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Israel's Energy Israel's Energy Independence: Independence:

Long-Term PolicyLong-Term Policy

Israel's Energy Israel's Energy Independence: Independence:

Long-Term PolicyLong-Term Policy

State of Israel Ministry of National Infrastructures

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World Trends – Dominant World Trends – Dominant Fossil FuelsFossil Fuels

• Coal, oil, and natural gas will continue to comprise the Coal, oil, and natural gas will continue to comprise the major component of the energy supply under every major component of the energy supply under every eventuality.eventuality.

• Oil will continue to be the principle fuel and while its use will Oil will continue to be the principle fuel and while its use will increase, the major increases are also expected for coal, increase, the major increases are also expected for coal, mainly for generating electricity in China and India.mainly for generating electricity in China and India.

• The demand for natural gas, hydraulic energy, and The demand for natural gas, hydraulic energy, and biomass is expected to increase, while the proportion of biomass is expected to increase, while the proportion of nuclear energy is expected to drop (to the extent that nuclear energy is expected to drop (to the extent that world demand for this form of energy remains world demand for this form of energy remains unchanged).unchanged).

• Non-fossil fuel alternatives – atomic, wind, hydro, solar, and Non-fossil fuel alternatives – atomic, wind, hydro, solar, and biofuels are expected to reduce the overall problem to a biofuels are expected to reduce the overall problem to a certain extent, but each must overcome numerous obstacles.certain extent, but each must overcome numerous obstacles.

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World Trends – The Dangers of World Trends – The Dangers of

Dependence on Oil ProducersDependence on Oil Producers

• Russian and Middle Eastern hegemony in the oil market will likely result in forcing up prices.

• Transportation of oil in certain areas may become subject to hazardous security conditions.

• Sudden energy crises.

• Price hikes, inflation, and economic harm.

• Impact on the price of natural gas.

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World Trends – Status of World Trends – Status of Crude Oil in 2030Crude Oil in 2030

• In the worst case scenario, demand will rise from 84 million barrels a day to 116 barrels a day. (103 million b/d under a moderate scenario).

• Oil reserves in North America, Europe, and East Asia are declining while demand is increasing, principally in the United States and Asia.

• OPEC countries will be supplying almost half of the world’s demand for oil.

• Countries friendly to Israel will become absolutely dependent on imported oil: China 77%, India 87%, European Union 92%, Japan and South Korea 100%, North America 49%, total OECD 65%.

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ISRAEL AS AN “ISLAND” STATEISRAEL AS AN “ISLAND” STATE

100% 100% DEPENDENT ON FUEL IMPORTS DEPENDENT ON FUEL IMPORTS

ISRAEL AS AN “ISLAND” STATEISRAEL AS AN “ISLAND” STATE

100% 100% DEPENDENT ON FUEL IMPORTS DEPENDENT ON FUEL IMPORTS

Israel’s electricity grid

Imports of energy sources to Israel

State of IsraelState of Israel

Ministry of National InfrastructuresMinistry of National Infrastructures

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OILOIL- Russia and Confederated states.

- Africa

- Mexico

COALCOAL- South America

- Other

OILOIL- Russia and Confederated states.

- Africa

- Mexico

COALCOAL- South America

- Other

State of IsraelState of Israel

Ministry of National InfrastructuresMinistry of National Infrastructures

Oil reserves of the world

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THE STATE OF ISRAEL – THE ENERGY ECONOMYTHE STATE OF ISRAEL – THE ENERGY ECONOMY

REDUCING STRATEGIC DEPENDENCE ON OIL: Reducing strategic dependence on

importing crude oil.

Cutting the emission of greenhouse gases and other pollutants into the atmosphere, ground, and water supplies.

Reducing the heavy burden on the economy resulting from the rise of crude oil prices.

