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Home to two million people, the Gaza Strip sits squeezed between Israel and the Mediterranean Sea on a bit of land just twice the size of Washington, D.C. Gaza is the smaller part of Palestine’s two territories; you could walk the length of its southern border with Egypt in under three hours. But land is not the only thing that’s long been in short supply in Gaza. As the war between Israel and Hamas, the Palestinian militant group that rules the region, has made clear, Gaza is also increasingly bereft of water.
Over the course of the tragic war, water infrastructure has played an unprecedented role. In the aftermath of Hamas’s massacre and kidnapping of Israeli civilians on October 7, the Israeli government took measures to halt drinking water — as well as aid, food, and electricity — from entering the Strip. First, on October 9, Israel shut off the pipelines that usually send water into Gaza and halted deliveries by truck. And while it turned back on some of the pipelines on October 15, it didn’t restart the electricity or the fuel shipments that power Gaza’s desalination and wastewater treatment plants.
Yet these harsh measures in recent weeks belie a much longer-term problem, as a deeper dive into the region’s infrastructure reveals. Palestinians in Gaza have not had access to safe or ample drinking water for decades.
“The water crisis that Gaza is facing is a chronic crisis,” Dr. Shaddad Attili, the former Palestinian minister of water and head of the Palestinian Water Authority (PWA) from 2008 to 2014, told me. “But now water is being used as a weapon. If they don’t get killed by missiles, they will die from the contaminated water that they’re using.”
The Israeli Defense Forces, the water authority in the West Bank, and COGAT, the Israeli body responsible for the government activities in the Palestinian territories, all did not reply to requests for comment by the time of publication.
There are three natural water resources that run through Israel and Palestine: the Jordan River Basin on the eastern border; the Mountain Aquifer, which runs directly through the West Bank; and the Coastal Aquifer, on which Israel is upstream and Gaza is downstream. The majority of the water comes from these three sources, but since the region is a desert geography, water is generally in short supply.
Israel acquired control over all the water that runs through the Israeli and Palestinian territories in the Six-Day War in 1967 when it seized the Gaza Strip from Egypt, the West Bank from Jordan, and the Golan Heights in the north from Syria. In November of that year, Israel introduced a military order stating that Palestinians could not construct any new water infrastructure without first obtaining a permit from the Israeli army. Israel gave, and continues to give, these permits sparingly.
Today, the water discrepancy is striking. While there are eight times more Palestinians living in the West Bank than Israeli settlers, 70% of the water output is given to the settlements, where it is largely used for farming, according to an April 2023 report on the West Bank’s water deprivation by the Israeli humanitarian organization, B’Tselem.
During the Oslo Accords in the mid-1990s, the West Bank won some rights to run their own pumping stations in select parts of the territory. Today, they still need to earn permits from the Israeli military in order to build new pumping stations. Gaza used to pump their water from the Coastal Aquifer, but developments over the past 30 years have made that water inaccessible.
Prior to this war, the water situation in Gaza was already dire. The World Health Organization said that Gaza’s water supply was unable to meet the minimum requirement for daily per capita water consumption.
Gaza has some unregulated pumping stations that pull water up from the aquifer, but they’re not a major cause of the problem. The Coastal Aquifer extends from a town called Binyamina in Northern Israel to the Sinai Desert in Egypt. Just 2% of the total aquifer passes through Gaza. Through the late 1990s, it supplied drinkable tap water to most of Gaza’s residents. While it historically has provided 95% of their freshwater, it’s unusable now for a few reasons.
First, Gaza’s population growth rate is among the highest in the world, with almost half of the population under 18 years old in 2022. High population growth means the already scarce groundwater can no longer replenish fast enough to meet demand.
But there are deeper problems with the water’s quality. Seawater seeps into the aquifer since it’s so close to the coast and untreated wastewater has polluted the aquifer for decades to a point that it’s no longer safe to drink. In 2020, a study in the journal Water said that the quality of groundwater in the Coastal Aquifer had “deteriorated rapidly,” largely due to Israeli pumping.
