-i ••:•; '^-:' •v^:;;;S?;.i.•?•':•<•; ':i:3:':-s%: Year 199C/7 2M1/2 Electricity 8.0 11.0 Industry 0.5 0.5 Total 8.5 11.5 facilities, is among the most Some of the constituents in this ash advanced of its type. (Table 4-3) may be toxic and must be prevented from contaminating The terminal has built-in provisions the groundwater. Thus, coal ash to minimize environmental effects; must be utilized or disposed of in an the foundation of the terminal environmentally-safe manner. Constituent Percentage includes a sealing and drainage system which prevents any seepage In Israel, until recently, ash was SiQ2 38-44 that could pollute groundwater. produced mainly at "Maor David", AI2Q3 32-36 A computerized system of "water and was used extensively by the FB2Q3 45-55 cannons" installed at the site sprays cement industry and by the power the coal whenever the need arises, plant for building a ramp around the CaO 10-13.8 thus insuring minimization of facility. The remaining unused ash MgO 1.8-15 fugitive coal dust. was dumped at sea, under Na2O 0.3-05 controlled conditions. K2O 0.1-05 FUTURE The handling of coal ash is a SO3 2-4 DEVELOPMENTS problem facing all producers of Further developments in the coal-fired power. During 1992, a handling and storage infrastructure Coal Ash Board has been are coordinated with the expansion established by the Ministries of Concrete blocks Energy and Infrastructure, the of coal fired capacity at Maor Coal ash aggregates can be used in Environment and the Interior. This David and Rutenberg (see Chap. 5). concrete blocks. It has been shown board coordinates the efforts to find The Hadera Coal Port, in its present that these blocks are lighter than and apply solutions to the ash configuration, can handle the conventional ones, yet with problem. The following sections increased demand in coal for the comparable strength. Maor David plant. However, the describe some possible utilization present infrastructure of the coal of ash as well as results of system at Ashdod is not adequate controlled disposal at sea. Agriculture for Project C (see Chap. 5) at Recent developments in intensive Rutenberg. The Government is agricultural technology include the presently considering various use of isolated growth beds in alternatives for a coal supply Utilization of coal ash greenhouses. These beds are system to Rutenberg: usually made of compost and inert In addition to the above-mentioned inorganic material such as an * Expansion of the Ashdod coal uses in the cement industry and the aerated basaltic stone (tuff)- Coal system. construction of the ramp, other ash has successfully replaced the applications are also examined. expensive tuff as an inorganic * A coal port, similar to the Hadera component. port, adjacent to the Rutenberg These include: plant Miscellaneous Additional uses for coal ash such as Artificial aggregates construction of artificial islands and COAL ASH extraction of precious metals are Approximately 12% of the initial The IEC is studying the production also being studied. amount of the burned coal remains of artificial lightweight aggregates as ash. Presently, about 700,000 in a technology that interacts the tons of coal ash are produced ash with lime. The final product has Controlled disposal of annually; however, the excellent insulation properties. commissioning of two new coal- A manufacturing facility for coal ash at sea fired units at "Maor David" (see lightweight aggregates is planned to In 1989 the IEC began to dispose of Chap. 5) will increase the ash begin operation during 1995. This coal ash from "Maor David" at a production to approximately one plant will consume approximately deep water (ca. J500 m.) site in the million tons annually. 150,000 tons of ash annually. eastern Mediterranean. The site (ca. 200 sq. km) is located dumping operations were carried bottom dwelling organisms at the beyond the continental slope about out and closely monitored. The dumping sile (including deep sea 70 km off the Israeli coastline. conclusion from these experiments sharks) did not differ from the Until the end of 1992. about one was that indeed the ash descends natural levels in these organisms. million tons were dumped at sea. rapidly to the hoUom. and therefore and since September 1993 ash from no harmful effects on the water * The ash causes severe "Rutenberg" is also disposed of at column and contamination of wide impoverishment of the the same site. The disposal areas outside of (he dumping site communities of organisms operations are carried out in should be expected. inhabiting the sea bed of the site. coordination with the This effect is confined to the area environmental protection A baseline survey was carried out of the dumping site. authorities and under the prior to the dumping operation. supervision and monitoring of the Since the dumping commenced, the Israel Oceanography and site is being monitored annually. Monitoring of the dumping site will Limnological Research Institute. The findings so far indicate that: continue for a few years in order to detect any possible long-term As a precondition for issuing the * The ash remains confined to the environmental consequences. dumping permit, it was necessary to dumping site. The thickness of the Parallel to waste disposal at sea, demonstrate that when disposed at ash layer does not exceed 1 cm. action is also underway to licence sea. coal ash sinks rapidly to the sea and construct an inland dumping bed and does not remain suspended * Leaching of some trace metal to site near Hadera. It is planned to for a long period in the water. For the environment was evident. build a recreational park on top of that purpose, two experimental * The levels of trace metals in the disposed ash. A/;1. 4-4 Stack-KccliiimiT at the Ashdod Coal Terminal I - \ 33 5. THE ELECTRICITY SECTOR BACKGROUND countries. Thus, it must be self- DEMAND FOR sufficient and independent of ELECTRICITY The electricity system in Israel is across-the-border backup or aid in operated by the Israel Electric cases of sudden system The 1992 electric energy flow chart Corporation (IEC), a Government- malfunctions. One of the major is shown in Fig. 5-3. owned company, which supplies cooperative projects, proposed by Electricity consumption during over 99% of the consumption. At Israel in the peace talks, is the link- 1992 totaled 24.000 million kWh1- present, the IEC has the exclusive up of the Israeli and the an increase of \5.2c/c from 1991. right to generate, transmit and sell neighboring grids (see Chap. 2). The consumption forecast for 1993 electricity in Israel. This concession is estimated as 25.200 million kWh. expires on 1996 and the MOEI is The total installed capacity of the Fig. 5-4 shows electricity devising a new structure for the generating system reached 5835 consumption during 1982-1992. electricity sector, as is detailed in MW in December 1992 (Fig. 5-2). Compared to 1991. the the next section. and grew to 6115 MW in consumption of electricity September 1993:4710 MW in increased in all sectors. The largest Israel's electricity generation and steam power plants, 870 MW in increase was registered in supply system is, at present, industrial gas-turbines and 535 MW household consumption, due to the isolated from the neighboring in jet gas-turbines. increase in the usage of air Fig. 5-1 The Maor-David Power Station • a View from the Coal Jetty On the left: the new 1100 MW generation facility (Project B (, under construction 1. Including private producers' generation of power for their own use. •'/(,'. 5-2 Installed Capacity (MW) and Production (million kWh), 1992 Maor 9051 David Eshkol 5030 1206 Rutenberg 5437 1100 Reading 1806 528 Installed capacity at the I end of 1992: 5.835 MW Haifa 2009 426 Total production in 1992: 24.020 million kWh Jet-gas 174 turbines 535 Industrial 513 gas-turbines 640 07r 20c/c 40% fit,'. 5-3 Electric Energy Flow Chart (million kWh), 1992 Low Voltage Fuel Oil Consumption Gross Production Sales to Consumption 2263 Thousand Tons 24,020 Consumers 13,167 = 25,154 Million kWh 21,821 Coal Consumption Purchases 4945 Thousand Tons 62 High Voltage * 36,352 Million kWh Consumption 6,714 Gas Oil Consumption Thermal 208 Thousand Tons Losses Extra High = 2419 Million kWh 39,905 Voltage 1,940 Own Use and Losses in Distribution 2,261 conditioning and of other INDEPENDENT POWER * 10M W and larger plants are appliances. These trends are required to have a minimal expected to continue through 1993. PRODUCERS capacity factor of .85 at on-peak The Government encourages periods. electricity generation by Demand for electricity peaked at independent producers. Under a * The contracts are valid for a 5,010 MW in December 1992, an new agreement between the MOEI period of 20 years, and will remain increase of 10.3% from the and the IEC, the latter is required to in effect during the post-1996 era. previous year (4540 MW). Fig. 5-5 buy electricity generated by an IPP Changes in a contract must be presents peak demand curves for subject to following rules: agreed upon by all sides. 