Minister of Energy and Infrastructure Eli Cohen: “The past year has proven that the State of Israel has a strong energy economy. Despite damage to strategic facilities during the ‘With All Our Might’ operation, and breaking electricity consumption records during the summer heatwave, there was no shortage of electricity, water, fuel, or natural gas. We strengthened our position as a regional energy superpower with the approval of the natural gas export deal to Egypt, the largest in the country’s history. In addition, the electricity reform, the largest consumer reform since the cellular reform, continues at full force on its way to two million citizens who will enjoy electricity at a reduced price. We will continue next year to work to strengthen the position of the State of Israel, and for the benefit of all citizens.”

Director General of the Ministry of Energy and Infrastructure, Yossi Dayan: “The past year has demonstrated more than ever the strategic importance of a strong, diverse, and resilient energy economy. Even against the backdrop of security and regional challenges, the Ministry of Energy and Infrastructure has led a significant leap forward – in expanding renewable energies, in strengthening the natural gas economy as an economic and geopolitical anchor, and in laying infrastructure for the day after: artificial intelligence, storage, hydrogen, and future energies. Alongside this, we have advanced consumer reforms, strengthened the energy security of Israeli citizens, and deepened international collaborations that position Israel at the forefront of global energy. We will continue to act with determination to ensure an advanced, safe, and sustainable energy economy for the benefit of the economy, society, and future generations.”

The Ministry of Energy and Infrastructure summarizes the past year’s activities, which were full of unprecedented achievements:

Natural Gas:
In recent weeks, approval was signed for the natural gas export deal to Egypt, the largest deal in the country’s history, worth NIS 112 billion. The state’s expected revenues from the deal amount to NIS 58 billion. The deal strengthens Israel‘s position as a regional energy superpower and contributes to political and security interests. As part of intensive negotiations led by the Ministry’s Director General Yossi Dayan, priority for the domestic market was ensured at all times, as well as an attractive price for the domestic market that will ensure continued low energy prices. It should be noted that, thanks in part to natural gas, the price of electricity in Israel is 50% lower than the average price in Europe on an annual comparison.

In addition, the Ministry will soon publish another competitive tender for natural gas exploration in Israel’s economic waters, following the issuance of exploration permits last year to two international energy giants: Britain’s BP and SOCAR from Azerbaijan.

In the first half of 2025, state revenues from natural gas royalties, minerals, and fees amounted to approximately NIS 980 million, and are expected to exceed NIS 2 billion by the end of the year. Concurrently, the Ministry continued to promote connections of peripheral areas to natural gas: the connection of the Jordan Valley and Beit She’an to the natural gas grid was completed, with an investment of approximately NIS 10 million. Furthermore, the Ministry’s Natural Gas Authority continued to connect hospitals to natural gas, and their number now stands at 10. In addition, the Ministry connected approximately 40 large consumers to the natural gas distribution network, the highest number of connections to date for a single year.

Chen Bar Yosef, Director of the Nature Resources Administration at the Ministry of Energy and Infrastructure: “We are pleased that through intensive teamwork led by the Minister of Energy and Infrastructure and the Director General of the Ministry, we have achieved significant improvement, both in energy security in terms of increasing expected production capacity, and in state revenues which are expected to rise to billions of shekels per year. This, alongside the entry of significant international players into the natural gas market. The natural gas production sector, under our leadership, has demonstrated energy resilience, strength, and flexibility in dealing with the ‘Swords of Iron’ war, the ‘With All Our Might’ operation, and all the threats that arose from them. We will continue to supply this product safely and continuously to electricity consumers in Israel.”

Moshe Grazi, Director of the Natural Gas Authority at the Ministry of Energy and Infrastructure: “Despite a complex security reality, the natural gas economy maintained stability and enabled energy continuity for the electricity sector. Simultaneously, many connections to the economy were advanced, and a record number of new consumers for the year was recorded, particularly in the periphery, alongside steps to strengthen competition. For the first time, a license was revoked from a private company due to delays in connecting consumers, and it was transferred to Netagaz – a move to strengthen infrastructure in the Jerusalem area.”

Performance of the Energy Economy During the War:
Throughout the war, including the ‘With All Our Might’ operation, the electricity sector functioned flawlessly. Despite damage to strategic facilities, and even the shutdown of some natural gas platforms, there was no shortage of electricity, water, fuel, or natural gas, and emergency reserves were not even used. During the war, the Ministry of Energy and Infrastructure, along with all government energy companies, held daily situation assessments and meticulously supervised supply and consumption.

