Energy in the State of Palestine

Energy in Palestine describes energy and electricity production, consumption and import in West Bank and Gaza. In 2012, electricity available in these territories was 5,370 GW-hour (3,700 in the West Bank and 1,670 in Gaza), while the annual per capita consumption of electricity (after deducting transmission loss) was 950 kilowatt/hour.[1] National sources only produce 445 GW/hour of electricity, supplying less than 10% of demand.[2] No oil or natural gas is produced in Palestine and it is predominantly dependent on the Israel Electric Corporation (IEC) for electricity.[3][4] The only domestic source of energy is the Gaza Marine gas field, which has not yet been developed.[4] Palestinian energy demand increased rapidly, increasing by 6.4% annually between 1999 and 2005.[4] Future consumption of electricity is expected to reach 8,400 GW/hour by 2020 on the expectation that consumption will increase by 6% annually.[5]

Structurally, Palestine does not have sufficient distribution companies or systems - a problem which leads to constraints on electricity efficiency.[4] The West Bank and the Gaza Strip receive and consume energy in different ways.

West Bank

The supply of petroleum is centrally located at two different terminals in the West Bank. These terminals have no storage capacity for petroleum, which must therefore be used daily.

The West Bank relies almost entirely on the IEC to satisfy its electricity needs, with around 5% of the territory's electricity provided by Jordan to the Jericho governorate.[6] As of 10 July 2017, there was a power substation operated by the Palestinian Electric Company located outside Jenin capable of providing up to 135 MW purchased by the IEC to supply the northern West Bank area.[7]

After the 1967 occupation of the West Bank, agreements to distribute electricity to the West Bank from Jordan were terminated by the Israeli Military Governorate. Order 389 of 1970 vested the governance of the natural resources sector in an authority appointed by the military commander.[6] The Israeli Civil Administration had the authority to supply electricity to the Israeli settlements, such as Kiryat Arba. The IEC was authorized to supply and sell electricity to the Hebron municipality.[8] By 1980, a concession for all of the power supply in the West Bank was granted to the IEC.[8]

Palestinian district electricity companies

The Palestinian electricity distribution system relies on 5 electricity companies in the West Bank and one in the Gaza Strip. Of those in the West Bank, the Jerusalem District Electricity Company (JDECO) is the largest and the most veteran, existing from the period of the Jordanian occupation of the West Bank. The Israel Electric Corporation is providing electricity to Palestinians in area C, where as in areas A and B most of the electricity distribution is performed by Palestinian district companies.

On 23 February 2015 the IEC cut off power to several West Bank cities for about 45 minutes due to uncollected debts.[9] Two days later they again cut off power, stating it was a warning to the Palestinian Authority to begin paying down the debt, which at that time was NIS 1.9 billion.[10] The majority of the debt is held by the PA and Jerusalem District Electricity Company (JDECO) which is a Palestinian electricity firm which buys its power from IEC and serves east Jerusalem, Bethlehem, Ramallah and Jericho areas.[11] The IEC stated that they are losing NIS 85 million per month on power being supplied to Nablus and Jenin that they are not being paid for, causing the majority of their quarterly loss.[12] The Palestinians accused IEC of collective punishment,[13] however the IEC stated that they must operate independently and are treating this as they would any customer who does not pay their debts.[14]

On 31 March 2016 the IEC once again cut power to parts of the West Bank, in the Jericho area, over debts which at the time stood at NIS 1.7 billion.[15] On 4 April the IEC cut power in the Bethlehem area,[16] and the following day the IEC cut power in the Hebron area.[17] On 6 April, the IEC restored full power to the West Bank after they received a NIS 20 million payment, and an agreement to receive a full debt repayment schedule within seven days.[18]

On 4 June 2019 the PA stopped payments to the IEC. At the time the accumulated debt was NIS 2 billion.[19] As at 8 September 2019, the debt was NIS 1.7 billion. In August, with PA agreement, NIS 300 million had been deducted from taxes that had been withheld by Israel for the PA and applied against the debt.[20]

Gaza strip

Almost all of Gaza's liquid fuel and about half of its electricity are supplied by Israel.

The supply of petroleum is centrally located at one terminal on the border of the Gaza Strip. This terminal has no storage capacity for petroleum, which must therefore be used daily. The Gaza Strip receives its electricity from the IEC, a diesel power plant located in the Gaza Strip and from Egypt.[4]

Following the Hamas takeover of Gaza in 2007, development of the energy sector in Gaza ceased, while Gaza faced increasing demand from a growing population. During past military offensives, Israel targets included vital energy infrastructure in the Gaza Strip.[6] In late October 2007, in response to persistent rocket fire on southern Israel, Israel cut diesel exports to Gaza by 15% and gasoline exports by 10%, and created targeted electrical outages for 15 minutes after a rocket attack.

