Exhibit 99.1

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OPC ENERGY LTD.

Report of the Board of Directors regarding the Company’s Matters

for the six-month and three-month periods ended June 30, 2026

The Board of Directors of OPC Energy Ltd. (hereinafter – “the Company”) is pleased to present herein the Report of the Board of Directors regarding the activities of the Company and its investee companies (hereinafter together – “the Group”), as at June 30, 2026 and for the six-month and three-month periods then ended (“the Period of the Report”).

Except for the data reviewed in the Company’s consolidated financial statements as at June 30, 2026 (hereinafter – “the Interim Statements”) that is included in this report below, the data appearing in the Report of the Board of Directors has not been audited or reviewed by the Company’s auditing CPAs.

This Report of the Board of Directors is submitted on the assumption that the interim reports and all parts of the Company’s Periodic Report for 2025, which was published on March 12, 2026 (Reference No.: (2026-01-021904) (“the Periodic Report for 2025”), are before the reader and references to the Company’s reports include the information presented therein by means of reference.

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OPC Energy Ltd.

Report of the Board of Directors

The Company is a public company the securities of which are listed for trading on the Tel-Aviv Stock Exchange Ltd.

For details regarding the Group’s activity segments as at the date of the report – see Section 1A of the Report of the Board of Directors that is included in the Periodic Report for 2025 (“the Report of the Board of Directors for 2025”) and Note 25 to the financial statements as at December 31, 2025 that are included in the Periodic Report for 2025 (“the Annual Financial Statements”).

It is noted that commencing from the second quarter of 2026, upon completion of the transactions for acquisition of all (100%) of the rights in the Shore and Maryland power plants, there has been a change in the Group’s activity segments in the U.S., such that the retail activities for sale of electricity (Retail), which are a supplementary element to the CPV Group’s generation activities, constitute part of the Energy Transition segment. The comparative data has been adjusted retroactively in order to reflect the said change. For details – see Note 2B to the Interim Statements.

Starting from January 1, 2026, the Company presents all its financial results, including its financial statements, in U.S. dollars (“the Dollar”)². The comparative data was translated for comparison purposes while using the same translation rules (and pursuant to the provisions of IAS 21). For additional details – see Note 2B to the Interim Statements.

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OPC Energy Ltd.

Report of the Board of Directors

As detailed in the above table, in the second quarter of 2026, the EBITDA after proportionate consolidation increased by about 46% over the corresponding quarter last year, as a result of an increase of 58% in the EBITDA after proportionate consolidation in the United States, primarily due to an increase in the energy margins (net of hedging impacts), an increase in the capacity prices in the PJM market and an increase in the holding rates in the Shore and Maryland power plants, as well as due to an increase of about 28% in the EBITDA in Israel mainly against the background of the increase in the energy margins and due to the impacts of the translation on the results of the activities of the Israel segment from the shekel functional currency to the dollar presentation currency (for details regarding the strengthening of the shekel against the dollar – see Section 12 below).

In the second quarter of 2026, the adjusted consolidated net income and the consolidated FFO rose by about 580% and about 58%, respectively, compared with the corresponding quarter last year, against the background of the increase in the adjusted EBITDA.

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OPC Energy Ltd.

Report of the Board of Directors

The consolidated EBITDA after proportionate consolidation in the first half of 2026 rose by about 26% compared with the first half of last year, due to an increase of about 29% in the EBITDA after proportionate consolidation in the U.S., against the background of an increase in the energy margins (net of hedging impacts), an increase in the capacity prices in the PJM market and a rise in the rate of holdings in the Shore and Maryland power plants, as well as due to an increase of about 22% in the EBITDA in Israel, mainly as a result of an increase in the energy prices and the impacts of translation of results of the activities of the Israel segment from the shekel functional currency to the dollar presentation currency.

The adjusted consolidated net income and the consolidated FFO increased in the first half of 2026 by about 103% and about 32%, respectively, compared with the first half of last year, mainly due to the increase in the adjusted EBITDA.

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OPC Energy Ltd.

Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors

United States (1)

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OPC Energy Ltd.

Report of the Board of Directors

Israel

That stated with respect to the development stages, capacities and/or expectations regarding construction of the development (pipeline) projects in Israel and in the U.S. constitutes “forward-looking” information as it is defined in the Securities Law, 1968 (“the Securities Law”), which is based on the Company’s estimates at the approval date of the report and regarding which there is no certainty they will be realized. Ultimately, there could be changes in the characteristics of the projects and/or delays or changes due to regulatory, operating, commercial factors and/or realization of one or more of the risk factors to which the Company is exposed, as stated in Part A of the Periodic Report for 2025. Advancement of the pipeline projects (or any one of them) is subject to the discretion of the Company’s competent organs and existence (fulfillment) of additional conditions, as stated in Part A of the Periodic Report for 2025.

