Energy in the State of Palestine: Difference between revisions

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In September 2020, Qatar brokered a ceasefire between Israel and Hamas that is reported to include "plans to build a power station operated by Qatar."<ref>{{cite news |title=Israel and Qatar have an unlikely partnership for dealing with Gaza|url=https://www.jpost.com/arab-israeli-conflict/israel-and-qatar-have-an-unlikely-partnership-for-dealing-with-gaza-641878|publisher=The Jerusalem Post|date=September 10, 2020|access-date=November 2, 2020}}</ref>
In September 2020, Qatar brokered a ceasefire between Israel and Hamas that is reported to include "plans to build a power station operated by Qatar."<ref>{{cite news |title=Israel and Qatar have an unlikely partnership for dealing with Gaza|url=https://www.jpost.com/arab-israeli-conflict/israel-and-qatar-have-an-unlikely-partnership-for-dealing-with-gaza-641878|publisher=The Jerusalem Post|date=September 10, 2020|access-date=November 2, 2020}}</ref>

Errant rockets fired by Hamas from the Gaza Strip at Israel during the [[2021 Israel–Palestine crisis]] damaged three of the ten power lines that supply electricity from Israel to the Gaza Strip.<ref> [https://www.jpost.com/israel-news/electric-corp-union-refuses-to-fix-gaza-lines-until-israelis-returned-668615 Electric corp. union refuses to fix Gaza lines until Israelis returned]</ref>


==Debt to IEC==
==Debt to IEC==

Revision as of 06:29, 21 May 2021

Energy in the State of Palestine describes energy and electricity production, consumption and import in West Bank and Gaza. In 2012, electricity available in these territories was 5,370 GW-hour (3,700 in the West Bank and 1,670 in Gaza), while the annual per capita consumption of electricity (after deducting transmission loss) was 950 kilowatt/hour.[1] National sources only produce 445 GW/hour of electricity, supplying less than 10% of demand.[2] No oil or natural gas is produced in Palestine and it is predominantly dependent on the Israel Electric Corporation (IEC) for electricity.[3][4] The only domestic source of energy is the Gaza Marine gas field, which has not yet been developed.[4] Palestinian energy demand increased rapidly, increasing by 6.4% annually between 1999 and 2005.[4] Future consumption of electricity is expected to reach 8,400 GW/hour by 2020 on the expectation that consumption will increase by 6% annually.[5]

The Palestinian Electricity Transmission Company (PETL) is the sole buyer of electricity from the Palestine Power Generation Company (PPGC), IEC, and other neighboring countries, which is then distributed to the six Palestinian district electricity distribution companies.

Structurally, Palestine does not have sufficient distribution companies or systems - a problem which leads to constraints on electricity efficiency.[4] The West Bank and the Gaza Strip receive and consume energy in different ways.

West Bank

The supply of petroleum is centrally located at two different terminals in the West Bank. These terminals do not have storage capacity for petroleum, which must therefore be used daily.

Israel Electric Corporation (IEC) supplies most of the electricity to the West Bank, with around 5% being provided by Jordan Electric Power Company (JEPCO) to the Jericho governorate.[6] A power substation located outside Jenin has been operating since July 2017 by the Palestinian Electric Company capable of providing up to 135 MW, which is purchased by the IEC to supply the northern West Bank area.[7] In October 2020, Israel transferred control over another three power substations in the West Bank to the PA. The three substations were built by IEC and financed by the European Investment Bank. Two of the substations are managed by Palestinian Electricity Transmission Company (PETL), while the third is managed by JDECO.[8]

After the 1967 occupation of the West Bank, agreements to distribute electricity to the West Bank from Jordan were terminated by the Israeli Military Governorate. Order 389 of 1970 vested the governance of the natural resources sector in an authority to be appointed by the military commander.[6] The Israeli Civil Administration had the authority to supply electricity to the Israeli settlements, such as Kiryat Arba. The IEC was authorized to supply and sell electricity to the Hebron municipality.[9] By 1980, the IEC held a concession for all of the power supply in the West Bank.[9]

Palestinian Electricity Transmission Company

Palestinian Electricity Transmission Company (PETL) is currently the sole buyer of electricity in the Palestinian territories from IEC for distribution to the Palestinian electricity distributors, who in turn distribute in their respective licence areas of West Bank Areas A and B. IEC distributes electricity in West Bank Area C.

