Since the early 1990s, the Lebanese electricity sector has been in disarray. Electricité du Liban (EDL), the government-run monopoly, has been selling electricity at a loss due to fixed prices for the past 30 years. On November 1, 2022, the Ministry of Energy and Water announced plans to increase the price from an average of 0.5 cents per kilowatt hour (kWh) to 10 cents per kWh for the first 100 kWh consumed and then 27 cents per kWh for consumption above that benchmark. The price hike was accompanied by promises of an increased power supply of 8-10 hours, as EDL has only been providing Lebanon with an average of 2 hours of electricity daily. The caretaker Minister of Energy and Water explained that $600 million would provide 8 hours of electrical power. However, only half of that amount, or $300 million, was available at the central bank and therefore only 4 hours of electricity will be supplied.  

LIMS explained that the ministry’s announcement did not come as a surprise. EDL and the Ministry of Energy and Water will not be able to secure electricity as long as EDL resorts to the central bank to finance the fuel purchase. EDL should be able to buy fuel and maintain its systems from its bill collections. The approach of borrowing dollars from the central bank to purchase fuel for EDL played a major role in causing the current crisis and remains in place, despite the financial and economic meltdown. 

LIMS argued that the solution is not to provide financing from the central bank, or depositors’ money. Any solution should come from outside EDL and the Ministry of Energy and Water. Take for example Toula, a town in Zgharta, north of Lebanon, which does not rely on EDL’s electricity. The solar farm in Toula supplies the entire town, providing an average of 10 hours of electricity per day. The supply increases in the summer to 14 hours and decreases in the winter to about 4 hours. Private generators are used to secure any shortages, resulting in 24/7 electricity.  

LIMS Media Interviews: 

• Role Of Municipalities In Securing Renewable Energy, Mardini: Waiting For Ministry Of Electricity Is The Country’s Darkness, December 3, 2022: Al Raed News, Article AR 
• Meeting In Zgharta On “The Role Of Municipalities In Securing Renewable Energy”, December 5, 2022: NNA, Article AR 
• Promises Of Increased Supply Dissipated…4 Hours Only, December 8, 2022: Al Jomhouria, Article AR 
• Promises Of Electricity Supply Are Shrinking, And Zahrani Plant Is Back To Work Today: Generators And Solar Energy Are Indispensable! December 10, 2022: Annahar, Article AR 
• Banque Du Liban Sells Électricité Du Liban Dollars On Sayrafa, December 10, 2022: Al Manar, TV Interview AR 
• Mardini to “A Point On The Line”: Électricité Du Liban A Failure, As Well As Ministry Of Energy, So They Must Be Closed, December 14, 2022: VDL, Radio Interview AR 
• Absence Of Regulatory Body Major Problem For Electricity Sector, December 17, 2022: Al Jadeed, TV Interview AR 
• Anthony Zina To LebTalks: Electricity Alternatives Are Working, And This Is Municipalities’ Role, December 22, 2022: Leb Talks, Article AR