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Preserving competition and economic welfare in Israel's PV market

Author

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  • Tourgeman, Miriam
  • Cohen, Chen
  • Rubin, Ofir

Abstract

Despite global efforts, many countries struggle to meet renewable energy targets. In 2022, Israel's renewable energy accounted for only 10% of its electricity generation despite its abundant solar resources. This study analyzes the outcomes of three tenders for photovoltaic (PV) facilities aimed at advancing national renewable energy goals. The results reveal lower production costs but increased market concentration, with a 50% reduction in the number of winning firms, consolidating around major players. While efficiency has improved, the exit of smaller, less competitive firms raises concerns about long-term dominance. Cournot oligopoly simulations predict rising concentration and market power.

Suggested Citation

  • Tourgeman, Miriam & Cohen, Chen & Rubin, Ofir, 2024. "Preserving competition and economic welfare in Israel's PV market," Utilities Policy, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:juipol:v:91:y:2024:i:c:s095717872400136x
    DOI: 10.1016/j.jup.2024.101842
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