Palestinian district electricity companies

There are five Palestinian district electricity distribution companies in the West Bank: Jerusalem District Electricity Company (JDECO);[10] North Electricity Distribution Company (NEDCO), which covers Nablus and the Jenin area,[11] and Toubas Electricity Distribution Company (TEDCO), which serve the northern parts of the West Bank; and Hebron Electric Power Company (HEPCO) and Southern Electric Company (SELCO), which serve the southern parts of the West Bank.

JDECO is the largest and the oldest electricity distributor in the West Bank, existing from the period of the Jordanian occupation of the West Bank. JDECO's licence area covers the east Jerusalem, Bethlehem, Ramallah and Jericho areas. JDECO also buys about 5% of its electricity from Jordan's JEPCO, which is only used in the Jericho district.[12] JDECO supplies electricity to 30% of households in the West Bank and East Jerusalem.

Gaza Strip

Almost all of Gaza's liquid fuel and about half of its electricity is supplied by Israel, and has been exempted from the blockade of the Gaza Strip, with some limitations.

The supply of petroleum is centrally located at one terminal on the border of the Gaza Strip. This terminal does not have storage capacity for petroleum, which must therefore be used daily. The Gaza power plant is the only power plant in the Gaza Strip. It is owned by a subsidiary of Palestine Electric Company (PEC), Palestine Power Generation Company (PPGC).[13] The Gaza power plant relies on diesel fuel imported via Israel.

PEC was established in the Gaza Strip in 1999 as a subsidiary of Palestine Power Company LLC.[13] PEC shares were listed in the Palestine Exchange in 2004, where 33% of its shares are owned by public shareholders and 67% owned by founding companies.[13] The main objectives of PEC are to establish electricity generating plants in the territories of the Palestinian Authority (PA) and to carry out all the operations necessary for the production and generation of electricity.

The Palestinian Electricity Transmission Company (PETL) is currently the sole buyer of electricity in the Palestinian territories. It buys electricity from PPGC, from Israel Electric Corporation and from Egypt[4] and then distributes the electricity to the six Palestinian district electricity distribution companies. Gaza Electricity Distribution Company (GEDCO) is the sole electricity distributor in the Gaza Strip.[14]

Following the Hamas takeover of Gaza in 2007, the Gaza Strip has been subject to a blockade, though fuel for the Gaza power plant has been exempted in normal circumstances, as had electricity supplies. Development of the energy sector in Gaza ceased, while Gaza faced increasing demand from a growing population. During past military offensives, Israeli targets included energy infrastructure in the Gaza Strip.[6] In late October 2007, in response to persistent rocket fire on southern Israel, Israel cut diesel exports to Gaza by 15% and gasoline exports by 10%, and created targeted electrical outages of 15 minutes after a rocket attack.

Gaza electricity crisis

Main article: Gaza electricity crisis

As of 2017, Gaza's normal energy needs were estimated to be approximately 400-600 megawatts (MW) for full 24-hour supply to all residents. Gaza's electricity is normally supplied by its sole diesel power plant, which has a nominal rating of 60-140 MW (figures vary due to degree of operation and damage to the plant) and which is reliant on crude diesel fuel,[15][16] which is imported via Israel. An additional 125 MW is supplied by Israel via 10 power lines, and 27 MW is supplied by Egypt.[17][18] Even in normal conditions, the current rated supply of Gaza is inadequate to meet Gaza's growing needs.[19][20]

The Gaza electricity crisis is a result of the tensions between Hamas, which rules the Gaza Strip, and the Fatah-controlled Palestinian Authority, which rules in the West Bank, over custom tax revenue, funding of the Gaza Strip, and political authority. Residents of the Gaza Strip receive electricity for a few hours a day on a rolling blackout basis. As a result of the crises the Gaza power plant has reduced and then ceased operations due to a lack of fuel, and the amount of imported electricity from Israel and Egypt has also been reduced.[21][17][22][19]

Because of the unpredictability of the power supply, some Gazans and government institutions use private electric generators, solar panels and uninterruptible power supply units to produce power when regular power is not available.[23][24][25][22] These alternative power sources depend on the availability of fuel.

