Mekorot, Israel’s national water company, has signed a new four-year electricity supply agreement with private power producer Dorad, valued at approximately NIS 1.3 billion. The agreement replaces a previous agreement dating back to 2010.
The contract includes electricity from Dorad’s private power station at a variable output of 55–75 megawatts, intended almost entirely for the daily operational needs of Israel’s water system, which covers around 250 facilities nationwide.
Mekorot is Israel's largest electricity consumer, responsible for nearly 4% of national demand. Its high electricity use stems from large-scale water pumping, transmission, and production activities across thousands of kilometers of infrastructure.
“The agreement with Dorad is part of Mekorot’s broader strategy for responsible, diverse, and efficient energy supply management,” said Mekorot CEO Amit Lang. “Electricity consumption is a significant component of Mekorot’s operating costs, so it is important for us to act in ways that reduce expenses, enhance operational flexibility, and ensure energy security—even in emergency situations.”
Lang added that the move reflects the company’s commitment to diversifying energy suppliers and lowering operational expenses. The updated agreement also strengthens cooperation between Mekorot and Dorad, enabling the electricity supply to adapt to Mekorot’s changing needs and support greater efficiency.
Mekorot currently spends nearly NIS 910 million annually on electricity. The company aims to reduce costs and increase resilience by leveraging market competition. Attorney Shani El-Gad of Steinmetz Haring Gurman advised on the agreement.
This article was written in collaboration with Mekorot.