Lebanon’s electricity grid, managed by the state-owned Electricité du Liban (EDL), struggles to meet the country’s demand. Frequent power cuts, lasting for several hours each day, have become a norm for many Lebanese households and businesses. To cope, many people rely on private generators, which are expensive and contribute to environmental pollution.

The electricity crisis has deepened due to a series of economic challenges, including a severe financial collapse that began in 2019. The country faces a shortage of fuel, which is essential for both the state-run and private generators. This shortage has been exacerbated by political instability and ongoing economic turmoil.

Efforts to address the crisis have been inconsistent. Previous attempts at reform and investment in the electricity sector have been hindered by political disagreements and entrenched vested interests. The Lebanese government has announced several plans to overhaul the sector and improve power generation and distribution, but progress has been slow and often impeded by bureaucratic hurdles and a lack of funding.

The Importance of Electricity in Lebanon’s Development

Electricity is a cornerstone of economic development and quality of life, and for Lebanon, it holds particular significance as the country seeks to overcome its longstanding challenges and build a more prosperous future.

A reliable electricity supply is essential for industrial growth and economic stability. In Lebanon, consistent power availability can drive investment in various sectors, including manufacturing, technology, and services. Businesses depend on uninterrupted electricity to operate efficiently, and frequent outages disrupt productivity, deter investors, and increase operational costs.

For the broader population, access to reliable electricity directly impacts daily life. It affects education, healthcare, and communication—sectors that are crucial for personal and community development. Schools and universities require stable power to facilitate learning and research, while healthcare facilities depend on electricity for life-saving equipment and services. Additionally, stable electricity supports communication networks, which are vital for connectivity and information exchange.

Furthermore, a dependable power supply can drive advancements in renewable energy and sustainability efforts. Lebanon has significant potential for renewable energy sources, such as solar and wind power. Investing in and expanding these resources could help reduce the country’s dependence on fossil fuels, mitigate environmental impact, and create new economic opportunities.

In the context of Lebanon’s current electricity crisis, improving the power sector is not just about addressing immediate shortages but about laying the groundwork for future growth and development. Modernizing the electricity infrastructure, reducing energy costs, and ensuring equitable access are critical steps toward fostering a stable and thriving economy.

Blackouts and Their Impact

Lebanon is grappling with a severe electricity crisis that has significantly impacted daily life and the economy. The situation is characterized by frequent blackouts, fuel shortages, and an over-reliance on private generators.

Blackouts have become a daily reality for many Lebanese citizens. In some areas, power outages can last up to 22 hours a day. This inconsistent power supply has severely disrupted daily life, affecting essential services such as healthcare, water supply, and telecommunications. Hospitals, for instance, struggle to maintain operations without a reliable power supply. Many have had to rely on backup generators, which are not always sufficient to meet their needs. The water supply has also been affected, as pumping stations require electricity to function.

Lebanon’s electricity production is significantly below the country’s demand. The nation produces around 1,500 megawatts (MW) of electricity, while the demand often exceeds 2,400 MW during peak times. This discrepancy has led to widespread power outages and an unreliable electricity supply. The two largest power plants in Lebanon, Deir Ammar and Zahrani, are crucial to the country’s electricity supply, providing about 40% of the total power. However, these plants have faced frequent shutdowns due to fuel shortages. The lack of foreign currency has made it difficult for Lebanon to pay for imported fuel, exacerbating the crisis.

Due to the unreliable state electricity supply, many households and businesses have turned to private diesel-powered generators. However, the cost of fuel for these generators has skyrocketed, making it increasingly difficult for people to afford them. Additionally, the fuel shortages have made it challenging to keep these generators running consistently. Private generators, while providing a temporary solution, are not a sustainable long-term answer to the electricity crisis. They contribute to air pollution and are not efficient enough to meet the high demand for electricity.

Economic and Social Implications

The electricity crisis is part of a broader economic collapse in Lebanon. The country has been facing an economic downturn for several years, which has left half of the population living in poverty. The Lebanese Pound has plummeted in value, making it difficult to pay for imported goods, including fuel. The lack of reliable electricity has also had a significant impact on businesses. Many have had to reduce their operating hours or shut down entirely due to the high cost of running generators. This has led to increased unemployment and further economic hardship for many Lebanese families.

The Lebanese government has struggled to address the electricity crisis effectively. Political instability and corruption have further complicated efforts to restore a stable electricity supply. The government has made several attempts to secure fuel supplies, but these efforts have often been hampered by a lack of funds and logistical challenges. In some instances, the Lebanese army has stepped in to provide fuel to keep power plants running temporarily. However, these measures have not been sufficient to resolve the underlying issues causing the electricity crisis.

International organizations and foreign governments have provided some assistance to Lebanon in addressing the electricity crisis. For example, the World Bank has offered financial support to help Lebanon purchase fuel and improve its electricity infrastructure. However, these efforts have been limited by the broader economic and political challenges facing the country.

Root Causes of the Crisis

• Gross Mismanagement
The mismanagement of Lebanon’s electricity sector is a significant contributor to the crisis. For nearly 30 years, Lebanese authorities have failed to properly manage EDL, resulting in widespread blackouts and unreliable power supply. The government has consistently thrown money at the problem without implementing sustainable solutions1. This approach has led to a situation where the electricity sector drains public funds without delivering adequate services. In 2020, losses from the electricity sector were estimated to cost about $1.6 billion annually, contributing significantly to the country’s public debt.

• Neglect by Authorities
The neglect by Lebanese authorities is evident in their failure to implement necessary reforms. Despite numerous promises, successive governments have not appointed members to an independent Electricity Regulatory Authority, as mandated by law. Instead, the Council of Ministers, particularly the Minister of Energy and Water, exerts almost complete control over the sector with little transparency and accountability. This lack of oversight has allowed the electricity sector to deteriorate, with the government providing electricity for only one to three hours a day on average.