1982-1992. * The tariff base is 5 US cents per * The above rules are applicable for Table 5-1 presents transmission and kWh. The actual tariff varies with the first 750M W of independent distribution systems data. It the time of use and the season. power production capacity. indicates that compared to 1991, the electricity delivery infrastructure * The tariff base is linked to the fuel These new rules have already has expanded. prices (33.3%) and to the average stimulated interest among potential consumer price for electricity IPPs. Applications submitted so far Annual supply interruptions during (66.7%). have a total capacity of 1991 were 600 minutes per approximately 1100 MW. customer - down from 900 minutes * The IEC will buy all electricity in 1987. This improvement trend is produced by a power plant of expected to continue further due to 10MW or less. For larger plants, ELECTRICITY PRICES massive investments (about US the IEC central dispatch, in Electricity price levels are $ 1.5 billion during the next decade) coordination with the IPP, will controlled by the Government. in the transmission and distribution determine whether the electricity Since June 1992, the updating of structure. Typical annual values in will be acquired. In any case, the the electricity tariffs has been developed countries are around 100 producer will be reimbursed for carried out according to a new minutes per customer. fixed expenses. formula which takes into account, Fig. 5-4 Electricity Consumption by Sectors, 1982 - 1992 MM i—-_ Million kWh mM M 7000 ^ • 6000 ^^H •P M 5000 ^^HHi • *—M 4000 • "**—-M 3000 ^^*^»B 2000 ^fe»S 1000 Industriall^H" C^^^^^^^^^IH Residential ''''-^^^^^^^^^B ^^Jp o Public & Commercial ' C^^^^fl Water Pumping /^^ 1988 Agricultural J^^1986 •1982 TABLE 5-1 • IEC TRANSMISSION AND DISTRIBUTION SYSTEM D*fA'/tSSB Annul Transmission System 1992 1991 Percent change E.H.V.*(km) 2,285 2,271 +0.6 E.H.V circuits (km) 3,596 3,583 +0.4 No. of sub-stations 102 97 +12.3 Sub-stations' capacity (MVA) 9,611 8,560 +12.3 Distribution System H.V.** Network (km) 14,079 13,351 +5.4 No. of distribution transformers 22,582 20,973 +7.7 Distribution transformers' capacity (MVA) 8,822 7,888 +11.8 * E.H.V: Ema High VOIULV •*H.V. : High Vuliage among additional factors, the it includes all extra-high and high when power is costly - to off-peak frequent updates in fuel prices. This voltage consumers, as well as some hours when it costs less. formula ensures both profitability major low voltage consumers. The for the Israel Electric Corporation tariff obligates consumers to bear and fair tariffs to the consumers. more of the real cost of generating The Ministry of Energy and their electricity - a cost which Infrastructure encourages the IEC The "Time-of-Use" (TOU) tariff, depends on when the electricity is to examine and enact a system of which is based on marginal costs, consumed. The consumer is thus mixed differential tariffs, which currently applies to approximately encouraged to shift his will be based on supply reliability half of the electricity consumption: consumption from peak hours - requirements. Fig. 5-5 Peak Demand Curves, 1982 -1992 NEW GUIDELINES FOR competition while balancing (he Large energy consumers wiH be THE ELECTRICITY interests of the consumers, the able to acquire electricity directly producers and the State. from the producers and the SECTOR transmission and distribution IEC's exclusive concession expires These recommendations were company will be required to on March 4, 1996. A Government - adopted and an additional transmit the energy as a common appointed committee (the "Vardi" government-appointed task group is carrier. Committee) examined this currently formulating operational C - Competition at the retail level: concession. Following are the rules for the post-1996 era based on the distribution system will be principal recommendations of the these recommendations. These divided into independent committee: rules will determine the terms for regional distribution companies generating, transmitting and selling that will buy electricity bused on * Replacement of the present electricity, the pricing policy and free market competition. The concession with a system of the supervision mechanisms. transmission company will separate licenses for the various manage the power dispatch and branches of this sector. Licenses The following alternatives for the the power pool, and will act as a will be granted by a supervision structure of the electricity system common carrier. This company and licensing directorship. are being considered (Fig. 5-6): will prepare demand forecasts and long range development * Expanding the scope of A - Similar to the present structure plans for the system. In this Independent Power Producers (IPP) by which the sector remains alternative, supervision will be in order to stimulate competition vertically integrated and IPPs limited to determination of and efficiency. will sell their electricity to the IEC. transmission tariffs and B- Creation of a government- overseeing the quality of services. * Establishment of a public services controlled transmission and authority for electricity matters distribution company. This In principle, all alternatives are which will oversee the electricity company will acquire the appropriate to Israel's electricity tariffs and the quality of services electricity from the generation sector. The preferred option is a rendered to the consumers in a company and the independent scheduled evolvement towards manner that will enhance producers on a competitive basis. alternative C. Fig. 5-6 Schematic Structural Alternatives for the Post-1996 Electricity System Competition Level Alternative C Alternative B Retail Level Competition Alternative A Wholesale Level Competition D G-Generation T - Transmission No D - Distribution Competition D Time Fiji. 5-7 Installed Power-Generating Capacity (MW) as Compared with Peak Demand, 1993-2015 McgaW'atis _ — __ — - &c ^ ^ — i IlKHXI Load Peak Demand 1 8000 6MX) 4000 2U(K) — — _ - I DEVELOPMENTS consequences: first, a reduction, in electricity system depends on real terms, of electricity prices; and forecasts of electricity demand. DURING THE LAST second, an improvement in air These, in turn, are based on DECADE quality, especially in the predicted natural growth, economic municipalities neighboring During this period, two large power development and immigration. oil-burning power stations (see stations were incorporated into the Chap. 9). electricity production system: the The basic scenario for installed Maor David (Hadera) station - 1400 capacity compared to peak demand MW in four units, and the Since 1989 eight 100-120MWgas for 1993-2015 is shown in Fig. 5-7. Rutenberg (Ashkelon) station - turbines have been installed. This Plans call for an increase in 1100 MW in two units. Following a was in response to the unforecasted installed capacity by at least 3,700 Government resolution aimed at increase in demand. These turbines MW during the next decade. These reducing dependence on fuel oil. have provided increased production plans include the following these stations are dual-purpose (i.e.. capacity and have improved installations: can use either coal or fuel oil). flexibility to accommodate the large load variations. * Two 1100 MW power stations, the However, economic considerations same type as the Rutenberg power are in favor of coal use. These station: stations bring the coal-fired ELECTRICITY installed capacity to 41.79c of the GENERATION AND Project B - consisting of two total capacity and have increased coal-fired 550 MW units, the fraction of electricity produced SUPPLY - THE FUTURE currently under construction at the from coal to over 609c. One of the Ministry's most Maor David site at Hadera and important tasks is to ensure that scheduled for operation in 1996-7. The extensive use of coal, and the Israel's power-generating system subsequent reduction in fuel oil will be able to meet the future Project C - two similar units will consumption in electricity demand for electricity. be built towards the end of die generation had two major Planning the development of the decade at the Rutenberg site. 39 * Seven pairs of gas turbines, * An 80 MW oil shale-fired power demand hours. totaling approximately 1,000 MW. plant at Mishor Rotem. in the Parsa was also selected in the past at various locations throughout the Negev. The project is envisaged to as the preferred site for a country. be operational in the late 90"s. hydroelectric plant which will utilize the water height difference * Conversion of two existing * An 800 MW pumped storage between the Mediterranean and industrial gas turbines to a facility at Parsa in the Dead Sea the Dead Sea. A pumped storage combined cycle unit by adding an region. This technology will facility at this site could, at a later unfired boiler. increase the flexibility and stage, be coupled to the reliability of the generating system Mediterranean-Dead Sea In addition, the following by storing energy produced during installation. innovative projects are also being off-peak hours (when electricity is considered: cheap) and using it during peak * A 300 MW compressed air energy storage facility near the Dead Sea Works site. \ The IEC is also involved in several wind and solar demonstration projects: * Windfarm: A 5x300 kW wind - farm will be developed at Yodfat. in the lower Galilee. * A 5 kWe grid connected photo-voltaic system, will be installed in a home at Mitzpe-Adi. in the Lower Galilee. The system