Lebanon’s electricity crisis: From Egyptian gas hopes to Turkish power plans

Report by Yazbek Wehbe, English adaptation by Karine Keuchkerian 

Despite the war it is experiencing, Lebanon is seeking to keep pace with the region’s development. However, the most basic requirement remains having a reliable electricity supply.

Some may argue that Lebanon does have electricity through private generators, but at a high cost.

Electricité du Liban is currently producing around 500 megawatts thanks to Iraqi fuel supplies, providing between four and five hours of electricity per day. The country’s needs, however, reach around 3,000 megawatts, while reliance on solar energy has covered only a very limited portion of demand.

Several plans have been introduced under different energy ministers, but implementation has been partial or has failed to produce results.

So where does Lebanon stand today?

Since 2022, discussions have focused on two projects: importing gas from Egypt and electricity from Jordan. In both cases, transit through Syria is required.

After overcoming some obstacles, including the Caesar Act and repairing damaged sections of Syria’s electricity network due to the war, work is currently underway to rehabilitate the gas pipeline from the Syrian border to the Deir Ammar power plant in northern Lebanon. 

An Egyptian company is carrying out the rehabilitation, which is expected to take three months before testing begins.

However, a new issue has emerged: Where will the gas come from?

Lebanon had been relying on Egyptian gas, but it was later determined that Egypt’s Zohr gas field does not have the large reserves previously expected to last for 20 years. This has forced Egypt to slow gas exports and prioritize domestic consumption.

Jordan previously had surplus electricity, although its power generation relies on Israeli gas. Since the supply of that gas has decreased due to the war, the cost of delivering electricity to Lebanon has increased.

Faced with this challenge, Lebanon has turned to a new proposal: importing electricity from Turkey.

Turkey has surplus electricity and exports power to countries in Eastern Europe and northern Syria. It also has an existing network in northern Syria that reaches Aleppo, which could potentially be connected through central Syria to northern Lebanon. However, Lebanon must also rehabilitate its own electricity grid.

This highlights the importance of using a World Bank loan to upgrade infrastructure, particularly in the electricity sector.

It is worth noting that the cost of electricity produced by private generators currently ranges between 50 and 55 cents per kilowatt-hour, depending on oil prices and fluctuations. 

State electricity costs between 13 and 27 cents per kilowatt-hour, based on the tariff approved three years ago, while the estimated cost of importing electricity from Turkey is around 16 cents per kilowatt-hour.

Plans and studies alone are not enough; the key is reaching implementation.