The Reading power station was first constructed almost a century ago along the shore of Tel Aviv and has been a mainstay of the city skyline that grew around it, though electricity has been increasingly supplied from other areas as demand rose.
Reading has a production capacity of 428 megawatts. It was due to be sold along with other power plants in a government privatization push, but has remained in the hands of state-owned Israel Electric Corp (ISECO.UL). The plant has been offline for about a year for asbestos removal and was supposed to restart generation in 2026, officials said.
It will now not be reopened, the energy ministry said in a statement.
Instead the compound will be used for energy storage and as the reception site for a subsea cable bringing electricity from southern Israel, the ministry said. Part of the area will also be used to expand Tel Aviv's beach front.
