Ashtrom to build power station near Beit Shemesh

The government has authorized Ashtrom Group (TASE: ASHG) to plan and build a power station fueled by natural gas at Har Tuv near Beit Shemesh. Ashtrom notified the Tel Aviv Stock Exchange (TASE) that it is setting up a subsidiary to build the Shimshon power station, together with Mega Or Holdings (TASE: MGOR) and Har Tuv Enterprises, with each company holding a one third stake. The approval process by the National Planning Committee will now begin. The investment in the power station will amount to $1 billion, and the power station will begin operations after 2030.

Currently, there are no significant power plants near Jerusalem. The closest stations are at Gezer and Tzafit, both in the southern coastal plain. To remedy this, two new stations are planned: a station owned by the Keystone Foundation that will be built in Jerusalem’s Atarot Industrial Zone, and was approved by the government last March, and Shimshon, which has now received approval. The two stations are currently in a preliminary planning stages, and only after approval by the National Planning Committee will they be able to apply for final government approval that will allow planning and construction to begin.

Electricity generation and energy storage

In its notification to the TASE, Ashtrom reported that the Shimshon station will produce electricity with a capacity of 830 MW, and will also incorporate a storage facility. Storage facilities are usually used by solar energy fields to bridge the gaps between peak daytime production and peak evening consumption, but storage can also be used by a conventional power plants to operate continuously and efficiently, by storing energy during off-peak hours and selling it when prices are higher during peak hours. In addition, such a facility can also buy energy from other sources, such as solar energy installations, and sell it in the same way.

The power station will be dependent on the construction of overhead supply lines (400 KV), which should be built in 2030. The power station will only be able to begin production after that. The station will also need construction of a gas pipeline, after the Israel Natural Gas Lines withdrew plans to build one in the region, after the company that was supposed to connect the plants in the region did not do so. A power plant as an “anchor customer” for gas will facilitate the deployment of such an infrastructure pipeline, which will also make it easier for the plants in the region to connect directly to the gas supply.

Ashtrom said, “The power station will provide a solution to the energy needs of the region, including Jerusalem, which currently suffers from a shortage of electricity infrastructure, and will contribute to the sustainability of the national grid.” Ashtrom added, “This is a project of national importance that will improve electricity supply levels even in extreme scenarios, and strengthen the country’s ability to meet the challenges of peak demand.” From Ashtrom’s perspective, this will be an important step for it in the field of conventional energy, together with a major solar energy field that it is building in Texas. Currently, there are five conventional power stations approved and undergoing approval procedures from the Ministry and Infrastructure. Three have already been approved are waiting to close financing before starting to construction (Kesem, Dalia 2 and Dorad) and two await final approval from the government (OPC Hadera and Reindeer). In addition to the Har Tuv plant there are four more power plants in an advanced stages before approval: Atarot Industrial Zone, Orot Pnina (Hagit), and an Intel power plant in Kiryat Gat. The construction of a large number of power plants is required to maintain the reliability of electricity supply, even during security and infrastructure emergencies, and to enable competition for production that can cut electricity prices.

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Ashtrom chairman Rami Nussbaum said, “The collaboration with tMega Or and Har Tuv, who are among the strongest and leading players in the Israeli market, strengthens the financial and operational infrastructure of the Shimshon power station. The project constitutes a strategic milestone in the implementation of the Ashtrom Group’s growth and expansion plans in the energy sector for the coming years.”

Published by Globes, Israel business news – en.globes.co.il – on July 16, 2025.

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