The sharp devaluation of the Shekel and the concurrent reduction in government subsidies may give Israelis the needed incentive to conserve energy, according to Haim Elata, chief scientist for the Israeli Ministry of Energy and Infrastructure.
Elata made these remarks at a briefing on current Israeli energy policy sponsored by the Energy Committee of the Jewish Community Councils of Metropolitan Boston.
A KEY ELEMENT IN THE PROGRAM
One of the key elements of the government program was encouraging conservation, he explained. “But you can’t talk about conservation without (consumers) at least paying market price” for electricity, oil and other forms of energy, he said.
Elata said that “we at the Ministry of Energy have been fighting with the Ministry of Finance for years” to cut energy subsidies. He noted that since the 1973 oil embargo, many countries have reduced their energy consumption by as much as 20 percent, while Israel marked only a “six or seven percent” drop. Today, he added, consumption levels in Israel may even be a bit higher than they were ten years ago.
These levels are due partly to the fact that there “was not as much waste before” in Israel as there was in other countries, he said. They are also attributable to government support of industry and subsidies in the consumer market.
“Unless you tie energy to its real cost, any energy conservation program will fall on its face,” Elata said. “You tell them they have to conserve on the one hand, but on the other hand, you effectively cut costs.”
He said he was “hopeful that the increase in (energy) prices that will have to come” from the reduction in government subsidies “will help in conservation, help decrease usage.”
ACUTE NEED TO CONSERVE ENERGY
Israel’s need to conserve energy is particularly acute because of its dependence on foreign sources for oil and its difficulty in securing these sources, Elata explained. Israel currently imports largely from Egypt and Mexico.
Moreover, Elata said, until two years ago, oil was the only form of energy used in Israel. Around 12 percent of the country’s gross national product went towards its purchase — an “unusually high” rate even among non oil-producing Western nations, Elata noted. “Even with the current lower prices, (oil imports) are a burden on the Israeli economy,” he said.
To secure supply, minimize costs, and decrease dependence on foreign sources, the Ministry of Energy has instituted a five-point plan that focuses on: diversification, conservation, exploration for oil, development of renewable sources — most notably, solar energy — and development of indigenous fossil fuel, Elata explained.
Israel has been particularly successful in introducing coal as an alternative energy form, especially in industry; and in its development of solar energy. Elata said that coal already accounts for 40 percent of energy usage in Israel. He emphasized that the coal market was “much more secure”, its chief exporters being South Africa, England and the United States. He noted that Israel was a pioneer in the development of solar flat plate collectors for domestic use. Their usage is widespread throughout the country, and new buildings now have to feature them, he added.
THE PROBLEM FACING THE CANAL PROJECT
Elata emphasized that Israel’s was “a far-looking Ministry of Energy” and that he had always met with support for projects that looked toward the future. Among these he included the proposed Mediterranean-Dead Sea canal, which would replenish the Dead Sea and use it as an energy source. The project has come under criticism because after large sums of money were raised for it through Israel Bonds, the project came to a standstill.
Elata explained that the main obstacle the project faces is its huge expense, but he noted that the board of directors of the Mediterranean-Dead Sea Canal Company voted last January to take all steps for design and bid preparation.
“I think this project will be built,” he said. “It’s very feasible. The beginning of construction will probably be delayed for a few years — until the next energy crisis.”
Elata announced that Israel will be hosting an International Energy Congress in May that will focus on “Energy for Small and Medium-sized Countries.” Israel “has a name in solar research,” he said, and it has decided that “the time has came to show to others what we have done” in that and other areas of energy policy and research.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
