Transcript Energy Sector in Palestine

Power Sector in Palestine
Prepared By:
Eng. Mohannad Aqel
Palestinian Energy Authority
Past
The power sector in Palestine has been
severely neglected. Systems are old and
inefficient; electricity supplies are unreliable;
generation is highly dependent on Israeli
sources; the institutional framework is weak
and highly fragmented; and consumption is
considerably below regional standards.
Present & Future
To develop the electricity sector in Palestine,
the PNA and the PEA set out policy for the
development of the sector, as outlined in the
Letter of Sector Policy (LSP), and the various
reports and reviews – recently the World
Bank issued its review "West Bank and
Energy Sector Review, May 2007"-.
Objectives
The PEA is committed to providing the
citizens of the Palestinian with reliable
electricity supplies, and is committed to doing
so at a price that is affordable and that
permits the efficient long term development
of the sector and the economy as a whole.
Medium-term Strategy

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To focus on rehabilitating existing networks
and services and extend services to
currently un-served communities;
To separate the ‘policy’ and ‘regulatory’
functions from the ‘commercial functions’ of
power sector enterprises;
To refocus and reorganize the PEA to be
the main policy making body for the sector;
Medium-term Strategy


To encourage maximum private sector
participation in sector operations and
development, particularly in generation and
distribution, thus minimizing the need for
government financial support;
To consolidate transmission networks,
systems and functions in the a new
transmission company;
Medium-term Strategy


To increase the operating/technical efficiency of the
distribution utility companies through energy enduse efficiency, energy conservation and better load
management; and
To develop pragmatic tariff setting guidelines that
will permit full cost recovery and promote the
commercial viability of sector enterprises while at
the same time providing for ‘lifeline’ rates for needy
consumers.
Developing of Power Supply
System Rehabilitation
Since its establishment, PEA has undertaken a number steps
and programs to remedy critical network deficiencies to
improving service reliability and efficiency, the main programs
are:


Rehabilitation of Gaza network 1995-1997 with the assistance
the government of Norway;
Rehabilitation of the networks in the major cities and town in the
Northern area of West Bank with the assistance the
government of Norway;
Developing of Power Supply
System Rehabilitation


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Rehabilitation of the networks in the central area and the
southern area of West Bank with the assistance of Italy, EIB
and the World Bank.
Rehabilitation of Bethlehem and surrounding area network with
the assistance of Norway
Rehabilitation of many villages in the northern area of West
Bank with the assistance of Norway;
Replacement of damages occurred due to Israeli incursions in
Gaza and West Bank with the assistance of Norway and
Sweden;
Developing of Power Supply
Rural Electrification
Electrifying the Palestinian rural areas is a crucial function to develop
the agricultural sector, water supply and other sector in the villages.
PEA will electrify all the un-electrified villages by the mid of year 2009.
The major electrification projects are done with the assistance of:


Czech Republic (22 villages Tubas area in the Northern area of West
Bank, completed in 2002)
Belgium (25 villages in the Northern area of West Bank in phase 1,
completed in 2007 and 27 villages in Phase 2 to be finalized June
2009)
Developing of Power Supply
Rural Electrification



France (29 villages in the Northern area of West Bank,
completed in 2007)
Norway (7 villages in the central and southern area of West
Bank)
MOF ( for the remaining small localities scattered in the
Northern and southern area of West Bank to be finalized mid
2009)
Developing of Power Supply
Interconnection with neighboring countries


