West Bank and Gaza - Country Commercial Guide
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Investment in the energy sector in the West Bank and Gaza is one of the requisites for economic growth and development. The electricity system requires substantial upgrading and expansion to meet current demand. Insufficient power supply is a serious impediment to Palestinian economic growth. Over the next few years, infrastructure development, including upgrading the electricity network and establishing two gas-fired power plants in Jenin and Hebron in the West Bank, could be an area for growth if capital for this investment becomes available.

The total supply of electricity in the West Bank is estimated at 1,100MW.  Demand is estimated at 1300MW and expected to double current supply by 2040. Currently, around 90MW is generated from renewable energy sources, Jordan supplies 80MW, and Israel supplies the remaining 940MW. Five electricity distribution companies operate in the West Bank: the Jerusalem District Electricity Company (JDECO), which serves Jerusalem, Jericho, Ramallah and Bethlehem; the North Electricity Distribution Company (NEDCO) and Toubas Electricity Distribution Company (TEDCO), which serve the northern parts of the West Bank; and the Hebron Electric Power Company (HEPCO) and the Southern Electric Company (SELCO), which serve the southern parts of the West Bank. The Palestinian Authority (PA) has recently established the Palestinian Electricity Transmission Company (PETL), which is the single buyer of electricity from the Palestine Power Generation Company (PPGC), Israel, and other neighboring countries.   

In Gaza, the Palestine Electric Company (PEC), under its Gaza Power Generating Company (GPGC), operates a power station, the Gaza Power Plant, which currently operates at partial capacity only due to reliance on less efficicient diesel fuel (versus natural gas) and limited funds for the purchase of diesel fuel. The full capacity of GPGC is 140MW but often operates on 80MW. The total demand for electricity in Gaza is roughly 500MW. Egyptian power lines have been inoperational for several years. As a result, daily electricity cuts affect water, sanitation, education, agriculture, telecommunications as well as healthcare services.  

Leading Sub-Sectors

  • Renewable Energy
  • Electricity Infrastructure


The sector offers opportunities for U.S. companies that specialize in major network equipment, power generation and transmission, diesel generators, and solar equipment and solutions. Over the next few years, infrastructure development, including upgrading of the electricity network will be a major growth sector. Another opportunity exists for establishing one or two gas-fired power plants in the West Bank, converting the diesel-based Gaza Power Plant to operate on gas, and replacing transformers in Gaza.  As donor and private financing shifts to sustainable development programs, opportunities increasingly exist for developing renewable energy, energy efficiency technology, energy storage, transmission and distribution infrastructure, and grid monitoring systems.  Generation is constrained by infrastructure limitations and access to open land, creating more potential for dual use, micro-grid, and off-grid solutions.

The Palestine Power Generation Company continues to plan for the establishment of a combined-cycle power plant with a total capacity of up to 450MW each on a Build Own and Operate (BOO) basis. Implementation of the 250MW first phase will involve a pilot project at a total cost of $344 million in the North of the West Bank. Izdehar continues to plan for the establisment of an 80MW combined cycle power plant in the South of the West Bank.  The two power plants will cover approximately 50% of the demand for electricity in the West Bank.

More than a decade ago, a natural gas field named Gaza Marine was discovered off the shore of Gaza. British Gas and Shell held the license to explore the gas fields, but off-and-on negotiations with private gas developers and Israel have not yielded a supply agreement. If an agreement is reached and the infrastructure to transport the gas is developed, the power plants in Gaza and the West Bank could consume an estimated 1.1 BCM/pa.


  • Palestine Electricity Transmission Co. Ltd.
  • Palestine Power Generation Co.
  • Jerusalem District Electricity Co.
  • Hebron Electric Power Co.
  • Southern Electricity Co.
  • Northern Electricity Distribution Co.
  • Palestine Electric Co.
  • Gaza Electricity Distribution Co.
  • Izdehar – Palestine Prosperity Investment and Development Co.

For further information, please contact:

Assad Barsoum, Senior Commercial Specialist, Assad.Barsoum@trade.gov or +972-2-657-2688.