Palestine produces no oil or natural gas, and is predominantly dependent on the Israel Electric Corporation (IEC) for electricity.Henderson, Simon. "Natural Gas in Palestinian Authority: The Potential of the Gaza Marine Offshore Field." Journal of Health and Social Behavior 53.3 (2012): 296. Mar. 2014. Web."West Bank and Gaza Energy Sector Review" Sustainable Development Department, United Nations. May 2007. Between 2000 and 2023, Palestine’s energy consumption grew from 6TWh to 24TWh. In the same period, generation of energy in Palestine grew from 0.03TWh (approximately 0.5% of consumption) to 1.02TWh (4%). The only domestic source of energy is the disputed Gaza Marine gas field, which has not yet been developed. According to UNCTAD, the Palestinian Territory "lies above sizeable reservoirs of oil and natural gas wealth" but "occupation continues to prevent Palestinians from developing their energy fields so as to exploit and benefit from such assets." In 2012, electricity available in the West Bank and Gaza 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 kWh. National sources only produce 445 GWh of electricity, supplying less than 10% of demand."Palestinian Territories- Country Analysis Note." http://www.eia.gov/countries/country-data.cfm?fips=pt. U.S. Energy Information Administration, Mar. 2014. Web.
The Palestinian Electricity Transmission Company (PETL), formed in 2013, is currently the sole buyer of electricity in the areas under Palestinian Authority (PA) control. It buys 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. This problem leads to constraints on electricity efficiency. The West Bank and the Gaza Strip receive and consume energy in different ways.
Petroleum Almost all liquid fuel used in the Palestinian territories is supplied by or via Israel. The supply of petroleum is centrally located at two different terminals in the West Bank and one terminal at the Israel–Gaza barrier, at the Kerem Shalom crossing. These terminals do not have storage capacity for petroleum, which must therefore be used daily.
In the case of Gaza, imported fuel is required to power the Gaza power plant, as well as for transportation and generators. The diesel fuel has been exempted from the blockade of the Gaza Strip, with some limitations, which has been in place since 2007.
In 2011, Hamas began buying cheaper fuel from Egypt, bringing it via a network of tunnels, and refused to buy it from Israel.
In early 2012, disagreement between the Palestinian Authority and Hamas led to Egypt reducing supplies of fuel being smuggled through the tunnels, while Hamas continued to refuse to accept fuel from or via Israel. Egypt attempted to stop the use of tunnels for delivery of Egyptian fuel purchased by Palestinian authorities, and severely reduced supply through the tunnel network. As the crisis deepened, Hamas wanted fuel to be imported from Egypt with the Rafah terminal between Egypt and Gaza being equipped for fuel transfer, and refused to accept fuel delivered via Kerem Shalom. This proposal was inconsistent with Egypt's agreement with Israel and the PA.
In mid-February, the crisis escalated and Hamas rejected an Egyptian proposal to bring in fuel via Kerem Shalom. Ahmed Abu Al-Amreen of the Hamas-run Energy Authority refused it on the grounds that Kerem Shalom is operated by Israel. Egypt could not ship diesel fuel to Gaza through the Rafah crossing, which is limited to the movement of individuals.
In early March, the head of Gaza's Energy Authority again insisted that Egypt transfer fuel through Rafah, although this crossing was not equipped to handle the 500,000 litres needed each day. In late March, Egypt agreed to provide 600,000 litres of fuel to Gaza daily, but it had no way of delivering it to which Hamas would agree.
Israel permitted the entry of the normal diesel for hospitals, and also shipped 150,000 litres of diesel through Kerem Shalom, which was paid for by the Red Cross. In April 2012, the PA and Hamas reached a deal, with the involvement of the Red Cross, for the transfer of fuel via Kerem Shalom, with the fuel being accepted by the PA, which was then transferred to Hamas after Hamas made payment to the PA.
Electricity generation
In 1999, Palestine Electric Company (PEC) was formed in the Palestinian territories as a subsidiary of Palestine Power Company LLC to establish electricity generating plants in territories under PA control.
In 2010, PADICO Holdings, PEC and other Palestinian companies formed the Palestine Power Generation Company (PPGC) to build power plants in areas under PA control, and to reduce Palestinian dependence on imported energy.
According to a study published in 2019, about three-quarters of Gaza's electricity was imported (66.6% from Israel and 8.5% from Egypt) and the remainder was generated at the Gaza Power Plant.
