Dark times: Syria struggles with increasingly longer power cuts

Electricity cuts are both a symptom and a driver of Syria's economic decline. The country is caught in a vicious downward spiral. Somehow, it needs to turn the tide.

Shutterstock

The electricity crisis is both a symptom and a driver of Syria's economic decline. The country is caught in a vicious downward spiral.

Dark times: Syria struggles with increasingly longer power cuts

Joseph Daher

last update on 27 May 2024

Ever since the country’s power grid suffered major damage in 2011, getting electricity has become a priority for Syrians. The country’s Ministry of Electricity says repairs to its production and transmission capacity will cost around $2.4bn, not sums the government has readily available.

Long outages seem to have been getting longer. Even Damascus goes dark for up to 20 hours. For some, the lights never come on at all. Unable to improve supplies, Syria’s government has rationed power, while prices have risen in recent few years.

In February, the government said prices would rise between 300% and 585%. These eyewatering amounts apply to domestic, commercial, industrial, and agricultural settings. Even the tourist industry faces the hit. In March, the newspaper Qassioun estimated that each household needed at least around 3mn Syrian pounds (around $238) to cover annual electricity bills.

Sparks needed

Desperate for investment, the government is trying to privatise and liberalise its electricity sector, such as by making it easier for power produced by private companies to be sold to consumers.

Change is happening. A private company has been awarded a contract to run the Deir Ali Power Plant under a Public-Private Partnership (PPP) agreement. Late in 2023, two companies (owned by businessmen affiliated with the government) were licensed to undertake electricity projects in Damascus.

As with other privatisation schemes in Syria, foreign investment has been lacking, and domestic capital is insufficient, meaning that electricity supply is still too low. Pro-government news site Athr Press reported in February that the Syrian government was considering ending a 2021 contract with an Emirati energy company due to implementation failures.

The only foreign contracts that made progress seem to have been with Iranian companies. For instance, they repaired one of the biggest power plants in the country, in Aleppo. In addition, the new Al-Rasteen Power Plant in Lattakia was built by the Iranian company MAPNA and inaugurated in 2023.

Long outages seem to have been getting longer. Even Damascus goes dark for up to 20 hours. For some, the lights never come on at all.

Renewable hopes

Like other states in the Middle East and North Africa, Syria wants renewable energy. In 2019, the Syrian government said it hoped that 5% of its energy would come from renewable sources by 2030, including solar and wind. In 2022, a government conference on renewables focused on new projects, tax breaks, and other incentives to attract investment.

Tariffs on related imports were cut, and the rules on the private sector's selling power to consumers were eased. To provide stability for contractors, the government set prices in euros and offered preferential rates for power produced from renewable sources, including biomass and landfill gas.

Unfortunately, this has not been enough to spur the electricity generation sector. In addition, the government has had to pull renewable contracts because firms have not met deadlines. Today, renewables account for just 350 megawatts (MW). Syria's production capacity is 5,500MW, but actual production hovers just over 2,000MW. Demand is around 7,000MW.

Going solo

In the absence, Syrians have sought their own off-grid power supplies using generators, batteries, and solar panels, sometimes paying a subscription directly to generator owners. In some cities, these private generators and batteries have been the main source of electricity for local populations. Across Syria, households have adapted small electrical appliances to work with 12V batteries.

Last summer, the Damascus governorate delivered official licensing rules for electricity providers, with 24 recognised. Some are even renting property from the local government to run generators. Solar panels have proliferated for both domestic and industrial use.

In 2021, the government introduced interest-free loans to encourage consumers to use renewable energy sources. By April 2024, there had been 40,000 applications, with 5,500 approvals, adding 8.5MW to the system. Yet even with state subsidies, alternative energy supplies are too expensive for most Syrians. Compounding the misery, the cost of fuel for generators has skyrocketed.

This makes electricity patchy, difficult, and expensive. In Aleppo, around $16bn per month is spent sourcing 240MW of electricity from 1,200 generators, according to a 2022 United Nations report.

Syrian army soldiers walk next to damaged electricity transmission towers on their way back from the frontline of fighting in the Karam al-Tarab neighbourhood of Aleppo, Syria, in December 2016.

Knock-on effects

This year, the cost of amps has continued to increase. In February, one kilowatt-hour (kWh) went from 5,500 Syrian pounds to 7,500 in Damascus. Other reports put the price at 9,500-11,500.

There are environmental impacts. Thousands of generators are damaging Syria's air quality, for instance, which in turn impacts public health. The scarcity of electricity and its high price have also impacted productivity. Higher energy prices add to inflation, which in turn weighs on the Syrian pound, which in turn can increase the price of imports.

The Chambers of Industries and the Syrian Federation of Chambers of Industry want government guarantees to cover vital resources, especially electricity for industry. The government's so-called "golden power line" is meant to guarantee power midweek for economic activity, but it is costly, frequently unavailable and subject to disruption.

If anything, supply is more limited, which is affecting the whole manufacturing sector. Syrian firms are going out of business, jobs are being lost, and hard-pressed households are further challenged. Small businesses and workshops, such as those for carpenters, barbers, and tailors, are among the most vulnerable, as they cannot afford alternative energy sources.

Several cities and regions now lack a reliable, clean water supply because the equipment at most wells is dependent on electricity.

Broader impact

This month, the Syrian Federation of Chambers of Industry (SCFI) said if electricity prices were not reduced, there would be a "real disaster" for Syrian industry. A manufacturer from Aleppo said more than 25 iron factories were shut due to high production costs, led by high energy prices.

The electricity crisis also affects the supply of water. Several cities and regions now lack a reliable, clean water supply because the equipment at most wells is dependent on electricity. This scarcity is making water more expensive, too, hitting the poorest families hardest. The problem is worse outside the main cities.

Water and electricity scarcity pushes up costs, which hits productivity. Syria's agricultural and manufacturing industries are now suffering badly. Small and medium-sized enterprises (SMEs) simply aim to survive. Only the biggest companies have the resources to weather the storm.

The government is struggling to respond. Solar energy is only a viable alternative with massive state investment, which is not forthcoming. The current Renewable Energy Support Fund is far from sufficient.

The electricity crisis is both a symptom and a driver of Syria's economic decline. The country is caught in a vicious downward spiral. Somehow, it needs to turn the tide.

+ / -