Wholesale electricity market economics of solar generation in Israel

Irena MILSTEIN, Asher TISHLER, Chi Keung WOO

Research output: Contribution to journalArticlespeer-review

5 Citations (Scopus)


We use a two-stage model to determine the equilibrium capacities, generation levels, and prices of a wholesale electricity market in which independent power producers (IPPs) use natural gas-fired (NG) and photovoltaic (PV) technologies. PV's effective capacity is high during midday but low in other daytime hours. Applied to Israel's stylized electricity market in 2030, our model finds NG and PV are necessary to meet Israel's electricity demands; NG mitigates daytime price spikes and enhances consumer welfare; NG IPPs are profitable; and PV IPPs may be unprofitable, potentially requiring government support to aid Israel's achievement of a clean and sustainable future. Copyright © 2022 Elsevier Ltd.
Original languageEnglish
Article number101443
JournalUtilities Policy
Early online date27 Oct 2022
Publication statusPublished - Dec 2022


Milstein, I., Tishler, A., & Woo, C.-K. (2022). Wholesale electricity market economics of solar generation in Israel. Utilities Policy, 79. Retrieved from https://doi.org/10.1016/j.jup.2022.101443


  • Decarbonization
  • Wholesale electricity market
  • Equilibrium capacities and prices
  • PV capacity Utilization
  • Israel


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