The plant's halt will affect all aspects of life in Gaza, said Mohammed Thabet, media officer in Gaza's energy distribution company, in a statement.
He noted that stopping the station will affect electricity distribution table in the war-torn territory.
Thabet said that nine Israeli lines out of 10 are currently providing Gaza electricity with a capacity of 108 megawatts, adding that the line, damaged a few days ago, provided 12 megawatts.
The company will make efforts to provide a four-hour cycle of electricity per day, he added.
The coastal enclave needs around 500 megawatts of power per day.
The power plant operates with one turbine of 25 megawatts, while the Israeli lines provide 120 megawatts and the Egyptian lines, which have been idle for a week, provide 14 megawatts.
On July 9, Israel closed the Gaza Strip's main cargo crossing for export and import as part of the measures against Hamas, the Islamic movement that runs the besieged Palestinian enclave, only allowing the entry of food supplies and medicines into Gaza through the terminal.
The Israeli decision came in response to the arson kites and helium balloons flying from Gaza into Israel, which caused large fire and losses in the Israeli territory.
The sanctions came at a time of escalating humanitarian crisis in Gaza, created by a blockade imposed by Israel since Hamas violently took over the territory in 2007.
Israel said it will not remove its restrictions until arson balloons released by Palestinian protesters during the mass anti-Israel demonstrations, known as the "Great March of Return," stop completely.