March 15 (Renewables Now) - International organisations from the World Bank Group will provide most of the funds needed for the construction of a 7-MW rooftop photovoltaic (PV) plant in Gaza.
The up to USD-12-million (EUR 9.7m) project has been proposed by a unit of Palestine’s PADICO Holding, the World Bank said on Wednesday. Electricity from the proposed plant will supply 32 factories in the Gaza Industrial Estate, Gaza’s only industrial park, "at a price 10% cheaper and up to 50% below the cost of diesel-based generation".
Through the International Finance Corp (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Bank for Reconstruction and Development (IBRD), the World Bank Group will provide 75% of the overall financing, with up to USD 4 million coming from the IFC-Canada Climate Change Programme. In addition, MIGA will provide USD 7 million in political risk guarantees.
The project is expected to open about 800 direct and indirect jobs as electricity for the industrial park will be cheaper and more reliable.
The Gaza Strip is suffering daily power outages of up to 16 hours, while annual supply is less than 50% of average demand. Currently, 70% of electricity and 100% of primary energy used in Gaza is imported.
(USD 1.0 = EUR 0.808)