The Israel electricity sector is undergoing substantial changes. Most notable, the Government of Israel (GoI) is introducing reforms to create competitive markets both on the supply and retail side. Modelling the Israeli Electricity Market at a unit level using PLEXOS Software, we identify shortcoming and inefficiencies in the current functioning of the power market. Our results show that market operation rules need to change in order to ensure generators are remunerated appropriately in the market and that no perverse investment and bidding incentives remain for generators. READ ECA’S INGHT HERE