is designed to supply most of the daytime electrical demand of the house. Surplus production will be delivered to the grid, while additional demand will be suppiiec by the grid. * A Brayton cycle system for solar electric power generating was constructed at the Solar Tower of the Weizmann Institute of Science The project is carried out in cooperation with Ormat Turbines Co. and the Weizmann Institute. A modified (aero-engine) gas turbine was integrated with the solar tower system, comprised of: heliostat field and a ceramic centn receiver to drive an induction motor. Maximum capacity of aboi Fig. 5-K Repair of Tree-Damaged Transmission Lines Following a Snow 100 kWe, is delivered to the local Storm in the Jerusalem Mountains grid. In addition to increasing production The Government, in coordination The IEC plans for reducing energy capacity, the IEC plans to complete with the IEC. is examining the related environmental effects are the 400 KV transmission system possibility of using natural gas and extensively described in Chap. 9. from the Mishor Rotem site in the synthetic fuels for electricity south to Hukuk in the north. generation in gas turbines and in The expected expenditures during oil-fired power plants. Natural gas the coming decade for expansion The number of major 400/161 K V is the most environmentally - are about US$10 billion allocated substations will be increased from acceptable fossil fuel; its to generation and transmission. two (Zafit and Petach-Tikva) to ten introduction will reduce This budget is strongly affected by (Caesearea. Gan Sorek. Haifa Bay. energy-related pollution and population growth. These plans are Ramat Hovav. Even-Sapir. Ganot. increase diversity of fuel resources under continual review considering Hukuk and Mishor Rotem) in the electricity generation system. the actual growth of new customers and demand. Power Line Insulator Washer An Israeli R&D company has developed an airborne insulator washing system, mounted on a helicopter. The system, which is designed to clean insulators on high-voltage power lines, is based on a high pressure hose, housed in the 10-meter boom. The boom can be pivoted or folded, as required. 41 6. OIL AND GAS EXPLORATION BACKGROUND an additional 82 were relatively Ashdod and Notera gas fields. From shallow - less than 1000 meters in an economic point of view these Israel consumes approximately depth. discoveries are small: still, they 175.000 barrels of crude oil daily, prove that oil and gas can be found but supplies only 540 barrels of this The fruits of these explorations are in Israel. Expert opinions differ as from its own resources. The Heletz-Brur-Kokhav. Ashdod and to the size of the reserves, but agree Government encourages oil and Gurim oil fields as well as the that both inland and off-shore gas exploration in the framework of offshore "Jurassic oil province" explorations should continue. its policy to reduce dependence on discovered in a structure north-west imported oil. of Ashdod. The latter discovery is Present exploration efforts undergoing examinations in order concentrate on three major Oil exploration in Israel began in to determine whether exploitation is directions: 1953. Since then. 399 bore-holes feasible. Natural gas was have been drilled: of these. 217 discovered and is exploited at the a. "Petroleum traps" within old and were development boreholes, and Zohar-Kidod-Kannaim. Shiqma. deep buried structures, along the internal Shfela (the coastal plain oflsrael) like the Bessor area in the south and the Modiyin and Rosh Ha-Ayin areas in Che central part of Israel. The first boreholes are planned for the end of 1993. b. Salt covered "petroleum traps" in the Dead Sea Basin. The first deep borehole is presently being drilled. \ c. "Petroleum traps" within old and young structures offshore, in the continental shelf. The next borehole drillings are planned for the end of 1993 and the beginning of 1994. That, in addition to other oil explorations throughout the country from the Agur. Makhtesh Gadol and Arad areas in the Negev. through Heletz and Gan Yavne areas in the south. Netanya. Nahal Taninim and Bet Shean areas in the center to the Golan Heights in the north. Since 1975. $393 million have been invested in oil and gas exploration, including about SI39 million in Fin. 6-1 Oil Production at Heletz state funding, about $59 million from the Israel National Oil Natural Gas * The Institute for Petroleum Company's own resources, and Research and Geophysics, which about $196 million by private Regular production of natural gas carries out geophysical surveys investors, joint ventures, and public during 1992 from the Zohar- and seismological studies, companies. Of this sum. about $90 Kidod-Kannaim, Shiqma and provides also data acquisition and million were invested in Ashdod fields totaled about 0.8 processing services and maintains geophysical and geological surveys billion cubic feet of gas. This the Israel geophysical data bank and infrastructure studies, and the production rate will be maintained for the Government. This data- remainder in drilling. during 1993. Over the years, these bank consists of geophysical data fields produced 68 billion which has been obtained in past The contribution of private investor cubic-feet of natural gas. explorations. limited partnerships have become more pronounced in recent years Total 1992 production, including * The Geological Survey provides and it appears that in the future both crude oil and the equivalent geological mapping and other these partnerships will carry the calorific value of natural gas. was related services and maintains main load of the oil explorations in 207,000 barrels. The 1993 forecast Israel's geological databank. Israel. is estimated at 200.000 barrels. The Tel-Aviv Stock Exchange lists In 1992. four boreholes were Naphta. the Israel Petroleum Co.. drilled penetrating about 9.800 and M.G.N. - Oil and Gas meters of rock sequence. One was a GOVERNMENT Resources, as well as Naphta* s and development well, drilled in order INVOLVEMENT the Israel National Oil Co.'s to check potential gas limited partnership. • accumulations and is still under The Ministry of Energy and \ production tests. The remaining Infrastructure policy is to [ three were wild-cats, one encourage private sector LICENSING AND I abandoned as a dry hole with many exploration, either in the form of oil shows, one with uncompleted independent license operators or EXPLORATION tests, and the last one is still being through privatization of the The areas designated for oil drilled. During 1993, four new Government-owned companies. exploration in Israel total 33.000 boreholes are being drilled and an The Government's role will be km2, of which 29,000 are on land additional one will be completed, limited to provision of the relevant and the rest are off-shore. There are penetrating a total of about 6500 data. Geological and geophysical additional off-shore areas, but due meters. data which have been obtained from to technological limitations, they the licences as a requirement in the will not be considered for Petroleum Law, as well as from exploration in the next few years. In Government support for this sector, 1992.22 preliminary permits, PRODUCTION are available to investors. The data licenses and leases were issued for from the licensed areas are made oil exploration and production. available only after the petroleum rights for these areas have expired. The area currently authorized for Oil exploration (Fig. 6-3) is about Modest but regular oil production Infrastructure services in this sector 10,400 km2 (of which about 3600 continues at the Heletz, Brur, are provided by Government - km" are off-shore), representing Kokhav and Ashdod fields. owned companies: about 32% of the total area suitable Production in 1992 totaled about for oil exploration. 67,000 barrels of oil and the * Companies which provide drilling, forecast for 1993 is approximately cementing and logging services: Exploration and production of oil 62,000 barrels. Over the years, Massada, The United Oil Drilling and gas in Israel requires a these fields have yielded over 17 Co., and Lapidoth, Israel Oil licensing procedure which is million barrels. Prospectors. defined in the Israel Petroleum Law. 43 The law provides for the following petroleum rights: * A preliminary permit - must be obtained prior to performing the preliminary oil exploration work which precedes test drilling. The recipient of a permit is entitled to request a priority right which guarantees a license for drilling should he so desire on the basis of his findings, provided he has satisfactorily carried out the exploration work specified in the permit. * A license - must be obtained prior to drilling any boreholes. The license expires after three years, but can be extended up to seven years. * A lease - is granted to the license-holder, after oil has been discovered in commercial quantities, for a period of thirty years and a possible extension of additional twenty years. The lease-holder is entitled to produce and market the oil. with the Government having the first call upon him to supply Israel's needs at world prices. The lease-holder is liable for a royalty of 12.5% of the oil produced and saved from the leased area, excluding the quantity used in operating the leased site. Oil exploration and production enjoy a status which entitles the operators in this field to tax privileges. / ;>. 