UPDATE ON GAZA'S POWER SUPPLY

UNCLAS JERUSALEM 000590 SIPDIS SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/SHAMPAINE/BELGRADE; PRM FOR PDAS GREENE AND PRM/ANE; NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR LERNER E.O. 12958: N/A TAGS: ENRG PHUM KWBG IS EG SUBJECT: UPDATE ON GAZA'S POWER SUPPLY REF: A. 2006 JERUSALEM 4335 ¶B. 2006 JERUSALEM 2680 ¶1. (SBU) Summary: The reconstruction and development of the Gaza electricity supply continues, with 202 MW available for an estimated demand of 225 MW. The Gaza Power Plant's (GPP) reconstruction is scheduled to be complete by October, which will enable supply to exceed demand. The proposed high-voltage Israel-Gaza 161 kv line is scheduled to be complete by July and is expected to transfer 50 MW initially. Planning for a high-voltage Egypt-Gaza interconnection is underway, however construction has not yet begun. End summary. SOURCES AS OF MARCH 2007 -------------- ¶2. (SBU) According to Gaza-based USAID staff, Gaza is currently supplied with 202 MW of electricity. According to OCHA, Gaza's electricity demand is roughly 225 MW. As of March 2007, the Gaza Power Plant (GPP) supplies up to 65 MW per day; the Israel Electricity Corporation (IEC) supplies 120 MW via ten feeders lines; and Egypt supplies 17 MW via two feeder lines. ¶3. (SBU) Gaza-based USAID staff reported that power outages remain frequent and, at times, last for days. Rafah residents have reported that the electrical flow coming from Egypt is weak, which results in dimmed lights and malfunctioning appliances. GAZA POWER PLANT TO HAVE 140 MW CAPACITY BY OCTOBER -------------- -------------- ¶4. (SBU) Program Director of the Swedish International Development Agency (SIDA) Magdalena Svensson told Econoff March 2 that Egyptian technicians had completed phase one of the GPP reconstruction, which was funded by the Swedish government and involved the installation of seven 25 kv Egyptian transformers (ref A). The plant now produces 65 MW of electricity. The Italian government plans to fund the second phase of the plant's reconstruction, which should bring the plant's capacity to 140 MW, equivalent to its output prior to the IDF's destruction of its transformers on June 27, 2006 (ref B). Lorenzo Colonna-Preti, Program Director at the Italian Consulate, told Econoff on March 6 that the second phase will involve the acquisition and installation of four 60 kv transformers by October, and that the project is in the tendering phase. He expects the second phase to be completed by October. He said that the GPP plans to have the four 60 kv transformers installed in addition to the seven 25 kv transformers. ISRAEL-GAZA HIGH-VOLTAGE 161 KV LINE READY IN 4 MONTHS -------------- -------------- ¶5. (SBU) According to donors attending a February 20 meeting, Omar Kittaneh, Chairman of the Palestinian Energy Authority, announced that the Israel-Gaza high-voltage interconnection line, which will run from Israel's Netivot substation to the substation in Gaza City, is scheduled to be completed by July. The two-circuit, high voltage 161 kv line will run roughly nine kilometers and will have a 300 MW capacity. Enas Abu Laban, a policy advisor in the PLO's Negotiations Support Unit, told Econoffs on March 6 that the Israel-Gaza line will provide only 50 MW initially, since the Gaza substation that will receive the line is still being repaired after being damaged during the IDF operation "Autumn Clouds" in November 2006. According to Gaza-based USAID staff, once the Israel-Gaza 161 kv line is fully connected, the ten feeders from Israel will be disconnected. IMPROVED INTERCONNECTION WITH EGYPT -------------- ¶6. (SBU) Abu Laban stated that the project to interconnect the Egyptian grid to Gaza via a high-voltage line remains in its planning stages. She stated that the high-voltage line under consideration would deliver up to 300 MV. Abu Laban said that the Islamic Bank and Norway have offered to fund the project. WALLES