VZCZCXRO9673
OO RUEHROV
DE RUEHJM #0590 0890747
ZNR UUUUU ZZH
O 300747Z MAR 07
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7099
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY

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