6-2 Oil Drilling Near the Dead Sea - the deepest borehole drilled in Israel. 10 dale '/;'.'»-.» Map of Amis l.itt-nsfcl for Oil I-Aplomlmn und I'rodudion (;i». HCAUIIUM I7ili. Preliminary Permit License Lease 45 7. RESEARCH, DEVELOPMENT AND DEMONSTRATION BACKGROUND Israel's R&D activities in the b. Reduction of the risks, both The Ministry's support is granted to energy field are aimed at reducing strategic and economic, associated research projects which can dependence on imported energy with reliance on imported fuels. potentially contribute to Israel's resources, and at increasing the energy market and its policy goals, contribution of the energy sector to c. Optimal utilization of indigenous as well as for basic research in the the national economy. Within this energy resources. energy sciences. framework, the R&D policy goals are: d. Establishment of a scientific The R&D budget during 1992 a. Minimization of the total energy infrastructure for the energy totaled US $7.3 million in activities costs, from the viewpoint of the sciences. spanning the fields of oil shale, national economy. solar energy, energy in buildings, wind energy, energy in agriculture as well as basic research. The allocated budget for 1993 is US $5.4 million. The following sections present some highlights of these activities*. This is not. of course, a complete listing of all the energy-related research in Israel, but may reflect the scope and diversity of such research. WIND ENERGY Israel's usable wind energy potential is estimated at approximately 600MW. Consequently, it is considered as a potentially important indigenous resource, and efforts are underway to tap it with the Ministry's support. Wind energy surveys have identified sites especially in the Fig. 7-1 Golan Heights and the Upper The Floda 600 Galilee with high wind energy Wind Turbine potential. * Comprehensive descriptions of all projects are given in the MOEI publication: "Summary Reports of R&D. Demonstration and Energy Conservation Projects". March 1993. Aft Fif>. 7-2 Layout of (he Tel-Assania Windf arm WIND MEASUREMENT POLE WIND TURBINE The farm is owned and operated by Government Support potential sites are reserved for wind a private enterprise. Mei Golan The Government supports the energy utilization. Wind Energy Ltd. In accordance development of windfarms in the with Government policy which Ministry assistance following forms: encourages introduction of new and The Ministry provides relevant renewable energy technologies, the wind data, where available. Financial Tel-Assania project received a A grant of up to 3()9f of the initial demonstration grant of 30^5- of the investment to approved projects. installation costs. The electricity The First Windfarm produced at the site is sold to the Marketing Israel Electric Corporation. Under an agreement between the in Israel Ministry of Energy and Infrastructure and Israel Electric The first windfarm has been The Turbine Corporation, the latter is required to recently commissioned at Tel - The Floda 600 is a new turbine buy electricity produced from Assania in the Golan Heights (1050 (Fig. 7-1 >. developed by Pehr Wind independent power producers. The meters above sea level). The farm Technology and certified in terms of this agreement are outlined consists of ten Floda 600 wind November 1989 (turbine in Chap. 5. turbines placed in one row. at characteristics are presented in approximately 80 meter intervals Table 7-1). The turbine underwent Windfarnt licensing (Fig. 7-2). The turbines are rated at operational testing in Tehachapi, The Ministry has launched a unique 600kW each, and the expected California. The Tel-Assania project program to encourage potential annual electricity production of the is, at present, the largest cluster of developers pre-licensing of farm is estimated at 16,000 MWh. these machines anywhere. potential windfarm sites, thus The farm installation was preceded freeing the developers to by extensive wind measurements, The turbine operates at variable concentrate on windfarm which indicated an average annual speed - a different concept than that development and construction. This wind speed of 8.2 m/s at the site. used in most wind turbines on the procedure also ensures that market today (which operate at a 47 A WIND TURBINE at a fixed speed in high wind speeds and gusty conditions. Thus, TABLE 7-L Floda 600 DmU MANUFACTURING gust loading of the machine is 600kW FACILITY IN ISRAEL absorbed by fast pitching of the Rated Power An Israeli entrepreneurial rotor blades and temporary Rotor company has acquired the acceleration of the rotor, reducing technology and the stress levels and fatigue. no. of blades manufacturing infrastructure of the Floda 600 and is transferring Lower Noise Characteristics: i diameter 36 meters it toKiryat Shmona in the Especially in light wind northern Galilee (not far from conditions, when background control system variable speed Tel-Assania). noise is lowest. rotational speed 20-42 rpm Kiryat Shmona is classified as a "development zone", a status The development and glassfiber which qualifies the investors to a commissioning process \ blade material reinforced 38% government grant. This epoxy move also puts the In addition to its excellent wind manufacturing facility in a energy potential, the Tel-Assania 1 mass of blade 1200 kg region rich in wind energy which site was selected due to its accommodating topography (only i cut-off wind can be utilized for testing, 30m/sec demonstration and windfarm minimal civil works were required) | speed installation of these machines. and proximity to the high-voltage grid. survival wind 67m/sec The main product of the new j speed facility will be an improved This project, which spearheads the version of the Floda 600. The Israeli wind energy program, ran | Tower improvements include longer into a series of problems, from type steel tubular blades (22 meters instead of 18) inception and up to full operation. and a new control system that incorporates variable speed height 30 meters Construction started during 1991 operation but does not require a Generator full two-step power conversion. and by the end of 1992 the electricity production began. The plant will employ synchronous approximately 50 workers and Shortly after that, however, operations had to be suspended with self- will produce about 50 turbines type annually. following transmission excitation interruptions in the grid and a system mechanical failure of a blade The plant is expected to begin bearing (unrelated). These 660V manufacturing early in 1994. rated voltage shortcomings were corrected as atSOcps follows: fixed speed). It has several Transmission interruptions irregularities to 3% of die total principal advantages: Electricity generation by a variable power. In practice, the irregularities speed turbine involves rectifying induced by the turbines were about * Greater Energy Capture: The the variable AC voltage produced 11 %. This high value was due to the variable speed turbine operates by the turbine and then converting conversion process as well as to the efficiently at rated as well as at it into stable, grid-quality AC remoteness of the windfarm from low wind speeds, which usually power. The two-step conversion the major power plants and to the comprise a large fraction of wind process induces voltage weakness of the grid in this region. energy at a site. irregularities which are, in effect, This problem was solved electrical power in the higher by installing an electronic filtering * Reduced Stress Levels: The harmonics of the AC frequency. system which reduces the turbine is not constrained to rotate The utility standards limit these interruptions to a satisfactory level. Bearing failure Fig. 7-3 Global Horizontal Illuminance (KLUX) The reason for the breakdown was (Excluding March) identified as a manufacturing (law. (Monthly Averages) Consequently, all 30 bearings in the 10 turbines were replaced, and the attachment method of the bearings to the rotor hub was modified. Following these corrective measures, the windfarm was recommissioned in August 1993 and has been in full operation since. ENERGY IN BUILDINGS The rate of energy consumption in buildings is on the rise, due to the steady increase in the standard of living and to the recent immigraiion JAN. APR. wave. The Ministry of Energy and JUN. Infrastructure supports research on HOUR the efficient use of energy in buildings. Two examples of such projects are described below. Daylight Illuminances in Israel - Measurement and The measurement project is part of computed. In addition - global, a Design Guide the International Daylight diffuse and direct solar irradiances Daylight illuminances in Israel are Measurement Program (IDMP). are measured simultaneously at the high, and appropriate daylighting which is being carried out by the same site. The illuminance and architecture can provide visual Commission Internationale de irradiance data are used to calculate comfort as well as energy TEclairage (CIE) - an international the hourly values of the luminous efficiency. However, until recently commission which determines efficacy of solar radiation (lm/watt) no daylight availability data, based (among other activities) lighting and of the turbidity for the visual on measurement, existed for Israel standards - and the World and total spectrum. (or for the eastern Mediterranean in Meteorological Organization general). A joint project for the (WMO). The measurement station measurement of daylight is located at the Meteorological The measurements started in availability is being carried out by Center at Bet Dagan, 10 km east of September 1991, and are being researchers of the Faculty of the Mediterranean coast and SO continued for the third consecutive Architecture and Town Planning at meters above sea level. Two year. Fig 7-3 is a typical example of the Technion and the Israel high-accuracy photometers illuminance data obtained so far. It Meteorological Service. This measure global and diffuse is estimated that a statistically project is supported by the MOEI, illuminance, and the horizontal as reliable database requires 10 years and the database will be used to well as normal illuminance is then of measurement. However, the data prepare a design guide on calculated. Measurements are obtained so far give valuable daylighting architecture of energy recorded every 10 seconds, and the guidance on the available daylight efficient buildings. average hourly values are illuminance. 