Models for tackling Lebanon's electricity crisis

Abstract

Lebanon's electricity sector is suffering severechallenges, with increasingly frequent and lengthyblackouts and a serious risk of the collapse of theentire system. The national electricity utility, Electricitédu Liban (EDL), was already in a fragile financialsituation, but this has been exacerbated by the severeeconomic crisis the country is experiencing. Theconfluence of banking, financial, social and healthcrises has resulted in the erosion of public confidenceand a rapid deterioration of basic public services. Theshortage of foreign currency means that the utilityis unable to obtain equipment and spare parts formaintenance, while fuel supplies are also threatened.These factors compound the operational challengesof both EDL and private diesel generators, pushingcitizens to seek alternative solutions.On 4 February 2021, the Issam Fares Institute at theAmerican University of Beirut (AUB), in collaboration1 The full webinar can be found on this linkwith The Policy Practice (TPP) and the SOAS Anti-Corruption Evidence (ACE) consortium, hosted awebinar entitled 'Models for tackling Lebanon'selectricity crisis'. This brought together experts fromLebanon and around the world to explore differentstrategies to address the country's electricitychallenges: from the decentralised model promotedby concessions such as Électricité de Zahle (EDZ),to the centralised government plan that advocatesthe expansion of thermal power generation. Thediscussion also examined the evolving role ofrenewable energy in both models and its adoption bya number of municipalities.This briefing paper summarises the views of thekey speakers and discussants. It draws togetherthe key threads of the discussion – identifying thecommonalities and the points of disagreement – andprovides some tentative suggestions about the wayforward for the sector.