OUR MISSIONOUR MISSION

Ensuring the continuous supply of energy in the quantities Ensuring the continuous supply of energy in the quantities and quality needed for the economy at the most optimal and quality needed for the economy at the most optimal economic, social, and environmental cost, while preserving economic, social, and environmental cost, while preserving strategic sources of supply for the State of Israel, including strategic sources of supply for the State of Israel, including supplies for emergency situations.supplies for emergency situations.

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Future Sources of EnergyFuture Sources of EnergyOil: (% Projections through 2020)

Coal: For Power Production

)levels needed for 7,200 MW capacity through 2020 ( Major Push for low emission coal technologies

(IGCC) Sustainability to be striven for:

Major effort at drastic reduction of emissions from Transport Biofuels – 5% by 2012-2013Target - Consumption reduction of 25% by 2025

Energy Supply

State of IsraelState of IsraelMinistry of National InfrastructuresMinistry of National Infrastructures

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DIVERSIFYING THE ENERGY SUPPLY – NATURAL GASDIVERSIFYING THE ENERGY SUPPLY – NATURAL GAS

THE ENTRY OF NATURAL GAS INTO THE ISRAELI ENERGY MARKET HAS THE ENTRY OF NATURAL GAS INTO THE ISRAELI ENERGY MARKET HAS CONTRIBUTED TO ISRAEL’S ECONOMY BY REDUCING THE NATIONAL CONTRIBUTED TO ISRAEL’S ECONOMY BY REDUCING THE NATIONAL MONETARY COST OF ENERGY FACTORS, MONETARY COST OF ENERGY FACTORS, REDUCING DEPENDENCE ON REDUCING DEPENDENCE ON IMPORTED OIL ANDIMPORTED OIL AND OIL BYPRODUCTSOIL BYPRODUCTS, AND SUBSTANTIALLY CUTTING , AND SUBSTANTIALLY CUTTING GREENHOUSE EMISSIONS AND OTHER POLLUTANTSGREENHOUSE EMISSIONS AND OTHER POLLUTANTS

TRANSMISSIONTRANSMISSION

Completing the construction of the natural gas transmission

system and constructing the main eastern transmission line.

SUPPLY: Expanding and Diversifying the Gas MarketSUPPLY: Expanding and Diversifying the Gas Market Agreements with additional gas suppliers: EMG, BG, Gazprom.

Examining the potential for establishing an infrastructure corridor with

Turkey (constructing undersea pipelines from Jihan in southern Turkey to a

point in Israel) that will enable the import of natural gas to Israel, and from

there to the far East and the United States. Bringing liquefied natural gas for transmission in Israel (LNG).

Trans-Arab Gas Pipeline Energy Corridor Israel’s Natural Gas

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DIVERSYING THE ENGERGY SUPPLY – DIVERSYING THE ENGERGY SUPPLY – RENEWABLE ENERGYRENEWABLE ENERGY

The development of alternative energy sources and technologies for a more efficient utilization of energy resources; adopting and applying new technologies

Developing alternative energy sources for using energy resources more efficiently. Utilizing principle renewable energy resources available in Israel – Solar and Wind. Generating solar power, wind turbines, pumped water storage facilities. Advancing power generation and oil production from oil shale, using technologies which reduce environmental pollutants. Initiating and promoting a scientific and technological base for renewable energy through research and development grants. Encouraging and advancing small projects for energy savings and efficiency through the “Startergy” fund.

Solar projects

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DIVERSIFYING THE DIVERSIFYING THE ENERGY SUPPLY - ENERGY SUPPLY -

ENERGY CONSERVATIONENERGY CONSERVATION Encouraging energy conservation to attain various benefits: Economic, Strategic, Environmental, Better Land Use by way of economic incentives.

Reducing energy demand by using incentives and other economic measures, financial and regulatory.Changing consumption habits to encourage energy efficiency – using legislation and regulations to encourage the purchase of energy efficient appliances such as refrigerators, air conditioners, electric motors, etc.)Promoting energy efficiency in buildings and using solar energy in buildings.Setting realistic goals for energy efficiency.

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-Thank you-