Clean Energy IDIQ Performance Monitoring Report – FY18 – Q3 | Palestinian Energy Project

The project focuses on improving the PA's efforts to modernize and diversify the Palestinian electricity sector, with a goal of increasing the PA's control over its electrical supply and improving affordability over time. PEP works with the Palestinian Electricity Transmission Company Ltd (PETL) to ensure it has the necessary capabilities and infrastructure to assume control of transmission sector assets. PEP has implemented a five-component approach to achieve its purpose, including building the institutional capacity of Palestinian Electricity Regulatory Council (PERC), Palestinian Energy and Environmental Research Center (PEC), and select distribution companies (DISCOs) to improve their performance and ability to plan, manage, and operate transmission grids that incorporate intermittent renewable energy (RE) sources. The project also aims to increase the attractiveness of the private sector to invest in RE by refining current net metering schemes with PENRA and PERC and facilitating their rollout to DISCOs. PEP has also worked to develop financial incentives to increase private sector RE investment, and to assist PERC and select DISCOs in achieving full cost recovery by reducing non-technical losses and increasing revenue through improved collections, processes, and infrastructure. The project's main objectives are to improve the environment for RE development, improve the capacity to deliver and utilize distributed PV and/or other RE, and assist the PA in expanding ownership and control of its energy assets. During the reporting period, PEP continued with select activities in Component 1, including releasing a request for proposal (RFP) for a six-day training course in solar PV system and project installation to EPC firms providing solar services within the West Bank. The project anticipates awarding and carrying out the training in Q4. Additionally, the new Chief of Party (COP) met with PERC to discuss the regulator's needs to improve the net metering regime currently in place, which will inform the scopes of work for upcoming net metering consultants. PEP also hosted a successful Loss Reduction Workshop in May, gathering representatives from West Bank DISCOs and municipal distribution operators. The workshop introduced DISCOs to key performance indicators (KPIs) to help them improve their performance and reduce losses. The project aims to continue working with DISCOs to improve their performance and reduce losses, and to support the development of financial incentives to increase private sector RE investment. The Palestinian Energy Project is implemented by AECOM International Development in accordance with the U.S. Agency for International Development (USAID) contract number AID-OAA-I-13-00012/AID-296-TO-16-00006. The project has a total funding of USD 13,452,807, and began on September 30, 2016, with an end date of March 31, 2020.