Palestine and the Islamic Development Bank Sign Agreement to Finance the Construction of Two Solar Power Plants Worth 37 Million USD

SadaNews Economy - On Friday, June 19, the State of Palestine and the Islamic Development Bank Group signed a financing agreement worth 37 million USD to support the energy sector in Palestine, on the sidelines of the annual meetings of the Islamic Development Bank Group held in the Azerbaijani capital, Baku.

The agreement includes the establishment of two solar power plants with a total capacity of 20 megawatts, equipped with energy storage systems with a capacity of 55 megawatt-hours, sufficient to meet the needs of approximately 8,000 homes on average. The agreement also includes the installation of 20,000 smart meters and the implementation of specialized training programs for workers and youth in the energy sector, enhancing the transition to clean energy sources and supporting sustainable development in Palestine.

The agreement was signed on the Palestinian side by Minister Nasser Qatami, the alternate governor at the Islamic Development Bank for the State of Palestine, while it was signed on behalf of the Islamic Development Bank Group by Deputy President Dr. Rami Ahmed, in the presence of the Palestinian ambassador to the Republic of Azerbaijan, Ahmad Mitani.

In this regard, Qatami confirmed that this agreement represents a strategic investment in the future of the Palestinian energy sector and embodies Prime Minister Dr. Mohammed Mustafa's vision to enhance energy security, part of the government's energy security initiative to achieve 30% renewable energy production by 2030.

Qatami pointed out that the importance of the project is not limited to providing clean and sustainable energy sources, but extends to reducing the government's electricity bill and alleviating financial burdens on the public treasury, thereby allowing for the redirection of more resources towards developmental sectors and essential services.

The total cost of the project is 37 million USD, with the Islamic Development Bank contributing to its financing through a concessional loan of 12 million USD, while the Al-Aqsa Fund, the Abdullah Al Ghurair Foundation, and the Japan International Cooperation Agency contribute a total of 20.2 million USD, while the Palestinian government contributes 4.8 million USD.

The project will be implemented by the Palestinian Energy and Natural Resources Authority as part of its program to develop energy sector infrastructure and enhance reliance on renewable energy sources, aligning with the national energy strategy and sustainable development goals.

This project is one of the largest renewable energy and storage projects being implemented in Palestine, representing a qualitative leap in the development of the energy sector by introducing advanced electricity storage solutions, enhancing the flexibility of the electrical grid, and reducing dependence on imported energy, thereby contributing to strengthening energy security, improving the quality and sustainability of electricity services, and creating a more attractive environment for investment in the energy sector.