Bezeq, Israel's telecommunications company, and Generation Capital's PowerGen company have announced their collaboration by signing a memorandum of understanding (MoU) to establish a joint venture in the electricity supply sector. The partnership aims to become a significant player in the market, leveraging Bezeq's marketing and sales expertise alongside PowerGen's diverse energy assets and trading capabilities.
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Bezeq and PowerGen form JV
The joint venture will see both companies holding identical ownership stakes and is expected to capitalise on the strengths of each partner. Bezeq said it will lead in marketing, sales, and service provision, while PowerGen will supply electricity sourced from its various production facilities, including natural gas power plants, gas engines, solar installations, and storage capacities.
With a target of acquiring 400,000 customers by 2030, the venture sets its sights on a substantial market share in the evolving electricity supply landscape. The move represents an expansion beyond Bezeq's traditional telecommunications domain and aligns with Generation Capital's vision to lead in supplying electricity to various customer segments.
Leveraging Strengths for Market Dominance
Bezeq commented, "For the first time since forever, Bezeq is initiating a strategic move, and entering a significant field of activity that is not part of the world of communications. We will operate in the market estimated at billions of shekels per year, while leveraging the company's strengths and advantages. The new venture will be a catalyst for the development of the electricity market, and will lead the news of competition in a critical field in Israel. The structural change in the electricity supply market creates a unique business opportunity for the supply of cheap and green electricity, and I am convinced that the new venture will become a leader in the electricity supply industry."
"The joint electricity venture will combine Bezeq's prominent advantages in the field of service delivery with PowerGen's capabilities and experience in the energy sector, and will bring real consumer news that will save customers on their electricity bill. I am happy about the partnership with Generation Capital, one of the leaders in Israel in the field of electricity, and I am convinced that together we will turn the project into a leading entity in the supply of electricity in Israel, added Bezeq Israel CEO.
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Goals for Market Penetration
Generation Capital commented, "We will create a company An integrated and unique private electricity that operates in all segments of the electricity market and creates value for the electricity market, end customers and our investors. Bezeq, one of the leading and oldest companies in the Israeli market, with access to millions of customers and households, is the most suitable and worthy partner for this type of project and we are sure that the joint venture will lead the electricity supply industry many more years to come."
Together, Bezeq and Generation Capital are poised to shape the future of Israel's electricity supply industry, leveraging their combined strengths to lead the way for years to come.