“At least 95% of the freshwater (from the aquifer) is either inaccessible or not drinkable,” said Jordan Fischbach, director of planning and policy research at The Water Institute and author of a report on the public health impacts of Gaza’s water crisis in 2018.
As a result, the Coastal Aquifer — the primary source of Gaza’s water — is essentially out of commission. Residents of Gaza are now left with only about 20% of their needs filled.
But those sources have also proven to be unreliable.
The first are the pipelines, which were built with funding from international humanitarian aid. The pipelines run from Israel-controlled fresh aquifers and the water is paid for by the Palestinian National Authority (PA) in the West Bank. These are the pipelines that Israel stopped sending water from following Hamas’ attack on Israeli civilians.
But even in the best of times, the pipelines only supply around 10% of the water demand in Gaza. Attili from the Palestinian National Authority said that the water is combined with some of the unsafe brackish water in order to increase volume.
The second source of water are small-scale desalination plants, which turn seawater into potable water, but they rely on electricity to run.
Usually they provide another 10% of Gaza’s water, but when Israel halted the importation of fuel and shut down electricity transmission into Gaza, these plants stopped running too.
However, even when electricity and fuel are available, over one-third of plants are not monitored, maintained, or officially regulated. “A number of construction materials, fuel and other things you would need to build and power drinking and wastewater facilities are considered ‘dual use.’” said Fischbach, meaning they could also be used to build weapons. “These are types of materials that are restricted by both Egyptian and Israeli authorities.”
A 2021 study showed that 79% of desalination plants are unlicensed and 12% of water samples tested showed dangerous contamination levels.
“Desalination is necessary to get anything even close to drinking water quality and only a fraction of [desalination plants] are actually licensed and monitored” said Fischbach. “Many of them are producing water that we would still consider below drinking water quality.”
He added that most of them don’t run to their capacity anyways because they are so energy intensive and Gaza doesn’t have enough electricity.
Gaza also gets water from water trucks controlled by humanitarian aid or delivered by the Palestinian National Authority. This water passes directly through Israeli land, which means Israel was able to easily halt deliveries in the wake of the Hamas attacks.
In recent weeks, some residents of Gaza have resorted to drinking sea water or brackish water directly from the Coastal Aquifer. Not only are these not sources of freshwater, they are also further polluted by untreated sewage running through the region.
Israel’s decision to cut electricity to Gaza also meant that the wastewater treatment plants can’t run. Treated wastewater is used for showering and other sanitation uses. But when it’s not processed through a plant, wastewater runs into the aquifer and groundwater, further polluting what’s left of their drinking sources.
While the situation is worse due to the lack of electricity from the war, Gaza has never had ample wastewater treatment plants.
“For two decades now Palestinians have been prevented from building and maintaining the infrastructures that keep wastewater out of the aquifer,” says Sophia Stamatopoulou-Robbins, a cultural anthropologist and professor at Bard College. She is the author of Waste Siege: the Life and Infrastructure of Palestine.
In the West Bank, the aquifer is deep, carrying around 340 million cubic meters of water every year, so wastewater that has been somewhat treated can be further cleaned by soil and rock as it seeps through the aquifer. But Gaza’s aquifer is very shallow — its estimated to carry only about 55 million cubic meters per year —, and therefore cannot clean the water. Instead, it needs extensive infrastructure.
“In Gaza, you would need an incredibly high sophistication of technology to permit the wastewater to go safely into the ground,” says Stamatopoulou-Robbins. “Even the kind of concrete containers that would hold wastewater are not permitted to be maintained or built.”
In addition to the plants themselves, you would need piping to connect buildings to the wastewater treatment plants, she adds. “So all of the conveyance technology and infrastructure which is expensive anywhere in the world, all of that is subject to Israeli controls and tends to be prevented.”
As is the case with desalination plants, neither Israel nor Egypt allows the necessary materials into Gaza for building wastewater treatment plants because those materials are also considered dual-use materials.