For definitions of the development stages – see Section 5 below.

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OPC Energy Ltd.

Report of the Board of Directors

In December 2025, the generation component for 2026 was set (subject to a periodic update, as detailed in Section 2A(1) of the Report of the Board of Directors for 2025) at about 28.90 agurot per kilowatt hour (assuming a shekel/dollar exchange rate of U.S.$1 = NIS 3.3), a decline of 1.66% compared with the average generation component for 2025. In June 2026, a periodic update was published whereby starting from July 1, 2026, the generation component was set at about 27.97 agurot per kilowatt hour (assuming a shekel/dollar exchange rate of U.S.$1 = NIS 3.01 as opposed to NIS 3.3 in the prior update, as stated above). This decline of about 4.8% compared with the average generation component for 2025 is attributable mainly to the strengthening of the shekel against the dollar.

Set forth below is data regarding the weighted-average annual generation component (the prices are denominated in agurot per kilowatt hour):

In the Company’s estimation, update of the tariff for 2026, in general, and for the second half of 2026, in particular, is not expected to have a significant impact on its results⁴.

Further to that stated in Section 7.3 of Part A of the Periodic Report for 2025, regarding expansion of competition in the supply sector and determination of a temporary mechanism that permits virtual suppliers to acquire capacity certificates directly from the System Operator, in January 2026 the results of the first competitive process were published, wherein 520 megawatts were allotted at a uniform base price of 9.32 agurot per available kilowatt, where OPC Israel was not a awarded in this process. In July 2026, the results of the second competitive process were published, wherein 501 megawatts were allotted at a uniform base price of 10.2 agurot per available kilowatt – based on the “second price tender” method and subject to the update mechanism provided in the arrangement (process), wherein OPC Israel awarded⁵ an allotment of 200 megawatts, constituting about 40% of the total allotted capacity. Realization (utilization) of the allotment will start in August 2026, where commencing from the seventh month of the activities, a payment obligation will attach in respect of the entire capacity won. The process also includes a temporary reduction of one agura in the tariff relating to capacity belonging to new consumers that transferred from the default choice capacity, up to the amount of the awarded capacity and up to December 31, 2027.

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OPC Energy Ltd.

Report of the Board of Directors

The capacity allotted will be available to OPC Israel up to December 31, 2029, while it may exit the arrangement, with respect to all or part of the capacity, at the end of every 12-month period. In the Company’s estimation, utilization of the allotment is expected to have a favorable impact on the Group’s results, among other things through increase of the scope of the electricity supply activities to existing and new customers⁶. The scope of the actual contribution will depend on, among other things, the extent of the usage of the allotment and consumption profile of the customers, and mainly the difference between the generation component in the electricity tariff and the market price (SMP), after the acquisition cost of the capacity certificates and taking into account the tariff update mechanisms and the incentive provided in the arrangement (process).

Further to that stated in Section 7.3 of Part A of the Periodic Report for 2025 with respect to developments regarding the matter of advancement of data centers in Israel, in July 2026 the Electricity Authority published a Temporary Order⁷ for suspension of the examination proceedings and provision of responses by the System Operator to requests for connection of data centers with a capacity of 8 megawatts or more to the electricity grid. Pursuant to the data detailed in the Electricity Authority’s decision, within a period of about two months new requests for information were filed with the System Operator regarding connection of data centers with a cumulative scope of about 19 gigawatts, which are in addition to the existing list of open (awaiting) requests of about 8 gigawatts, such that the total demand reflected by the requests is about 27 gigawatts. In light of the unusual scope of the demand and the possible consequences thereof to the stability of the electricity system, reliability of the supply, the generation and transmission reserves and economic efficiency, the Electricity Authority determined that during a period of 140 days, handling (processing) of new requests and pending requests, as stated, will be suspended, and no new commitments will be given for reserving a place in the grid on the basis of responses that have not yet reached the status of a legal commitment. During this period, the Electricity Authority, the Ministry of Energy and the System Operator are expected to examine the required policy with respect to connection of data centers, including the manner of giving preference and screening the requests, as well as necessary revisions to the planning of the electricity sector.

Further to that stated in Section 18.1 regarding the Company’s intention to expand its undertakings with customers in the area of data center, as at the approval date of the report the Company is advancing various possibilities, through OPC Israel, for optimal utilization of the Company’s sites and facilities in favor of undertakings with data-center projects, including development of new power plants and various solutions for supply of electricity to projects, as stated.

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OPC Energy Ltd.

