The National Infrastructures Committee has decided to approve the Atarot power plant belonging to Egged Properties (controlled by the Keystone Fund) and begin the regulatory approval process with the committee. This will be a 900-megawatt power plant that will be built at the Egged lot north of Jerusalem, along with a parking lot for electric buses. A waste treatment facility will also be built nearby, making it a regional infrastructure “hub”.
The National Infrastructure Committee said, “This is a national infrastructure project of strategic importance to the capital of Israel, designed to provide a response to the growing demand for electricity in the Jerusalem metropolitan area due to population growth, development of new neighborhoods, expansion of employment areas and strengthening of Jerusalem’s status as a government, economic and urban center.”
Due to anticipated growing demand for electricity, because of population growth, economic growth and potential demand for data centers in the future, many plans are being promoted for the construction of new power plants, both through gas-fired generation plants and solar energy facilities. Currently, there are seven power plants in relatively advanced development stages, after all regulatory approvals, with the most advanced being Mivtach Shamir’s Kesem power plant, which will also receive increased availability payments from the electricity grid as an incentive for rapid construction near the central area. Two others (Eshkol 2 and Sorek 2) have won tenders, and the rest have already passed the National Infrastructure Committee approvals but have not yet closed financing. They are expected to be built by 2030. Several other stations are in earlier stages, such as Ari Real Estate’s power station in the Givat Haviva area, which won a land tender from the Israel Land Authority.
“A strategic measure designed to support population growth”
There are currently no major power plants near Jerusalem. The closest plants are Gezer and Tzafit, both on the inland coastal plane. To remedy this, two new plants are planned to be built: Keystone’s Atarot plant, which has now been authorized, and the Shimshon plant near Beit Shemesh, which has received preliminary government approval and is awaiting approval by the National Infrastructures Committee. Once they receive all regulatory approvals, they will be able to apply for final government approval that will allow them to move forward. These plants are not expected to start generating until after 2030, and it is not yet clear when exactly they will be built.
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According to the National Infrastructures Committee, the new power plant to be built in Atarot will serve as a catalyst for expanding the natural gas pipeline system to the Atarot industrial zone and to additional consumption centers in and around Jerusalem.” Once there is a major “anchor consumer” of gas in the Jerusalem area, this will facilitate construction of nearby plants that will use the same infrastructure.
Published by Globes, Israel business news – en.globes.co.il – on December 29, 2025.
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