• Influence of the Elite
The influence of the elite has exacerbated the electricity crisis. Lebanon’s political and economic elite have captured state resources, using the electricity sector to further their interests. Politicians have profited from lucrative contracts and kickbacks, often at the state’s expense. This elite capture has led to a situation where steady electricity has become a service only the wealthiest can afford, reinforcing deep-seated inequality and pushing more people into poverty. The inefficiencies in Lebanon’s electrical industry are not merely technical but are also deeply rooted in systemic corruption and political interference.

• Vested Interests
Vested interests within the electricity sector have also played a significant role in its dysfunction. Almost all political actors in Lebanon have stakes in the current energy mix, which relies heavily on fossil fuels. This has created resistance to potential sustainable solutions, such as renewable energy. Additionally, private generator owners, who fill the gaps left by the state, have become powerful players in the sector. These private operators charge high prices, further burdening the population.

• The Inefficiencies of Électricité du Liban (EDL)
Électricité du Liban (EDL) is at the heart of Lebanon’s electricity crisis. The state utility covers only about 63% of the country’s electricity demand, leading to frequent and prolonged outages5. EDL’s inefficiencies are manifold. High production costs, artificially low prices, and rampant electricity theft mean that EDL operates at a loss5. Since 1992, EDL has accumulated $40 billion in debt, which constitutes around 43% of the government’s debt. This financial burden has been a significant factor in Lebanon’s broader economic crisis.

The inefficiencies of EDL are a major obstacle to resolving the electricity crisis. The company relies predominantly on fossil fuels, which are expensive and environmentally damaging. The financial crisis has made it difficult for the government to import and subsidize fuel, leading to severe power outages and fuel shortages. Furthermore, EDL’s bloated workforce, maintained as part of political parties’ clientelist networks, adds to the inefficiency. The lack of investment in infrastructure and maintenance has left the electricity grid in a state of disrepair, unable to meet the country’s needs.

Consequences on the Population

The corruption in Lebanon’s electricity sector has had severe consequences for the population. Frequent power outages have disrupted daily life, affecting everything from household activities to business operations and healthcare services. The unreliable electricity supply has also forced many households and businesses to rely on expensive private generators, further straining their finances.

Moreover, the financial losses incurred due to corruption have diverted resources away from much-needed investments in infrastructure and social services. This has contributed to the broader socio-economic crisis in Lebanon, exacerbating poverty and inequality.
In response to growing public discontent and international pressure, the Lebanese government has introduced several anti-corruption measures. These include the establishment of the National Anti-Corruption Commission and the adoption of new laws aimed at increasing transparency and accountability in the public sector. However, the implementation of these measures has been slow and inconsistent, and many observers remain sceptical about their potential to bring about meaningful change.

Potential Solutions

Strengthening Legal and Regulatory Frameworks Lebanon needs to enhance its legal and regulatory frameworks to combat corruption effectively. This includes implementing and enforcing laws that promote transparency and accountability. For instance, the adoption of Law No. 175/2020, which established the National Anti-Corruption Commission (NACC), is a step in the right direction. However, it is essential to ensure that the NACC is fully operational and independent, with the authority to investigate and prosecute corruption cases without political interference.

Promoting Transparency in Procurement Processes Transparent procurement processes are vital to reducing corruption in the electricity sector. Lebanon can learn from countries like Georgia, which has implemented an electronic procurement system that ensures all procurement activities are conducted transparently and competitively. By adopting similar measures, Lebanon can minimize opportunities for corrupt practices and ensure that contracts are awarded based on merit and value for money.

Implementing Independent Audits and Monitoring Regular independent audits and monitoring of the electricity sector can help identify and address corruption. For example, the Philippines has established the Energy Regulatory Commission (ERC), which conducts regular audits and monitors the performance of energy companies. Lebanon can establish a similar independent body to oversee EDL and other entities involved in the electricity sector, ensuring compliance with regulations and transparency in operations.

Enhancing Public Access to Information Ensuring that citizens have access to information about the electricity sector is crucial for promoting transparency and accountability. Lebanon’s Right to Access Information Law No. 28/2017 is a positive step, but its implementation has been inconsistent. The government should strengthen efforts to make information readily available to the public, including data on electricity production, distribution, and financial performance. This can be achieved through online platforms and regular public reports.

Encouraging Citizen Participation and Oversight Citizen participation and oversight can play a significant role in combating corruption. In Brazil, the Participatory Budgeting process allows citizens to have a say in how public funds are allocated, increasing transparency and accountability. Lebanon can adopt similar initiatives, encouraging citizens to participate in decision-making processes related to the electricity sector. This can be facilitated through public consultations, community meetings, and online platforms.

Leveraging Technology for Transparency Technology can be a powerful tool for enhancing transparency in the electricity sector. Blockchain technology, for example, can be used to create tamper-proof records of transactions and contracts, reducing the risk of corruption. Lebanon can explore the use of blockchain and other digital technologies to improve transparency in procurement, billing, and other aspects of the electricity sector.

International Cooperation and Support International cooperation and support can provide Lebanon with the resources and expertise needed to combat corruption in the electricity sector. Organizations like the World Bank and the International Monetary Fund (IMF) have experience in supporting anti-corruption initiatives and can offer technical assistance and funding. Lebanon should actively seek partnerships with international organizations to implement best practices and strengthen its anti-corruption efforts.

While potential solutions exist, the Lebanese became disillusioned. The question is not if but when the next blackout will occur.