West Bank-Power Generation Opportunities

West Bank Reliance on Imported Electricity

The energy sector in the West Bank and Gaza is one of the main drivers for economic development and growth. Palestinians import 86% of the needed electricity from Israel, Jordan, and Egypt and generate the remaining 14% locally. The total supply of electricity in the West Bank is estimated at 850 MW. Israel supplies 750 MW, the West Bank generates around 65 MW locally from renewable energy sources, and Jordan supplies the remaining 35 MW.  

Government regulations are important for infrastructure development, private sector participation, electricity service improvement, and energy source diversification. 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 the 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. 

Combined-Cycle Plant Development to Address West Bank Energy Shortage

The Palestine Power Generation Company (PPGC) is a public shareholding company that will develop power plants to supply up to 50% of the needed electricity in the West Bank and gradually reduce dependence on imported electricity sources. The Palestine Investment Fund (PIF) has a 40% stake in PPGC, which is licensed to develop the first power plant in the West Bank with a total capacity of 450 MW. Due to Israeli restrictions, PPGC will develop two lower capacity power plants.

Over the next few years, PPGC will develop one to two combined-cycle power plants in the West Bank with a total capacity of up to 250 MW each on a Build Own and Operate (BBO) basis. Implementation of the first phase will involve a pilot project in the North of the West Bank, which is expected to start in mid-2021. PPGC posted a Pre-Qualification announcement on the European Investment Bank’s website seeking information from interested contractors in the areas of Engineering, Procurement and Construction (EPC), Operation and Maintenance (O&M) and Long Term Servicing (LTS). The deadline for submitting Pre-Qualification packages expired on February 21, 2020. 

Next Steps:

• U.S. companies can learn more about the project by visiting the European Investment Bank’s website and obtaining a copy of the expression of interest requirements document by contacting PPGC at nwbipptender@ppgc.ps.
• U.S. companies interested in selling energy transmission and distribution technologies to the West Bank are encouraged to contact the U.S. Commercial Service’s Commercial Specialist Mr. Assad Barsoum at assad.barsoum@trade.gov for further assistance.