The Palestinian Energy and Natural Resources Authority (PENRA) aims to improve energy security by diversifying its sources of electricity and reducing the country's dependence on imported power supply; increasing the use of renewable sources of energy that are available to increase the share of clea Contact online >>
The Palestinian Energy and Natural Resources Authority (PENRA) aims to improve energy security by diversifying its sources of electricity and reducing the country''s dependence on imported power supply; increasing the use of renewable sources of energy that are available to increase the share of clean power in the overall energy mix of the country; and attracting private-sector participation (PSP) in the renewable energy sector. The Palestinian territory has a high potential for solar power generation, as it receives around 3,000 hours of sunshine per year. As a result, the Palestinian Authority is looking to attract investments in the renewable energy sector.
The energy problem in Palestine is one of many issues that affect the social and economic conditions of the Palestinian people. The fact that most of the energy is imported at relatively high prices places more financial burdens on poor and marginalized people. On average, households spend nearly 34 percent of their income on food and around 8.5 percent on energy (electricity and liquid gas). This reflects the vulnerability of Palestinians, especially the poor and marginal segments, and limits their ability to obtain the energy they need for daily use.
Electricity supply and demand
According to the Palestinian Central Bureau of Statistics (PCBS), the total electrical energy consumption in Palestine in 2019 was reported to be 5,929.5 GWh. This quantity is almost entirely imported from outside sources, mainly from the Israel Electric Corporation (IEC), as shown in Table 1.
The West Bank is mainly supplied by three 161/33 kV substations: one in the south close to Hebron; another one in the central West Bank, near the town of Salfeet, close to Nablus; and a third in the northern part of Jerusalem.
The electricity supplied by different sources is managed by local Palestinian companies, municipalities, committees, cooperatives, and associations. The largest of these are the Jerusalem District Electricity Company (JDECO), the Hebron Electric Power Company (HEPCO) that serves the southern areas around Hebron, the newly formed Southern Electric Company (SELCO) that serves the rest of the southern area, the Northern Electricity Distribution Company (NEDCO) that is being established to serve the northern area, the Tubas Electricity company (TDECO), and the Gaza Electric Company (GEDCO).
The available power capacity does not meet the demand in all Palestinian areas. Lack of electricity and the high cost of imported electric power are the main factors in the low Palestinian consumption of electric power. According to PCBS, the monthly average household electricity consumption (based on consumption during January 2020) varies from 285 kWh in Gaza to 482 kWh in the central West Bank. Moreover, the domestic sector is responsible for the bulk of electricity consumption, followed by the commercial sector.
The electricity demand in the Palestinian areas has doubled in the last decade. The peak demand usually occurs during winter when people use electricity for indoor heating. Peak demand is of particular significance, especially when there is a lack of fuel for use in indoor heating instead of electricity. Summer involves another peak demand period, manifested in the need for air conditioning that leads to additional electricity consumption.
While peak demand is expected to grow, it is also projected that demand for electricity will increase in the coming decade due to population growth, urban expansion, and development of commercial and industrial activities.
Potential solar energy production in Palestine
The main Palestinian cities and urbanized areas are interconnected by a relatively dense road network. Good accessibility is a precondition for an efficient energy network based on the exploitation of solar resources. From the point of view of natural geographic conditions, photovoltaic (PV) installations are optimally located on slightly inclined terrain, which is oriented to the south and has few natural pollution sources (e.g., sand, bare land); it is available in both the eastern and western parts of the West Bank and on the eastern side of the Gaza Strip.
Optimal locations for PV systems can be advised in areas that are not too windy or on the hills where winds could have a positive effect on the systems'' performance. In locations such as the western part of the West Bank, winds have a cooling effect on PV modules. Locations in the Gaza Strip where the average wind speed is higher, as well as in the eastern West Bank, where wind can bring dust or pollution from urbanized, desert, and agricultural areas, are not preferred areas due to the fact that wind in these regions commonly has a negative effect because it increases dirt on the surface of PV modules, thereby reducing efficiency and increasing operation and maintenance costs.
The potential of electrical production and the performance ratio of PV power plants, considering climatic conditions for sites in areas with different irradiation levels, is shown in Table 2. In Palestine, the average values of specific PV power production from a reference system, described in Table 2, vary between 1700 and 1765 kWh/kWp for the selected three areas. A maximum value of energy that can be produced in Gaza and in the very southern region of the West Bank is higher than 1800 kWh/kWp.
According to the strategy, it is foreseeable that 130 Mw would be installed from renewable resources projects by the end of 2020, and the major portion of green power would be generated by solar energy. The strategy comprises two phases. The first phase involves conducting feasibility studies and preparing bids for the Palestinian market, as well as deploying small-scale projects and implementing the Palestinian Solar Initiative. The first phase was implemented between 2012 and 2015 and aimed to attain 25 Mw from predetermined sources of renewable projects.
Over the last years, several key support schemes necessary for the uptake of renewables have been introduced in Palestine, namely, a feed-in tariff (FiT) scheme, a net metering scheme, a licensing scheme, and a tendering scheme.
A new National Renewable Energy Action Plan (NREAP) (the new plan or strategy from 2020 to 2030) for Palestine is in the preparation stage and outlines the strategy to further accelerate the deployment of renewable energy technologies. It defines the targets for the various sectors and describes the measures that have been and will be put in place to reach those targets. It will give customers, the commercial RE sector, the administration, and national and international investors and financing institutions, as well as other stakeholders a thorough basis on which to plan their activities.
The NREAP proposes the following new RE targets:
Eighty percent of the 2030 targets will be achieved with solar PV, 10 percent with wind energy, and 10 percent with biogas/biomass.
Legal and regulatory environment
The second relevant law is the Electricity Decree Law No. 13 that was issued in 2009 with the main objective of restructuring and improving the electricity sector and of fostering national and foreign investment to obtain an adequate power supply and properly priced services. The law stipulates the establishment of an electricity regulatory council and identifies the council''s duties and responsibilities.
The Decree Law is the first step in sector regulation and in achieving a new structure. In addition, the Electricity Decree Law stipulates the establishment of a fully government-owned National Transmission Company. The company is obligated to allow generators and suppliers to use the national grid. It also authorizes the purchase and selling of power from any source and allows for reselling the purchased power to distribution companies.
With regard to renewable energy sources, the Electricity Decree Law explicitly states that PENRA must work to encourage research on alternative energy sources and regulate its exploitation through bylaws.
Electricity prices and PV systems in Palestine
For a 1 MwP on-ground structured PV power plant, based on local market price ratings, the capital expenditure amounts to US$0.9 to 1.1 million, including modules, inverters, electrical cabling, mounting structure, civil work, installation, and engineering cost. The operating expenditure is estimated at US$32,000, including operation and maintenance with five cleaning cycles, spare parts, inverter maintenance, and power lines, in addition to insurance and administrative costs.
Conclusions and recommendations
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