In September 2020, Qatar brokered a ceasefire between Israel and Hamas that is reported to include "plans to build a power station operated by Qatar."[26]

Errant rockets fired by Hamas from the Gaza Strip at Israel during the 2021 Israel–Palestine crisis damaged three of the ten power lines that supply electricity from Israel to the Gaza Strip.[27]

Debt to IEC

Israel Electric Corporation (IEC) sells electricity to Jerusalem District Electricity Company (JDECO) and to the Palestinian Authority, which on-sells them to the other four Palestinian district electricity distribution companies in the West Bank and to Gaza Electricity Distribution Company (GEDCO) in the Gaza Strip. The distributors provide electricity to customers in their respective licence areas of West Bank Areas A and B and the Gaza Strip.[28] The distributors depend on their customers paying their bills to enable the distributors to pay IEC or the PA for the electricity supplied. The director of Northern Electric, for example, has been urging its customers to pay their bills. The majority of the debt to IEC is owed by the PA and JDECO.[10] IEC said that it was losing ILS 85 million per month on power being supplied to Nablus and Jenin that was not being paid for, causing the majority of its quarterly loss.[29] JDECO, for example, in 2012, owed IEC ILS 458 million.[28]

In February 2015, the PA and the Palestinian electricity distributors owed IEC a total of ILS 1.9 billion (about US$500 million). On 23 February, after numerous notices, IEC cut power to several West Bank cities for about 45 minutes.[11] Two days later it again cut power, saying it was a warning to the PA to begin paying down the debt.[30] The Palestinians accused Israel and IEC of collective punishment,[10][31] while IEC said it must operate independently of government and was treating the Palestinian electricity distributors as it would any customer who did not pay its bills.[32]

In March 2016, the debts stood at ILS 1.7 billion (about US$460 million). On 31 March, IEC cut power in the Jericho area,[33] on 4 April in the Bethlehem area,[34] and on the following day in the Hebron area.[35] On 6 April, IEC restored full power to the West Bank after it received a ILS 20 million payment, and an agreement to provide a full debt repayment schedule within seven days.[36]

In April 2017, the PA told IEC that it would only pay ILS 25 million of the ILS 40 million monthly bill for Gaza and instructed IEC to reduce supply in the Strip.[37] IEC reduced supplies to Gaza in May and June 2017, saying the dispute between Hamas and the PA was an internal Palestinian matter.[38][39][40]

In June 2019, the debts stood at ILS 2.0 billion (about US$540 million), and the PA stopped all payments to IEC.[41] In August, with PA agreement, ILS 300 million was deducted from taxes that had been withheld by Israel for the PA and applied against the IEC debt. On 8 September, the debt was ILS 1.7 billion (about US$460 million) and IEC gave notice of its intention to cut power. Two months earlier the Supreme Court of Israel ruled that IEC must give 35 days notice before it can cut off electricity.[42]