49 Energy-Efficient A special emphasis was put through simulation. Upon completion and Technology Testing the design of the building on occupation of the building, it will allowing natural ventilation. Most be monitored. Monitoring results Apartment Building in of the major spaces of the will be analyzed and published later Jaffa apartments in the building enjoy on. wide openings in the windward direction, particularly the The Desert Architecture Unit of the north-north-western wind that is Ben-Gurion University of the common along the coastline in the SOLAR ENERGY Negev has been commissioned by afternoon hours of summer days. the MOEI to design and supervise the construction of an "Energy - An additional measure towards Israel is among the world leaders in Efficient Technology Testing" reducing the dependency on air development and utilization of solar apartment building in southern conditioning is the reintroduction of energy technology. Most homes use Jaffa. The Jaffa building will the ceiling fan, which during the solar water heaters. A 1980 utilize various energy-efficient warmer hours of the day will Government regulation mandates architectural techniques which will provide comfort cooling without installation of such heaters in new provide thermal comfort to the charging the structure with extra houses. dwellers with a minimal use of heat. An option which is being purchased energies. There will be considered is the installation of Solar energy R&D is carried out 24 apartments in the building mechanical dehydrators. that will mainly in two centers: the Solar arranged in clusters of 4 units per reduce the relative humidity inside Tower at the Weizmann Institute of floor in each of the 6 floors. the building's closed spaces. Science, and the Ben-Gurion Solar Further examination is now being Energy Research Center. This project will be carried out in performed to determine the type of At the 3MWt Solar Tower, the framework of a cooperation envelope and internal wall section advanced technologies are being agreement with the Department of that will result in the most efficient developed for high temperature Industry and Energy of Catalonia thermal behavior of the building: heat and electricity generation, (Spain), which is sponsoring the should it be a "light" structure, i.e., gasification of biomass, storage and design and construction of a similar one with a minimal heat capacity, transport of energy, solar powered building. or should it be able to store energy laser, etc. The first application and decrease the internal daily which was already proven viable is Jaffa is located at the center of the amplitude as much as possible? steam production for industrial use. coastal region of Israel. As such, the climatic difficulties it undergoes Thermal comfort in winter will be The Ben-Gurion Solar Energy are due mostly to summer achieved to a large degree by Research Center provides a testing discomfort, caused particularly by utilizing solar heating techniques. ground for an array of solar-thermal high relative humidity. The average Solar radiation, even in the coastal and photo-voltaic demonstration daily temperature range in summer region of Israel, is quite intense, facilities. AH facilities at die site are (August) is between 22°C and 2 reaching 3 kWh/m /day in monitored by a computerized 29°C, which is not far from the December. Because of the system which collects and compiles "comfort range". The relative requirements of the floor plan performance and solar radiation humidity, which ranges between layout (four units per floor, data. 65% and 75% in mid day, is maximum ventilation), solar energy therefore the most disturbing factor. cannot be utilized to its full The center also operates a visitors" The relatively modest daily potential: not all apartments will be center which promotes solar energy amplitude does not permit exposed to the sun for the effective utilization. significant structural cooling during six hours a day. Some the night, hence the widespread use supplementary heating will thus Israeli scientists and engineers have of air conditioning. Simulations run have to be provided by purchased designed the world's largest solar at the Desert Architecture Unit energy. power stations. Recently, a indicate that comfort ventilation concerted effort has been taking may be a major contribution place aimed at giving a second towards reducing the use of air The building is now in an advanced chance to thermo-solar power conditioning during the summer. stage of design and performance generation as described below. LUZ'S DIRECT STEAM Solar field The DSG Concept composed of line-focus, parabolic GENERATION Prior to its collapse. Luz was active trough collectors assembled into in the development of the Direct PIONEERING IDEAS units called Solar Collector The financial collapse of Luz. the Assemblies. Steam Generation (DSG) process as world's largest manufacturer and a replacement to the HTF oil operator of solar thermal power circulation method. This plants, was a setback for solar Heat transfer system replacement is expected to have the energy utilization. This collapse inside the heat collecting pipes is following benefits: had nothing to do with the Luz the Heat Transfer Fluid (HTF), a a. It will substitute the expensive technology. In fact. Luz"s demise synthetic oil which is heated by the and environmentally problematic occurred in the midst of intensive reflected solar radiation to (when leaks occur) HTF with the R&D activities towards the next approximately 390°C. treated water circulating in the generation of solar thermal power system. plants. The hot HTF is transported by pumps to a series of heat In addition. HTF is flammable, Following is an outline of some of exchangers where the thermal affected by aging, and due to its the pioneering ideas and the plans energy in the HTF heats water and high freezing temperature (13°C). for articulating them in future produces superheated steam. it must be heated during cool large-scale power generation nights to prevent freezing. systems. Supplemental natural gas or b. The heat exchangers will no oil-fired heaters longer be necessary as heat will be provide a source of thermal energy The Technology delivered directly to the steam. when solar insolation levels are The Luz technology is based on a This will improve heat transfer insufficient. This ensures that moderate pressure steam Rankine characteristics, steam quality, and system operation requirements of cycle which uses solar radiation as overall thermodynamic efficiency. the electric utility are met at all its primary energy source. Each of c. The improved steam quality at the times. the nine existing SEGS's (Solar outlet of the solar collector Energy Generating System) assemblies will reduce the consists of four major sub-systems Steam turbine and generator circulation requirements of the (Fig. 7-4): where electrical power is generated. solar field. Solar generated steam Solar field Fit-. 