Lights out: Lebanon faces looming power crisis

Oil prices have tripled since 2004. Electricity outages have doubled in Lebanon since 2005. Lebanon’s electricity utility has been vulnerable to crude oil price shocks than ever. Consumers and businesses are spending two times their electricity purchase in this staggering situation. Josephine Nassralla conducted the following interview for The Daily Star with energy expert Roudi Baroudi about this crucial element of Lebanon’s economy and the sector governance.

Q: The power shortage and the persistent prolonged outages are having disastrous impacts on the economy and social welfare. We face a potential crisis situation. How much longer is this situation going to be with us?


A: There is no immediate light at the end of the tunnel, because the power utility is in abysmal state losing nearly a billion dollars in a year, a major drain on the state budget. There have not been any major investments to add additional capacity since the two combined cycle plants were built years ago. The distribution systems have not seen any major reinforcements or expansion either, and are no longer in the state to meet the load imposed by the communities which they serve. In addition, maintenance has virtually been weak. This is not to speak about giving up the ghost. There are solutions in the short, medium and long terms.

Daily Star