Report of the Board of Directors

In this regard, in May 2026, OPC Israel signed an amendment to an existing electricity supply agreement (PPA) with an existing customer of the Company (“the Customer”) regarding its extension and expansion of the capacity in such a manner that it could (gradually) reach about 460 megawatts in the upcoming years for, among other things, data centers the Customer operates and/or intends to operate in the future (if ultimately operated). The extended period of the electricity supply is nineteen (19) years (subject to early termination arrangements and exit points) and it includes commitments and arrangements that are customary in the Company’s agreements of this type based on the characteristics of the consumption and the undertaking. In addition, as part of the agreement the sale of green certificates up to a defined quantity, including arrangements for determination of the price was also covered. It is emphasized that as at the approval date of the report, there is no certainty regarding the electricity capacity that will be sold under the agreement, which will be derived based on the operation of the relevant data centers (if ultimately operated), their actual operation, the timing of their operation and the scope of the electricity consumption that will ultimately be made by the Customer – which is not certain (and to the best of the Company’s knowledge is subject to fulfillment of various preconditions that have not yet been fulfilled) and is not under the Company’s control.

In addition, OPC Israel is carrying on contacts and feasibility studies for examination of the possibility for a long-term framework covering joint activities for development and advancement of joint solutions for generation and supply of electricity (including through construction of joint power plants) for data-center projects being advanced in Israel, including proximate to (nearby) the Company’s existing power plants.

As at the approval date of the report, potential joint cooperation, as stated, is subject to, among other things, negotiations, signing of agreements, feasibility studies, receipt of regulatory approvals (where necessary) and approval by the competent organs of the relevant parties, regarding which there is no certainty this will happen or the terms thereof, if they do happen⁸.

Further to that stated in Section 2B of the Report of the Board of Directors for 2025 and Section 6.1.1 of Part A of the Periodic Report for 2025, on February 28, 2026, there was a significant escalation in the regional geopolitical situation upon the outbreak of an additional serious military confrontation between Israel and the United States versus Iran, which also included attacks by Iran on additional Middle-Eastern countries (the “Roaring Lion” Operation). As a consequence of the “Roaring Lion” military operation, among other things, Israeli airspace was closed and a general emergency situation was announced for the Israeli home front in such a manner that significantly limits the activities (traffic/movement) in public areas – this being together with a large mobilization of military reserves.

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OPC Energy Ltd.

Report of the Board of Directors

During the “Roaring Lion” Operation, all the gas rigs were shut down (including the Karish reserve) for varying time periods and temporary use of diesel oil was made in the Company’s power plants, where as at the approval date of the report the three gas reservoirs had returned to full activities. The shutdown of the Tamar gas reserve lasted only several days at the beginning of the “Roaring Lion” Operation such that upon its operation, all of the Company’s gas needs were supplied, while some of the gas was purchased at a price higher than the alternative price from the Karish reserve with only an insignificant impact.

Furthermore, due to the emergency situation declared in the Israeli economy, there was a certain decline in demand for a short period of time, the impact of which was not significant. Also, force majeure notifications were received from suppliers and contractors along with limited availability of foreign work teams and experts on the Company’s activity sites in Israel, including on the Sorek 2 site (which is undergoing acceptance tests). On April 8, 2026, a temporary ceasefire was announced with Iran, although the marine traffic disruptions in the Strait of Hormuz are continuing with respect to movement of oil and natural gas tankers. On April 17, 2026, a temporary ceasefire was announced with Lebanon and in June 2026 it was reported that contacts are underway for a ceasefire and arrangement between Israel and Lebanon.

In the Company’s estimation, the “Lion’s Roar” Operation did not have a significant impact on its business activities and/or the financial results. In June 2026, there was a specifically targeted missile attack on Israel.

Subsequent to the date of the report, in July 2026, the military escalation between the U.S. and Iran resumed, among other things against the background of continuation of the restrictions on the marine traffic in the Strait of Hormuz. As at the approval date of the report, direct combat between Israel and Iran had not resumed. Nonetheless, the geopolitical situation in the region continues to be characterized by uncertainty and there is a significant concern that the fighting with Iran and Lebanon will be rekindled and accordingly at this stage the Company is unable to estimate the further developments and their full possible impacts on its activities and its results.

It is noted that the above-mentioned events involve significant uncertainty and could impact the macro-economic and geopolitical environment in both Israel and the U.S., including an adverse impact on the strength of the Israeli economy, as well as on the global economic activities (for a short or a long period of time). A rekindling of the fighting and/or a worsening of the security/defense situation could negatively affect the Company’s activities, mainly in Israel, including the activities of its customers and suppliers in Israel, and could also have an unfavorable effect on the results of the Company’s operations, the availability and cost of capital and financing sources required for the Group’s activities. For additional details regarding the possible impacts of the security/defense and geopolitical situations and the related risk factors – see Sections 6.1 and 19.1 of the Part A of the Periodic Report for 2025.