Even as Israel turned the water and electricity back on, there are questions around how many of these desalination and wastewater treatment plants have been bombed and are no longer running.
As far as logistically turning off these resources, it’s fairly straightforward. “The ability to shut off electricity transmission is quite easy,” said Fischbach. “It’s just flipping a switch — the same way with a rolling blackout. Fuel imports are also easy. Nothing is going into Gaza. As far as drinking water lines, you can just not pump that water. So the logistics are easy.”
Several reports of hygiene related diseases spreading through cramped spaces are surfacing in recent days. Doctors in Gaza are saying that patients are showing signs of disease caused by overcrowding and poor sanitation. Children are suffering from diarrhea, lung infections, and rashes.
“The desalination plants are out of service because there’s no electricity, the sewage treatment plants are out of service because there is no electricity. And because our people now take refuge in shelters, there is a hygiene problem,” said Attili. “I have gone to so many conferences where we say water is a tool for cooperation, not conflict, and they all agree, but now the international community remains silent.”
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The companies just launched a major VPP play.
For all the hype surrounding virtual power plants, they’re still a niche player on the U.S. electric grid. A new partnership between three of the biggest residential energy companies in the country — Tesla, Sunrun, and Renew Home — aims to recast VPPs into a leading role.
The companies announced on Wednesday that they have more than 16 gigawatts of dispatchable VPP capacity available today to deliver to utilities and data center developers throughout the country. That’s about the same as 16 nuclear reactors, except instead of generating power round the clock from a central plant, the companies aggregate unused electricity capacity from thousands of individual home solar and battery systems and programmable thermostats, and can make it available for several hours at a time.
Today, the companies bid these resources into electricity markets as a sort of bespoke grid service. A few times per year — often in the summer months when demand spikes — the grid operator in California might ask Sunrun to switch on its VPP to prevent a blackout. That means Sunrun’s rooftop solar and battery customers all either begin exporting excess power to the grid or rely more on their energy storage systems for their own power needs, reducing strain on the grid. Tesla operates similar programs, some in partnership with Sunrun. Renew Home, which spun out of Google Nest, does the same thing but with thermostats and water heaters, nudging temperatures on thousands of devices up or down during peak demand hours.
“A lot of our assets are enrolled in a contract where they can be used up to 20 times per year,” Paul Dickson, the president and chief revenue officer of Sunrun, told me. Now the company, along with its partners, are making the pitch to utilities and hyperscalers to view VPPs as 365-day resources, and more fully integrate them into their grid planning.
It’s a “turnkey” solution, the companies wrote in a press release, “deployable in months, not years,” that requires “no additional hardware, software, interconnection, water, or land usage for offtaking parties.”
VPPs also typically kick back some of the proceeds they earn from the electricity market to the residential customers hosting the solar panels, batteries, and programmable thermostats providing the power, meaning they can meet growing energy demand while helping to lower household energy bills. Sunrun and Renew Home paid out a combined $67 million in customer rewards last year.
About 60% of the 16 gigawatts the companies have available are tied to Renew Home’s enrolled devices, with the remaining 40% coming from Sunrun and Tesla’s solar and battery assets, Dickson told me. The capacity is also spread out geographically. There’s about 1.7 gigawatts available in Texas — the second largest data center market in the country, Dickson pointed out. There’s 300 megawatts available in Virginia, which the companies expect to grow to 500 megawatts by 2030.
“Unlike a traditional power plant that's fixed in size, this number grows every single day as the combined three companies continue to add additional capacity,” Dickson said. Sunrun alone plans to more than double its energy storage capacity by the end of 2028.
If utilities and large industrial customers buy the VPP pitch, the companies will be able to expand even more quickly, he added. If regulators or utilities come back and say, we’ll take your existing capacity today, and if you can add another gigawatt in the next year, here’s what we’ll pay, Sunrun could potentially reduce the upfront cost to customers to host the solar and battery installations, driving faster adoption.
