The Palestine Monetary Authority (PMA) has launched a new clean energy financing initiative called “Shamsi Palestine” to support solar energy projects for local authorities across the country. The program begins with an initial investment of $25 million aimed at improving energy security and reducing electricity costs for municipalities.
Out of the total funding, the PMA has contributed $20 million, while Austria, Finland, and Norway have jointly provided an additional $5 million as donor support. The initiative is designed to encourage the installation of solar power systems through a combined financing structure that includes both loans and grants.
Under the program, local commercial banks will manage the financing process for solar energy installations. Municipalities and local authorities will be able to access flexible repayment plans extending up to seven years. The financial support is expected to help local bodies reduce the heavy burden of electricity expenses while also improving their overall financial stability.
The United Nations Development Programme (UNDP) is participating in the initiative as a technical and development partner. The organization will assist in implementing and supporting the solar projects to ensure long-term sustainability and effective execution.
Speaking during the launch event, Palestine Prime Minister Dr. Mohammed Mustafa said the initiative would contribute to public finance reform, encourage investments in renewable energy, and support independent economic development. He also urged the international community to accelerate reconstruction and recovery efforts in the Gaza Strip, highlighting the ongoing humanitarian challenges and infrastructure shortages faced by residents in the region.
Engineer Ayman Ismail, Chairman of the Palestinian Energy and Natural Resources Authority, described the initiative as an important step toward strengthening Palestine’s energy security. He explained that expanding local solar generation would help lower electricity costs, improve the reliability of the electricity grid, and reduce dependence on imported electricity supplies.
According to the International Renewable Energy Agency (IRENA), Palestine has continued to make gradual progress in renewable energy development. The country’s cumulative solar power capacity reached 308 MW by the end of 2025, compared to 303 MW recorded at the end of 2024. Officials believe the new financing initiative will further accelerate solar energy deployment and support sustainable development across local communities.
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