Green Grid, Infrastructure, Electricity and Renewables, Economic Update

Electricity Overhaul: Government Signals End to State Monopoly

11:54 | 28 February 2025LIMS output
0
Electricity

Lebanon’s ailing electricity sector — long a drag on economic development and a daily source of frustration for citizens — may finally be on the cusp of reform. For years, LIMS advocacy to modernise the sector were postponed or shelved, while Électricité du Liban (EDL), the state-owned utility, retained a near-total monopoly, despite legislation permitting private sector participation.

LIMS had been arguing for the enactment of these laws through program GreenGrid Leb and the election of President Joseph Aoun and his stated commitment to opening strategic sectors to competition has injected new momentum. LIMS has endorsed the president’s vision, calling it a long-overdue step toward dismantling entrenched state monopolies in favour of more dynamic, market-driven solutions. Central to this effort is the activation and empowerment of the Electricity Regulatory Authority (ERA), an independent body mandated to oversee the liberalization process.

The ERA would be tasked with enabling competition, encouraging market entry, and allowing competition in pricing. Crucially, GreenGrid Leb advocates for the full implementation of the 2002 electricity law, which calls for unbundling EDL into separate entities for generation, transmission, and distribution — a necessary precursor to attracting private investment and driving efficiency gains. Under this model, EDL could retain its most efficient power assets, while the remainder would be privatized or phased out. The restructuring would open the door to new market entrants, enabling more reliable service delivery at reduced cost.

In parallel, GreenGrid Leb recommends decentralizing energy generation and distribution, allowing municipalities to license private energy providers within their jurisdictions. Such a move could mitigate chronic shortages and relieve pressure on the national grid, providing households and businesses with more consistent access to electricity.

If realized, these reforms would represent a decisive shift from Lebanon’s legacy of state-led mismanagement toward a more competitive, investor-friendly model. Yet the path forward remains fraught, requiring political will, regulatory clarity, and a commitment to breaking with the past.

  • The Oath Of Division Hits The Electricity: To Dismantle The Monopoly And Form The Regulatory Bodies, February 4, 2025: LIMS, Video (AR).
  • The Ministry Of Energy’s Plans Are Not Fate: This Is How We Get Electricity, February 8, 2025: Al-Modon, Article (AR).
  • Rescue And Recovery Government: Priority To Provide Requirements For Revival And Establishment Of Sustainable Growth, February 12, 2025: Aljomhouria, Article (AR).
  • The Solution Through “Electricity Of Lebanon” Is Impossible… Will The New Government End The Energy Crisis? February 17, 2025: Lebanon24, Article (AR).
  • Promises Of 24/24 Electricity Can Only Be Fulfilled By Returning To “Law 462/2002”, How? February 24, 2025: LIMS, Video (AR).
  • To The Minister Of Energy: Overthrow These.. And Baydoun Presents A Roadmap For Electricity February 24, 2025: Lebanon24, Article (AR).