As of 2017, Gaza's normal energy needs are estimated to be approximately 400-600 megawatts for full 24-hour supply to all residents. Gaza’s electricity is normally supplied by its sole diesel power plant, which has a nominal rating of 60-140 MW (figures vary due to degree of operation and damage to the plant) and which is reliant on crude diesel fuel,[21][22] which is imported from Israel. An additional 125 MW is imported from Israel via 10 power lines, and 27 MW of power imported from Egypt.[23][24] Even in normal conditions, the current rated supply of Gaza is inadequate to meet growing needs.[25][26]

The Gaza electricity crisis is a result of the tensions between Hamas, which rules the Gaza Strip, and the Palestinian Authority/Fatah, which rules the West Bank, over custom tax revenue, funding of the Gaza Strip, and political authority. Residents receive electricity for a few hours a day on a rolling blackout schedule. As a result of the crises the Gaza power plant has reduced and then ceased operations due to a lack of fuel, and the amount of imported electricity from Israel and Egypt has also been reduced.[27][23][28][25]

Palestine Electric Company PLC

Palestine Electric Company (PEC) was established in Gaza in 1999.[29] PEC shares were listed in the Palestine Exchange in 2004, where 33% of its shares are owned by Public Shareholders and 67% owned by Founding Companies.[29]

The main objectives of the Company are to establish electricity generating plants in the territories of the Palestinian National Authority (PNA) and to carry out all the operations necessary for the production and generation of electricity.

The only power plant in the Gaza Strip is held by the Palestine Electric Company PLC, which operates the plant via its subsidiary Gaza Power Generating Company.[29] The fuel oil power plant depends on fuel imports via Israel and is sporadically operating in light of the Gaza electricity crisis.

Gaza Electricity Distribution Company

The Gaza Electricity Distribution COmpany (GEDCO) is one of 6 Palestinian Authority's established companies responsible to electricity distribution to Palestinian citizens. GEDCO doesn't have electricity production capacity of its own, instead buying electricity from the Palestine Electric Company PLC, from Israel Electric Corporation and from Egypt. GEDCO is a sole company designated for supplying electricity in the Gaza Strip.[30]

See also

References
  1. "The Electricity Sector: Current Status and The Need for Reform" (PDF). MAS. 21 May 2014. Retrieved 2 June 2017.
  2. "Palestinian Territories- Country Analysis Note." http://www.eia.gov/countries/country-data.cfm?fips=pt. U.S. Energy Information Administration, Mar. 2014. Web.
  3. Henderson, Simon. "Natural Gas in alealestinian Authority: The Potential of the Gaza Marine Offshore Field." Journal of Health and Social Behavior 53.3 (2012): 296. Mar. 2014. Web.
  4. "West Bank and Gaza Energy Sector Review" Sustainable Development Department, United Nations. May, 2007.
  5. Marei, Ibrahim (2016). "Developments in law and policy: The promotion of green energy in the electricity sector of Palestine". Journal of Energy and Natural Resources Law. 35 (1): 47–67. Retrieved 2 June 2017.
  6. Power, Susan. "Annexing Power: Exploiting and Preventing the Development Of Oil and Gas in the Occupied Palestinian Territory" (PDF). Al Haq. Retrieved 1 June 2017.
  7. "In deal with Israel, PA takes 'historic' step toward energy independence". Times of Israel. Retrieved 7 September 2017.
  8. Kretzmer, David (April 2002). The Occupation of Justice: The Supreme Court of Israel and the Occupied Territories. SUNY press. p. 64. ISBN 0-7914-5337-5.
  9. "Israeli government says not behind electric corp. decision to cut West Bank power – Diplomacy and Defense".
  10. "Israel cuts power to West Bank cities for second time".
  11. "Power cut again in Palestinian cities despite 'collective punishment' accusations".
  12. "Israel Electric to resume West Bank power disruptions – Globes English".
  13. "Israeli electric company begins West Bank power cuts over debt". 23 February 2015.
  14. "Cutting Palestinians' electricity: It isn't just business, it's personal – Opinion".
  15. "IEC reduces Jericho electricity supply – Globes English".
  16. "Israel Electric Corporation to reduce power to Bethlehem".
  17. "Hebron becomes latest city to experience electricity cut".
  18. "Full power restored to West Bank after PA takes step to pay down NIS 1.74b. debt".
  19. PA STOPS PAYING ISRAEL ELECTRIC COOPERATION
  20. Israel electric company to begin cutting power to PA due to debts
  21. Gaza's Only Power Plant Knocked Out, Arutz7, July 2014
  22. Israel, Turkey eager to rebuild Gaza, Globes English, June 2016
  23. Palestinian Authority halts payments for Israeli electricity to Gaza: Israel, Reuters, 27 April 2017
  24. HAMAS BLAMES ABBAS FOR GAZA POWER PLANT SHUTDOWN, JPost, 18 April 2017
  25. The humanitarian impact of Gaza’s electricity and fuel crisis Archived 22 March 2017 at the Wayback Machine, UN OCHA, March 2014
  26. With Only Three Hours of Electricity a Day, Gaza Is 'On Verge of Explosion', Ha'aretz, January 2017
  27. Israel cannot shirk its responsibility for Gaza’s electricity crisis, B'Tselem, 16 Jan 2017
  28. Gaza’s electricity crisis sheds light on gap between social classes, al-Monitor, March 2016
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