Shamsi Palestine Initiative Brings 22 Solar+Battery Systems to West Bank

Twenty-two municipalities in Palestine may soon be proud owners of one-megawatt solar+battery storage systems, thanks to a new US$25-million solar financing initiative facilitated through local banks.

Launched by the Palestine Monetary Authority, the Shamsi Palestine initiative (Shamsi is Arabic for “sun” or “of the sun”) aims to improve energy security and strengthen public services. It will assist local banks in offering eligible municipalities solar financing packages that combine grants and loans, with repayment plans extending up to seven years, reports Solar Quarter.

The Palestine Monetary Authority will contribute US$20 million towards the Shamsi Palestine initiative, while the remaining $5 million will come from Austria, Finland, and Norway. 

The United Nations Development Programme (UNDP) “will assist in implementing and supporting the solar projects to ensure long-term sustainability and effective execution,” adds Solar Quarter.

Speaking at the launch of the initiative, Palestinian Prime Minister Mohammad Mustafa said it would support the government’s aim “to increase renewable energy share in Palestine to about 30% by 2030.”

The country continues to make slow progress in its deployment of renewable energy. Its cumulative solar capacity increased by five megawatts in 2025, ending the year with 308 MW installed, according to latest data from the International Renewable Energy Agency.

The prime minister noted that the program would also serve to reform public finance and enhance the role of local governments in providing public services, reports Yaffa News Network.

The need for greater energy independence is acute: the West Bank currently depends on Israel for 87% of its power needs, with the bulk of the remainder sourced from Jordan and Egypt, according to a 2023 report by the Institute for Palestinian Studies.

Hopes are that the Shamsi Palestine initiative will eventually expand to include another 28 municipalities in Palestine, according to a 2024 funding report from the UNDP.

While the initiative is theoretically available throughout the West Bank, implementation will likely be possible only in so-called Area A and B. Israel’s complete control over Area C means the necessary permits to proceed with solar installations won’t be available. (A recent report by the Palestinian-Israeli news organization +972 describes how solar power is increasingly being used as an instrument of “green apartheid.”)

While energy security is a key driver behind the Shamsi Palestine initiative, it also emphasizes public accountability and agency, and nation-building.

“At its core, the program seeks to redefine the role of Palestinian municipalities,” UNDP writes in a recent LinkedIn post. “The goal is to transition these bodies from being passive consumers of energy to becoming active agents in the energy transition.”