What is wrong with the electricity sector in Israel ?

Renewable energy technologies for electricity production represents only 0.13% of the installed electricity capacity in Israel, the other 99.87% is based on burning fossil fuels which pollute our air and contribute to climate change. According to Israel’s Central Bureau of Statistics, electricity consumption in Israel grew by 7% per year during the Nineties. Because the installed capacity is already stretched to the limit, the construction of a new 1200MW coal based power plant was approved by the government and the idea of a nuclear power plant had recently resurfaced. Unless an alternative concept for the development of electricity generation capacity will be promoted, Israel’s products will be less competitive on the global market and the public will suffer from environmental degradation and related health problems.

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Why are carbon based fuels bad for the economy ?

About 95% of the energy used in Israel is based on imported fossil fuels. This means that foreign currency is used to buy these fuels and that Israel is totally dependent on external sources for its energy needs. It also means that the local economy is highly exposed to price fluctuations of fossil fuels on the global market. The associated cost of the environmental and health aspects of burning fossil fuels also negatively effects the local economy.

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Why are carbon based fuels bad for the environment ?

Carbon based fuels contain pollutants that are released into the environment when they are burned. NO_x and SO_x are two of the main pollutants which are released when burning fossil fuels and can cause serious health problems. Regardless of how efficient and clean the fossil fuel technology is, it always emits CO₂ which is the primary cause for the Greenhouse Effect and climate change.

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Why use the cooperative model ?

The cooperative model allows a group of individuals to pool their resources together in order to provide themselves with a service which has not been available before, or promote a shared idea or goal through a joint investment. To learn more on the advantages of the cooperative model for renewable energy development click here.

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How much will a share cost ?

It is impossible to estimate the cost of a share before details are available about a specific project. However, here are some examples from around the world.

• WindShare wind energy cooperative of Toronto Canada offers shares for CN$100/share with a minimum required purchase of 5 shares (CN$500 or about US$360). WindShare estimates returns of between 5-8% for the first three years of operation. Returns for later years will depend on electricity prices in Canada which are expected to rise and so increase the returns for the cooperative members.

• Middelgrunden wind energy cooperative of Copenhagen Denmark offered shares for 4,250 DKK/share (about US$604). The cooperative estimates returns of about 12% for the first 6 years and 8% for years 7-20 (the higher returns in the first 6 years results from Denmark's renewable energy incentive programs).

• Baywind wind energy cooperative of Cumbria England has a minimum share holding of £300 (about US$480). Since the formation of Baywind in 1996 members have received returns of between 5.6-6.6%. Under the UK Enterprise Investment Scheme, most members can claim back 20% tax on their initial investment in the co-op thus increasing the return to between 7-8.2%.

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Will I be able to buy shares outside Israel ?

Yes. Providing this will not conflict with Israeli laws, shares in IREC's renewable energy projects will be available to interested parties worldwide.

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How can I get involved ?

There are three ways to get involved

• IREC is looking for sponsors and business partners to help establish the required infrastructure for the organization. If you are interested in exploring the benefits of becoming a sponsor or a business partner please click here.

• IREC is generating a database of individuals, organizations, institutions and businesses that would consider buying shares in the cooperative when a specific project is developed. If you want to add your contact information to this database please click here.

• IREC is generating a database of individuals, organizations, institutions and businesses that would consider buying clean electricity (green electricity) from IREC. If you want to add your contact information to this database please click here.

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