For additional details regarding the structure and manner of determination of the electricity tariff for customers of Israel Electric Company, the price of natural gas and the carbon tax, capacity revenues and supply to customers – see Section 2A of the Report of the Board of Directors for 2025 and Section 7.3 of Part A of the Periodic Report for 2025.

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OPC Energy Ltd.

Report of the Board of Directors

The results of the activities of the CPV Group are impacted to a significant extent by the electricity prices in effect in the areas in which the Group’s power plants operate. The main factors impacting the electricity prices are demand for electricity, available generation (supply) and the natural gas price in the area in which the power plant operates.

Subsequent to the date of the report, in the beginning July 2026, an unusual heat event (heat wave) occurred in the PJM region, which led to record high demands for electricity. On July 2, 2026, the demand reached (based on initial data) about 163 gigawatts, where in PJM’s estimation, without use of programs for reducing demand, it could have reached the historical record of about 166 gigawatts, which was recorded in 2006. PJM maintained reliability of the system by means of use of programs for reducing demand, requests from the public and additional emergency measures. In the estimation of the CPV Group, the event illustrates the increase in the record demands, among other things, against the background of expansion of the electricity and data centers, and the increasing reliance on these items in periods of extreme weather events.

For more information regarding the trend of the supply and demand of electricity in the U.S, including in the PJM and ERCOT markets and with respect to fluctuations of the gas and electricity prices, along with the factors affecting it – see Section 3A of the Report of the Board of Directors for 2025.

Natural gas prices

Set forth below are the average natural gas prices in each of the main markets in which the power plants of the CPV Group operate (the prices are denominated in dollars per MMBtu)*:

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OPC Energy Ltd.

Report of the Board of Directors

In the Period of the Report, the natural gas prices in the regions in which the CPV Group’s power plants operate were significantly higher than in the corresponding period last year, mainly due to the large increase the demand for natural gas in the first quarter of 2026 against the background of cold weather conditions in the U.S. Regarding the Fairview power plant, the unusual increase in the natural gas prices in the first quarter of 2026 also stemmed from transition to the Texas Eastern M-3 transmission region, which is more significantly impacted by high demand for natural gas under cold weather conditions than the Texas Eastern M-2 transmission region.

In the second quarter of 2026, the relatively moderate weather conditions and the historically high inventory levels of natural gas contributed to a decline in the natural gas prices and a moderation of the price fluctuations in some of the regions compared with the corresponding period last year.

Regarding the natural gas distribution region in Waha Texas, which is expected to serve as a source for supply to the Basin Ranch power plant, which is presently under construction, the region is affected by different market dynamics and different weather conditions, and similar price increases have not been recorded therein. Production of natural gas in this region constitutes a by-product of oil production, and the high demand for oil led to high levels of gas production, along with limitations on the transmission capacity outside of the Waha basin which, in turn, caused a surplus local supply of gas and downward pressure on prices.

Electricity prices

The following table summarizes the average electricity prices in each of the regions in which the power plants in the area of energy transition activities of the CPV Group are active (the prices are denominated in dollars per megawatt hour)*:

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OPC Energy Ltd.

Report of the Board of Directors

It is noted that the actual electricity prices of the power plants of the CPV Group could be higher or lower than the regional price shown in the above table due to the existence of a Power Basis (the difference between the power plant’s specific electricity price and the regional price). The Power Basis is a function of transmission constraints, local cost of electricity generation, local demand for electricity, loss of electricity in the transmission lines and additional factors. For details regarding the Power Basis data – see Section 3A to the Report of the Board of Directors for 2025.

In the Period of the Report, there was a significant increase in the electricity prices compared with the corresponding period last year, which in the estimation of the CPV Group derives mainly from an increase in the natural-gas prices in the first quarter of 2026 in the areas in which the power plants of the CPV Group are located, as detailed above.

In the second quarter of 2026, the conditions in the electricity market were characterized by relatively low volatility. Despite the decline in the natural gas prices compared with the corresponding quarter last year, as detailed above, the electricity prices remained moderately favorable, in the estimation of the CPV Group among other things due to the continued increase in the demand for electricity and the tighter supply in the electricity grid due to seasonal maintenance work performed by generators in preparation for the summer season.

Regarding the ERCOT West Hub in Texas, the electricity prices during the second quarter of 2026 were lower than in the corresponding period in 2025, primarily reflecting milder weather conditions.

Spark Spreads in the operating markets of the CPV Group

Spark Spread represents the difference between the price of the electricity in the relevant area (zone) and the price of the natural gas used for generation of the electricity in the relevant area (zone) (it is clarified that RGGI is not included in calculation of the Spark Spread but rather in the Energy Margin as detailed in Section 4D(3) below).

