The Israel Electric Corporation Ltd.

The Israel Electric Corporation (IEC) is a public and government-owned company, generating and supplying electricity to all sectors; approx. 99.85% of the shares are government-owned. Its activities include the generation, transmission and transformation, distribution, supply, and sale of electricity to customers. The company owns and operates 13 power stations with 42 generating units, including steam-driven, gas turbines in combined cycle, industrial gas turbines, open and jet streams. Its installed capacity in 31.12.2025 was 9,474 MW. IEC supplies reliable high-quality electricity, complies with leading service standards, maintaining economic, commercial, and environmental principles. As of the end of 2025, IEC employs 11,090 employees and provides services for about 2.852 million customers. 

Development Activities

Over the last decade, IEC invested approx. NIS55Bn in developing the Israeli electricity sector. Although IEC is government-owned, this capital is raised from independent sources in Israel and overseas. The 161 KV super-high overhead and underground lines totaled 4,933 km; 115KV lines - 30km; and the 400 kV extra-high lines - 1071 km. The transformation system includes 13 switching stations and 164 substations owned with IEC. By the end of 2025, the installed transmission capacity totaled in approx. 22,469MVA. By the end of 2025, the distribution system included 32,905km. of high-voltage lines; 56,907 distribution transformers of total capacity 29,732 MVA, and 44,411 km. of low-voltage lines. 

Smart Grid and Smart Metering

Smart Grid – a concept based on integrating bilateral communication, controlling and monitoring information systems, and combines manufacturers and demand management, decrease or inversion, and will contribute to energetic efficiency and a decrease of greenhouse gas emissions, improving safety, reliability and flexibility. The main technology is using smart electricity meters. Real-time regional electricity status is supplied on two operational levels: the network and the customer’s meter. This technology will greatly benefit Israel’s energy sector. The Smart Meters is a central part in the revolution of a smart electrical grid, for which IEC is preparing for. 

Integration of Renewable Energy Sources

The company’s 2030 long term plan adheres to government goals: enlarging electricity production goals with renewable energy to 30% by 2030, including adding technologic means to manage and supervise the renewable energy facilities and maintain the electricity grid’s stability during decentralized production. The company promotes energy storage projects, supporting the combination capacity of renewable energy sources to large scale electric production. The dynamics of entering and exiting the grid of decentralized producers of renewable energy presents many operational challenges, which the company faces using diverse means while improving service to all the players in Israel’s energy sector. 

Revenue, Capital Raising and Company Rating

In 2025, IEC revenue totaled NIS 26,745. The year ended with a profit of NIS 4,763 million. Company credit rating overseas (correct to 31.12.2025): 1. Moody’s: Baa2/ Negative outlook (same as earlier year). 2. S&P: BBB+ Global Rating/Stable outlook (same as earlier year).

Company rating locally (correct to 31.12.2025): 1. S&P Maalot: ilAAA/Stable outlook (higher than previous year). 2. Midroog: Aaa /Stable outlook (lower than previous year). 

Electricity Demand and Peak Load

A peak demand for 2025 occurred on 13.08.2025. In 2025, 24.5% of electricity was generated by coal; 75% by natural gas & LNG; 0.4% by diesel oil; and 0.1% by fuel oil. 

Natural Gas (NG) in the Electricity Sector

As of the end of 2025, the company maintains three natural gas sources: “Tamar” field, “Leviathan” field, and “Karish” field. As of the end of 2025, approx. 58.2% of the company’s total installed production is by units which are capable of working on natural gas. 

Promoting Intelligent Use of Electricity and Energy Efficiency

IEC maintains long term cooperation with various parties in the community that corelate to its business core, including safety and intelligent use of electricity, science and technology, sustainability, and energy efficiency. The company’s educational activity focuses on the company’s core activities, especially safety and social responsibility. The company aims to lead to a correct electric use culture within educational programs, and responsible advertising. One of the goals is to lead behavioral & awareness related change in the community and turning participating pupils into ambassadors who expand the span of effect. 

Structural Change, Organizational Change and Efficiency Plans

On May 10, 2018, the Company and the relevant government authorities reached an agreement on the principles of an eight-year structural reform, following consultations with employee representatives and the Histadrut. The reform was subsequently approved by the government and legislated by the Knesset in July 2018 (the “Structural Reform”).
As part of the reform, the Company committed to sell five power generation sites. Four – Alon Tavor, Ramat Hovav, Hagit (East) and Eshkol – were sold and transferred between 2019 and 2024, while the sale of Reading was suspended.
The reform also resulted in significant changes to the Company’s infrastructure activities. The Company received 20-year licenses for distribution and transmission and storage, and development plans approved for 2023–2030 provide for investments of approximately NIS 19 billion in distribution and NIS 22 billion in transmission.
In 2020, the Company incorporated its generation subsidiary, Nativ HaOr – Orot Rabin Ltd., which operates two CCGT units. Unit 70 received its operating license in 2025, while Unit 80 commenced commercial operations in January 2026.
In November 2021, the Company transferred its system management activities to Noga, and subsequently the electricity supply segment was opened to full competition in 2024.
The Company is also implementing an organizational restructuring and efficiency program, including a reduction in its permanent workforce. 

Service

IEC believes that customer service is a central value, and strives to incorporate personal, responsible service and technologic innovation, with longstanding commitment to improve customer service and optimal service. The company maintains a regular dialogue in various channels, including frontal, phone and digital, and continues to expand its services to the changing needs in order to improve the customers’ experience. The company operates service channels, including: * Customer relation desk at the company’s service centers and at service stations in local authorities in hybrid service facilities nationwide. * 103 telephone centers – personal service in Hebrew and Arabic, * digital tools – Facebook, twitter, Instagram, online chat and text messages. The company’s website and application offer self-service actions 24/7 in Hebrew and Arabic. 

