Lebanon’s electricity crisis

by Jessica Obeid December 17, 2018

written by Jessica Obeid December 17, 2018

Lebanon’s power sector is a substantial drain on the state’s treasury, responsible for 40 percent of the country’s fiscal deficit, according to the World Bank. Significant reforms are required to cut the fiscal shortfall and address structural and governance issues at the root of the crisis. The country’s power generation capacity is nearly 2,050 megawatts (MW), excluding the capacity of two temporary power barges, while the demand is estimated at 3,500 MW. The electricity tariff is largely subsidized; the average tariff of the state-owned electricity utility—Electricite du Liban (EDL)—is 9.5 cents for each kilowatt hour (kWh) consumed, while the cost of generation ranges from 17 to 23 cents/kWh. EDL thus incurs significant financial losses, between $1.5-2 billion annually, depending on oil prices. The country also relies on expensive heavy fuel oil and diesel oil, unlike the rest of the Middle East where natural gas, considered cleaner, and cheaper, is the

Jessica Obeid

Jessica is an energy engineer and policy consultant with over 15 years of experience across Europe, the Middle East, and Africa. She heads energy transition at SRMG Think and is a founding partner at New Energy Consult. Her roles have included advisory positions with the UN, World Bank, and other major entities. Jessica is a non-resident scholar at the Middle East Institute and a former resident fellow at Chatham House, with a background as chief energy engineer at the UNDP. She holds a master’s in political science and a bachelor’s in electrical engineering.

Lebanon’s electricity crisis

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