15 July 12 15:32–”It’s going to be a tough week and summer,” Israel Electric Corporation (IEC) (TASE: ELEC.B22) chairman Yiftach Ron-Tal told the nation at a press conference last week together with Minister of Energy and Water Resources Uzi Landau and other officials. Everyone was on hand to tell the public that, this time, it could really happen:- the doomsday weapon will have to be used; there will be rolling blackouts – “compelled” was the word of choice this time – for the first time since the Second Lebanon War in the summer of 2006.
For a moment, just before the weekend, it seemed that the cry of “Wolf!” was real. A series of breakdowns at the Ashkelon and Hadera power plants raised the level of anxiety, and some of the media took Ron-Tal and his colleagues too seriously, and rushed to report an electricity fiasco.
But the weekend has passed, and on Sunday, IEC suddenly announced that there was no electricity shortage. Despite the breakdowns, despite the heat wave, the electricity supply should exceed peak demand by 700 megawatts – a respectable reserve of over 5% of production capacity. Only an extraordinary coincidence of concurrent major breakdowns at IEC could cause an electricity shortage…Read More>>