The centralised response has failed.
New power plants and Area C solar farms have not kept pace with demand. Political-economy capture has undermined every prior initiative.
Chapter 01 · The Problem
Palestine's electricity sector is structurally broken — and centralised solutions have failed.
The West Bank imports over 90% of its electricity from the Israeli Electric Corporation. Demand outstrips supply, tariffs are the highest in MENA, and sector deficits carry the equivalent of ~1% of GDP. Waiting for centralised grid investment has not kept pace with 6–7% annual demand growth.
1.1 Dependency Architecture
A jurisdictional problem, not a technical one.
Under the Oslo Accords, the Israeli Electric Corporation retained responsibility for electricity production and transmission throughout the Palestinian territories. The Palestinian Electricity Transmission Company (PETL), established in 2013, acts as a single buyer distributing to six Palestinian DISCOs.
Coupling points along transmission lines are physically controlled by the Israeli side, leaving Palestinian institutions no independent operational role in managing their own electricity flows. Area C — roughly 61% of the West Bank and the largest solar potential — requires Civil Administration approval rarely granted at scale.
1.2 Supply-Demand Gap
The numbers behind the crisis.
Peak demand exceeds available supply on both sides of the wall. Import dependency is near-total, renewables remain under 3% of supply, and per-kWh cost is among the highest in the region.
| Indicator | West Bank | Gaza Strip |
|---|---|---|
| Peak demand (MW) | ~1,300 | >600 |
| Available supply (MW) | ~1,100 | ~200 (pre-Oct 2023) |
| Import dependency | >90% from IEC | ~64% IEC + Egypt |
| Renewable share | <3% of supply | <3% (pre-war) |
| Demand growth rate | 6–7% p.a. | 6–7% p.a. |
| Sector deficit (% GDP) | ~1% | ~4–5% |
| Electricity cost | Highest in MENA | 7–10× grid tariff via generators |
The grid death spiral.
As tariffs rise and reliability falls, wealthier customers self-generate, eroding the DISCO base and pushing costs onto those who remain.
The solar opportunity is enormous.
Palestine receives 1,700–2,000 peak sun hours per year — among the world's top solar regions. What is missing is the market architecture.