Gaza’s electricity system has suffered near-total destruction, leaving millions of people without reliable power and pushing essential services to the brink. A new strategic brief from the energy team at Palladium, Rebuilding Gaza’s Electricity Sector: From Blackout to Resilience, argues that restoring electricity is not only a humanitarian imperative but a prerequisite for Gaza’s broader recovery and stability.
More than 90% of Gaza’s electricity infrastructure has been damaged or demolished, leaving 2.3 million residents without reliable power and rendering hospitals, water desalination plants, and wastewater facilities largely non‑functional. This moment must be used to rebuild an electricity system that is modern, resilient, and capable of supporting Gaza’s recovery for decades to come.
Realizing that opportunity will require substantial investment: authorities currently estimate rebuilding the power sector alone will cost US$3.2 billion, part of a wider US$67.1 billion reconstruction effort across Gaza.
The report frames electricity as foundational to Gaza’s recovery, not a standalone technical challenge. “Reconstruction of Gaza’s electricity sector is not a standalone technical exercise—it is a foundational pillar” for humanitarian relief, economic activity, and longer‑term political stabilization, notes Arai Monteforte, Vice President of Energy at Palladium.
From Emergency Power to Long‑Term Resilience
Rather than a single rebuild‑all solution, the analysis outlines a phased roadmap that moves from emergency power provision to long‑term system resilience. In the first six months, the priority is survival: restoring electricity to hospitals, water and sanitation facilities, and other critical services through a mix of diesel generators, off‑grid solar with battery storage, limited grid repairs, and partial restoration of cross‑border power imports.
The medium‑term phase, stretching from roughly six months to four years, shifts from stopgap measures to reconstruction. More than 80% of Gaza’s transmission and distribution network must be rehabilitated or replaced, alongside thousands of transformers. At the same time, the plan calls for restoring generation at Gaza’s power plant, rebuilding feeder lines from Israel and Egypt, and replacing destroyed utility‑scale solar installations. Reconstruction, the authors note, offers a chance to modernize the grid.
Predictable and Sustainable Power
Over the longer term, the report envisions a more diversified and reliable electricity sector, anchored in predictable governance, sustained financing, and regional cooperation. Progress will be incremental rather than dramatic. Ultimately, the brief positions electricity as a catalyst for recovery itself. “Rebuilding Gaza’s electricity sector is essential not only for humanitarian relief but for creating the stability and predictability that benefit all parties in the region,” says Monteforte, underscoring that restoring electricity is a first step toward both rebuilding lives and creating the conditions for wider regional stability.
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