The Reindeer power station near Kfar Saba has been approved by the cabinet. Minister of Finance Bezalel Smotrich had planned to oppose the approval to ensure construction of the Shomron Interchange. But market sources say he agreed to withdraw his objections to the Reindeer power station after being told that its construction would not be at the expense of the interchange.
Now the power station required closing of financing between Powergen (the energy arm of the Generation Fund), together with Phoenix and Rapac Communications, and financing institutions that will allow construction to go ahead. When completed the power station will be capable of producing up to 900 MW and will be powered by natural gas.
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Planning for the power station began eight years ago, and even before its construction, it is worth hundreds of millions of shekels.
The Reindeer power station has been approved twice by the National Planning Commission. In 2024, it failed to receive cabinet approval, when several ministers opposed it, each for their own reasons. The ministers were pressured by the local councils of Kfar Saba, Darom Hasharon and Alfei Menashe, which opposed the station due to its proximity to residents’ homes. Following its second approval by the National Planning Commission three weeks ago, the same councils petitioned the High Court of Justice and demanded that approval of the station be canceled. But market sources believe that the chances of the petition being upheld are slim.
An important power station in strategic terms
This is a strategically important power station, due to its proximity to the centers of demand in the Tel Aviv metropolitan region. It is located in a top priority area and is anchored in a cabinet decision on the construction of power plants in the coming decade.
Electricity consumption in Israel is increasing, especially due to the rise in the number of electric vehicles and data centers needed for AI. Therefore, approval of many new conventional power plants is required, along with a rapid push for renewable energy production.
Published by Globes, Israel business news – en.globes.co.il – on August 10, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
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