ISRAEL Law and Practice Contributed by: Benjamin (Benny) Sheffer and Lance Blumenthal, S. Horowitz & Co.
• An example of regulatory reform was brought about by the Public Utilities Authority – Electric- ity (PUA) in April 2022, when it launched its first competitive procedure for renewable generation, in accordance with which tariffs are now set pursuant to a tender rather than by fixed feed-in tariffs. Political and Regulatory Objectives and Support for Carbon-Emissions Reduction • Israel has set a target to have about 30% of its electricity generated from renewables by 2030. • The push is driven by climate concerns, being less dependent on imported fuels, and economic opportunities. • There is an increase in regulatory support, for example, tariffs specifically for solar and storage facilities were introduced in 2023 to encourage storage alongside PV. • The government is encouraging rooftop solar and micro-generation so citizens and businesses become producers (“prosumers”), not just consum- ers. Incentive Schemes • A supplementary tariff for solar with storage instal- lations was introduced in 2023 (top-up payment for PV and battery systems) to help integrate renewa- bles into the grid. • Regarding rooftop solar, there are net-metering/ sell-back schemes in accordance with which the ministry is planning new tariff tracks (for example, a higher rate for the first five years and then a lower rate thereafter) for residential houses with excess power to be sold to the grid. • There is government support for energy efficiency and renewable projects on public buildings. For example, in 2023, NIS100 million was set aside to be used over two years for more than 70 renewable efficiency projects in government properties. Conventional Energy Sources – Political and Regulatory Developments • Coal phase-out – Israel has committed to phasing out coal-fired power generation. According to the Powering Past Coal Alliance listing, Israel aims to have a coal-free electricity sector by 2030. • Natural gas expansion – Israel is encouraging exploration and production of offshore natural gas
reserves (for example, the Leviathan gas field in the Mediterranean) and increasing exports of gas to neighbouring countries. • Regulatory oversight – the Petroleum Commission- er and Ministry of Energy have updated policies regarding exploration, production and export of conventional fossil fuels. • Export policy – the government approved higher export volumes of natural gas in 2024 to strength- en economic and diplomatic ties and energy security. 7. Due Diligence/Data Privacy 7.1 Energy and Infrastructure Company Due Diligence The scope of due diligence in public company acqui- sitions is generally more limited than in private deals and is primarily confirmatory in nature. Practically, it verifies information already disclosed through the company’s public filings. Public companies are sub- ject to the Israeli Securities Law, 1968, and the Secu- rities Regulations (Periodic and Immediate Reports), 1970, which require extensive disclosure to the ISA and the TASE. Consequently, bidders rely mainly on these public disclosures for their review. In contrast, due diligence in private company acqui- sitions is generally broader and may include reviews of corporate, contractual, financial, regulatory and environmental matters. In the energy and infrastruc- ture sector, bidders commonly focus on project risks including concession rights, government approvals, environmental permits, grid-connection arrange- ments, and financing documentation. There is no statutory obligation for a public company to provide identical information to all potential bidders in a takeover or acquisition context. However, Israeli securities and corporate governance rules impose practical and fiduciary limits on selective disclosure and board discretion during due diligence. Under the Israeli Securities Law, 1968, a company must ensure that any material, non-public information (“inside information”) is not disclosed selectively. If such information is provided to one bidder, the com-
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