Baku (UNA/WAFA) – The State of Palestine and the Islamic Development Bank Group signed a financing agreement today, Friday, worth $37 million, to support the energy sector in Palestine, on the sidelines of the Group's annual meetings held in the Azerbaijani capital, Baku..
The agreement includes the construction of two solar power plants with a total capacity of 20 megawatts, and equipping them with energy storage systems with a capacity of 55 megawatt-hours, which is enough to meet the needs of about 8 homes on average.
The agreement also includes the installation of 20 smart meters and the implementation of specialized training and qualification programs for workers and youth in the energy sector, which will enhance the transition towards clean energy sources and support sustainable development in Palestine..
The agreement was signed on behalf of the State of Palestine by Minister Nasser Qatami, the Alternate Governor to the Islamic Development Bank, and on behalf of the Islamic Development Bank Group by its Vice President, Rami Ahmed, in the presence of the Ambassador of the State of Palestine to the Republic of Azerbaijan, Ahmed Mitani..
Qatami stressed that this agreement represents a strategic investment in the future of the Palestinian energy sector, embodies Prime Minister Mohammad Mustafa’s vision to enhance energy security, and is one of the programs of the government’s energy security initiative to reach 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 decreasing the financial burdens on the public treasury, thus allowing more resources to be directed towards development sectors and basic services..
The total cost of the project is $37 million, of which the Islamic Development Bank is contributing through a soft loan of $12 million, while the Al-Aqsa Fund, the Abdullah Al Ghurair Foundation, and the Japan International Cooperation Agency are contributing a total of $20.2 million, and the Palestinian government is contributing $4.8 million..
The project will be implemented through the Palestinian Energy and Natural Resources Authority, within its program to develop the energy sector's infrastructure and promote reliance on renewable energy sources, in line 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, and represents a qualitative leap in the development of the energy sector. It introduces advanced electricity storage solutions, enhances the flexibility of the electrical grid, and reduces reliance on imported energy, thereby contributing to increased energy security, improved quality and sustainability of electricity services, and a more attractive environment for investment in the energy sector..
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