The New Lebanese Government and the Rise in Electricity Supply

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After approving the ministerial statement, the Lebanese looked forward to the electricity sector and oil and gas exploration. The government pledged to increase electricity supply hours and resume oil and gas exploration efforts, especially since the electricity sector is a key factor in Lebanon’s ongoing financial and economic crisis. However, the hope that oil and gas extraction would reduce fuel imports and that the revenue from these resources would alleviate the public debt or the most significant part of it failed.  

Efforts to develop the electricity sector have encountered obstacles and disruption since reconstruction projects began after the war ended in the 1990s. Political tensions between the forces of power and obstruction transformed the sector from a strategic facility, with the operational power it provides to all economic sectors and a source of funding for the state treasury, into an arena for settling political scores and sterile debates between its parties.

Attempts to generate wind energy have faced challenges due to the procrastination of Act 426/2002 amendment, which rendered it impossible to secure external financing amid the financial and economic crisis. It is worth noting that this amendment terminated Electricité du Liban’s monopoly on electricity production, temporarily granting the government the right to grant licenses for two years. These licenses were granted to “Sustainable Akkar,” “Wind Energy in Lebanon,” and “Hawa Akkar,” with a total capacity of 200 MGW, according to Decision No: 43 dated 11/2/2017.

Keeping the kilowatt-hour price below its actual cost for decades has made Électrecité du Liban reliant on permanent funding from the public treasury to operate and maintain its plants. This has hindered the development of establishment plans and increased public debt. Freezing the price at a low rate has contributed to the Lebanese’s lack of interest in switching to renewable energy. Despite its sustainability and reasonable cost advantages, the state has not taken the initiative to encourage the conversion to renewable energy.

After a complete electricity blackout in September 2021, the caretaker government approved a national plan for the sustainable advancement of the electricity sector in Lebanon in March 2022. The latest electricity plan is essential even though it only focuses on processing electricity produced and distributed from the Electricité du Liban power thermal plants. It overlooks other sources, which can be integrated to reach more power supply hours.

Despite EDL’s increase in power supply hours, the Lebanese continued to suffer from the inconsistency in power supply and the failure to announce schedules. This situation prevented citizens from fully benefiting from available supply hours. The high cost of EDL bills and the delay in their issuance worsened their suffering, leaving them an easy target for the greed of generator owners and their exorbitant, burdensome bills.

Finding an appropriate funding source for the electricity sector is difficult amid Lebanon’s financial crisis. Activating the PPP Law and encouraging investment in clean and renewable energy is essential. Any new plan must leverage and be rooted in national resources, particularly river and seawater, wind and solar energy, solid waste treatment, operational hydroelectric plants, and even private generators.

Addressing the electricity crisis begins with good governance, adopting the principle of accountability, and adhering to legal provisions, which are conditions for the success of any plan. It is worth noting that forming the reform and rescue government is considered an opening to achieving political stability. This stability opens the door to attracting vital investments necessary to advance the national economy, not just the electricity sector.

The steps needed to be taken to address the electricity crisis can be summarized as follows:

  • Preventing encroachments on transmission and distribution lines, tackling electricity theft, and enforcing the strictest penalties on offenders.
  • The acceleration of EDL issuance bills enables consumers to monitor and manage their consumption more effectively.
  • Using natural gas rather than fuel for the Araman and Zahrani plants reduces production costs and minimizes environmental impact.
  • Rehabilitation and development of hydroelectric plants alongside the construction of new facilities using advanced technologies where there is no need for high water pressure.
  • Encouraging municipalities and local communities to install solar power stations for electricity generation.
  • Revising the kilowatt rate for solar energy purshaced by EDL.
  • Providing financial guarantees and opportunities for energy projects helps diversify electricity sources and ensure a sustainable supply.
  • Treating landfills, like the Naameh landfill, to harm their methane gas emissions for electricity production mitigates environmental threats and prevents their explosions.
  • Establish solid waste treatment facilities that can generate electricity and simultaneously eliminate waste.
  • Establishing the Electricity Regulatory Authority to ensure stability and sustainability in the sector’s orientations and development trends.

Ultimately, there is great hope for this new era and for the government to improve public services, including the sustainability of electricity supply. Citizens have the right to these services, and every public official must work to deliver them efficiently and at lower costs.

Those responsible for public affairs must work diligently to reactivate public administrations and institutions, summoning the energy to modernize and advance them to keep up with the demands of contemporary society before it is too late, making regret meaningless.

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