Israeli independent power producer OPC Energy has signed financing agreements with Bank Leumi for the Hadera Expansion Project, a 850 MW natural gas-fired power plant planned adjacent to the company’s existing Hadera facility in Israel. The financing package is an important milestone for OPC as it moves toward financial close and final investment decision (FID) on one of the country’s most significant power generation developments.
The project, also know as Hadera 2, is expected to strengthen Israel’s electricity supply amid soaring industrial demand. This also includes growing energy needs from data centers.
Additionally, OPC has identified the Hadera Power Plant Expansion Project as one of its flagship growth initiatives. The company expects it to play a central role in its future revenue growth.
Importance of the 850 MW Hadera Power Plant Expansion Project in Israel
The Hadera Expansion Project will add approximately 850 MW of highly efficient natural gas-fired generation capacity adjacent to OPC’s existing power station in Hadera. The facility will provide reliable baseload and flexible generation capacity to support Israel’s evolving electricity market. This is planned alongside the integration of renewable energy assets.
Hadera Power Plant Expansion Project also recently achieved a major regulatory milestone after receiving its building permit. This clears way for construction to start. Furthermore, OPC has subsequently focused on completing financing arrangements, commercial agreements, and other requirements necessary to achieve financial close.
The financing agreement with Bank Leumi is also a show of lender confidence in both the project and OPC’s long-term growth strategy. It also builds on an existing relationship between the two organizations. OPC has previously expanded financing arrangements with the bank for other initiatives.
Project Finance Structure
The financing agreement is expected to provide a significant portion of the debt funding required for project development. While detailed financial terms have not publicly disclosed yet, the agreement is intended to support the project’s progression toward financial close and eventual construction.
The financing also comes as OPC continues to strengthen its balance sheet. In 2026, the company completed a substantial capital raise and reported improving financial performance, providing additional support for its ambitious expansion pipeline in Israel and the U.S.
Fact Sheet for Hadera Power Plant Expansion Project (Hadera 2)
Location: Northern Sharon region, Haifa District
Capacity: 850 MW
Technology: Combined-cycle natural gas-fired power generation
Developer: OPC Energy
Financing Partner: Bank Leumi
Current Stage: Financing and financial close preparations
Project Value: $1.8 billion
Recent Milestone: Building permit granted and financing agreement signed
Expected Role: Grid reliability and support for growing electricity demand
Commercial Operation: Expected by 2030
Outlook on the 850 MW Hadera Power Plant Expansion Project in Israel
With permitting secured and financing arrangements progressing, the next major milestone for the Hadera Expansion Project will be financial close followed by a FID.
Once completed, Hadera Power Plant Expansion Project is expected to significantly increase OPC’s generation capacity in Israel and strengthen its position as one of the country’s leading private power producers. The natural gas-fired power station expansion is also taking shape parallel to others in the wider region including the 2.6 GW Taweelah C Power Project in Abu Dhabi which expects operation start by 2029.
Challenges Ahead
Project execution remains subject to successful completion of financial close, procurement activities, construction schedules and fuel supply arrangements. Broader market risks span fluctuations in natural gas prices and electricity market conditions. The ongoing US-Israel-Iran war may also pose significant risk to the development.
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