The Spark Spread is calculated based on the following formula:

Spark Spread ($/MWh) = price of the electricity ($/MWh) – [the gas price ($/MMBtu) x thermal conversion ratio (heat rate) (MMBtu/MWh)]

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OPC Energy Ltd.

Report of the Board of Directors

Spark Spreads in the operating markets of the CPV Group (Cont.)

Set forth below are the average Spark Spread margins for each of the main markets in which the power plants of the CPV Group are operating (the prices are denominated in dollars per megawatt/hour)*:

In the Period of the Report, there was a significant increase in the Spark Spreads in most of the active power plants of the CPV Group, compared with the corresponding period last year, stemming from a combination of unusual weather conditions – temperatures lower than the average in the first quarter of 2026, as stated above, plus a continuing increase in the demand for electricity in the areas in which the power plants of the CPV Group are located.

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OPC Energy Ltd.

Report of the Board of Directors

Spark Spreads in the operating markets of the CPV Group (Cont.)

Regarding the Fairview power plant, the decline in the electricity margin derives mainly from to the transition to the Texas Eastern M-3 natural gas transmission region with a significant impact on the electricity margins in the first quarter, against the background of the cold weather conditions. In the second quarter the impact moderated, since the difference between the natural gas prices between the Texas Eastern M-3 and the Texas Eastern M-2 regions narrowed considerably outside of the winter season.

It is noted that hedging programs in the CPV Group’s natural gas-fired power plants are intended to reduce the fluctuations of the CPV Group’s electricity margin resulting from changes in the natural gas and electricity prices in the energy market. For details regarding hedging agreements related to the electricity margin at CPV Group’s active power plants – see Section 4D(3) below. Regarding the Gas Netback agreements and fixed-price electricity sales, which hedge a significant portion of the Basin Ranch power plant’s net energy margin – see Section 6B(1), below).

For details regarding the Company’s forecasted electricity and natural gas forward market prices (received from EOX) up to the end of 2026 and for 2027 and 2028 – see Appendix A below.

The RGGI regulation applies to the Maryland, Shore, Valley and Towantic power plants (which belong to the Energy Transition segment of the CPV Group). For additional details regarding the RGGI regulation – see Section 8.1.4B of Part A of the Periodic Report for 2025.

Set forth below are details regarding the prices of the carbon-emission allowances (carbon emission tax) from the RGGI auctions. In general, the auctions take place four times a year, in March, June, September and December.

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OPC Energy Ltd.

Report of the Board of Directors

It is noted that from time to time, usually for short periods, the RGGI market could experience price volatility stemming mainly from regulatory factors and supply and demand with respect to emissions’ permits.

Capacity is an additional significant income component of the CPV Group’s active power plants that operate in the PJM, NYISO and ISO-NE markets, where normally an increase in the capacity prices has a favorable impact on CPV’s results, and vice-versa. The extent of the impact on the overall results changes as a function of the energy margins, which is the most significant component of the gross profit (margin for generation of the electricity and the sale thereof).

PJM market

In the PJM market, the capacity payments vary between the market’s sub-regions, as a function of local supply and demand and transmission capabilities. In general, the capacity auctions are made once a year for an annual supply period (June – May) in a format of three years in advance. Due to regulatory delays, the current schedule includes an auction once every six months, with the goal of returning to annual auctions in 2027 – subject to regulatory changes. Set forth below are the capacity tariffs in the sub-regions that are relevant to the CPV Group’s power plants and in the general market (the prices are denominated in dollars per megawatt per day).

Source: PJM

In April 2026, FERC approved PJM’s request to extend the maximum and minimum limits (collar) of $325 per megawatt/day and $175 per megawatt/day (adjusted for the UCAP to ICAP ratio), respectively, for two additional capacity auctions for the 2028/2029 period (the results of which were published in July 2026, as detailed below) and for the 2029/2030 period.

In July 2026, PJM published the results of the capacity prices auctions for the period from June 2028 through May 2029¹¹ where the price was set at the maximum price of $325 per megawatt/day.

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OPC Energy Ltd.

Report of the Board of Directors

It is noted that the capacity prices determined in the auctions for the 2026/2027, 2027/2028 and 2028/2029 capacity periods, as detailed above, were determined in accordance with the ceiling (maximum) prices provided by PJM and approved by FERC for these three capacity auctions (with the necessary adjustments). In addition, the available capacity coefficients of the power plants were updated (UCAP compared to ICAP) which led to a decline in the available capacity placed for sale by natural-gas power plants of this type of the CPV Group from about 96% to about 79% (in the 2025/2026 auction) and from about 79% to about 74% (in the 2026/2027 and 2027/2028 auctions) and an increase to about 78% (in the 2028/2029 auction).