See also

References

  1. ^ "The Electricity Sector: Current Status and The Need for Reform" (PDF). MAS. 21 May 2014. Retrieved 2 June 2017.
  2. ^ "Palestinian Territories- Country Analysis Note." http://www.eia.gov/countries/country-data.cfm?fips=pt. U.S. Energy Information Administration, Mar. 2014. Web.
  3. ^ Henderson, Simon. "Natural Gas in alealestinian Authority: The Potential of the Gaza Marine Offshore Field." Journal of Health and Social Behavior 53.3 (2012): 296. Mar. 2014. Web.
  4. ^ a b c d e "West Bank and Gaza Energy Sector Review" Sustainable Development Department, United Nations. May, 2007.
  5. ^ Marei, Ibrahim (2016). "Developments in law and policy: The promotion of green energy in the electricity sector of Palestine". Journal of Energy and Natural Resources Law. 35 (1): 47–67. Retrieved 2 June 2017.
  6. ^ a b c Power, Susan. "Annexing Power: Exploiting and Preventing the Development Of Oil and Gas in the Occupied Palestinian Territory" (PDF). Al Haq. Retrieved 1 June 2017.
  7. ^ "In deal with Israel, PA takes 'historic' step toward energy independence". Times of Israel. Retrieved 7 September 2017.
  8. ^ With coordination still suspended, Israel hands three power stations to PA
  9. ^ a b Kretzmer, David (April 2002). The Occupation of Justice: The Supreme Court of Israel and the Occupied Territories. SUNY press. p. 64. ISBN 0-7914-5337-5.
  10. ^ a b c "Power cut again in Palestinian cities despite 'collective punishment' accusations".
  11. ^ a b "Israeli government says not behind electric corp. decision to cut West Bank power – Diplomacy and Defense".
  12. ^ Jerusalem electricity company crippled by Israel, Palestinian Authority
  13. ^ a b c [1]
  14. ^ Gaza Strip electricity supply
  15. ^ Gaza's Only Power Plant Knocked Out, Arutz7, July 2014
  16. ^ Israel, Turkey eager to rebuild Gaza, Globes English, June 2016
  17. ^ a b Palestinian Authority halts payments for Israeli electricity to Gaza: Israel, Reuters, 27 April 2017
  18. ^ HAMAS BLAMES ABBAS FOR GAZA POWER PLANT SHUTDOWN, JPost, 18 April 2017
  19. ^ a b The humanitarian impact of Gaza’s electricity and fuel crisis Archived 22 March 2017 at the Wayback Machine, UN OCHA, March 2014
  20. ^ With Only Three Hours of Electricity a Day, Gaza Is 'On Verge of Explosion', Ha'aretz, January 2017
  21. ^ Israel cannot shirk its responsibility for Gaza’s electricity crisis, B'Tselem, 16 Jan 2017
  22. ^ a b Gaza’s electricity crisis sheds light on gap between social classes, al-Monitor, March 2016
  23. ^ "Gaza's Electricity Crisis: The Impact of Electricity Cuts on the Humanitarian Situation" (PDF). United Nations Office for the Coordination of Humanitarian Affairs. May 2010. Archived from the original (PDF) on 15 August 2014.
  24. ^ ‘Gaza Infrastructure Nearing Collapse’, JPost, January 2017
  25. ^ Seeing no end to power crisis, Gazans turn to the sun, Reuters, March 2016
  26. ^ "Israel and Qatar have an unlikely partnership for dealing with Gaza". The Jerusalem Post. 10 September 2020. Retrieved 2 November 2020.
  27. ^ Electric corp. union refuses to fix Gaza lines until Israelis returned
  28. ^ a b Israel Renews Palestinian Power Supplier's License, Despite Debt. Itai Trilnick, Haaretz, 7 January 2013 (premium)
  29. ^ "Israel Electric to resume West Bank power disruptions – Globes English".
  30. ^ "Israel cuts power to West Bank cities for second time".
  31. ^ "Israeli electric company begins West Bank power cuts over debt". 23 February 2015.
  32. ^ "Cutting Palestinians' electricity: It isn't just business, it's personal – Opinion".
  33. ^ "IEC reduces Jericho electricity supply – Globes English".
  34. ^ "Israel Electric Corporation to reduce power to Bethlehem".
  35. ^ "Hebron becomes latest city to experience electricity cut".
  36. ^ "Full power restored to West Bank after PA takes step to pay down ILS 1.74b. debt".
  37. ^ Gewirtz, Jason (15 May 2017). "Israel and Gaza: An electricity dispute makes a tense situation worse". CNBC.com. Retrieved 15 June 2017.
  38. ^ "Israel reduces Gaza electricity after PA refuses to pay". JPost.com. Retrieved 15 June 2017.
  39. ^ Israel cuts Gaza electricity after Palestinian president says he will no longer pay the bill for Hamas, Telegraph, 12 June
  40. ^ "Israel reduces power supply to Gaza, as Abbas pressures Hamas". 12 June 2017. Retrieved 15 June 2017 – via Reuters.
  41. ^ PA stop paying Israel Electric Corporation
  42. ^ Israel electric company to begin cutting power to PA due to debts
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