PEA has completed a small scale interconnection project
(supply projects), one between Egypt and Rafah with 17 MW
capacity, and the other between Jordan and Jericho with 20
MW capacity.
In October 2008, PEA became a full member of the 7 countries
interconnection project and become the country number eight;
the countries are Jordan, Egypt, Syria, Lebanon, Iraq, Libya,
Turkey and Palestine. This membership will allow Palestine to
be connected to the grid of these countries at a large scale,
specially connecting Gaza to Egypt and West Bank to Jordan.
Developing of Power Supply
Generation
The GPP Gaza Power Plant is the only significant generation capacity
in the West Bank and Gaza with an installed capacity of 140 MW, and
is the only major privately financed, developed and operated power
facility from which power is provided to Gaza under a long term power
purchase agreement. This plant has the capacity to supply only 20% of
the combined needs of the West Bank and Gaza, but it can supply
about two-thirds of the current maximum load on the Gaza electricity
system (it is constrained to using 50% of capacity at present because
of the limitations of the transmission network to take power from the
plant). The plant generates electricity at high cost because it currently
uses costly gasoil.
Developing of Power Supply
Generation
In order to increase system capacity and reduce supply
dependency on Israel, PEA will encourage the creation of new
generating capacity within Palestine. Two Power plants will be
created in West Bank (One in the South and the other in the
North). In doing so, the PEA will encourage maximum
participation by the private sector through independent power
providers (IPPs). The PEA will also diversify the sources of
supply by encouraging the purchases from neighboring
countries while at the same time promoting regional
interconnection, system stabilization and scale economies.
Developing of Power Supply
Transmission
The transmission network is not yet fully in Palestinian hands.
Also it is a component of the system that can not be reasonably
privatized.
PEA started to develop the transmission system in Gaza with
the assistance of Sweden. PEA constructed two High voltage
substations that both where partially or completely destroyed by
IDF. PEA with the assistance of Sweden could repair the main
substation which is the central substation.
In addition PEA, will start soon the development of four
substations in West Bank to be the core of the transmission
system.
Developing of Power Supply
Transmission
Also, PEA will establish a new, professionally
managed and commercially - oriented company,
Palestine Energy Transmission Company Ltd.
(PETL) which would eventually own, operate and
develop the network. PETL would enter into powerpurchase agreements with independent and semiindependent generating companies and from
neighboring countries, and would sell power to
regional distribution utilities
Developing of Power Supply
Distribution
As indicated in the PA’s “Letter of Sector Policy”, the
PA is consolidating power supply and distribution
arrangements in the present situation of the energy
sector in the West Bank into four power utilities by
adding three utilities to the utility serving the central
area around Jerusalem - the Jerusalem District
Electricity Company (JDECO)
Developing of Power Supply
Distribution
The companies are:
 Gaza Distribution Company (GEDCO), established
in 1999 – with the assistance of Norway-;
 Southern Electricity Company, established in 2002with the assistance of the World Bank-, and
 Northern Electricity Distribution Company (NEDCO),
established in 2008-with the assistance of Norway
and Sweden.
Developing of Power Supply
Distribution
Parallel with the institutional development of the distribution,
PEA plans to develop the distribution network to be connected
to the new substations and have an integrated networks in the
southern area and the northern area.
Developing of Power Supply
Regulation
The Palestine Energy Regulation Commission (PERC) reporting
to the PNA will be established pending the governmental
approval. The PEA would establish the overall policy for sector
development, tariffs would be set by PERC on the basis of
commercial considerations with due regard to the needs of
especially vulnerable segments of the population. The
members of the Board of PERC would be appointed by the
PNA on the recommendation of the Board of PEA. PERC
would include significant representation from the private sector.
Organigram of the Electricity Sector
As explained earlier, the power sector will be
run by companies and monitored and
regulated by PERC and PEA will set out
policy for the development of the sector. The
next figure represents the organization of the
power sector.
Organigram of the Electricity Sector
Figure 1: PALESTINIAN ELECTRIC POWER INSTITUTIONAL
FRAMEWORK
IPP’s
IEC
Jordan
Egypt
PPA
NEU
TRANSMISSION
COMPANY
JEDCo
SELCo
Palestine Consumers
GEDCo
Regulation Authority
PEA
Current Electricity Supply and
Demand
The pattern of electricity supply and
characteristics of electricity consumption in
the Gaza region are different from those in
the West Bank. The difference stems mainly
from the higher standard of living in the West
Bank compared to the Gaza area.
Current Electricity Supply and Demand
West Bank
The West Bank depends almost entirely on
IEC for electricity supply. It is mainly
supplied by three 161/ 33 KV substations:
one in the south in area C close to Hebron, a
second in the north in the Ariel settlement
(area C) close to Nablus, and a third in Atarot
industrial area (area C) near Jerusalem.
Current Electricity Supply and Demand
West Bank
West Bank consumption of electricity – as
measured by purchases of bulk power from
IEC - increased at an average annual rate of
6.4% between 1999 and 2005 as shown in
the following figure:
2,500
2,000
GWh
1,500
1,000
500
0
1999
2000
2001
Year
2002
2003
2004
Total purchases
2005
Current Electricity Supply and Demand
Gaza
Gaza receives electricity from IEC and from a gasoil
(diesel) based power plant with electricity generating
capacity of some 140MW located inside Gaza
(GPP), which is the only major power generating
facility in West Bank and Gaza. Gaza also receives a
small power supply from Egypt (17MW). GEDCO
distributes electricity within Gaza.
Current Electricity Supply and Demand
Gaza
Gaza’s total supply of power (purchased from
IEC and GPP) increased by 80% between
1999 and 2005 at about 10% average annual
rate. Most of this growth took place from
2003 onwards, and it coincided with the
advent of power from GPP
1,400
Purchases (GWh)
1,200
1,000
800
600
400
200
0
Year
1999
2000
2001
2002
Purchases from IEC
Total GEDCO Purchases
2003
2004
2005
Purchases from Gaza PP
Load Forecast
The following figure displays the growth
pattern in the West Bank, Gaza Strip and
total Palestine forecasts:
Forecast Growth
10,000
9,000
8,000
Palestine
7,000
6,000
5,000
West Bank
4,000
3,000
Gaza Strip
2,000
1,000
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Forecast Summary - Peak Demand (MW)
Year
2008
2009
2010
2015
2020
2025
Total
806
845
885
1,059
1,347
1,714
W.B.
502
525
548
646
809
1,012
Gaza
303
320
336
413
538
701
Future Plans for Generation & Transmission
supply strategy for West Bank & Gaza
The domestic power generation in Palestine should be minimum
50% of the total generation requirement. In addition to
increasing the capacity of the existing power plant in Gaza, two
new power plants in the West Bank will be constructed which
are:
–
–
Jayyus Power Plant in the north, near Qalqiliya, and
Turqumia Power Plant in the south, west of Hebron
Future Plans for Generation &
Transmission
The other 50% of the supply requirements will be
imported from the neighboring countries through the
interconnection project (West Bank – Jordan) and
(Gaza – Egypt).
The following Single Line Diagram shows the future
interconnection & transmission system for West
Bank & Gaza
West Bank SLD
Gaza SLD