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.
The energy sector, specifically electricity in the State of Palestine, is in a unique situation.
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.
Palestinians are heavily dependent on imported electricity from the Israeli networks: 87 percent of electricity consumed is secured from Israel and around 4 percent from Egypt and Jordan. The remaining 9 percent is produced locally in Gaza and used to fuel the region’s power plant on a continuous basis.
Future consumption of electricity is expected to reach 8,400 GWh by 2020 on the expectation that consumption will increase by 6% annually. The Palestinian Electricity Transmission Company (PETL), formed in 2013, is currently the sole buyer of electricity in the areas under Palestinian Authority (PA) control.
Palestinian energy demand increased rapidly, increasing by 6.4% annually between 1999 and 2005. Future consumption of electricity is expected to reach 8,400 GWh by 2020 on the expectation that consumption will increase by 6% annually.