The 7-point plan to tackle Lebanon's electricity crisis

Lebanon’s energy ministry published a roadmap in July for reform. Al Majalla shares more details of the initiative after speaking to a government source.

Electricité du Liban's headquarters is without lights in Beirut.
AFP
Electricité du Liban's headquarters is without lights in Beirut.

The 7-point plan to tackle Lebanon's electricity crisis

Lebanon’s electricity crisis is not new; the problems date back decades. Still, those with long memories struggle to remember when it was worse than it is now, and that includes the country’s brutal civil war from 1975-90. Today, power can arrive for as little as two hours per day. Even during times of war, the Lebanese had more than that.

The crisis is multifaceted. It includes limited generation capacity, rising fuel costs, mounting unpaid state bills, a lack of financing for the national provider Électricité du Liban (EdL), and problems collecting payments. Despite the problems, Lebanon’s politicians still fight for the government’s energy portfolio, but none do much to change the underlying issues.

A recent meeting between Parliament Speaker Nabih Berri and Prime Minister Nawaf Salam sought to put electricity at the top of the priority list. Both agreed on the need for a comprehensive solution, whether through a build, operate, and transfer (BOT) model or an international agreement. The conversation shifts the focus towards long-term financing and operations, but Lebanon would need to attract foreign capital and expertise for this.

During a visit to Beirut in October, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani proposed a major investment project to help address the country’s electricity crisis. Salam said it would be developed under a BOT model, with Qatari firms financing, developing, and operating the facilities with no upfront spending from the Lebanese treasury.

AFP
Lebanese President Joseph Aoun shakes hands with Qatari Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Beirut, on 16 October 2026.

Action needed

The idea is to rehabilitate Lebanon’s electricity-generation infrastructure, increase its generation capacity, and diversify its energy sources. While the details are still being worked out, Lebanon is exploring wider regional cooperation on energy and electricity interconnection. Qatar and Saudi Arabia are both willing to support Lebanon to bolster its political and institutional stability.

According to a document seen by Reuters, the plan is for two combined-cycle power plants at Deir Ammar and Zahrani, each with a capacity of 825 megawatts (MW), as well as 800MW of solar power, 440MW of wind power, and battery storage systems. It also provides for the import of 300MW of electricity from Syria through two separate routes and the use of the Arab Gas Pipeline to transport gas to Lebanon. Both projects would be completed within three years using private financing, provided all hurdles can be overcome (Damascus and Beirut still need to approve it, and payment terms and financial guarantees still need to be agreed).

Agreeing a new system means settling the outstanding financial, operational, and contractual arrangements of the old system, but Lebanese Energy Minister Joe Saddi said he wanted to accelerate cooperation with Qatar in electricity. Other projects under consideration include a solar power plant on land allocated to the Lebanese army, with a capacity of up to 150MW. QatarEnergy would implement the project, which already has cabinet approval.

In its electricity sector policy paper issued on 21 July, Lebanon’s energy ministry published a roadmap for reform. It estimates that only 60% of electricity bills are collected. As a result, EdL lacks sufficient revenue to fund its operations and improve supply. Among other things, the policy paper calls for EdL to be converted into a public joint-stock company. A source close to Saddi told Al Majalla that the minister’s plan to address Lebanon’s electricity sector had seven tracks.

1. New gas-fired power plants

The two new gas-fired power plants will cost around $1bn each. Natural gas would lower operating costs and reduce emissions, but securing investors will be key. Beirut is working with the International Finance Corporation to attract the capital, but investors want guarantees to protect their money and to ensure payment, including in the event of war. The government therefore needs to create a legal framework to enforce contracts and recover any payments due.

2. Expanding generation capacity

When Saddi took office in February 2025, he found that 11 licences had been granted by the cabinet in 2022 for solar projects with a combined capacity of 165MW, none of which were producing electricity. He sought to revive them, asking licence holders to either proceed with development or sell their licences to investors who could carry them forward.

Four licences have since returned to the implementation stage, three of which were acquired by CMA CGM, a French logistics company that typically deals with shipping, ports, warehousing, and supply chains. Its project in Beino, Akkar, is the furthest advanced, but preparatory, technical, and regulatory work is still underway.

Establishing the Electricity Regulatory Authority will be central to creating a legal framework that can attract investors to Lebanon's electricity sector. Law No. 462 from 2002 provided for its establishment, but it has never been implemented. Investors need to know that the law will be applied consistently and transparently.

