Lebanon Braces for Total Darkness as Last Power Plant Faces Shutdown

Lebanon is on the brink of a nationwide blackout as the country's last operational power plant, Zahrani, faces imminent shutdown due to a lack of fuel. Set to run out of reserves on August 17, the plant's closure would plunge the nation into darkness, with critical infrastructure like Beirut's airport, ports, and water pumps left to rely solely on private generators.

Caretaker Energy Minister Walid Fayyad, who recently traveled to Iraq in a bid to secure continued fuel supplies, had been optimistic after Prime Minister Najib Mikati personally intervened with Iraqi officials. The Iraqi government agreed to a new payment schedule for previous fuel shipments, promising a lifeline for Lebanon’s faltering energy sector. However, these hopes were abruptly dampened when Iraq’s state oil marketing company, SOMO, informed Lebanese authorities of an unforeseen delay, citing logistical issues.

For over three years, Lebanon’s electricity supply has depended entirely on fuel imports from Iraq, but production has remained limited, offering the public a mere four hours of power daily.

The Zahrani plant, currently generating 200 megawatts of electricity, is crucial for keeping essential public services like airports, seaports, and water pumps operational. Yet, by the end of this week, those vital lifelines could go dark, plunging the country into an unprecedented energy crisis.

As the country grapples with the potential consequences of this delay, Fayyad warned that Lebanon is set to be engulfed in darkness unless a solution is found.

“We are facing a critical shortage,” Fayyad told Annahar. “If we don’t receive the promised Iraqi fuel by August 17, the Zahrani plant will have to cease operations, leaving the entire nation in the dark.”

Lebanon’s energy infrastructure has been teetering on the brink of collapse for years, producing no electricity outside of the Iraqi fuel deal since 2021. The country’s power output has dwindled to an average of just four hours of electricity per day. The latest setback comes after the Central Bank of Lebanon did its part, awaiting parliamentary approval for a law that would formalize the obligations under the agreement with Iraq, including the allocation of necessary financial credits.

"The problem has escalated because the agreement with Iraq requires formalization by the Lebanese Parliament to allocate the necessary budget credits," said Fayyad. "Without this legal backing, the Central Bank cannot make the payments due to Iraq, and Acting Governor Wassim Mansouri is rightly refusing to take any steps that would violate the law."

Fayyad has urged the Lebanese Parliament to convene under “urgent legislation” to provide the legal framework necessary to secure continued fuel supplies from Iraq.

“If Parliament passes the required legislation, we can stabilize the situation and even increase production to 1,000 megawatts,” Fayyad said.

"If the fuel shipment from Iraq is further delayed, we might be able to find a temporary solution to avoid complete fuel depletion," he added. "However, we must avoid rushing into new deals that could jeopardize our relationship with Iraq.”

Fayyad has dismissed rumors of collusion between Energy Ministry employees and generator mafias, which some believe have exacerbated the crisis. “These are exaggerated speculations,” Fayyad said, noting that even generator owners rely on state electricity to keep their operations running.