The new partnership follows a similar announcement earlier this month from the VPP company Voltus, which signed a three-year agreement with Google. Voltus will provide up to 100 megawatts per year of capacity for Google in PJM, the country’s largest (and most constrained) electricity market covering much of the Midwest and mid-Atlantic. In that case, however, Voltus is using the deal with Google to finance the VPP, with the capacity set to come online by 2027.
The Tesla/Sunrun/Renew Home group is simply announcing they are open for business — they haven’t signed up any offtakers yet. Dickson told me the companies wanted to “make everybody aware that there is this uncontracted capacity, and make sure that it goes to the place that it can be most impactful.” Wednesday’s announcement is accompanied by a live map that shows where the capacity is. The companies did, however, already bid over a gigawatt of capacity into PJM, the larger energy market that Virginia is a part of, as part of its emergency procurement to meet near-term load growth in the region, and are waiting to hear if they were selected.
Last year, the electrification advocacy group Rewiring America published a paper arguing that hyperscalers could free up grid capacity for at least a third of the load growth expected from data centers if they paid for residential households to get heat pumps. All of that capacity would simply be the result of swapping inefficient appliances for more efficient versions, reducing the overall energy use of the homes. If hyperscalers also financed residential solar and storage upgrades, they could more than meet data center demand, the report posited.
That’s not how these VPP proposals are going to work — residential customers will still have to pay something to Sunrun and Tesla for their solar panels and batteries. But Ari Matusiak, the founder and CEO of Rewiring America, told me he viewed these new VPP partnerships as a step in that direction. Today, energy markets are largely bifurcated between residential market activity and large industrial customers. “Where we are going is toward a world where we think about the household as actual energy infrastructure and not simply an end of the line billpayer,” he said. “Once you start doing that, it changes the economics of how those household upgrades are treated and what the opportunities are.”
Current conditions: The warehouse fire in Boyle Heights is raging for a third day, spewing dark smoke over the Downtown Los Angeles skyline • The death toll from Western Europe’s heatwave has reached into the dozens • An 18-wheeler carrying more than 400 beehives overturned in eastern Texas and filled a small neighborhood with more than 2 million honeybees.
Wally World is soon to be powered by the atom. On Tuesday, Walmart announced a 15-year deal with Constellation, the nation’s largest operator of nuclear plants, for a chunk of the electricity coming from the Dresden Clean Energy Center in Illinois. The agreement included about 176 megawatts of wholesale supply from the two-reactor station southwest of Chicago, including 30 megawatts of expanded generating capacity through “uprates” — upgrades that allow operators to get more power out of an existing unit. Over the past two years, tech giants such as Google, Microsoft, and Meta, have bought shares of the power coming from nuclear power stations as the companies sought steady supplies of clean electricity for their burgeoning data centers. But the Walmart deal stands out as one of the first to involve a major brick-and-mortar retailer. “We’re constantly evaluating new capabilities and energy solutions that help ensure the electricity we rely on is dependable, responsibly produced, and built to support long-term growth,” Shayne Wahlmeier, Walmart’s senior vice president of energy, said in a statement.
The Trump administration just unveiled one of its biggest bets on nuclear power yet. The Department of Energy announced $17.5 billion in low-interest loans for utilities to pay for the equipment needed to order new Westinghouse AP1000 reactors. The program marks arguably the most significant effort yet to reclaim U.S. control over its flagship reactor design. While the two 1,100-megawatt units completed at Southern Company’s Alvin W. Vogtle Generating Station in 2023 and 2024 were the first installed in the U.S., China has been building its own version of the reactors at an industrial scale for years. The program will support up to 10 reactors, including two per venture with as many as five utilities. The power companies, currently in talks with the administration, have not yet been named. But Dan Sumner, the chief executive of Westinghouse Electric, told The Wall Street Journal the deal “really kick-starts fleet-scale nuclear development in the United States.” As my colleague Robinson Meyer wrote last night: “I hesitate to praise the project's climate bonafides at the risk of discouraging the Trump administration, but it is worth noting that if this project were to succeed, it would be one of the largest state-assisted build-outs of zero-carbon electricity in recent American history. But it would still take some time to arrive: These reactors aren’t forecast to come online til 2035.”