The authority regulates solar energy projects by issuing licences according to defined generation-capacity categories. The authority is also taking steps to facilitate smaller-scale generation projects, though their impact is expected to emerge gradually. Investors are understood to have shown interest in reviving a long-stalled wind power project in Akkar, which could broaden Lebanon's energy mix and encourage further investment in renewables.

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The chartered powership Fatma Gül Sultan, part of the Turkish Karadeniz Holding fleet, supplying electricity to the Jiyeh power plant in 2020, prior to its subsequent withdrawal.

3. Switching to natural gas

Converting the Deir Ammar plant to liquefied natural gas (LNG) is expected to lower generation costs and reduce emissions. LNG would be purchased in coordination with Jordan and Syria, regasified in Aqaba (on Jordan's Red Sea coast), then transported to Lebanon through the regional pipeline network, but government approvals are needed, the pipeline to the Syrian border needs to be repaired, and technical tests are needed to bring the plant into operation.

Lebanon is also examining the possibility of establishing a floating facility to store and regasify LNG, with the International Finance Corporation advising. The idea is a single facility linked to the Deir Ammar power plant, replacing earlier proposals for three facilities in Beddawi, Selaata, and Zahrani (those plans were criticised for their cost and location choices). Whether the projects move forward will depend on technical and economic feasibility studies, financing availability, and completion of the required infrastructure.

4. Electricity links with Syria and Jordan

Lebanon wants to import around 150MW of electricity from Syria through the Ksara substation in Zahle, a city in Lebanon's eastern Beqaa region. A draft contract is with EdL for review, pending approvals and agreement on technical and commercial terms. Work is also continuing to restore the electricity link with Jordan through Syria, which could provide Lebanon with additional power if the import cost is lower than the cost of generating electricity domestically.

Lebanon's energy crisis is multifaceted. It faces limited generation capacity, rising fuel costs, mounting unpaid state bills, and poor financing

6. Electricity links with Cyprus

A proposed electricity link with Cyprus would be via a submarine cable. Lebanon and Cyprus have agreed to a feasibility study (with World Bank support) to assess its viability. If Cyprus completes its planned link to the European grid, the cable could eventually connect Lebanon to that network, but viability is key, so talks are on hold until the study's findings are published. Even if it is viable, it would require financing and upgrades to Lebanon's transmission network.

7. Restructuring the electricity sector

Finally, Saddi wants to restructure the electricity sector by separating generation, transmission, and distribution. The private sector would be allowed to participate in generation. Transmission would remain under state control through EdL (expected to be converted into a company).

Distribution would be divided into eight geographical regions, with contracts awarded through competitive tenders to private operators. Winning operators would purchase and distribute electricity, collect bills, maintain the network, and address illegal connections and other violations. The model would build on Zahle's experience, with further improvements. The aim is to improve bill collection, reduce losses, accelerate repairs, and improve efficiency.

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Qatari Liquefied Natural Gas (LNG) carrier "Duhail" passes through the Suez Canal near the Egyptian port city of Ismailia on 1 April 2008.

Possible obstacles

Saddi's plans will need cabinet approval. One expert said several obstacles could stand in the way, including "continued regional escalation, Israeli aggression, and disruptions to LNG supplies from Qatar". Another obstacle is Lebanon's bureaucracy and complex approval process, which is vulnerable to "political manoeuvring and delay".

Ghassan Baydoun from the Lebanese Institute for Market Studies and a former director-general of investment at the Ministry of Energy and Water, told Al Majalla that Saddi's plan is "justified and sound, but implementing it will take time". He said the uncertainty lay in what could happen during that period, whether to the government itself, the implementation process, or Lebanon's foreign relations. Baydoun also said that restoring trust between consumers and EdL was essential.

"It is unjust and amounts to a form of extortion and bullying to impose a fixed charge even when consumers use no electricity," he said. "Restoring public trust requires better billing procedures, with bills issued on time. Losses amount to 45%, yet it is consumers who bear the cost."

Baydoun further advised reassessing EdL's financial position, including its assets and inventories, the value of its contracts, and its relationship with Qadisha Electricity, a regional power utility based in northern Lebanon. "I do not believe it is valid to compare state electricity with private generators, nor should costs be used to justify placing further burdens on consumers." Whatever the future holds, Lebanon needs to get its skates on to keep its lights on.

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