Lebanon announced that the official price of electricity would be increased for the first time in 3 decades. The price will go from the current less 0.5 cents per kilowatt hour (kWh) up to 10 cents per kWh for the initial 100 kWhs and 27 cents per kWh for everything above that. Increasing the cost would allow the national electricity company, Electricite Du Liban (EDL), to buy more fuel and increase the power supply from the current 2 hours per day, to 8-10 hours per day.  

LIMS explained that the increase in electricity prices is long overdue. Such a move was finally done to facilitate the import of electricity from Jordan and gas from Egypt. The World Bank conditioned financing those imports to adjusting prices and appointing the members of the Electricity Regulatory Authority (ERA). However, the increase in prices will not be enough to cover the breakeven cost of EDL. The actual issue plaguing the electricity sector is EDL’s failed monopoly that produces electricity at a very high cost and loses more than 40% of the electricity produced. This monopoly has deprived the Lebanese people of options, when it comes to electricity production and distribution.

LIMS explained that given the innovation in renewable energy, a solution has emerged on the municipal level. Renewable electricity licensing should shift to municipalities avoiding all the national impediments. This would attract private electricity projects, especially in solar power, given Lebanon’s 300 days of sun per year. An opportunity exists in the Lebanese electricity sector, due to the heavy outages and expensive private generators. The cost of producing solar energy over the lifecycle of the system is lower than both EDL’s cost and the private generators’ cost, creating a potential business venture for private investors.

LIMS Media Interviews: 

• Mining And Its Environmental Risks, October 10, 2022: MTV, TV Interview AR  
• How Will The Demarcation Agreement Be Reflected On The Economic File? With Economist Patrick Mardini On “Talking About Politics” October 18, 2022: VDL, Radio Interview AR  
• “Reviving Lebanon’s Economy”…Why Do Experts Doubt Government’s Ability To Implement The Project? October 18, 2022: Al Estiklal Net, Article AR  
• Electricite Du Liban, 10 Hours Per Day In Early December, October 29, 2022: Al Jadeed, TV Interview AR