Yet another behemoth solar farm has come online. On Tuesday, the developer rPlus Energies said its Green River Energy Center had started operations. The facility in central Utah with 400-megawatts of solar panels and 1,600 megawatt-hours of batteries is now the largest solar-and-storage plant within PacifiCorp’s six-state territory out west, including Oregon, Washington, California, Utah, Wyoming, and Idaho. “Operation Gigawatt is about ensuring Utah has the reliable, homegrown energy needed to power opportunity for generations,” Utah Governor Spencer Cox, a Republican, said in a statement. “Green River Energy Center represents the kind of large-scale energy investment we need to deliver reliable energy, support rural Utah, and help power the next generation of prosperity across our state.”
The opening comes as solar is now generating more U.S. power than coal, as I told you recently.
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The Supreme Court ruled Tuesday that Exxon Mobil has the right to sue a Cuban-owned company to recoup more than $70 million in 1960 dollars from an oil complex seized by the Cuban government after Fidel Castro’s revolution. Havana later transferred the ownership of the refinery, terminals, plants, and service stations to Corporación Cimex, the state-owned conglomerate. The lawsuit could now see the oil major try to recover more than $1 billion in losses. “Today’s decision is a critical moment in a 60 year effort to be compensated for what the Cuban government illegally seized,” Exxon spokesperson Todd Spitler told E&E News in an emailed statement. “It reflects two things: the merits of our argument and the fact that our company will fight a good fight for as long as it takes.”
The Trump administration understands the importance of refining cobalt — that’s why, as I reported last year, the Pentagon’s Defense Logistics Agency is pumping money into a startup that promises a new and cheap way to process the mineral. Canada’s Sherritt International started shutting down its Fort Saskatchewan refinery after the U.S. expanded sanctions on Cuba, halting exports of a feedstock supply needed for the plant in Alberta, Canada. The move, in addition to the Supreme Court ruling, come amid intensifying pressure by Washington on the Cuban regime.
California is once again following a New York trend. Just weeks after Albany sued to stop the Trump administration’s bid to pay TotalEnergies to give up its offshore wind projects, Sacramento is joining the litigation. “At a time when the country needs more reliable and sustainable power supply, the Trump Administration is busy using taxpayer money to strike backroom buyouts that make clean-energy projects disappear,” California Attorney General Rob Bonta said in a statement. “California won’t stand idly by as the Trump Administration illegally strikes deals to kill offshore wind projects and replace them with more windfalls for his fossil fuel friends; we’re putting the Administration on notice that we intend to sue.”
Rob checks in with Commodity Context’s Rory Johnston as the Iran War (hopefully) draws to a close.
When Iran closed the Strait of Hormuz earlier this year, experts projected oil prices would go to $200 a barrel. But then… they didn’t. In fact, while gasoline prices rose in the United States, and Europe and Asia suffered higher costs, the resulting energy crisis wasn’t even as bad as what followed Russia’s 2022 invasion of Ukraine.
Why? China. The country seems to have absorbed the costs of Trump’s war of choice by releasing hundreds of millions of barrels from its strategic stockpile. On this episode of Shift Key, Rob is joined by Rory Johnston, an oil markets researcher and the author of the Commodity Context newsletter. They discuss China’s massive (and quiet) intervention, why it’s “the most important thing we learned” from the Iran War, and what it means for the future of energy and geopolitics. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap News.
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Mentioned:
China Oil Demand Doubts, Rory’s 2023 article about Chinese strategic stockbuilding
Previously on Shift Key: Why the Iran Ceasefire Hasn’t Ended the Energy Crisis, featuring Rory
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Music for Shift Key is by Adam Kromelow.