The Communication Venture

IEC is associated with IBC – Israel Broadband Company since its establishment in July 2013. Since 1.08.2019, The Israel Electric Corporation holds 30% of its share capital, while the remaining 70% is held by Fiber-Grid Limited Partnership (hereinafter, “Fiber”), which is owned by a group of partners, the principal ones being The Phoenix, Mor, Noy, and Audian Investments. IEC executes design and optical cable deployment on electricity infrastructure and grants IBC exclusive rights to use company infrastructure including allotment of broadband on IEC’s optical network. IEC supplies design, optical network deployment and connections to buildings based on existing overhead and underground electricity infrastructures in numerous cities. IBC provides domestic and business customers with broadband communications services ranging from 100 Mpbs symmetrical bandwidth. Moreover, IEC provides IBC with infrastructures for hosting communications rooms, storage and logistics services. 

Innovation

The unit’s objective is to support the Israel Electric Corporation in addressing the future challenges of the energy sector through technological innovation. The Company’s innovation activities are divided into four main areas: open innovation, joint work with startups in technological pilots, as IEC provides the program’s platform & specialty, meaning the infrastructure & electric network while the startup provides its technology. Research & Development - The company creates unique technological solutions for challenges that lack existing market solutions, leveraging external R&D partners or collaborating with leading institutions. In this context, “A call for collaboration” was issued to academia, resulting in partnerships with top-tier universities. Investments in Breakthrough Technology Companies - Aimed at integrating cutting-edge technologies into the company’s core operations. Inter-organizational entrepreneurship via various platforms, from social platforms, an innovation community, employee training regarding technological innovation and accelerator courses and workshops, inter-organizational entrepreneurship greenhouse, as its products are due to be patented and commercialized in the future. In addition, the unit initiates the foundation of platforms through which innovation is promoted, including: (1) Experimental Site & Innovation Lab, establishing a physical power distribution network that simulates the company’s operational grid. (2) Israel’s First Smart and Sustainable Neighborhood, integrating and testing advanced smart-grid technologies within a diverse urban fabric of residential energy consumers and producers. (3) An Innovation Center focused on the future challenges facing the energy and electricity sector. 

Environment Protection

IEC is responsible & committed to act to protect the environment & reduce damage along the electric chain, & works according to a sustainable, long term & future-oriented environmental vision, reducing the environmental repercussions stemming from its activities in order to prevent damage. The company adopts advanced environmental measures, for smart use of raw materials reduction of pollutants emission. Moreover, the company works to enhance cooperation with environmental entities & maintains a dialogue with relevant stakeholders. The company works according to the environmental protection principles policy affirmed in 1997 & its updates. The total investment in environmental facilities in 2025 was NIS438 million, NIS388 million of which invested in environmental aspects of the production section, & in NIS50 million in conduction sectors, distribution and special projects. The company is continuously setting goals regarding the environment and acts according to environmental laws and regulations and global trends, alongside its technological ability and the unique conditions throughout its facilities. The company joins the national effort to reduce greenhouse gas emission, and works to expand the use of natural gas, reduce the use of coal and turn coal units for natural gas use as a main fuel. 

Community Involvement

The activity within the community presents a strategic tool for creating “communal value”, maintains social or environmental value for stakeholders for the business side, while reflecting the company’s core values & its commitment to act in accordance with corporate responsibility principles. IEC maintains long term cooperation with various parties in the community, including safety & intelligent use of electricity, science & technology, sustainability & energy efficiency. This cooperation is characterized by listening to the community’s needs, while maintaining constant dialogue and social responsibility. The company’s educational activity focuses on the company’s core activities, especially safety & social responsibility. The company aims to lead to a correct electric use culture within educational programs regarding mainly safety. 

Risk Management and Business Continuity

The company operates according to the directives of the Government Companies Authority and according to Risk Management policy, defining modes of operation, supervision and report, including using a computerized data system, in order to minimize the risks whole obtaining the company’s goals in various areas. As part of risk management & ensuring business continuity, IEC continues to prepare & practice response proceedings. Every six months, a committee of deputy CEOs gathers, headed by the chief risk management manager in order to discuss risk management, including matters defined by the guidelines from the Government Companies Authority. In addition, once a quarter, the company reports to its BOD’s budget committee, financial management and risk management regarding state of risk management status at the company, including essential events, breaches in “risk appetite” statements, etc. Once a year, the Board of Directors conducts a review regarding the risk management framework, including the company’s risk management policy and related work plans. 

Preparing for Emergencies/Crises

During 2025, the Company continued comprehensive preparedness for emergencies and wartime events. Following the outbreak of the “Rising Lion” War, it shifted to an emergency operating mode, activated emergency headquarters, conducted regular situation assessments, and worked continuously to repair war-related damage to electricity infrastructure and restore power to customers as quickly and safely as possible.
Under the guidance of the Ministry of Energy and the Electricity System Authority (Noga), the Company strengthened fuel inventories, acquired essential equipment, analyzed updated wartime scenarios, developed and tested operational response plans, trained personnel, and conducted field exercises to ensure readiness and compliance with service targets.
The Company continued to strengthen its emergency operating model, emergency teams and workforce preparedness, while enhancing organizational resilience and business continuity. It also expanded physical protection and active defense at critical facilities in cooperation with the relevant national security and defense authorities.
In addition, the Company continued preparations for earthquakes, tsunamis and extreme weather events, including through dedicated steering committees, risk assessments and mitigation measures aimed at protecting critical infrastructure and maintaining continuity of electricity supply. The Company also maintained emergency security, firefighting, search and rescue capabilities and the necessary response resources.