Intel’s Israel power plant gets government backing
Government decision marks the beginning of a long regulatory process for energy independence at Intel’s Kiryat Gat chip plant.
The Israeli government has given preliminary approval for Intel to move forward with plans for a private power plant at its Kiryat Gat semiconductor facility. The decision at Sunday’s government meeting marks an early step in a complex regulatory process that could take up to seven years to complete. If approved, the plant will provide Intel with a dedicated energy source, reducing its reliance on Israel’s national grid.
The approval process for a private power plant in Israel is notoriously intricate, requiring multiple layers of regulatory review. The government’s decision follows an assessment by the Energy Ministry, which confirmed that the proposal aligns with national electricity policy and infrastructure development. Additionally, Intel was found to have the necessary land-use rights for the project.
The move reflects a growing trend among major industrial players seeking greater energy security by developing dedicated power infrastructure. Semiconductor fabrication is particularly energy-intensive, requiring stable and high-capacity electricity supply to maintain uninterrupted production.
Although the government’s decision represents progress, it does not guarantee the plant will ultimately be built. A similar case is currently under legal review by Israel’s Supreme Court, where another proposed power station—backed by the same energy firm, OPC—was denied final approval despite clearing all necessary regulatory hurdles.
Intel, one of Israel’s largest private employers, has been expanding its operations in Kiryat Gat as part of a broader strategy to strengthen its global semiconductor manufacturing footprint. According to a memorandum of understanding signed last year between Intel and OPC, the planned power plant will generate between 450 and 650 megawatts, with the majority of its output reserved for Intel’s use.
Despite the initial green light, there is no certainty that the project will move forward. The case of OPC’s Hadera power station—where the government initially supported the project before ultimately blocking it—highlights the unpredictable nature of Israel’s energy approval process. Legal and environmental considerations, as well as shifts in government policy, could still impact Intel’s plans.
If completed, the plant would represent a significant milestone in Israel’s industrial energy sector, setting a precedent for other manufacturers seeking greater control over their energy supply. For now, Intel must navigate a lengthy and uncertain path toward securing full approval for its ambitious power project.
