חברת החשמל

חברת חשמל

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Investment Program

Generation segment

 
Expected development of additional generation capability -
 
In accordance with the current Development Plan for generation capacity, i.e. the plan that was approved by the Minister in December 2010, the Company is expected to complete the construction of one (1) combined
cycle unit with an output of approximately 377 megawatts at the Tzafit site by the summer of 2012.
 
In addition, the operation of the Project D coal power station is being planned, for the purpose of the
diversification of the energy sources and maintaining the option of generation using coal in order to avoid too
much dependence on natural gas, which may endanger the reliability of the supply of electricity to the
national economy. This station was included in the Development Plan by the Minister as a coal powered
station back in 2001, including two (2) generation units with an output of approximately 630 megawatts
output each and its location has been set to the Rothenberg site in Ashkelon. In view of the discovery of new
natural gas deposits off Israel’s shores, and based on a decision of the Minister of Energy and Water, the
previous planning proceeding of Project D as a coal power station has been stopped, and Project D is expected
to be built as a dual fuel power station that will be powered by natural gas and that may also be coal
powered. The construction of the project is in a new planning proceeding at the National Planning and
Construction Council, at the review preparation stage.
 
8-2012installed-_capacitiy_bars.jpg

 
For further information please see clause 7.7 in chapter A of the financial statements for December 2011.
 
Transmission and Transformation segment 
 
Expected development of additional transmission and transformation capacity during the years 2012 - 2015:
 
1. The transmission system
In accordance with the Development Plan above, in 2012-2015, the Company is planning to add to the
high voltage (400 kV) transmission system approximately 124 km of circuitry, conditional to the
conclusion of statutory proceedings for the approval of the lines. As of the date of the Report, the
Company is within the schedule that was described in the Development Plan. See Section 8.6.1, 8.9.6
and 22.8 for details on the statutory proceedings.
 
In 2012‐2015, the Company is planning to add approximately 688 km of circuitry to the high voltage
(161 kV) transmission system. In addition, approximately 869 km of circuitry will be upgraded, rebuilt
or relocated, and approximately 47 km of underground cable circuits are scheduled to be added.

 
2. Development of the 400/161 kV transformation system
The Development Plan of the Company for 2012‐2015 includes: the addition of connection
transformers to an output of approximately 575 MVa at the Zevulun Switching Station (2012);
construction of the Ayalon Switching Station with 3 connection transformers and a total output of
approximately 1,950 MW (2014) and the transfer of a connection transformer from Tzafit to Petach
Tikva, along with its upgrade to 650 MW (2013) – contingent upon the conclusion of statutory
proceedings. In late 2015, the Company is due to have ten (10) 400/161 kV switching stations with a
total output of approximately 12,945 MVa.
 
The information that has been set forth above with respect to the Development Plan of the Company
constitutes forward looking information, as per its definition in the Securities Law. This information
includes forecasts, subjective assessments and other plans of the Company as of the date of the Report
with respect to the working assumptions that it has used in the formation of the Development Plan and
the forecast and the materialization dates of those assumptions. Such information is based on future
data, whose materialization is uncertain and is not under the exclusive control of the Company. The
main factors that may affect the forward looking information not materializing or changes occurring in
the estimated schedule for its execution, as described above are, inter alia: a change in the expected
growth rate of the demand for electricity, implementation of the change in the organizational structure
(see Sections 1.3); the Development Plan that the Minister will prescribed, to the extent that subject
plan is prescribed for the transmission and transformation segment; difficulties in obtaining a license
and/or regulatory changes in the field of environmental protection and licensing; the absence of
appropriate charge rate coverage and the ability of the Company to raise the financing required for
executing the Development Plan.
 
3. Development of 161 kV transformation capacity
The development of the substations of the transmission and transformation segment is being carried
out in accordance with the multi‐annual planning of the Company, while considering the geographical
layout of the demand. This forecast is expressed in the construction of new permanent substations,
temporary and mobile substations and the addition of transformation in existing substations. There are
fixed, temporary and mobile substations. Fixed substations are divided into two (2) types: open and
closed substations. A temporary substation is usually built for a few years, where transformation is
needed but it is difficult to get permits to build a permanent station within the time required. A
portable substation is moved from site to site as necessary, as an interim solution, before the
construction of a permanent substation. When building permanent substations, the Company prefers
to build open substations over closed ones, because the cost of construction of a closed station is twice
that of an open one. Closed substations are built due to the demand of the authorities or in the
absence of sufficient area for building an open station.
 
