The Energy Sector in Palestine

Dependence on energy imports, combined with an increase in population and a rise in energy needs from businesses have led to a significant gap between energy supply and demand in Palestine

The economy relies on imports to satisfy its energy requirements, with almost 90 percent of its electricity imported.

Industrial growth is stifled by high electricity prices and persistent energy shortages. Energy accounts for 40 percent of production costs. The demand for power in the West Bank outpaces supply, and Gaza has fewer an average of 10 hours of electricity a day for its critical services.

Nevertheless, there are positive trends emerging in the energy sector in Palestine. The country has put in place renewable energy and energy efficiency targets, with the government and donors strategically involved in supporting clean energy in the country. In addition, the shift from municipal based systems to a single buyer of electricity streamlines the provision of energy.