Green Grid, Infrastructure, Electricity and Renewables, Economic Update

GreenGrid Leb: A Path to Energy Sustainability and Human Dignity

15:17 | 30 November 2024LIMS output
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Energy

Lebanon’s electricity sector, already plagued by inefficiency and mismanagement, has suffered devastating setbacks during the ongoing war. Reliance on fuel shipments has left the sector vulnerable, with the conflict further disrupting supplies and generation. Key infrastructure has been severely impacted, with 15 of the nation’s 65 substations damaged and six entirely offline, incurring an estimated $300 million in damages. The crisis is compounded by widespread displacement, forcing individuals into precarious conditions with malfunctioning generators, leading to incidents such as fires in Beirut’s Hamra district.

LIMS, through its GreenGrid Leb program, has proposed a roadmap for reform: A one-article law allowing municipalities and/or municipal unions to issue electricity production and distribution licenses within their jurisdictions, the time the Electric Regulation Authority (ERA) is appointed.  This law creates a framework for competition and unbundling in the energy sector and would incentivize the government to appoint the ERA members, whose core mandate includes unbundling. At the same time, the law would also enable private initiatives in renewable energy at the municipal level. By allowing private solar farms to compete with traditional electricity producers, municipalities would lower electricity costs and drive economic growth.

The proposed reform aims to restore human dignity by addressing the foundational challenges of energy access, community empowerment, and economic opportunity. Affordable and reliable electricity is a cornerstone of modern life, and its absence exacerbates inequality and undermines quality of life in Lebanon. By decentralizing energy, the reform fosters localized solutions tailored to community needs. This shift instills a sense of agency within communities long sidelined by centralized inefficiencies. Health and safety stand to benefit as well. The reliance on malfunctioning generators, which has led to fires and hazardous emissions in urban centers, would be mitigated by fostering competition and encouraging private-sector investment in renewable energy. Solar farms and other green initiatives could provide cleaner, safer alternatives while reducing costs. Moreover, the transition to renewable energy has the potential to catalyze growth driving down energy costs. Ultimately, the reform represents a pathway to enhanced living standards, a cleaner environment, and a reinvigorated sense of community, uplifting human dignity.

  • Electricity: Relying on Foreign Aid… and Solutions Are Absent! November 14, 2024: Al-Liwa’, Article (AR)
  • The War Is Electrically Isolating Areas, and the Energy Sector Accounts for Overdue Bills as Losses. November 20, 2024: Al-Jadeed, Video Interivew (AR)
  • The Curse of Generators Follows the Displaced: The Role of Municipalities in Monitoring Them and Preventing Their Risks! November 25, 2024: Al-Liwa’, Video Interivew (AR)