Electricity Reform:
The electricity reform, launched in July 2024, continues to gain momentum, and during the year, over 100,000 households and businesses, representing about half a million customers, joined it. Customers who left the Israel Electric Corporation and moved to private companies are enjoying a discount of 7% – 20% on their electricity bills, saving hundreds to thousands of shekels per year. The Ministry of Energy and Infrastructure is promoting measures to increase the electricity supply for private companies, in order to increase competition and enhance discounts.

It should be emphasized that this year’s State Comptroller’s report found that the Ministry of Energy and Infrastructure is the ministry that has done the most regarding the cost of living. The reform in the import of electrical products, led by the Ministry, reduced the regulatory and bureaucratic burden on importers, increased competition, and led to the introduction of a wider variety of energy-efficient products. The reform led to a decrease in the prices of household electrical products in a vast market of over NIS 10 billion per year, as well as annual savings of hundreds of shekels for each household.

Renewable Energies:
Ron Eifer, Director of the Sustainable Energy Division at the Ministry of Energy and Infrastructure: “This year, we expanded Israel’s use of renewable energy by over 15% with the addition of approximately 1,000 megawatts of clean energy. This is a dramatic increase.”

As part of an overall strategic vision, Israel has been working for several years to promote renewable energies as a central anchor in Israel’s energy economy goals. Within this framework, numerous projects have been advanced, covering a wide range of areas from public information accessibility, through the removal of regulatory barriers in the field, to encouraging the establishment and use of renewable energies and the transition to sustainable and renewable energy:

• Accelerating large-scale projects in the field of renewable energy.
• Removing barriers and reducing bureaucracy for the establishment of dual-use solar facilities, with an emphasis on solar roofs and solar canopies.
• The entry into force of the obligation to install solar systems on new construction.
• Promoting infrastructure for electric vehicles, including charging stations.
• Promoting projects in local authorities for the transition to sustainable energy, including the establishment of emergency storage facilities, transition to electric transportation, energy efficiency, and the construction of renewable energy facilities on public buildings, among others.

During the operational year, the Ministry of Energy and Infrastructure’s Sustainable Energy Division led several flagship projects:

• The “100,000 Roofs” program: a national initiative to install solar systems on 100,000 roofs by 2030, including an economic simulator for the public and the removal of barriers.
• Covering sports fields: a project in cooperation with the Ministries of Culture and Sport and Environmental Protection to cover approximately 1,000 fields, a move that will lead to the production of clean electricity and income for local authorities.
• Mapping solar potential: the launch of an online map system that allows every citizen and entrepreneur to check the solar production potential on roofs of residential and public buildings.
• Farewell to solar water heaters: the publication of a report recommending the transition to photovoltaic systems and heat pumps in new construction, a move expected to save billions of shekels for the economy.

Promoting Policy and Strategy for Economic Development, Climate, and Diversification of Sources:
Sharon Chatzor, Deputy Director General for Policy, Planning, and Strategy at the Ministry of Energy and Infrastructure: “Today we are already planning for the days after natural gas, with nuclear being one of the things we are considering.”
As part of the multi-year strategic plan for the energy economy, the Ministry has also promoted the development of additional energy sources this year, including nuclear energy and hydrogen. In this context, the Ministry led a multi-sectoral forum on hydrogen this year. The multi-sectoral forum included government officials, entrepreneurs, technology companies, and various organizations, and formulated a published report, including policy steps, among them support, together with the Israel Innovation Authority, for the establishment of a pilot site for fuel alternatives with an emphasis on hydrogen. In addition, the Ministry will soon publish calls for proposals for the establishment of a hydrogen valley in the eastern Negev.

Furthermore, understanding the strategic importance of international connections and collaborations, the Ministry of Energy and Infrastructure continued to work this year to strengthen strategic ties, with agreements signed during the year with:

• Greece – an agreement for cooperation in energy, infrastructure, and advanced technologies, aimed at ensuring regional energy security and establishing an energy corridor to Europe.
• USA – This year, the BIRD Energy program was renewed, funding research and development between Israeli and American companies in the fields of natural gas, energy cyber, and energy storage.
• Signing an MOU on AI with the US Department of Energy – An agreement was signed between the Ministry of Energy and Infrastructure of Israel and the US Department of the Interior (DOI) and the Department of Energy (DOE), and the White House National Energy Dominance Council (NEDC) also participated.
• Germany – Signing a joint work plan to deepen cooperation for the third consecutive time.

