“Akhbar al-Yawm” agency
Is Lebanon's Electricity Crisis Poised for Resolution Amidst Local and Regional Shifts?
Abi Haidar to "Akhbar Al-Yawm": A golden opportunity for true reform
The electricity crisis in Lebanon has long been intertwined with local and regional politics. With the significant changes that have recently occurred in the region, the issue is expected to progress positively due to two main factors: the filling of the presidential vacuum and the push toward implementing reforms, which must include addressing the energy sector in its entirety, and the fall of Syrian President Bashar al-Assad’s regime, accompanied by discussions about lifting sanctions on Damascus, paving the way for the revival of projects to import gas from Egypt and electricity from Jordan through Syrian territory.
In this context, energy legal expert Christina Abi Haidar mentioned in an interview with "Akhbar Al-Yawm" that we are really facing a genuine opportunity to reform the energy situation in Lebanon, and we must seize it, especially since the circumstances are right for such an opportunity. She pointed out that the electricity crisis has historically been tied to the lack of political will. Current circumstances, however, suggest that the situation is ripe for reform, especially as electricity is a critical sector that significantly impacts other sectors, particularly those related to production.
In response to a question, Abi Haidar emphasized the necessity of securing an additional fuel source alongside Iraqi fuel, as no country can sustainably rely on a single source. Efforts should focus on reviving the Egyptian gas and Jordanian electricity projects, which require collaboration with the World Bank. She explained that the World Bank is a key partner Lebanon should approach, as the country has not yet achieved financial stability in the electricity sector. Collections are delayed by a year, and the destruction caused by the Israeli war on Lebanon has added further complications. Questions remain about how accumulated bills for destroyed buildings, factories, and commercial establishments in the South, Dahiyeh, and Bekaa will be addressed, as their owners may not be able to pay their dues. Negotiations with the World Bank are therefore essential to secure loans and initiate the necessary reforms.
Abi Haidar suggested measures to reduce non-technical losses, such as the installation of smart meters, a solution proposed in 2018 but implemented only minimally. She also mentioned the need for discussions with relevant UN organizations to address unpaid electricity bills in Palestinian camps.
To demonstrate goodwill to the World Bank, Lebanon must begin implementing reforms, starting with the appointment of a regulatory authority, which would signal that the energy sector is moving in the right direction. This step would also enable the full application of the distributed renewable energy law, a crucial move that would allow the private sector to participate in electricity production. Municipalities or industrial groups could establish solar energy fields and engage in energy exchange, reducing the need for large-scale tenders.
Regarding the projects to import gas and electricity, Abi Haidar noted that two key elements must be considered. The first is political, as some sanctions on Syria have been eased, enabling the import of petroleum products. The second is the economic benefit for Syria, as the transit of Egyptian gas to Lebanon would not involve financial payments but rather a share of the gas. A similar arrangement could be applied to Jordanian electricity, offering material benefits to both Syria and Lebanon. Syria itself stands to gain from these solutions, as they align with its current needs.
Akhbar Al Yawm