Fattal Hotel Chain Signs Memorandum of Understanding with PowerGen for Energy Solutions
The Fattal Hotel Chain has signed a Memorandum of Understanding (MOU) with PowerGen, an energy company owned by Generation Fund, for a period of 15 years. The agreement focuses on the establishment of storage facilities, gas engines, and electricity supply systems at Fattal hotels. The initial installations will be at hotels in Eilat, Tiberias, and the Dead Sea.
As part of the deal, a process will be advanced to produce and store decentralized electricity at the company’s facilities, as well as the creation of a Virtual Power Plant (VPP) that will serve all of Fattal’s hotels. Under the MOU, PowerGen will supply Fattal with 155 million kWh of electricity per year from its owned production facilities, as well as additional facilities to be established at the hotel locations.
PowerGen is expected to invest approximately 120 million NIS in the construction of storage facilities and gas engines, which will help ensure a stable and reliable electricity supply and address the grid’s peak load. The deal is expected to result in significant savings in electricity costs for Fattal.
The establishment of storage facilities in high-demand areas such as Eilat is in line with the objectives set by the Ministry of Energy and the Electricity Authority. According to these objectives, placing power generation facilities in the heart of consumption centers will provide an optimal solution for the expected rise in electricity demand.
Shahar Aka, Chairman of Fattal Europe and CFO of the Fattal Group: “We are proud and excited about our largest collaboration of its kind with PowerGen, which represents a significant step forward in improving energy efficiency and enhancing sustainability at our hotels. This partnership not only ensures reliable and environmentally-friendly electricity supply but will also significantly reduce electricity costs. I would also like to thank Rami Zano, Fattal’s Commercial Division Manager, for making this process a reality.”
Yoav Har-Even, CEO of PowerGen: “This is one of the most significant deals in the market, with its opening to full competition. A leading energy company is setting up this scale of facilities at the customer’s premises and supplying electricity directly to the end user, at such a significant volume.”
Energy
Environment
Transportation
Logistics
