Israel's Last Coal Plant Converts to Gas: Orot Rabin Completes Historic Energy Transition

The Israel Electric Corporation (IEC) has completed the conversion of its last coal-fired generation units at the Orot Rabin power station in Hadera, marking the end of coal-based electricity generation in Israel. Unit 80, the final gas-fired replacement turbine, came online in early 2026, capping a decade-long transition that has fundamentally reshaped Israel's energy landscape.

End of the Coal Era

Orot Rabin, Israel's largest power station located on the Mediterranean coast near Hadera, was once the backbone of the country's electricity supply. For decades, its massive coal-fired boilers consumed millions of tons of imported coal annually, generating both electricity and significant air pollution that affected communities across the Sharon plain.

The phase-out was accelerated after the Israeli government set a firm 2026 deadline for ending coal generation, driven by both environmental commitments and the strategic vulnerability of relying on imported coal. Israel's discovery of massive offshore natural gas reserves — primarily the Tamar and Leviathan fields — provided the domestic energy source needed to make the transition economically viable.

Natural Gas Dominance

With the coal phase-out complete, natural gas now accounts for approximately 70% of Israel's electricity generation. Production from Israel's offshore gas fields has nearly tripled since 2019, reaching approximately 25 billion cubic meters annually. The abundance of domestic gas has not only enabled the coal phase-out but has also positioned Israel as a regional energy exporter.

The Energy Ministry has announced plans to increase gas exports from the Tamar field to Egypt by 60% starting in 2026, under expanded agreements with Egyptian partners. This export capacity leverages the EMG pipeline connecting Ashkelon to El-Arish and the Arab Gas Pipeline infrastructure.

Renewable Energy Push

The coal phase-out is part of a broader energy strategy that targets 30% of electricity from renewable sources by 2030, up from approximately 10% today. Solar energy is expected to account for roughly 90% of renewable generation, capitalizing on Israel's abundant sunshine and available land in the Negev desert.

Approximately 2.5 GWp of new solar capacity was added in 2025, with several mega-scale solar farms under development. The government has also mandated solar installations on all new buildings, creating a distributed generation layer that complements utility-scale projects.

Grid Modernization

To support the transition from centralized coal generation to a diversified mix of gas and renewables, IEC is executing a five-year grid modernization program valued at over $2.5 billion. The program includes upgrading high-voltage transmission infrastructure, deploying smart grid technologies, and building energy storage capacity to manage the intermittency of solar generation.

"The grid of 2030 will look fundamentally different from the grid of 2020," said an IEC spokesperson. "We are building a flexible, resilient system that can integrate large-scale renewables while maintaining the reliability Israelis depend on."

Structural Reform

Alongside the physical energy transition, IEC is undergoing structural reform that will reduce its generation market share from 60% to 40%, opening the market to independent power producers. This reform is intended to increase competition, drive down electricity costs, and accelerate private investment in renewable energy projects.

The completion of the Orot Rabin conversion represents more than an engineering achievement — it signals Israel's commitment to a cleaner, more secure energy future built on domestic resources rather than imported fossil fuels.