Research and Development:
Prof. Brian Rosen, Chief Scientist of the Ministry of Energy and Infrastructure: “Grants through academic research tracks, such as Startup and Pioneer, provide significant support for the development of promising energy technologies. We expect that this year’s grant recipients will contribute to the growth of Israel’s energy market by establishing new companies and expanding the activities of existing companies. In addition, the Ministry places great importance on supporting the next generation of scientists and engineers in the energy fields, including through excellence scholarships. These tools are designed to encourage students to choose fields of study essential for strengthening Israel’s energy security.”

Based on a clear policy to promote innovation and new technologies, the Ministry of Energy and Infrastructure invested over NIS 23 million this year in promoting groundbreaking technologies and research in a variety of fields, including: electricity, energy storage, renewable energies, transportation fuel alternatives, hydrogen, energy efficiency, water, and energy recovery from waste. Within this framework, the Chief Scientist’s unit in the Ministry awarded grants to 18 innovative projects in the Startup and Pioneer tracks amounting to approximately NIS 13.4 million, and also provided funding of approximately NIS 10 million for 21 advanced research projects from Israeli academia, as part of the commitment to lead Israeli scientific and technological innovation.

Physical Planning
Ariel Prinz, Senior Director of Physical Planning at the Ministry of Energy and Infrastructure: “The year 2025 was characterized by significant planning activity in the energy economy. The promoted initiatives lay the groundwork for continued growth in the establishment of dual-use facilities, and particularly for the expansion of the agro-voltaic market led by the private sector, alongside encouraging the installation of storage facilities and government promotion of large-scale solar facilities in reclaimed areas.”

In 2025, the Ministry of Energy and Infrastructure achieved significant progress in physical planning, as part of efforts to expand energy infrastructure and meet government renewable energy targets. Among the key achievements are the approval for validation of the integrated infrastructure corridor from the Arava Junction to the Timna area (TAMA 37/3/E) – a strategic plan of approximately 160 km along Highway 90, including integrated infrastructure complexes that will enable the connection and transmission of various infrastructures to and from the south of the country, while adhering to principles of integrated infrastructure and minimizing damage to land resources. Concurrently, the formulation and approval by the subcommittee of TAMA 1/24 were completed – groundbreaking planning regulation in the field of agro-voltaic facilities, which is expected to receive final approval in early 2026. This TAMA will enable the orderly promotion of solar facilities over agricultural land, including in urban areas and high-demand zones, and will even allow for the issuance of permits without the need for a detailed plan.
In addition, a large-scale solar site in the Timna area (TATL 116) was approved for validation, and the planning of another site in the Halel Reservoir dams in the Eshkol region was completed – its approval is expected in early 2026. All of these were carried out using reclaimed areas and constitute central infrastructure for promoting renewable energy production in Israel.

Fuel and Gas Administration

Bat Sheva Abuhazira, Director of the Fuel and Gas Administration at the Ministry of Energy and Infrastructure: “The year 2025 highlighted the importance of a strong and stable fuel economy. Even under complex operational and security challenges, the Fuel and Gas Administration ensured full supply continuity to the economy, while continuing to promote national infrastructure, hydrogen solutions, renewable fuels, and clean transportation – as part of a broad and long-term energy security vision for the State of Israel.”

During 2025, the Ministry of Energy and Infrastructure’s Fuel and Gas Administration led a series of key and significant initiatives that were at the core of Israel’s energy economy activities. During the ‘With All Our Might’ operation, the Administration had to contend with exceptional operational and security challenges, while maintaining the stability of the fuel economy and ensuring supply continuity to all sectors of the economy – industry, transportation, defense, and more.
Concurrently, the promotion of national infrastructure continued in accordance with government decisions, focusing on the establishment and expansion of storage facilities for refined products and LPG, the construction of marine connections, strengthening the supply system at ports, and other infrastructure projects essential for the energy security of the State of Israel. This year also marked a milestone for the entry of hydrogen technology into transportation, with the promotion of a national initiative to establish a second hydrogen station and the purchase of hydrogen-powered trucks – a move intended to pave the way for wider hydrogen penetration into the transportation sector.

In the sustainability domain, the Administration continued to promote renewable and clean fuel solutions, by developing regulatory tools and incentives to reduce the use of polluting fuels and decrease emissions from the transportation and industrial sectors. In addition, significant progress was made in the deployment of public charging stations for electric vehicles, in cooperation with local authorities and private entrepreneurs. This is an important step in promoting smart and clean transportation, while creating a reliable and accessible infrastructure for the general public.
In general, the year 2025 was characterized by a combination of ongoing management of a sensitive and complex fuel economy and the promotion of innovation, the establishment of infrastructure for a green future, and the fulfillment of national energy policy goals.

Energy & Infrastructure Ministry

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