7-4 Schematic Diagram of a Thermo-Solar Energy Generating System 5/ On the other hand, DSG requires a a. Initial tests to determine the collecting pipelines is being high pressure piping system and a characteristics of the DSG process. executed at a limited number of sophisticated control system to Tilted collectors with a reduced points. manage the complications and diameter pipe (1 inch) have been instabilities typical to boiling heat tested. The water in the pipe was Successful tests may signal a new transfer processes and two-phase heated electrically in order to future to large scale thermo-solar flows. In addition, water treatment achieve maximum control of the plants. Continuation of DSG and quality control must be applied experiments. research and the construction of a to the entire solar field's huge large scale thermo solar power boiler and water system. b. Examination of the effects of plant are among the cooperative DSG on a reduced row composed projects being discussed in the of only two tilted collectors. The peace talks. The DSG R&D Program tests demonstrated stable operation of the DSG process in BIPOLAR LITHIUM Implementation of DSG requires steady state as well as in variable intensive R&D. The long-term conditions. COMPOSITE POLYMER R&D program, as conceived by ELECTROLYTE Luz, consisted of three phases, only II. Tests at the Sede Boker Solar BATTERIES FOR the first of which has been carried Research Center out. ELECTRIC CARS I. Tests at the "Jerusalem Loop" The Sede Boker facility (solar field area, 2800 m") is designed to Electric cars are one of the principle Laboratory-scale experiments were function as a demonstration plant solutions for reducing automotive carried out at the Jerusalem facility for the DSG technology as well as air pollution, especially in urban of Luz. These included: for intermediate scale tests. These areas. In California, for example, the Air Resources Board has tests are aimed at studying the c feasibility of the DSG process on a mandated that by 1998.2 k of the larger scale as well as its cars sold in the State be electric. By Total thickness 150 pm operational characteristics. 2003. this figure must be \Wk. The construction of the Sede Boker At present, the most serious facility was interrupted by Luz's drawback to a widespread use of shutdown and the test program was electric cars is battery technology. not carried out. Conventional lead-acid batteries have a specific energy of III. Tests on a full scale prototype approximately 40 watt-hour/kg, plant which limits their travel range considerably. Pending successful conclusion of Lithium phase II. In Israel, a team of researchers at Tel-Aviv University is developing a The Future of DSG new rechargable lithium battery for Composite Solid such vehicles. Each cell in the Electrolyte (CSE) The possible completion of the battery consists of thin foils of Or Composite Sede Boker test loop in a lithium anode, composite solid Polymer Electrolye Bipolar framework of international electrolyte or composite polymer cooperation is now under electrolyte and a composite FeSj consideration. Sole! Co. (which has (pyrite) cathode. The thickness of a Composite Cathode acquired the Luz technology) aims (Pynite) complete cell is approximately at validating the above-described 150-200 um (Fig. 7-5). The lithium steam generation concept as well as batteries are considered as one of Fig. 7-5 Bipolar Battery Cell another one, in which controlled the most promising candidates to Configuration injection of water into the heat power future electric cars. The present technology has several building blocks of matter - from the The new results emanating from advantages over other state-of-the- molecule to the atom, to the work at the LEP accelerator art polymer electrolyte batteries: nucleus, to the quark constituents of corroborate to a high degree of the proton and neutron. accuracy the predictions of the * The pyrite cathode is low cost and "Standard Model" which unifies, environmentally friendly (pyrite is Observation of these particles has for the first time, two seemingly a natural ore). revealed four different forces which different interactions - the control their behavior. It has been electromagnetic and the weak * Small prototype cells exhibited possible to deduce how some of the interaction (which is responsible for very high specific energy, forces operate and to realize that, radioactive decays). An inescapable projected to be 120 watt-hour/kg way back in time, the differences in consequence of this model is the and more than fifty IO()9f their behavior that are observed existence of a completely new type charge-discharge cycles. now did not then exist. of elementary particle named the Higgs-boson, which, by its * The present battery has an internal A number of particle accelerators interactions, provides the mass to electrochemical overcharge have been or are being built, of all known particles in the universe. protection mechanism, essential to which the largest in operation at electric car batteries. This feature this time is the 27 km is not present in other state-of- circumference underground collider Israeli Role in the the-art polymer electrolyte of electrons and positrons (LEP) at CERN-International Effort batteries. CERN (Centre European pour la Three Israeli institutions are part of Recherche Nucleaire) near Geneva a large collaboration involved in This research, which was sponsored (Fig. 7-6). The LEP accelerator, building and operating one of the by the MOEI. won the American which enables scientists to probe four big experiments at die LEP Electrochemical Society Award. ever deeper into matter, has already accelerator (OPAL). This provided definitive answers to experiment is being carried out by some of the most basic questions, 320 physicists, twenty of which are ISRAELI for example, determining the Israelis from the Weizmann number of fundamental particles PARTICIPATION IN Institute, Tel-Aviv University and (leptons and quarks), which was the Technion. And while the Israeli THE LARGEST found to be twelve. contribution to the experiment EUROPEAN amounts to only 2.5% of the total SCIENTIFIC PROJECT All this body of knowledge is cost and running expenses of the summarized in the "Standard experiment, an Israeli physicist was Among the most basic questions we Model" which has proved recently elected to coordinate the have always asked are: What is the remarkably successful. According scientific research of the entire ultimate structure of matter? What to this model, matter consists of experiment. are the forces through which matter three families of basic particles. interacts? These questions fall Each family has four members - As part of its equipment within the domain of elementary two quarks (particles which are contribution to the experiment, the particle physics. susceptible to the influence of the Israeli groups developed a novel strong nuclear force) and two type of particle detector which is Progressive mastery of the control leptons. All members of the three large in area, yet only 0.7 cm thick, of charged particle beams made it families have been observed with and provides fast, accurate and possible to construct particle the exception of the "top" quark, reliable measurements of charged accelerators and colliders of probably because its mass is too particles. increasing energy. This has allowed great to be created at the energies so matter to be analyzed with greater far achieved in accelerators. Each These detectors, along with other and greater precision. The analysis of the four forces has its "carrier" components of the OPAL has peeled back successive layers, particles communicating the force experiment, are extensively used in revising our vision of the basic between the quarks and the leptons. data analysis. Most of the effort is 53 Fig. 7-6 Aerial View of Geneva Airport and the Site oi'CKKN (Centre European pour la Recherche Nucleairel and its Accelerators. The large white circle represents the 27 km large elet-tron positron centered on one of the most heavy quarks and leptons. In actively developing new types of challenging questions LEP can particular, understanding the particle detectors. address, namely, the search for the properties of the heaviest known Higgs-boson. The experimental quark, the b-quark, might shed light In addition to the scientific goals, it techniques and data analysis on the phenomenon of "CP is hoped that while coping with this procedures that were developed by violation", which is intimately formidable technological challenge. the Israeli groups have made them connected to the question of the Israeli scientists and engineers will world leaders in this field. direction of the arrow of time. be able to make technological As a step toward participation in developments, some of which In addition, the groups are engaged experiments to be carried out in a might find their way as spinoffs in the study of the properties of future accelerator, the groups are into other fields. 8. ENERGY CONSERVATION BACKGROUND alternative energy resources. to the benefits of energy conservation for the consumer as Energy conservation is the most The Ministry's activities related to well as for the society at large effective method of reducing energy conservation include: consumption of imported fuels, slowing down the growth rate of Emphasis is given to educating the installed electrical capacity and * Promoting energy conservation younger generation. The Ministry reducing energy-related * Technical consulting and guidance. was involved in introducing energy environmental effects. The saving * Education. courses in the curriculums of the potential in energy conservation is * Initiation of legislation and elementary/intermediate schools. estimated as 109c of the national regulations. This program also includes teacher energy consumption. * Providing incentives for energy training courses on energy matters. conservation projects and surveys. Energy conservation measures Professional training programs are include: PROMOTION, offered to energy officers and TECHNICAL energy survey conductors. efficient energy use by consumers. CONSULTING AND improving efficiency of energy EDUCATION The Ministry operates consultation systems. bureaus, including one at the Israel utilizing waste energy. The promotional activities are Building Center which focuses on switching from fossil fuels to aimed at increasing the awareness energy aspects in buildings. Fig. S-1 Overview of the Anaerobic Treatment Facility at Gat 55 REGULATIONS AND Kncrgy Savings (Million kWb) LEGISLATION 240 Energy conservation regulations have been shown to be effective. For example, regulations concerning solar water heaters and Standard 1045 have had a significant impact on energy conservation. 