Gaza power grid suffers $977m loss as war destroys 85% of network

Gaza’s electricity distribution sector has incurred preliminary losses estimated at $977 million. Around 85 percent of its distribution network was destroyed during the ongoing war. The Gaza Electricity Distribution Company reported these figures recently. Most Palestinians now lack reliable access to power sources. This devastation has forced families to depend on expensive alternatives.

Mohammed Thabet serves as the director of public relations for the company. He stated that assessing the full scale of destruction remains difficult. Crews are currently unable to reach some damaged areas safely. Locations under military control prevent engineers from completing comprehensive evaluations. Consequently, the true financial cost could be considerably higher than current estimates.

Approximately 90 percent of the company’s warehouses and storage facilities have sustained damage. More than 70 percent of its buildings and facilities were destroyed or damaged. The vehicle fleet has also suffered significant losses during the conflict. These operational setbacks have severely constrained the ability to repair infrastructure. Spare parts and equipment remain inaccessible due to ongoing restrictions.

The collapse of the power system has consequences far beyond lighting homes. Hospitals require electricity for operating rooms and medical equipment refrigeration. Water wells and desalination facilities need power to function properly. Sewage treatment and telecommunications systems also depend on a stable supply. The failure of these services deepens the broader humanitarian crisis significantly.

Private generators provide an alternative but cost more than 30 shekels per kilowatt-hour. This price makes regular access unaffordable for much of the population. The company recently began providing limited generator-powered electricity at lower rates. However, officials stress this initiative is temporary and not a grid restoration. Only a small fraction of residents currently have any power access.

A broader assessment by international bodies estimates total energy sector losses at over $1.2 billion. Restoring the infrastructure will require extensive reconstruction and new equipment. Transformers, fuel, and heavy machinery must enter the enclave for repairs. Safe access for engineers is essential to rebuild the devastated networks. Rebuilding Gaza depends heavily on restoring these basic functional systems.