Investing in Renewable Energy and Energy Efficiency in Palestinian Territories: Barriers and Opportunities

Table 3

Summarization of answers of public institutions to questions related to financial incentives for RES and EE.

Are national subsidies and grants available for investments in RES and EE?	(i) 100%: yes
Is clear information on financial support readily available?	(i) 80%: no
Is credit at a low interest rate readily available to support RES production and EE implementation?	(i) Some local banks manage green funds with soft loans. Those loans with low interest encourage investment in renewable energy and EE
Are tax reliefs offered to renewable energy producers?	(i) There is a tax exemption offered to RES and EE goods by the Ministry of Finance
If available, are these favorable financial conditions open to FDI, and under what conditions?	(i) These exemptions are applied to FDI if it is registered as a local company
Are guaranteed feed-in tariffs set to encourage RES and EE?	(i) 100%: yes.
If yes, how high are these tariffs? Are they guaranteed for a certain period (how long)?	(i) The FIT mechanism does not exist in PT. The only FIT is applied under PSI for the residential sector up to 5 kW (FIT 0.54 NIS/kWh); (ii) This FIT is guaranteed for the lifetime of the system, which is normally 20 years; (iii) The available mechanisms are according to net metering or direct offers through PPA
Further comments. Please comment on the overall financial framework, the stability/predictability of the policies, and refer to any further issues you consider important.	(i) For a large power station with a capacity above 1 MW, the PPA is signed between the developer and PETL as a purchaser and guarantee side; (ii) Some investors are conservative from the PETL guarantee, and they are demanding the sovereignty guarantee. The sovereignty guarantee is a pledge and commitment from the Ministry of Finance to investors or developers in the case DisCos do not commit to paying the cost of energy to an investor; (iii) For power stations with a capacity of less than 1 MW, PPA was left to the DisCos and municipalities and village councils