Executive Summary
The energy sector in the West Bank and Gaza is one of the main drivers for economic development and growth. The renewable energy sector is still in its infancy but there is a good opportunity for U.S. exports of renewable energy products and technologies. Palestinians import 86% of the needed electricity from Israel, Jordan, and Egypt and generate the remaining 14% locally. Renewable energy has a good potential to make a difference in the Palestinian economy since electricity can be generated locally. From the different renewable energy sources, solar has the most potential in the West Bank and Gaza. Currently, solar energy generation is estimated at 100 MW. By 2026, 200 MW of electricity will be generated from renewable energy and the total demand for electricity is expected to reach 2 GW.
Current Market Trends
The electricity system requires substantial upgrading and expansion to meet current demand. Investment in the energy sector in the West Bank and Gaza is one of the requisites for economic growth and development. Massader, a fully owned subsidiary of the Palestine Investment Fund, is the largest Palestinian investor in energy infrastructure, renewable energy, and natural resources. With a total investment of $200 million, Massader’s Noor Palestine Solar Program will develop within six years the following solar energy projects:
- Solar PV rooftop programs on commercial, residential, and 500 public schools
- Utility-scale solar PV plants
Massader’s investment in these projects will generate around 200 MW of electricity, reduce reliance on imported electricity, lower electricity costs, and increase energy efficiency. Interested U.S. companies should contact Massader by sending an email to info@massader.ps.
Market Obstacles
Insufficient power supply in the West Bank and Gaza as a result of the dependence on energy imports from Israel and other neighboring countries are major obstacles to Palestinian economic growth. Other challenges include the lack of foreign financial aid, the availability of land to develop projects because certain areas of the West Bank are still under Israel’s control particularly in Area C, and the lack of awareness about the importance of renewable energy.
Best Prospects for U.S. Exporters
The renewable energy sector offers opportunities for U.S. exporters of products, solutions, technologies, and services. Over the next few years, good prospects exist for:
- Utility-Scale Solar PV plants
- Commercial and Residential Rooftop Solar PV Systems
- Energy Efficiency
- Absorption/Adsorption Chillers
- Inverters
- Combined Cooling, Heat, and Power-CCHP
- Switch Gears
- Storage/Batteries
- Mounting structures
- Transformers
- Cabling
- Incinerators (waste to energy)
- Vocational Training Centers
Regulatory Environment
Government regulations are important for infrastructure development, private sector participation, electricity service improvement, and energy source diversification. The Palestinian government encourages the development of renewables as alternative sources of energy. Accordingly, the Palestinian Energy Strategy is to generate 50% of power locally from gas-fired power plants, import 40% from neighboring countries, and generate 10% from renewable energy sources.
The Electricity Law regulates and develops the sector and encourages local and foreign investment. According to the law, the Palestinian Energy and Natural Resources Authority (PENRA) is responsible for developing policies and regulations, the Palestinian Electricity Regulatory Council (PERC) is in charge of monitoring and regulating the distribution companies, and the Palestinian Electricity Transmission Ltd. (PETL) is responsible for buying electricity from the Gaza Power Plant, Israel, Jordan, Egypt, and future power generation plants in the West Bank. As per the law, PETL is the only transmission company that supply electricity to distribution companies, municipalities, village counsels, and may also provide electricity to industry customers.
Market Entry Strategies
Market entry is usually best by partnering with local Palestinian companies. The U.S. Commercial Service in Jerusalem provides U.S. companies with marketing services. U.S. companies interested in West Bank opportunities are encouraged to request an International Partner Search (IPS) service that provides up to five qualified Palestinian agents or distributors by either contacting the U.S. Export Assistance Center closest to your location or reaching out to U.S. Commercial Service at the U.S. Embassy in Jerusalem, Israel. U.S. companies can also contact the Chairman of the Federation of Palestinian Renewable Energy Industries; Dr. Hasan Abu Libdeh, to identify renewable energy export opportunities in the West Bank.
U.S. Commercial Service Information
Mr. Assad Barsoum, Senior Commercial Specialist
U.S. Embassy in Jerusalem, Israel
Phone: +972-2-625-4742
Email: Assad.Barsoum@trade.gov
