The Importance of Policy to Boost the Energy Sector

The restrictions in Palestine on infrastructure projects, land use and importation of equipment and materials call for local energy solutions bolstered by clear policies and regulation

The Government is committed to reforming the energy sector to apply new measures that will expand the acceptance and use of alternative energy sources and promote clean technologies.

While the official support to renewable energy and energy efficiency is evident from national targets and strategies, enforcement of energy-related laws and by laws requires strengthening. Net metering principles, which are a prerequisite for consumers and industrial enterprises to connect their renewable energy plants to the grid, are not applied consistently across distribution companies, and the relationship between the consumers and suppliers remains unregulated. Non-harmonization of rules creates uncertainty to investors.

The development of policy guidelines, a clear regulatory path for net metering, and enforcement are essential for the growth of sustainable energy in the Palestinian market. While investment in renewable energy projects has economic and environmental advantages, a clear incentive policy is needed to attract investors and de-risk their investments.