Gaza power plant
The Gaza Power Plant is the only power plant in the Gaza Strip. It is owned by Gaza Power Generating Company (GPGC), a subsidiary of the Palestine Electric Company (PEC). It is located on Salaheddin Road and relies on diesel fuel imported via Israel.
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. 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.
Until June 2013, diesel fuel required as fuel for the power plant was smuggled from Egypt, where fuel at the time was highly subsidized. Egypt took measures against the Gaza Strip smuggling tunnels, halting these cheap imports. With a halt to such smuggling and with restricted amounts of fuel supplied via Israel the power plant began operating at partial capacity.The humanitarian impact of Gaza’s electricity and fuel crisis , UN OCHA, March 2014
The Gaza power plant's main fuel tanks were hit by an Israeli tank shell in the 2014 Gaza War, setting about 3 million cubic liters of fuel on fire. Originally reported as destroyed and facing a year of repairs, the plant returned to operation in six weeks.
In 2016, Qatar provided fuel for the Gaza power plant. PA President Abbas objected to the arrangement because the PA would be unable to collect taxes on the fuel.
In August 2019, following three rockets being fired from the Gaza Strip, Israel cut by half the amount of fuel it supplied to Gaza's power plant. Before the cut, residents had six hours of electricity followed by 12 hours of blackout, and it was said that the cut would result in a decrease of power time to four-hour periods.
In August 2020, following the launching of incendiary balloons from the Gaza Strip that caused brush fires in southern Israel, Israel suspended fuel shipments to the Gaza Strip, resulting in the shutting down of the Gaza power plant within a week. 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." For the 2021 year, and perhaps in earlier years, Qatar has been paying for fuel for Gaza's power plant.Qatar announces new aid grant to Palestinians in Gaza Transfers of fuel for the power plant were stopped by Israel during the Gaza War in May 2021 and resumed by the end of June.Israel allows fuel tankers into Gaza for first time since clashes
Before the Gaza war that began in October 2023, the Gaza Strip's energy needs were about 600MW. The Gaza Power Plant produced 60MW and imported energy from Israel accounted for 120MW. Israel cut off power to the Strip as part of a total blockade. The Gaza Power Plant ran out of fuel days into the war and remained inactive. Energy from Israel powered a waste treatment and desalination plant in Gaza until March 2025 when Eli Cohen, Israel's Minister of Energy, instructed the IEC not to supply power in order to pressure Hamas. By November 2025, during a ceasefire, Gaza's energy infrastructure was badly damaged and most Palestinians were without electricity and relied on charging points running on private generators or solar power.
Jenin power plant The PA approved PPGC's proposal for the construction of the Jenin power plant in the north of the West Bank. PPGC has acquired around 148,300 m2 of land for the project in Jalamah, Jenin Governorate. The Jenin power plant is planned as a gas fired power plant with a generation capacity of approximately 450 megawatts, supplied by natural gas from the Gaza Marine gas field. Power generation from the plant is expected to commence at the end of 2023.Massader The power plant is expected to provide around 40% of Palestine's annual electricity needs in both the West Bank and Gaza Strip, with a total annual production capacity of around 3,700 GWh. The PA has granted Palestinian Electricity Company an exclusive right to generate electricity in the Gaza Strip and sell it to PA owned or managed institutions for 20 years, which may be extended for a maximum of two consecutive five-year terms. The electricity produced in the Jenin Power Plant will be sold to PETL.
Renewable energy
In 2018 the PA and the World Bank began an initiative to increase the amount of energy produced through solar panels.
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,Gaza's Only Power Plant Knocked Out, Arutz7, July 2014Israel, Turkey eager to rebuild Gaza, Globes English, June 2016 which is imported via Israel. An additional 125 MW is supplied by Israel via 10 power lines, and 27 MW is supplied by Egypt.Palestinian Authority halts payments for Israeli electricity to Gaza: Israel, Reuters, 27 April 2017HAMAS BLAMES ABBAS FOR GAZA POWER PLANT SHUTDOWN, JPost, 18 April 2017 Even in normal conditions, the current rated supply of Gaza is inadequate to meet Gaza's growing needs.With Only Three Hours of Electricity a Day, Gaza Is 'On Verge of Explosion', Ha'aretz, January 2017
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.Israel cannot shirk its responsibility for Gaza's electricity crisis, B'Tselem, 16 January 2017Gaza's electricity crisis sheds light on gap between social classes, al-Monitor, March 2016