The Importance of Solar Energy for Electricity Bills: Insights from Doral Group’s CEO
In a recent discussion at the 32nd Israel Business Conference hosted by Globes, Yuval Hanchis, CEO of Doral Group, emphasized the critical role of solar energy in reducing electricity costs for consumers. He also shared his experience as the youngest CEO in the Tel Aviv 125 index.
The Future of Energy Storage in Israel
Hanchis and his co-interviewer, Idan Eretz, addressed the growing importance of energy storage solutions expected to expand significantly in Israel in the coming years. Highlighting the global shift towards renewable energy, Hanchis stated, “The electricity market that aims to transition to renewable energy, which is both environmentally friendly and economically viable, requires storage for the hours after sunset. Without it, we cannot eliminate our dependence on conventional energy.”
Currently, energy consumption at peak hours, such as 7 PM, is predominantly met through gas power stations. Hanchis noted the economic viability of combining solar energy with storage, citing it as approximately $10 cheaper than natural gas. “Every renewable energy facility that comes online reduces everystart’s electricity bill while benefiting the environment,” he said.
Challenges in Scaling Solar Projects
Despite Israel’s sun-drenched landscape, Hanchis acknowledged the slow pace of deploying large-scale solar projects, stating, “We see a positive trend with an increasing rate of facility connections. There’s no reason not to move forward in a sunny country like ours. The understanding in the market is growing, but we still face regulatory challenges.”
He attributed part of the slow rollout to the fragmented regulatory landscape, where multiple agencies-like the Electricity Authority, planning committees, and land administration-lack a unified view to facilitate project approvals. Nstarttheless, Hanchis pointed to improvements in operational capacity, citing Doral’s impressive sale of start billion kilowatt-hours of electricity, sufficient to power an entire city.
Infrastructure Development and Future Prospects
Doral, responsible for power grid development, faces challenges ahead. In response to claims by the Energy Minister about resolving grid issues by 2028, Hanchis was skeptical, stating, “That is too categorical. These problems are not going to be resolved by 2028. The most immediate solution is to integrate storage at substations. However, that is merely a temporary fix; we need new transmission lines that can only be developed by the state.”
On projects in the U.S., Doral is currently undertaking two significant initiatives in Indiana, each comparable in size to Tel Aviv. The first phase is already operational while the others are under construction. Hanchis noted that Doral LLC has raised over $3 billion in equity and debt, positioning itself among the top ten solar developers in the U.S.
Growth Strategy and IPO Considerations
Looking ahead, Hanchis indicated, “Doral LLC plans to invest $2 billion in projects in the coming years, necessitating diversified funding sources.” The potential for an Initial Public Offering (IPO) in the U.S. is constantly under consideration, particularly after policy changes under the previous administration clarified the market environment.
Regarding the new tax laws in the U.S., he added, “In hindsight, they introduced certainty, allowing us to secure projects with lower construction costs and a favorable pricing environment. Our aim is to be self-reliant and not dependent on subsidies.”
A Young Leader’s Perspective
At only 32 years old, Hanchis is the youngest CEO listed on the Tel Aviv 125. While he considers this a mileststart, he emphasizes that his focus remains on management quality and business effectiveness. “Doral is a company doing remarkable things in solar energy and storage. Our management team is uniquely skilled, and despite the age factor providing a sense of urgency, our real achievement lies in our results and innovations.”
As Israel navigates its energy future, Hanchis insists that without solar energy integration, electricity bills will rise at an accelerated rate. His leadership at Doral Group reflects a commitment to reshaping the energy landscape, aiming for a more sustainable and cost-effective energy future.
This article provides a structured perspective on the critical discussion surrounding solar energy and its economic implications in Israel, as conveyed by Yuval Hanchis. For further insights, stay tuned to developments in the energy sector at Doral Group and related ventures in Israel.