Dalia Power Energies is owned by Energy Economy Ltd. (43.3%), Hiram Epsilon Ltd. (43.3%), Sigma Epsilon Ltd. (3.3%), and the Israel Infrastructure Fund (10%). Arik Raichman is the company’s chairman (and former CEO of Tnuva)and CEO is Eitan Meir

Dalia has asked to increase their provisional license to 840 MW, or namely two CCGT units of 420 MW each. On 14th December 2009 Delek Drilling reported to the TASE that the Tamar and Dalit partnership would sign a binding deal with Dalia in the next two months after Dalia secures statutory permits and funding. Revenues from the sale of gas to the tune of 200 billion cubic feet (5.6 billion cubic meters) to be sold over 17 years currently for a unit of 270 MW as of the date of operation of the station that should be sometime during the second half of 2012. According to the MOU, the quantity of gas might be slightly smaller than this quantity based on the operational hours of the station that will be established, its gas use scope and the final size of the station, or that the quantity of gas may indeed be significantly higher than this amount, up to even three times the amount quoted here. The partners estimate that the revenue for the sale of 5.6 bcm will be about $1 billion but that it is to be clarified that the actual revenue will stem from the total of a large number of factors including those specified above and including the price of energy. Based on this, one can estimate that the price per mmbtu is an average of about $5.06 with a lower floor base due to the indexation.

30th July 2011 – Dalia 835 MW power station at Tzafit west of Beit Shemesh signed an operating and maintenance agreement with French company Alstom S.A., which won the tender for building, supplying, operating and maintaining the $1 billion station. The station will include two of Alstom’s 417 megawatt combined cycle units. Alstom will also supply the sub-station that will connect the station with the electric grid. The construction agreement stipulates that the station be built within three years. According to the contract’s conditions, Alstom will operate and maintain the power station for twenty years

Oct 2011 – Dalia energy linked up to INGL

9th Jan 2012 – Tamar partners announced that on January 8, 2012, a GSA was signed Tamar and Dalia Power Energies Ltd under which Dalia will purchase, from the sellers, natural gas for the purpose of operating a power station which it plans to construct. According to the supply agreement, the sellers are committed to supply Dalia with up to 1.38 BCM per year of natural gas for a period of 17 years, starting from the beginning of commercial operation of the power plant that Dalia plans to build [“basic agreement period”], or until Dalia has consumed the volume of gas provided by the agreement, the earlier of the two. The parties have the right to extend the supply agreement period, by up to two more years, if up to said date, not all volumes as provided by the agreement have been consumed.

Dalia is committed to “take or pay,” an annual minimum volume of gas, in a volume and in accordance with a formula provided by the supply agreement. The price of gas provided by the agreement will be determined according to a formula that is based primarily on the cost of generating electricity, as fixed, from time to time, by the Public Services Authority-Electricity, including a “floor price” for the price of gas.

The “Tamar” project partners estimate that total revenue from the sale of gas to Dalia [vis à vis 100% of the rights to the “Tamar” project], during the basic agreement period [on the basis of estimates prepared by the partners for gas prices over the supply period], may reach US$ 5 billion. It should be noted that actual revenue is a function of many factors, including the volume of gas that will be actually purchased by Dalia, and the cost of generating electricity.

The supply agreement includes a number of conditional terms, primarily – the financial closing of Dalia, financing of part of the partners share of the “Tamar” project [including that of the Partnership], and approval by the Antitrust Authority [if said approval will be required]. Based on this contract and as estimated by the Partnerships, gas supply is estimated to begin in the second half of 2014.

Dec 2012 –

The financing agreement was finally concluded 7th Dec 2012, a month after the signing was first reported. The delay was caused when Clal, which was supposed to provide the project with a credit of 500 million shekels (as a senior debt), had reservations after the PUA hinted that it would place restrictions on the participation of institutional bodies in the financing of future electricity projects, in the event they also own rights in natural gas projects.

The PUA clarified that its moves would not apply to any financiers with stakes in natural gas companies, and that it will continue to develop organized regulations regarding the restrictions on financiers in electricity projects. Clal, however, was not satisfied with these statements and threatened to retire from the consortium of financiers. Following prolonged negotiations with the PUA, Clal withdrew its reservations, leading to the final signing of the agreement. The financiers will now be able to transfer the initial capital to the developers.

The project’s 3.2 billion shekel senior debt, organized over the past year and a half by Bank Leumi, will be funded by the bank itself (700 million NIS) and no less than six other institutional bodies: Amitim (540 million NIS), Clal and Harel (500 million NIS each), Psagot and Menora (400 million NIS each), and Migdal (200 million NIS). For the first time, the project will include an alternate financial model for supplying half of the equity required from the developers (20% of its value), according to which Dalia will issue 400 million shekels worth of preferred stocks to the financiers, in a type of mezzanine which will spare its owners from raising the capital at this time.

After the financial closure, changes will also be made among Dalia’s shareholders. The Mishkey Hakibbutzim Group will increase its holdings to 47.7%, at the expense of Sigma Epsilon, based on an estimated value of $120-$150 million (following the closure). The private investors will directly own 6.7% of the project’s stocks, and together with the Landau family will hold 25.6%. The remaining 20% will be owned by the Israel Infrastructure Fund. The Landaus were required to sell their stake because of cross-holdings in the Leviathan reservoir, and they are expected to do so in the coming months.

IEC TASE announcement (8th July) – Start of operations of Dalia IPP

IEC hereby announces that on July 7, 2015, began commercial operation of one unit (out of two) of an independent private producer – Dalia Power Energies.

The maximum capacity of the aforementioned unit at Dalia’s CCGT is approximately 456.9 MW. The CCGT can operate both on natural gas and on diesel fuel.

The commercial outline of Dalia is that it sells most of its electricity output to the system operator (namely to IEC) on a competitive basis and sells its excess power generation to end consumers, namely private consumers.