The government of The Lebanon has unveiled a USD 5 billion plan to overhaul its ageing power sector. It aims to upgrade the decaying system to be capable of supplying 24/7 electricity within 4 years. The state owned Electricite du Liban can only meet two-thirds of peak demand, 1650 MW, which means the average supply period per day is 18 hours.
The country's electricity sector is saddled with old power plants, an inadequate infrastructure and inefficient supply lines. The sector loses USD 1.5 billion annually and the cost to the wider economy from poor power supply is at least USD 2.5 billion.
Central Beirut, where the majority of businesses and banks are located, faces daily power cuts of 3 hours while greater Beirut and towns and cities further away experience longer cuts, some up to nine hours. Homes and businesses are forced to depend on power generators, adding extra electricity costs.
Lebanese citizens across the country have held protest rallies, blocking roads with burning tyres to demand a solution to the problem, which will be exacerbated during the coming summer.
Mr Gebran Bassil, the country's energy minister, said that the plan calls for a capacity increase of 4000 MW by 2014 at a total cost of USD 4.87 billion. The government will provide USD 1.5 billion, the private sector USD 2.32 billion and international donors are expected to contribute USD 1 billion. The plan envisages building pipelines for transporting natural gas along the coast, an LNG terminal and upgrading power plants or building news ones in more accessible areas. The government of Turkey has indicated its readiness to provide natural gas, and Russia and the CIS countries are other supply options.
Linkedin
