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- Issue 174 March 2021
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Energy
Identifying opportunities to decrease dependence on energy exports
The Portland Trust sees a priority in fostering the development of renewable energy in Palestine, given the sector’s potential to transform the economy by supplying reliable, cost-effective, clean and independent electricity. Palestine currently imports around 95% of its total electricity consumption, mostly from Israel, with a small amount coming from Jordan and Egypt. The Beyond Aid report identifies an opportunity to decrease dependence on energy imports by 2030 through increasing domestic production of affordable renewable energy sources, particularly solar. Over the long term, the analysis suggests that 70% of total Palestinian electricity requirements could be supplied domestically, with up to 50% of domestic production coming from renewables. Since 2012 The Portland Trust has been working to identify the blockages preventing effective growth of the sector and has designed a number of interventions to resolve them.
In May 2012 The Portland Trust was instrumental in establishing the first photovoltaic (PV) solar energy training centre in the West Bank, with the objective of helping bridge a relevant skills gap in the sector. Many of the over 100 trained in the centre from its launch became entrepreneurs in the sectors, opening their own services companies.
Later in the same year, The Portland Trust assisted the PA in the early development of regulations to support the growth of the sector by commissioning expert analysis. Extensive efforts by the authorities and other support organisations resulted in the launch of a comprehensive renewable energy law in 2016.
As part of the second phase of its renewable energy programme, The Portland Trust focused on the promotion of projects at the industrial level with the aim of enticing industrial firms to consider investing in solar energy production and harvesting stations. Efforts included in-depth technical analysis, expert consultation and business modelling for two 600Kw fields, in the Bethlehem Multipurpose Industrial Park (BMIP) and the Arab Development Society (ADS) in Jericho. Whilst a series of adverse conditions and lack of normative clarity impeded the materialisation of the projects for some time, it is hoped that the new regulatory environment gives these promising projects a new chance to succeed.
More recently, as part of the initiative to develop a long-term spatial vision for Gaza (see separate section), a comprehensive assessment of the potential for renewables in Gaza was presented, including the identification of investable projects for the delivery of the local energy requirements.
The Portland Trust continues to provide general support for the development of the sector, in line with the goals and projects identified in the Beyond Aid report. Ad-hoc interventions include the promotion of opportunities amongst prospective investors and international support organisations.