In August, Lebanon reached one of the lowest points of its electricity crisis. Years of chronic mismanagement, political corruption, and economic collapse have left Electricité du Liban (EDL, the state energy company) with an unreliable power grid. On August 17, Lebanon’s sole functioning power plant ceased operations due to EDL running out of fuel, leading to a nationwide blackout. This outage left both residents and critical state institutions, including the airport, water pumping stations, sewage systems, and prisons, without state-provided electricity for over 24 hours.

LIMS argued that the ongoing crisis not only undermines Lebanon’s infrastructure but also impacts human dignity, as access to reliable electricity is a fundamental need that supports basic daily activities and essential services. The government’s failure to address this issue deprives people of their right to a dignified life. Despite various government efforts, including energy bill hikes and emergency fuel purchases, these stop-gap measures have failed to provide a sustainable solution.

With production now at a mere fraction of demand, the government’s top-down controls and temporary patches have once again proven inadequate. The cost of electricity from state-run plants, combined with inefficiencies in transmission, distribution, and bill collection, far exceeds what any pricing structure can cover. The country now relies on sporadic fuel shipments from Iraq and elsewhere, often without payment, worsening the shortages. As a result, higher energy bills merely add to consumers’ burdens without addressing the system’s underlying inefficiencies.

What Lebanon needs is not more band-aid fixes or emergency interventions, but a fundamental shift toward market-driven solutions. LIMS advocates opening up the electricity market to independent power producers by allowing private solar farms to meet local demand, reducing reliance on inefficient government-run plants. Examples like the Toula solar farm demonstrate how private initiatives can effectively supplement electricity production, particularly at the municipal level, providing a viable path out of Lebanon’s deepening energy crisis.

As state-run institutions falter under the weight of inefficiency and corruption, municipalities should start leveraging private sector expertise and investment. Allowing private companies to take an active role in essential services like electricity, waste management, and water supply can foster competition, drive innovation, and ensure better service delivery at lower costs. This approach not only offers a pragmatic response to Lebanon’s infrastructure crisis, but also helps restore a sense of local accountability and resilience, giving local businesses the tools they need to rebuild and thrive.

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•  EDL Blackout: Where Does the Investigation Stand? August 28, 2024: IciBeyrouth, Article FR