With a growing need for alternative energy and power storage, Israel is poised to lead another vertical impacting our global community
The Start-up Nation developed along the simple idea that Israel was never going to be a powerhouse as an exporter of fuel or other natural resources. We joked that the Jews were given a barren land, while our neighbors were given an abundance of natural energy.
This allowed Israel to focus on developing its human capital, the only reliable type of transferable capital in today’s Covid tech world.
This “curse” of a barren land became a blessing in disguise, and Israeli leaders understood that as they laid the foundation for the Start-up Nation.
In what looks to be a net positive for the economy, the Leviathan natural gas field in the eastern Mediterranean is helping Israel cement its status as an energy center. Offshore gas was discovered 10 years ago and will continue to play a key role both economically and geopolitically in the Start-up Nation.
But gas is only part of the energy picture. A fast-emerging energy-tech or climate-tech ecosystem is blooming alongside offshore gas exploration. Sustainable sources of energy such as wind and sun have been in development for years and are becoming more relevant today for a variety of factors, primarily economic.
We would be wise to follow the path of our newest partners for peace, the UAE and Bahrain, in how they diversify their natural resources and use technology to develop new ones.
Where enterprising Israeli entrepreneurs see a challenge and a need, they seek to address it.
The driving factor in the adoption of new energy sources is the price; using these sources is becoming increasingly affordable. For all the good intentions — many start-ups are mission-driven — these sources need to be economically viable.
When it comes to energy tech or climate tech, renewable energy has become cheaper, and natural sources such as gas can be a secondary source. Having a backup is important for an energy island-like Israel so that the country does not need to rely on sources outside our borders.
Old paradigms are being shattered as costs plummet, particularly for energy storage. When the sun goes down and the wind doesn’t blow, there still needs to be a way to store this energy. Many storage companies in Israel have been working to solve this problem.
Grids have been unprepared for the high volume. Distributed grids and deploying local networks, and the trend of micro-grids will continue to proliferate.
Other trends such as electric vehicles, and in Israel’s case, excellence in mobility, are also contributing to the drive for new energy sources. Nonetheless, this trend is still developing in Israel as many local VCs do not fully understand energy and are slow to invest in this space.
Regardless of social impact or double bottom line investing, Israel is poised to lead another vertical impacting our global community. This has life-altering ramifications for future generations.
For more information please contact:
Trade Officer – Ministry of Economy and Industry, Israel
Consulate General of Israel in Mumbai