Quarterly Performance Report: Palestinian Energy Project

The project focuses on improving the Palestinian Authority's efforts to modernize and diversify the Palestinian electricity sector. Key objectives include improving the enabling environment for renewable energy development, improving capacity to deliver and utilize distributed solar PV and/or other renewable energy generation, and assisting the PA in its efforts to expand ownership and control of its energy assets. Implementation of the project is led by AECOM International Development, with a total funding of USD 13,452,807. The project is designed to build the institutional capacity of the Palestinian Electricity Regulatory Council (PERC), the Palestinian Electricity Transmission Company (PETL), and select Distribution Companies (DISCOs) to improve their operational performance and ability to plan, manage, and operate transmission grids that integrate intermittent renewable energy. Significant progress has been made in establishing solid working relationships with counterparts and achieving mutually agreed upon activities. However, the first quarter of Fiscal Year 2018 was overshadowed by the announcement by President Trump indicating a fundamental shift in US foreign policy in the region, creating uncertainty about future project work. Despite this, PEP continues to implement work with committed counterparts and closely liaise with USAID to understand the implications of this shift. Institutional capacity building is a key component of the project, with PEP working to enhance PETL, PERC, and select DISCOs capacities to manage anticipated reforms to the sector, particularly as they relate to increased renewable energy load. PEP convened the first meeting of financial institutions in the West Bank to support green financing opportunities and conducted an initial training needs assessment of the Palestinian Energy and Natural Resources Authority (PENRA) to design and provide targeted consultancy on core renewable energy functions. Electricity distribution is another key area of focus, with PEP working to reduce non-technical losses and increase revenue through improved collections, processes, and infrastructure. Following the success of the Revenue Protection Workshop, PEP conducted a follow-up roundtable discussion with the DISCOs, which identified the important role that the judicial and law enforcement sector can have on reducing electricity theft. Meeting participants reached a consensus to organize a workshop gathering prosecutors, judges, and DISCO lawyers to understand what steps should be taken to increase consumer understanding and awareness of loss reduction, electricity theft, and regularization of illegal consumers. Renewable energy generation pilot projects are also being implemented, with PEP moving forward with the construction of a solar PV system for the On-Campus Solar Array Demonstration Project at Palestine Polytechnic University. PEP also finalized the Year 2 RE projects that will be presented to USAID and continued to collaborate with strategic partners such as the Palestinian Union Housing Cooperatives.