It is further noted that pursuant to PJM’s publications, the theoretical prices derived from the results of the auctions, if it had not been for the said ceiling, would have been about $389 per megawatt/day for the 2026/2027 auction, about $530 per megawatt/day for the 2027/2028 auction and about $555 per megawatt/day for the 2028/2029 auction.

Subject to changes in the timetables, if any, as at the approval date of the report, the next PJM capacity auction for the 2029/2030 capacity year is planned for December 2026.

The significant increase in the capacity tariffs in the latest auctions, as shown in the table above, relates to, among other things, a continuing increase in electricity demand, anticipated growth in future demand, higher reserve requirements, and a decline in the aggregate supply due to a change in the methods used to calculate capacities and demand capability of PJM’s generation sources.

Reliability Backstop Procurement (RBP) – Reliability Backstop Procurement (RBP) is an emergency mechanism for procurement of additional available capacity, for the purpose of providing a response to an anticipated capacity deficiency stemming from, among other things, an increase in the demand for electricity.

On July 27, 2026, the Board of Directors of PJM published its decision regarding the proposed format for the RBP¹², and on July 31, 2026 PJM submitted the format for approval by the FERC. If the format is approved, PJM is expected to hold centralized procurement process, where the window for submission of bids is expected to open on September 30, 2026, and the results of the process are anticipated to be published no later than December 2, 2026. The initial procurement target is equal to the capacity shortfall identified in the Base Residual Auction for the 2028/2029 supply year, in the scope of about 6,831 megawatts. The procurement target will be reduced in respect of bilateral arrangements with consumers and independent supply arrangements with reference to new generation sources, which are designated to serve new demand. Concurrent with the central procurement process, a track is expected to continue for assistance in bilateral arrangements between new generation sources and electricity consumers.

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OPC Energy Ltd.

Report of the Board of Directors

Pursuant to the format, eligible resources is limited to new generation sources, including new generation and storage, uprates, qualifying transfer of connection rights from generation sources no longer in use and new demand response and distributed energy resources. Eligible resources must achieve commercial operation, including completion of required network upgrades, no later than June 1, 2032. Projects that satisfy the applicable threshold criteria are expected to be selected first based on commercial operation date, with preference given to earlier operation dates, and later on based on the lowest cost. Commitments will be for capacity only (UCAP) for a period of up to 15 years, in a payment format based on the winning bid, where the capacity price for the portfolio selected will be subject to a weighted average ceiling of about $555 per megawatt/day.

In addition, the proposed tariff revisions include a mechanism for assistance with respect to bilateral arrangements (Interim Resource Adequacy Service), which is intended to encourage new large electricity consumers to contract directly with new generation sources for purposes of covering their capacity requirements. In accordance with the proposed mechanism, new large consumers that do not provide appropriate available capacity could be subject to curtailment in periods of a shortage in the system, prior to implementation of emergency measures with reference to other consumers.

As at the approval date of the report, the said proposed tariff revisions have not yet been approved by FERC, and its final conditions, including the scope of the procurement, eligibility conditions and implementation instructions could change. Accordingly, in the estimation of the CPV Group, at this stage it is not possible to fully assess the impact of the RBP on the market, particularly its impact with respect to the future capacity tariffs.

The CPV Group intends to submit the Shay project to participate in the main procurement process in September 2026, subject to approval of the RBP mechanism by the FERC¹³. For details – see Section 6B(2) below. Further CPV is evaluating certain of its renewable generation and battery energy storage (BESS) projects for potential participation in the RBP. It is clarified that participation, as stated, if ultimately advanced, is expected to involve posting significant amounts of collaterals, which could be impacted by, among other things, the number of projects and the duration of the capacity commitment period.

In addition, in May 2026, PJM published a document¹⁴ whereby it examines possible future reforms in the capacity market. For additional details regarding the latest developments in the PJM capacity market – see Section 3C of the Report of the Board of Directors for 2025 and Section 8.1.2.1A of Part A of the Periodic Report for 2025.

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OPC Energy Ltd.

Report of the Board of Directors

NYISO market

For details regarding capacity auctions in the NYISO market – see Section 3C of the Report of the Board of Directors for 2025.

Set forth below are the capacity prices determined in the seasonal auctions in the NYISO market (the prices are denominated in dollars per megawatt per day):

Source: NYISO – Converted from dollars for kilowatt per month to dollars for megawatt per day.

It is noted that the Valley power plant is located in Area G (Lower Hudson Valley) and the actual capacity prices for the Valley power plants are impacted by the seasonal auctions, the monthly auctions and the SPOT prices, with variable capacity prices every month, as well as bilateral agreements with energy suppliers in the market.

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OPC Energy Ltd.

Report of the Board of Directors

ISO-NE market

For details regarding capacity auctions in the ISO-NE market and a planned reform in the structure of the capacity market – see Section 3C of the Report of the Board of Directors for 2025 and Section 8.1.2.1C of Part A of the Periodic Report for 2025.

