This is part of the Ministry's decision to completely stop the use of coal in Israel by 2025.
The conversion of "Orot Rabin" power plant, near the coastal city of Hadera, was approved by Israel's National Planning and Building Board.
Under the plan, two new natural gas-fired power generating units will be set up at the power plant, replacing four low-efficiency, 40-year-old coal-fired units.
According to the Ministry, the new generators, which will supply approximately 1,200 megawatts of electricity, will significantly improve air quality in the area and reduce emissions of pollutants from the site.
Two other coal production units at the Orot Rabin power plant are newer and have been equipped with scrubbers to reduce emissions and minimize their environmental impact.
As the new units will take charge, the old units will only operate as a strategic reserve for emergency only.
Israel Minister of Energy Yuval Steinitz said these efforts, together with the cancellation of a plan for building another coal-fired power plant, have led to Israel "being the world's leader in reducing coal use."