The Israeli Electric Corporation and the Palestinian Authority signed a landmark deal on Monday that will delegate the responsibility of electricity and power supply distribution over to the Palestinians.
This type of agreement is the first of its kind, marking the inauguration of a new power plant in Jenin, which will be first of four stations constructed across the West Bank. The agreement also delineates the payments the PA will make to Israel in order to buy the fuel needed to run the plant.
The station, at full capacity, will be able to provide between 120-150 MW but will initially operate at partial capacity providing some 60 MW.
The station does not have the capability to generate power autonomously but rather collects and redistributes energy created in Israeli plants. Officials hope it will supply a more stable and reliable power source to West Bank residents, as blackouts in the area are fairly common.
Both sides hope the deal will lead to the construction of a power-generating plant in Jenin, to be built in the coming years.
Israelis sign historic energy deal with Palestinian Authority on July 10, 2017
In 2016, Israel and the Palestinian Authority reached a deal to settle a portion of the PA's outstanding debt to the Israel Electric Corporation, which reportedly paved the way for the signing of Monday's historic deal.
The PA then owed some NIS 2 billion ($531 million) to the IEC, and the deal stipulated that the PA would pay NIS 500 million ($132 million) of its outstanding debt.
The IEC had previously reduced the power supply for hours at a time to Jericho, Bethlehem and Hebron, causing blackouts that Palestinian officials said threatened to cause further economic damage.
In January 2015, the IEC cut the power to Palestinian cities for a number of hours every day over a similar debt.
