Energy in Lebanon

Energy in Lebanon is characterized by a heavy reliance on imported fuels, which has led to significant challenges in ensuring a stable and sufficient supply of electricity.^[1] The country’s energy sector has been severely affected by a combination of internal political instability, external conflicts, and systemic corruption. The reliance on imported energy, coupled with rising demand and frequent infrastructure failures, has led to an ongoing energy crisis. This crisis has been further exacerbated by the destructive effects of military conflicts involving Hezbollah, particularly the wars against Israel and the war in Syria, which have strained the country's infrastructure and economy.^[2][3][4]

The primary energy use in 2009 in Lebanon was 77 TWh, 18 MWh per capita.^[5][6] In 2019, the total solar PV capacity was 78 MW,^[7] and it reached 1300 MW at the end of 2023.^[8]

In August 2024, the situation reached a critical point when fuel reserves were completely depleted, leading to a nationwide blackout.^[9]

Electricity was first introduced in Lebanon in the early 20th century, primarily to power the capital's tramways. The Compagnie des Tramsways et de l'Electricité de Beyrouth, founded in 1906, was the first to manage the electricity needs of Beirut. In 1923, this company merged with the Compagnie du Gaz et de l'Eclairage de Beyrouth, originally established in 1895, forming the Société des Tramways et de l'Electricité.^[11][12]

By the 1950s, electricity generation in Lebanon was managed by approximately 30 private companies operating in different regions.^[12] In 1954, the Lebanese government established Electricité du Liban (EDL) under the name Office d'Electricité et des Transports en Commun, marking the beginning of state control over the electricity sector.^[13] The government invested heavily in building infrastructure, such as the first major thermoelectric plant in Zouk, which began operations in 1956. Initially, the focus was on hydroelectric power, which by 1963, constituted more than half of the country's electricity production. The creation of the Qaraoun Dam in 1961, feeding a series of hydroelectric plants, was a major achievement of this period.^[14] However, due to favorable access to cheap fuel from Iraq and Saudi Arabia, Lebanon gradually shifted its focus to thermoelectric plants.^[15]

The nationalization of the electricity sector in 1964 allowed EDL to dominate the market. However, it coexisted with independent entities managing the hydropower plants on the Litani, Nahr Ibrahim, and Bared rivers, as well as local distribution concessions in towns like Zahle, Jbeil, Aley, and Bhamdoun.^[15][16]

Despite decades of investment, Lebanon's electricity generation capacity remains insufficient to meet the needs of its growing population. As of August 2016, the peak electricity demand in the country was 3,500 MW, but the grid's total capacity was only 2,200 MW.^[17] This gap has led to frequent and widespread blackouts, forcing many Lebanese households and businesses to rely on private diesel generators, which are both costly and environmentally damaging.^[18][19]

The situation deteriorated further in 2021 when Karpowership, a Turkish company providing Lebanon with 370 MW of electricity through power ships, halted supplies due to payment arrears and legal disputes. This exacerbated the electricity shortages, leading to near-total blackouts across the country.^[20][17][21] In August 2024, the Algerian government stated it will send immediate fuel supply, following th e large blackout in Lebanon.^[22]

In response to the energy crisis, Lebanon has seen a significant increase in solar power installations. The expansion of solar energy has been supported by the Net Metering policy adopted by EDL, which simplifies the legal and technical processes for individuals and companies to install solar systems.^[23] From a total solar PV capacity of 100 MW in 2020, Lebanon increased this to 450 MW by 2022, with all additions coming from off-grid solar systems installed by citizens and businesses.^[24][25] A comprehensive survey of 150 municipalities across all Lebanese governorates reveals a substantial rise in the percentage of residential, commercial, and industrial units equipped with solar PV systems. The average per governorate increased from 3.3% in 2019 to 16.6% in 2023. ^[26]

Lebanon's efforts to diversify its energy sources have included the use of natural gas. The Arab Gas Pipeline, which began operations in Lebanon in 2009, supplies Egyptian natural gas to the Deir Ammar power station, although this supply has been inconsistent due to regional geopolitical issues.^[27] In 2021, Lebanon announced a plan to re-route its natural gas imports through Jordan to produce electricity for the Lebanese grid via Syria. However, the implementation of this plan has been delayed due to logistical and political challenges.^[21]

The energy sector in Lebanon remains fraught with challenges, including financial constraints, political interference, and corruption. The influence of Hezbollah and the ongoing conflicts in the region have further complicated efforts to reform and stabilize the sector. Reforms have been proposed, including increasing electricity tariffs to reduce subsidies and aligning electricity production with economic realities, but these have faced strong opposition given the already dire economic situation of many Lebanese citizens.^[8]

Lebanon's future energy outlook will depend on its ability to implement long-overdue reforms, secure consistent fuel supplies, and expand renewable energy sources like solar and wind power. However, the path to energy stability is likely to be long and complex, requiring both domestic political consensus and international support.^[8]

Hezbollah, a prominent political and militant organization in Lebanon, has significantly influenced the country's energy sector through its broader political and military activities. The group's involvement in regional conflicts, particularly wars with Israel and participation in the Syrian Civil War, has led to substantial damage to Lebanon's infrastructure, including energy facilities, and diverted resources away from critical investments. As a dominant political force, Hezbollah's control over certain regions and its strategic alliances have complicated efforts to implement necessary reforms in the energy sector. Moreover, international sanctions linked to Hezbollah's activities have isolated Lebanon economically, making it difficult for the country to secure foreign investments and partnerships essential for developing its energy infrastructure.^[28]

These factors have contributed to Lebanon's ongoing energy crisis, characterized by frequent power shortages and heavy reliance on costly fuel imports. In August 2024, the situation reached a critical point when fuel reserves were completely depleted, leading to a nationwide blackout.^[9]

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