Bezeq Israel and Generation Capital Join Forces to Enter Electricity Supply Market

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.”