Lebanon’s electricity crisis has been ongoing for years, with Electricité du Liban (EDL) struggling to produce and distribute electricity efficiently.

LIMS explained that EDL’s production cost is around 30 cents per kilowatt hour (kWh), but with losses incurred on the main distribution network and due to electricity theft, the cost increases to about 50 cents per kWh. The new selling price ranges from 10 to 27 cents per kWh, making EDL lose money on every kWh sold. Those losses strip EDL of the ability to buy fuel, leading to electricity outages. Losses are covered through a loan from the central bank, exhausting foreign exchange reserves, fueling inflation, and currency devaluation.

LIMS added that the main obstacle to reforming Lebanon’s electricity sector is the monopoly held by EDL. EDL’s monopoly led to a high cost and unreliable power supply. Municipalities can attract private investments into solar farms given the project’s profitability. They can also turn to donors interested in financing renewable energy projects. The experience of Toula’s solar farm, which was able to supply all the village houses with an average of 10 hours of daily electricity, can be replicated in other regions. The project was based on private investments in a solar energy farm and the cooperation with generators for distribution under the auspices of the municipality. The electricity subscription bill in Toula is 20% less than the official price for private generators set by the government and 50% less than the actual price of private generators.

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