Israel has been steadily revamping its power sector in recent years, with coal relegated from a cornerstone of the system to a backup fuel as domestic gas production and renewables have grown. Installed renewables capacity rose by 20% in 2025 and now accounts for 30% of capacity (see chart 1). In order to maintain stability while continuing to expand the role of renewables, the government is increasingly turning its focus to adding battery energy storage systems (BESS), which will add valuable flexibility and resilience.