In certain cases, the Company has difficulty in implementing all of the projects that are required for the
purpose of adaptation of the transformation ability installed at the substations to the regional
electricity demand in accordance with the planning criteria. Therefore, until the construction of a
permanent substation in the region, alternative solutions are being run, such as the construction of a
temporary substation or the deployment of a mobile substation. A temporary substation is a temporary
facility that is constructed in arrangement with the local authority. This substation is constructed at a
standard that is lower than that of a permanent substation and is scheduled for dismantlement within
approximately five (5) years of its date of construction, and is designed for the installation of only 1‐2
transformers, compared with 2‐6 transformers at a permanent station.
 
Portable substation – the Company has a number of portable substations that were purchased during
the 1990s. A portable substation is a device that consists of two large trailers and has 161 kV high
voltage equipment, a single 20 MW transformer, a medium voltage distribution regulator that has 3‐4
outlets and an appropriate protection, command and control system. These facilities are installed in
accordance with the needs of the system and are transported to a new location upon the completion
of the permanent project of expansion of the transformation system.
 
Within the Development Plan of the Company, approximately 9 permanent substations with a total
transformation ability of approximately 1,215 MW are planned to be added in 2012‐2015. In late 2015,
there are expected to be approximately 146 substations with a total transformation ability of
approximately 16,185 MVa (permanent, temporary and mobile). In addition, at the Ayalon substation a
high voltage capacitor battery with an output of 220 mVar will be installed.
 
That which has been set forth above with respect to the Development Plan of the Company constitutes
forward looking information, as per its definition in the Securities Law. This information includes
forecasts, subjective estimates and other plans of the Company as of the date of the Report with
respect to the working assumptions that it has used in the construction of the forecasts and the times of
materialization of those assumptions. Such information is based on future data, whose materialization
is uncertain and is not under the exclusive control of the Company. The main factors that may affect
non‐materialization of the forward looking information or changes occurring in the estimated schedule
for its execution in accordance with the description above include: a change in the expected growth rate
in the demand for electricity, implementation of a change in the future organizational structure of the
Electricity Sector and of the Company (see Section 1.3); the Development Plan that the Minister
prescribes, to the extent that he prescribes such a plan for the transmission and transformation
segment; difficulties in securing licenses and/or changes in regulation in the environmental protection
and licensing field; the absence of appropriate charge rate coverage and the ability of the Company to
raise the financing required for executing the Development Plan.
 
Distribution sector
 
Expected development of additional distribution capability
 
The anticipated development of additional distribution capacity is based on long term planning of the
customers division for 2011, which is submitted to the Board of Directors within the financial planning
of the Company, each year.
 
1. Medium voltage - Within the Development Plan, in 2012‐2016 approximately 6,033 km of overhead and
underground medium voltage lines are expected to be added. In addition, approximately 1,425 km of grid will be replaced. During 2012, approximately 1,204 km of overhead and underground medium voltage lines are expected to be added. These figures are based on the estimates of the Company, which are the construction of approximately 1,200 km on average per year, and replacement of 285 km on average per year, out of the construction
of approximately 900 underground per year. At the end of the period that has been set forth above, the total length of the medium voltage lines is expected to be approximately 31,658 km.
 
2. Low voltage - Within the Development Plan, in 2012‐2016, approximately 7,271 km of overhead and underground voltage lines are expected to be added. In addition, approximately 308 km of grids will be replaced. During 2012, approximately 1,449 km of overhead and underground low voltage lines are expected to be added. These figures are based on the estimates of the Company of construction of approximately 1,400 km on average per year (including renewal of grid) and replacement of approximately 60 km. At the end of the period that has been set forth above, the aggregate length of low voltage lines is expected to be approximately 27,081 km.
 
3. Distribution transformers - Within the Development Plan, during 2012‐2016, approximately 7,465 new transformers are expected to be added. During these years, approximately 6,143 transformers are scheduled for replacement. During 2012, approximately 1,473 new transformers are expected to be added and approximately 1,199 transformers are scheduled for replacement.
At the end of the period that has been set forth above, the Company is expected to have approximately 53,333 distribution transformers at its disposal.
That which has been set forth above constitutes forward looking information, as per its definition in the Securities Law. This information includes forecasts, subjective estimates and other plans of the Company as of the date of the Report with respect to the working assumptions that it has used in building the forecast and the date of materialization of those forecasts. Such information is based on future data, whose materialization is
uncertain and is not under the exclusive control of the Company. The main factors that may affect the non materialization of the forward looking information or changes occurring in the estimated schedule of its execution, in accordance with that which has been described above include: non‐implementation of special projects, change in the expected growth rate in the number of connections, implementation the structure change in the Electricity Sector and of the Company (see Section 1.3), difficulties in securing licenses and/or changes in legislation in the environmental protection and licensing field; the absence of appropriate charge rate coverage (see Note 1 F to the financial Statements); the inability of the Company to raise the financing required for executing the Development Plan, a change in the expected rate of growth of demand for electricity and an increase in the number of consumers.
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