The demand for electricity is growing due to natural growth and the electrification of the transportation and industrial sectors, as is the demand for clean electricity to reduce emissions. The Electricity Authority has been working over the past decade to promote Renewable energy through various technologies, primarily solar energy combined with energy storage facilities, while creating regulations that incentivize their establishment (urban premium, fast tracks, rooftops, etc.).
The significance of increasing the target to 35% by 2035 is an installed capacity of approximately 22 GW, while currently the installed capacity stands at about 8 GW. The Authority’s recommendation means installing about 1.4 GW per year compared to an average of 0.9 GW in recent years, which necessitates increasing government efforts to enhance the chances of meeting the target.
The Authority recommends realizing the target in a ground-oriented and agro-voltaic scenario, where the economic benefit is significantly higher than in a rooftop-oriented scenario. It should be noted that even in the ground-oriented and agro-voltaic scenario, about one-third of the facility capacity will be on rooftops.
Increasing the target is expected to increase the economic benefit by approximately NIS 6 billion, factoring in the full external costs of the Green Book and an additional tariff cost of about NIS 2.05 billion, so that the total excess cost of renewable energy generation will not exceed 10% of the electricity tariff in 2030 and 8% in 2035.
The economic benefit of a 40% target was found to be higher by about NIS 1.5 billion, although it means doubling the current installation rate. Therefore, the Authority requests public input on the feasibility of meeting the 40% target by 2035. In any case, the Authority recommends that if 2 GW (the annual volume required to meet the 40% target in the next 10 years) are connected per year for two consecutive years until 2030, the target will automatically increase to 40%.
Increasing the renewable energy target to more than one-third of electricity generation in Israel is a weighty decision with far-reaching implications within and outside the electricity economy. Therefore, increasing the target must be a national mission with the commitment and involvement of the entire economy. The main resources should be directed to a special effort in two strategically important components: developing the electricity grid’s capability and significant integration of agro-voltaic facilities, which are a necessary condition for meeting renewable energy targets.
The Authority views the 35% target as ambitious yet realistic, considering the unique characteristics of the State of Israel, taking into account the expected growth in electricity demand, the proven rate of renewable energy facility penetration in recent years, the existing shortage of land and grid resources, and the limitations arising from Israel’s limited energy mix. This target allows for significant progress towards national climate goals while maintaining system stability and tariff accessibility for consumers.
The public review document is published on the Authority’s website for public submissions until February 19, 2026, and will be brought for a decision to the members of the Electricity Authority plenum according to the plenum’s schedule. The public is invited to send comments through the Electricity Authority’s website.