Up to May 2025, the tariff applicable for the Towantic power plant was $313.97 MW/day (linked to the Handy-Whitman Price Index from 2019).

Set forth below are the capacity payments determined in the sub-regions that are relevant to the Towantic power plant (the prices are denominated in dollars per megawatt per day):

Source: ISO-NE – the Company’s processing in order to convert from dollars for kilowatt per month to dollars for megawatt per day.

It is noted that as at the approval date of the report the actual capacity prices for the Towantic power plant are impacted by forward auctions, supplementary annual auctions, monthly auctions with capacity prices that change every month and bilateral agreements with energy suppliers in the market.

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OPC Energy Ltd.

Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors

(1) Changes in the consolidated revenues:

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OPC Energy Ltd.

Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors

Adjusted net income or loss – net income or loss in accordance with IFRS plus or minus other expenses and income, events of a non-recurring nature, such as, impairment losses and reversals and transactions that are not in the ordinary course of business.

It is emphasized that the said adjusted net income or loss item in this report is not an item that is recognized under IFRS or other generally accepted accounting standards as an index for measuring financial performances and is not intended to be considered as a substitute for income or loss or other terms provided pursuant to IFRS. It is possible that the Company’s definitions of adjusted income or loss are different than those used by other companies. Nonetheless, the Company believes that the adjusted income or loss provides useful information to management and investors by excluding certain items that management believes do not constitute an indication of the Company’s regular and ongoing business activities.

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OPC Energy Ltd.

Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors

Starting from this report, the indices set forth below are being presented under revised names, in such a manner that is intended to sharpen the distinction between them. Accordingly, the FCF index was named FFO in prior reports and the FFO index was named adjusted FFO in prior reports. Except for the said revision of the nomenclature, there has been no change in the definition of the indices or the manner of their calculation, and the data for the comparative periods is presented based on the revised names.

“EBITDA in the consolidated financial statements”¹⁵: net income (loss) for the period before depreciation and amortization, financing expenses or income, net, taxes on income and other income (expenses), net.

“EBITDA after proportionate consolidation”: – “EBITDA in the consolidated financial statements” less the share of the income (loss) of associated companies and plus a proportionate consolidation of the EBITDA of the associated companies based on the rate of the holdings of the CPV Group therein.

The said non-IFRS measures are not recognized as indices for measurement of financial performances and are not intended to be considered a replacement for gross profit or loss and operating income, cash flows from operating activities or other terms relating to operating performances or liquidity indices in accordance with IFRS.

It is noted that the EBITDA indices are not intended to present an approximate of the free cash flows from the Group’s operating activities or to present cash available for distribution of dividends or other uses (particularly in light of provisions of the project financing agreements for some of the Group’s power plants), since such cash may be used for debt service, capital investments, working capital and other liabilities. Moreover, the EBITDA indices are characterized by restrictions that limit the use thereof as indices for analyzing the Company’s profitability, since they do not take into account certain income and expenses deriving from the Company’s business that could have a material impact on its net income or loss, such as depreciation expenses, financing expenses or income and taxes on income.

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OPC Energy Ltd.

Report of the Board of Directors

The Company believes that the data items “EBITDA after proportionate consolidation”, the FCF and the “FFO”¹⁶ provide useful and transparent information to investors when reviewing the Company’s operating performances and current cash flows and when comparing such performances to performances of other companies in the same sector or in other industries (having different capital structures, different levels of debt and/or different income tax rates) as well as when comparing performances between periods. It is noted that the “EBITDA after proportionate consolidation” data item also serves the Company’s management when analyzing the Company’s performances.

The data item “net cash flows after debt service” provides additional information regarding the Group’s net cash flows that are available for its use for purposes of growth and making of new investments, along with distribution of dividends to the shareholders (subject to compliance with the provisions of law, the trust certificates and non-project financing agreements and in accordance with the Company’s dividend distribution policy¹⁷).

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OPC Energy Ltd.

Report of the Board of Directors

EBITDA calculations in the consolidated statement, including EBITDA after proportionate consolidation (in millions of dollars):

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OPC Energy Ltd.

Report of the Board of Directors

4.       Analysis of the results of operations for the Six Months Ended June 30, 2026 (in millions of dollars) (Cont.)

Breakdown of EBITDA after proportionate consolidation, FCF and cash flows after debt service by segment (in millions of dollars)

Set forth below is a breakdown of the EBITDA after proportionate consolidation data broken down by subsidiaries (on a consolidated basis) and the associated companies (on a proportionate basis, based on the rate of the holdings of the CPV Group therein) as well as FFO and cash flows after service of debt data (in millions of dollars):

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Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors

Energy margin – the increase stems mainly from a decline in the natural-gas price against the background of the strengthening of the shekel against the dollar and from optimization electricity sales, offset by a decline in the generation component.

