Palestinian Authority
With a cumulative score of 1.11, the Palestinian Authority ranks number 85 among emerging markets and number 114 in the global ranking.
- Emerging markets
- Middle East & Africa
1.34 / 5
Power score
0.58 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Palestine does not have a net-zero goal or strategy.
Nationally Determined Contributions (NDC)
Palestine submitted an updated ‘nationally determined contribution’ (NDC) – a non-binding plan to achieve the goals set out in the Paris Agreement – in October 2021. It aims to lower its emissions by 17.5% from 2011 levels by 2040 versus a business-as-usual (BAU) scenario if it remains occupied by Israel. If it achieves independence, Palestine will look to cut its emissions by 26.6% by 2040 relative to a BAU scenario. This is conditional upon international support.
The country’s NDC targets agriculture, coastal and marine, energy, food, gender, health, industry, terrestrial ecosystems, tourism, urban and infrastructure, waste and wastewater, and water. Palestine has yet to submit a long-term strategy under the Paris Agreement.
Fossil fuel phase-out policy
Palestine does not have a fossil fuel phase-out policy.
Power
Power policy
Palestine aims to generate 10% of total electricity from renewable sources by 2020, targeting around 130 megawatts (MW) of installed renewables capacity by then. The 2030 goal has two scenarios covering different extents of Palestinian territory: either 300MW or 500MW. Capacity additions in Palestine are primarily done through the feed-in tariff policy, which applies to solar, wind, biomass, and biogas projects of 5 kilowatts per household. Palestine also has a net metering policy for projects smaller than 1MW, which allows consumers to have 75% of their excess energy credited for the following month. Utility-scale renewable projects are eligible for exemptions of VAT, import, and customs duties.
Power policies
Power prices and costs
Palestine has tariffs set by the Palestinian Electricity Regulator based on a cost-plus approach. In 2021, tariffs decreased 3% across all sectors.
Power market
Palestine only has one power plant, the Gaza Power Plant, which is fueled by oil. It does not have standardized power purchase agreements (PPAs). The electricity market is privatized with the Palestinian Electricity Transmission Company as both transmission operator and buyer for the Palestinian energy sector.
Palestine relies on fossil fuels and subsidizes them for the Gaza Power Plant while taxing other fossil fuel users. The Gaza Power Plant needs to be modernized and plans have been announced both to extend its capacity and convert it to use natural gas.
Palestine’s electrification rate is 100%, but the quality and supply of power varies. For example, in the Gaza strip there are sometimes just a few hours of power a day supplied through the grid. Rooftop solar is supported by the government through a feed-in tariff policy, and there are retail licenses available for consumers to sell their power back to the grid. Even with rooftop solar, the share of renewables in Palestine is extremely low.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
There are some barriers to development in Palestine. The Palestinian government reserves the right to renegotiate PPAs when there is an increase in capacity of a power plant, although this has not happened to date.
Currency of PPAs
Are PPAs signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes?
Transport
EV market
The government has yet to implement any substantive policy support in this sector, and the electric vehicle (EV) market remains at an early stage. There is little to no availability of EVs in Palestine at this time.
EV policy
The government has yet to implement any substantive policy support in this sector and the EV market remains at an early stage.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Palestine has an energy efficiency plan that was developed in 2016 with the World Bank. The plan has three phases, with the first focusing on using efficient appliances and industrial equipment. In the second phase, the objective is to introduce demand side management by reducing peak load. The last phase is dedicated to the use of new technologies, such as smart homes, smart buildings, and smart grids.
Palestine also has buildings standards that set limits on heat losses from residential and commercial buildings. These could save 510,000 metric tons of CO2 equivalent per year by 2040, however the policy is not currently being enforced.
Energy efficiency plan
Does the country have a national energy efficiency plan?
Energy performance standards
Are there minimum energy performance standards for buildings?
Buildings policy
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
