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Israel's energy grid a likely target in any regional war

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Micro-grids can act as a backup during blackouts

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Private companies stand to benefit from new plan

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The war is a catalyst for quick adaptation, expert says

By Ari Rabinovitch

MAALE GILBOA, Israel, July 18 (Reuters) - Maale Gilboa,

a remote kibbutz on a rocky hilltop in northern Israel, was an

unlikely spot to build a farming community let alone the future

of Israel's energy supply.

But its experience in adopting renewable energy and building

energy storage solutions has put it at the forefront of Israel's

ambition to create a more resilient and decentralized

electricity grid that might better cope in times of war.

"We chose the toughest place to build, where others said 'no

way'," said Dovi Miller, who helped establish the kibbutz in the

1960s and now heads its energy operations.

His job is to make the kibbutz Israel's first "island of

energy", a micro-grid which can isolate itself from the national

power network if necessary and operate independently.

"We are building a system that allows our batteries to

receive the electricity produced so it will continue to work if

the grid fails. We will disconnect and become an energy island,"

Miller said.

Its array of renewable energy, including wind turbines,

solar and a huge dome storing biogas, made Maale Gilboa a

natural choice for the pilot program.

Israel's energy transition plan has been in the works

for years but took on greater urgency when war broke out on

several fronts following deadly Hamas attacks in southern Israel

on Oct. 7.

Power lines were damaged that day causing blackouts. Israel

was forced to temporarily shut its main energy source, the

offshore Tamar natural gas field.

There are thousands of micro-grid projects already up

and running around the world from Asia Pacific, North America,

the Middle East and Africa in schools, hospitals, jails and

whole communities but they often depend on public funding.

The World Bank in 2022 said solar micro-grids could help

half a billion people access power by 2030 but added that more

action needs to be taken to identify opportunities, drive down

costs and overcome barriers to finance.

NEED TO DECENTRALIZE

Israel's micro-grid pilot, which will be complete sometime

in the next year or two, will run in parallel to the large

stockpiles of diesel, coal and generators that it has been

collecting.

The Energy Ministry's plan is meant as a backup, not a

replacement, to the major plants that power the country using

natural gas from offshore fields.

"In the event of thousands of rockets falling, it's clear

there will be problems of blackouts," said Ron Eifer, head of

the ministry's Sustainable Energy Division.

Most of the national grid is above ground and will be a

likely target should fighting with Iran-backed Hezbollah in

Lebanon escalate into a broader conflict.

Eifer said Israel needs to decentralize electricity

distribution to reduce the risks.

The goal is to create expanding circles, each with its own

energy source and storage ability, starting from individual

households and community emergency zones and extending to entire

villages or city neighborhoods. It will start with the

rebuilding of communities along the borders of Gaza and Lebanon

that have been damaged or destroyed.

The ministry aims to have five gigawatts of renewable energy

in the reconstructed area around Gaza by 2030, helping it reach

a goal of generating 30% of power from renewables by that time.

By the end of 2023 about 13% of the country's energy needs came

from renewables.

Most of the micro-grids will use solar energy from rooftop

or land-based fields that can be stored in batteries for use at

night. Extra energy generated can be sold to the national grid.

If a solar field is hit, it may lose some panels but can

continue to generate, Eifer said.

The government is waiving the need for permits and

subsidizing installations, Eifer said.

A market is already growing around the push for standalone

storage facilities and solar fields.

Israel will this month begin allowing companies other than

state-owned Israel Electric Corp (IEC) to supply electricity to

households. Telecom groups like Bezeq and Cellcom

intend to compete with IEC, and standalone

installations will be a natural source for them to use, industry

officials say.

The energy ministry expects about 12 billion shekels

($3.3 billion) to flow into the private sector with the reform.

Energy conglomerate Delek Group announced on

Tuesday it was joining a venture to build 500 megawatts of

dual-purpose solar energy fields on farmland, similar to those

used by kibbutz Maale Gilboa.

This shift to micro-grids likely would have occurred at some

point, but only farther down the line, said Amit Mor, CEO of Eco

Energy Financial & Strategic Consulting and a senior lecturer at

Reichman University.

"The war is a catalyst. There is a necessity for

self-sustained energy because of strategic energy security, war

and environmental risks," Mor said. "In this respect Israel can

serve as a model, as a microcosm for quick adaption of this

technology for other countries facing similar challenges."

($1 = 3.6220 shekels)

(Editing by Elaine Hardcastle)