Availability (operational) – (A) Zomet power plant – for details regarding a technical defect found in the power plant, its partial availability and the gradual replacement of the generation units – see Section 4C(1) of the Report of the Board of Directors for 2025. That stated had a negative impact on the power plant’s availability in the Period of the Report and, accordingly on its financial results. As at the approval date of the report, the process of repair of the defect, including completion of replacement of the generation units, had started and in the Company’s estimation, is expected to be mostly completed by the end of 2026. Therefore, in the Company’s estimation the said partial availability, is expected to be about 65%–70% of the power plant’s capacity (about the same as the capacity in 2025), and is expected to unfavorably impact the EBITDA in Israel in 2026¹⁸.

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OPC Energy Ltd.

Report of the Board of Directors

Operating events in the Period of the Report and thereafter¹⁹:

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OPC Energy Ltd.

Report of the Board of Directors

Energy and hedging margins – as detailed in Section 3A above, in the Period of the Report there was an increase in the electricity margins compared with the corresponding period last year and, accordingly, there was an increase in the energy margins of the CPV Group (without the impact of the increase in the holdings in the Shore and Maryland power plants), which was partly offset by energy hedges.

Revenues from capacity – most of the increase stems from an increase in the capacity tariff in the PJM market starting from June 2025. This increase was partly offset by a decrease in the capacity tariff of the Towantic power plant starting from June 2025 – this being as a result of conclusion of the fixed-rate (of seven years) wherein the capacity tariff was fixed in advance from Towantic’s operation date. For details – see Section 3C above.

Availability (operational) – most of the increase stems from planned maintenance work at the Maryland power plant in March through May 2026 and an operating breakdown in one of the generation units at the Fairview power plant, as detailed in Section 4D(4) below, net of revenues from insurance proceeds in respect of lost profits from the said breakdown recognized in the second quarter of 2026, the share of the CPV Group in which is about $12 million.

Increase in the rate of holdings in the Shore and Maryland power plants – reflects the impact of the increase in the holdings in the Shore power plant at the rate of 20% in the second quarter of 2025, and an additional rate of about 11% starting from January 2026, as well as an increase in the holdings in the Maryland power plant at the rate of 25%, starting from May 2026. These impacts were partly offset as a result of sale of the holdings, at the rate of 10%, in the Three Rivers power plant, commencing from May 2026. For additional details – see Note 6B to the Interim Statements.

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OPC Energy Ltd.

Report of the Board of Directors

4.       Analysis of the results of operations for the Six Months Ended June 30, 2026 (in millions of dollars) (Cont.)

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OPC Energy Ltd.

Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors

4.       Analysis of the results of operations for the Six Months Ended June 30, 2026 (in millions of dollars) (Cont.)

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OPC Energy Ltd.

Report of the Board of Directors

As part of its policy for the management of the exposures, the CPV Group is in the practice, from time to time, of entering into hedging agreements, which are designed to reduce the fluctuations in the electricity margins. In addition, the capacity revenues for the nominal capacity of the natural gas-fired power plants are determined for certain future periods, as detailed in Section 3A above.

Set forth below is the scope of the hedging for the rest of 2026 and for 2027 as at the date of the report²⁰:

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OPC Energy Ltd.

Report of the Board of Directors

Set forth below is the scope of the secured capacity revenues for the rest of 2026 and for 2027 as at the date of the report:

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OPC Energy Ltd.

Report of the Board of Directors

Definitions

Significant operating events

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OPC Energy Ltd.

Report of the Board of Directors

Set forth below is an analysis of the change in the EBITDA after proportionate consolidation in the renewable energies segment in the Period of the Report compared with the corresponding period last year (in millions of dollars):

Commercial operation of Rogues Wind – in June 2026, construction was completed of the wind-based power plant “Rogues Wind” in the State of Pennsylvania (the PJM market), with an installed capacity of about 114 megawatts and with a construction cost amounting to about $365 million. Commercial operation of the power plant has commenced. The project has an investment agreement with a tax partner, in the amount of about $160 million, which as at the approval date of the report had been provided in full. In addition, the project has a commercial agreement for sale of all the electricity generated and from the project’s renewable energy certificates for a period of 10 years from the commercial operation date. The expected EBITDA²² in the first full year of the project’s operation is estimated at about $26 million (about $18 million from the project’s activities and about $8 million of accounting revenues in respect of the tax partner agreement, under which the full amount of the tax partner’s investment had been received as of the approval date of the report).

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OPC Energy Ltd.

Report of the Board of Directors

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OPC Energy Ltd.

Report of the Board of Directors