1992 1991 1990 1989 Regulatory action is also extended 1988 1987 Year to the industrial sector. Energy consumers who use more than 300 Fig. 8-2 Comulative Energy Saving in New Residential Buildings TOE annually have been required in Following Implementation of Israeli Standard 1045 recent years to appoint an energy conservation officer, and to monitor at identifying new areas with high biogas produced in this process to their energy consumption. Energy energy conservation potential. generate electricity and thermal consumers that use more than 2000 The following sections present energy at peak hours. TOE annually must undertake an some of the highlights of the energy conservation survey in order 1992/93 energy conservation The system is comprised of to assess their energy conservation activities*. While not an inclusive (Fig.8-1): potential. survey of all activities sponsored or carried out by the Ministry, they I. The Pretreatment Facility ENERGY reflect the diversity of these CONSERVATION activities. This facility is based on a pretreatment process which is PROJECTS PRODUCTION AND designed to remove organic matter UTILIZATION OF BIOGAS from effluents produced in the food Financial support is granted to: AT THE GAT PLANT industry. In this process, 90% of the soluble organic matter is Demonstration projects: Gat Ltd is a manufacturer of citrus decomposed, and 97% of the fruit products that processes decomposed matter is converted to facilities utilizing proven energy 120,000-200,000 tons of fruit biogas. The effluents, after the conservation technologies not yet annually. The effluents, estimated treatment, are collected and used used in Israel, are eligible for a at 600,000 cubic meters annually, for irrigation. grant of up to 30% of the initial are rich in soluble organic matter, installation capital, or up to 35% harmful to the environment. In the II. The Cogeneration System when the facility contributes past, the disposal of this waste directly to improved environmental required costly pretreatment in an This system consists of a 450 kW quality. This support is aimed at aeration pool driven by two 200 HP cogenerator operating on biogas encouraging the introduction and fans, which also turned out to be and a large storage tank into which the examination of new insufficient as production rates the biogas (which is produced technologies and to promote their increased. continually) is collected. This dissemination, if proven successful. arrangement enables selective Following successful tests on a utilization of the generator during Energy conservation surveys: small pilot model, a full-scale on-peak and mid-peak periods. The anaerobic pretreatment/biogas waste heat during electricity funding up to 80% of the survey's cogeneration facility was installed generation is used for production of costs, pending on utilization of its at the plant. The system eliminates the steam/hot water needs of die conclusions. The surveys are aimed the organic waste and utilizes the facility. Comprehensive descriptions of all projects are included in the MOEI publication: " Summary Reports of R&D, Demonstration and Energy Conservation Projects", March 1993. 56 System evaluation assisting house planners in d. Total area of the exterior walls evaluating the thermal insulation and the roof, including percentage The initial investment in this levels for their designs and in of thermal bridges (structural system totaled US $2,260,000. In modifying them, when necessary, elements having high thermal addition to the removal of organic to the Standard's requirements. conductivity). wastes, the operation of this facility e. Type of the internal layer of the has an annual saving potential of The thermal insulation levels of a exterior walls. $230,000 due to: given design are estimated by a f. Windows data (area, type of computer program developed by the sealing, single or double glazing, * avoidance of 1.6 million kWh consulting service staff. It etc.). annually in electricity for municipal computes the thermal resistivity sewage treatment. ("r") and the bulk thermal The consulting service issues conductivity of the new design. certificates of compliance with the * generation of 2.4 million kWh requirements of Standard I04S. peak-hours electricity annually by In order not to burden the design Such a certificate is a prerequisite utilizing the annual biogas process, the input data for the for the granting of a building permit. production (approximately 730 computer program consists of TOE). standard information, already During the last five years, thermal included in the application fora evaluations were carried out for * production of steam/hot water building permit. The following over 130,000 new apartments/ needs of the plant, thus saving information is required: houses, consisting of approximately additional 220 TOE of fuel 8% of the residential buildings in annually. a. The geographical region Israel. On the average, three out of b. Orientation of the four designs had to be modified in COMPUTER PROGRAM apartment/house. order to achieve compliance. It is REDUCES ENERGY c. A list of the envelope components estimated that over 200 million (exterior walls, roof, floor, kWh of electricity were saved since CONSUMPTION IN NEW windows, etc.), materials and the standard was implemented BUILDINGS thicknesses. (Fig.8-2). The rate of energy consumption in buildings in Israel is on the rise due to the steady increase in the standard of living and the immigration wave of recent years. Thus, energy conservation measures in the housing sector can produce considerable energy savings. Such measures can be most effective and easy to implement when incorporated during the design of new houses. Since 1986, new residential buildings in Israel must comply with Israel Standard 1045, which mandates minimal thermal insulation levels that provide thermal comfort at reasonable energy consumption. A consultation service, operated jointly by the Ministry of Energy and Infrastructure and the Ministry of Construction and Housing, helps compliance with the Standard by Fix. X-3 The Cool Storage Underground Tank at M.T.M. 57 COOL STORAGE BY inactive and electricity rates are LOAD SHIFTING AT lowest. In a typical summer daily cycle. 12,000 refrigeration M.T.M. ton-hours are stored during the M.T.M. (Center for Science night in the chilled water, and then 2 Industries) is a 55.000 m hi-tech used for air-conditioning during the R&D park in Haifa. The air day. conditioning demand of the park is supplied by central cooling units The storage system consists of a having a cooling capacity of 2.700 5.400 cubic-meter underground refrigeration-tons. The annual tank (Fig. 8-3). a piping system and electricity consumption in circulation pumps. Due to its large air-conditioning is 5.25 million volume, the storage tank is kWh during on-peak and mid-peak equipped with special means for hours. ensuring uniform temperature in the cold water. The expansion of the park by 13,000 m~ necessitated an increase in cooling capacity of System Evaluation approximately 600 refrigeration- The cost of the cool storage system tons. Following techno-economical was approximately US$1,000,000 - evaluations, it was decided to meet about $430,000 less than the cost of hit;. S-4 Rankine Power Cycle the increased demand by installing the alternative additional cooling Operating with an Organic- a cool storage system instead of units. In addition to the lower Working Fluid adding conventional cooling units. installation costs, the annual saving in electricity costs due to load The cool storage system utilizes the shifting is estimated at US existing cooling units to chill water $160,000. (the cool storage media) during off-peak hours, when the park is POWER GENERATION FROM GEOTHERMAL/ MODERATE TEMPERATURE HEAT SOURCES Although geothermal energy is not abundant in Israel, its industry has become a world leader in utilizing this resource. Geothermal power generation technology was developed by Ormat, Israel, alongside the solar pond project (see "Energy "88") to demonstrate power generation from moderate temperature beat reservoirs. This pollution-free energy conversion technology is based on a Rankine power cycle which uses an organic working fluid having a Fig. cV-5 Combined Steam and lower boiling temperature than Organic Vapor Cycles water. The selection of the working 58 fluid can be adjusted to optimize Large Scale Utilization of off-peak Electric Power the power output from a given specific heat resource. Lake Kinneret is Israel's major source of drinking and irrigation water. The National Water Carrier transports water from the lake to regions as far Ormat developed a line of power south as the Negev