The Environmental Protection Ministry announced it will award NIS 70 million (roughly $18 million) in grants to entrepreneurs who will pursue the eco-friendly production of electricity from organic waste.
The ministry has set a three-year deadline for the facilities to become operational, adding they would greatly encourage the separation of household waste among the public.
The facilities are meant to be based on anaerobic waste digestion methods, which sees bacteria break down organic waste. The method produces gas, which in turn is used to produce electricity.
Such energy production considerably reduces the pollution caused by power plants, and turns organic waste into a valuable resource.
The ministry has also put in place a plan to help cities that wish to boost their household waste recycling activities.
Environmental Protection Minister Gilad Erdan said in a statement that, "This is a significant move towards the production of clean power and for expanding the use of organic waste, instead of putting it in landfills.
"This move will save the State considerable resources and will reduce the pollution to both the land and the air."