Gaza Power Plant Could Benefit from ME Prosperity Plan
Posted on 06/22/2019
The White House revealed its Middle East prosperity plan, which includes a US$ 50 billion plan to invest in Palestine and other Arab states in the region such as Lebanon. The Gaza strip relies on the Gaza Power Plant, which is powered by Israeli oil. The Gaza Power Plant started operations in 2002 to provide electricity for its residents. The Palestinian Authority (PA) are looking for other sources of oil to power the facility, contemplating getting oil from other Arab states or Russia. One part of the Prosperity Plan includes the Power Gaza Power Plan Upgrade, which aims to provide up to US$ 590 million in grants and concession financing to convert the power plant from diesel fuel to natural gas. The plan also includes connecting the power plant to a local natural gas supply. The White House plan seeks to “increase electricity supply in Gaza by approximately 70 megawatts (MW) and significantly reduce the cost of electricity for Palestinians. In Stage Two, an additional investment of $500 million will expand the production capacity of the Gaza Power Plant by an additional 400 MW. The project will create hundreds of jobs in construction. It will also support the creation of thousands of jobs by supplying businesses in Gaza with reliable and affordable electricity for the first time in years.”
Furthermore, Gaza could improve its energy reliability with increased investments in renewable energy like solar power. Already, the Palestine Investment Fund (PIF), the authority’s sovereign funds has made investments in renewable energy projects.