NIS 930 million: the mega-deal in the Israeli energy market
Prime Energy and Delek Properties will transform 65 Delek Properties-owned fueling complexes into advanced energy centers. Investment expected to reach NIS 930 million
Shira Drori February 4, 2026
Prime Energy and Delek Properties, controlled by Lahav LR, are launching a strategic move to transform the Israeli energy market. As part of this initiative, 65 existing fueling complexes owned by Delek Properties will be converted into advanced energy centers. These sites will evolve from fuel sales compounds into power stations based on smart storage.
The investment volume is expected to total approximately NIS 930 million. In the first full year of operation, projected revenue stands at approximately NIS 227 million, with a projected EBITDA of NIS 107 million. The project yield is expected to total approximately 12%, with an investment yield of approximately 23%. Following the announcement, Delek Properties’ share price rose by approximately 2%, while Prime Energy’s share surged by nearly 10%.
Under the agreement, Delek Properties will be entitled to an expected annual rent of approximately NIS 6 million with no investment on its part. It will also benefit from electricity availability at reduced rates and the potential for revenue growth.
The collaboration between Prime Energy and Delek Properties will establish Israel’s largest private electricity storage array. The BESS (Battery Energy Storage Systems) to be installed will transform the fueling complexes into local energy units, providing a variety of services to the electricity market. Furthermore, this includes load management, supply and support for the national grid, and support for ultra-fast charging for electric vehicles.
This initiative enables the deployment of advanced EV charging infrastructure independent of grid connection strength, serving as an infrastructural solution for the expected rise in electricity demand.
In accordance with the agreement, the parties intend to expand the project to the entire Delek Israel network - Delek Properties' sister company - which numbers approximately 240 fueling complexes, as well as complexes owned by other companies. Completing this move is expected to bring the cumulative storage volume to approximately 5 gigawatt-hours (GWh) across all Delek Israel stations. Additionally, it aims to establish a nationwide decentralized energy infrastructure. Furthermore, this move will bring Prime Energy's total storage capacity to approximately 10 GWh.
Yaron Kikoz, Vice Chairman and controlling shareholder of Prime Energy, stated that, “In the first stage, the volume is expected to be approximately 1.5 GWh, representing a step-up in activity volume.” He further noted that, “This is a national infrastructure project that will assist the electricity sector in coping with growing demand challenges and support the accelerated transition to electric transportation.”
Felix Shofman, CEO of Delek Properties, stated that “The company is preparing for the electric vehicle era in the most comprehensive manner, while ensuring widespread nationwide electricity availability, independent of local grid limitations.”