Fourteen homes were damaged by the air strikes, 40,000 people were left without electricity and 20,000 people without wastewater disposal.
Two Israeli tank shells have hit the Gaza Strip’s only power plant, according to a spokesman for Gaza's electricity distribution company.
Heavy shelling is continuing in Gaza, after one of its heaviest nights of bombardment in three weeks of conflict with Israel.
A fuel tank supplying the area's only power station was hit by shells, Palestinians say, with a thick column of black smoke rising from the facility.
Israel's prime minister warned of a long conflict ahead, as the country seeks to destroy Hamas targets.
Martin Patience and Chris Morris report.
At least 100 Palestinians have been killed since Monday midnight after Israel beefed up its military operation in the Gaza Strip, according to Gaza health officials
Added (30-July-2014, 12:15 PM)
An Israeli tank attack has destroyed a fuel depot at Gaza's only power plant, cutting electricity to Gaza City and other parts of the Palestinian enclave of 1.8 million people.
Firefighters were unable to bring the billowing blaze under control.
The Gaza Energy Authority says the vital facility will be out of action for a year.
Prior to the strike the plant had the capacity to provide Gazans with three hours of electricity per day.
Israeli military continued to bombard Gaza City on Tuesday night. Across the region at least 21 Palestinians were reported killed.
UNRWA the main UN relief agency says it is at breaking point with more than 200,000 Palestinians having taken shelter in schools and buildings following calls by Israel for citizens to evacuate neighbourhoods before military operations.
Israel says its is targeting Hamas command centres and weapons stores.