Desert. plants which use the following types of power cycles: Six pumps, three at the Sapir Site and three at Tzalmon, raise the lake's water from a height of 209 meters below sea level to an elevation of 1S4 A. A basic cycle for utilization of meters above sea level. The pumps, which have a total capacity of 90MW low and moderate heat sources. and annual consumption of 450 million kWh, operate during off-peak and The geothermal fluid (consisting of mid-peak hours only. When load shedding is required during electricity hot liquid or a binary mixture of hot supply interuptions, this pumping facility is the first large consumer to be water and vapor) flows through the disconnected from the grid. vaporizer where its heat vaporizes the organic fluid (Fig. 8-4). The expansion of the vapor causes the The National Water Carrier at Beit Netofa Valley turbine to rotate, and the turbine, in turn, drives the generator. The exhaust vapor is subsequently condensed in a water-cooled condenser or air cooler and is recycled to the vaporizer by the motive fluid cycle pump. The cooled geothermal fluid is reinjected into the ground. B. A combined cycle for steam dominated resources. The power unit comprises of two turbines operating on two fluid cycles (Fig. 8-5). The geothermal brine is separated into steam and brine; the steam drives the level I steam turbine directly, while the brine and the exhaust steam preheat and vaporize the organic fluid which drives the level [I turbine. The turbines are skid mounted and coupled to the same generator. The exhaust organic vapor is condensed and recycled and the geothermal brine is reinjected back to the ground, just as in the previous cycle. Binary and combined cycle power plants based on these cycles enable utilization of previously untapped heat resources -geothermal or waste heat. Such plants are in operation throughout the globe. 59 9. ENERGY AND ENVIRONMENTAL QUALITY BACKGROUND The following sections present * gas turbines at various sites some highlights of environmental around the country, with a tola) Energy production and protection activities during capacity of 1435 MW. consumption are major sources of 1992/93. as well as future plans in air pollution. In Israel, two major sectors of the energy I EC development plans call for an environmental protection is. in economy - electricity and oil. recent years, a high priority issue increase of about 3000 MW until due to the high concentration of the year 2000. of which 1650 MW population and industry in the THE ELECTRICITY are in coal-fired units and the rest in gas turbines. relatively small region of the SECTOR Mediterranean shore plain. This is magnified by the growing public The IEC production capacity SO2 Control awareness of pollution damage on consists of: local as well as global scales. : three oil-fired plants, sited at close The most pressing problem is the The MOEI's policy is to comply proximity to the coastal cities of SO2 control in fuel oil fired power with environmental regulations and Haifa. Ashdod and Tel Aviv. stations. The coal fired units do not standards at minimum costs. respectively, with a total capacity pose any real problem due to the Simultaneously, whenever feasible of I860MW: low sulfur content of the coal the levels of energy-related : two coal-fired plants at Hadera imported to Israel (average of about pollution should be reduced even and Ashkelon. having a total 0.7<7r) and the tall stacks (250 m) at below those required. capacity of 2600MW: these plants. SO, EMISSIONS (1000 TON) ELECTRICITY PRODUCTION (10° MWh) 28 196.791s I—'-—I 100* 24 - -200 166.1% m8% 85.4% 79.9% 20 " 76.2% 77.3% . 16 " 55.« 100% -120 12 " JJ.7% 81.8% 77.9* 75 9% SUM 8- - 80 - 4 - - 40 0 0 1980 1990 1991 1992 1993 1980 1990 1991 1992 1993 1 1 Coal CHI Oil Fix- 9-1 Electricity Production and SO2 Emissions in IEC Power Stations 60 The regions where pollution is most prominent are the metropolitan SO:(gr)/kWh areas of Haifa and Ashdod. In addition to the power plants, these regions have oil refineries and a high concentration of petrochemical industries. In June 1991. the Government adopted a new standard for SO2 concentration levels. This standard allows up to 500 pg/m3 in 99.75 percent of the half-hour readings during the year, and up to 1,000 Fix. V-2 SO2 Emissions PIT Electricity Production in I EC Power Plants u.g/m3 in the rest. 1981-1993 ( Prediction for 1993 ) In compliance with this standard, supplied in a once-through Paniculate Control in Oil - the power plants and the oil operation, thus preventing any Fired Power Plants refineries (both under the clogging or scaling. jurisdiction of the MOEI) switched The fuel oil used by the IEC to low sulfur fuels (2.5. 1. or 0.5 The first scrubbers are scheduled to contains high levels of asphaltanes percent). The fuel selection is be operational during the second (soot particles), which prevent the determined by a computerized half of 1996 and thereafter complete combustion of the fuel. At control system on the basis of additional units will be the Haifa and Ashdod power plants, prevailing local meteorological commissioned every 6 months. considerable reduction of conditions and short-term weather predictions. The control system was first tested in the Haifa Bay area and, following the successful outcome in this region, this system was also implemented in Ashdod. The effects of these improvements are evident in Figs. 9-1 and 9-2: the ratio of SO2 emission to electricity production during 1993 decreased to less than half of its 1981 value. In view of the projected increase in energy demand and in order to attain additional air quality improvements, the IEC has decided to install scrubbers in the Haifa C and Eshkol C and D power stations, totaling 1194 MW. These scrubbers (Fig. 9-3), which operate with sea - water based on FLAKT-HYDRO technology, are simpler in their structure and function and cost less than the conventional ones. There is no addition of lime in this process, and the seawater is Fix. 9-3 An Artist's View of a FLAKT-HYDRO System paniculate emissions will be stations is integrated into the Low sulfur diesel (gas oil) attained following the installation combustion systems in the boilers. fuel of electrostatic precipitators with Beginning with the Rutenberg the SO2 scrubbers. power station, the IEC will be using Presently, the diesel fuel contains boilers which comply with the US 0.4% sulfur. In recent months, Particle emissions were particularly EPA standard. public transportation in the Tel severe in Tel-Aviv where rapid Aviv metropolitan area has been urban development surrounded the using fuel with 0.3% sulfur. During once out-of-the-way Reading THE OIL SECTOR 1993, public transportation power station. In recent years, The MOEI is acting to improve the throughout the country will convert various methods have been used to environmental acceptability of the to this fuel and in 1994 it will be reduce particulate emissions in the refined fuel products available to available at the gasoline stations for oil-fired power stations. The the consumers. In this framework, it all diesel fuel customers. method, which is currently was decided not to renew a long employed at Reading, is the use of term contract with a supplier of low sulfur fuel which contains crude oil with high sulfur content. about 30% less asphaltanes. The In addition, the following new IEC is also considering electrostatic products were introduced: precipitators for this plant. Other methods which are also implemented include improving Unleaded gasoline combustion by replacing fuel spray Since 1993 all new vehicles with orifices to more efficient ones and engine capacity of 1600 cc and by modifying the combustion more must be equipped with systems of the boilers. catalytic converters which tolerate only unleaded gasoline. By the end of the decade most of the vehicles NOx Control will have these converters. The NOx emissions constitute a major ORL is setting forth to build new pollution source to the facilities which will supply the environment. However, the relative forecasted demand for unleaded proportion of the power stations in gasoline. these emissions in Israel is less substantial than in SO2 emissions At present, only one type of (about 40% compared to 60% in unleaded gasoline is available - the 1991. according to the Central 95 octane. However, even though it Bureau of Statistics). In addition, is less expensive than the 96 octane the NOx levels emitted by the gasoline, the sales volume is low. Fin. 9-4 The 300-meter Smoke power stations are less than the The MOEI is initiating a move to Stack of the 1100-MW Power maximum allowable concentrations convert the 91 octane to unleaded. Generation Facility under (940 microgram per cubic meter). This product will be available Construction at NOx control in the new power during 1994. "Maor David" (Hadera) OH LINK OH HE .NATIONAL KLKl'TRIUTY SYSTKM iDues no! include 22/." IV transmission iine>i H\IR .^ H\I)IRA T MI\M\ ^ BlTYHIOSlll \ ** in wi\ VilllXII) ASIIKI:IOS U i'i>iV!KN!\iiH\ : • A <>.\\\ IHVKl 9 : : \ • iV Main Office Engineering Division Fuel Authority P.O.B 13106 P.O.B 17006 RO.B 33541 Jerusalem 91130 Tel Aviv 61171 Haifa 33031 Tel: 2-316111 Tel: 3-6410809 Tel: 4-674112 Fax: 2-381444 Fax: 3-6428832 Fax:4-673598