Breaking down Lebanon’s new electricity plan and its key projects

Report by Theresia Rahme, English Adaptation by Karine Keuchkerian

What does Lebanon’s new electricity plan entail? A breakdown of the key projects as Électricité du Liban (EDL) continues to fall short of meeting the country’s electricity needs, leaving residents reliant on private generators and solar energy amid ongoing power rationing.

Lebanon’s peak electricity demand can reach around 3,500 megawatts (MW).

The projects Lebanon is pursuing with Qatar have a combined capacity of around 1,700 MW. If all the announced projects operate at full capacity, they could cover approximately 45% of Lebanon’s peak electricity demand. 

The remaining 1,800 MW would have to be supplied by existing power plants or other sources, including privately installed solar systems, provided the electricity grid improves.

So, what are these projects?

The first involves purchasing 150 MW of electricity from Qatar’s UCC company, the main operator of Syria’s electricity sector, through which Lebanon will receive the electricity. The possibility of increasing this amount depends on pricing and ongoing negotiations.

The second involves building a solar farm in the Bekaa with a peak capacity of 200 MW. Land has been secured in Ras Baalbek and Fakiha for the project.

The third involves building two new power plants in Deir Ammar and Zahrani, with a combined capacity of around 1,100 MW. These would add to the capacity of the two existing plants. Another 250 MW would also be added to the current capacity of the Zouk power plant.

So, how will these plants operate?

The plan relies on natural gas, which will be purchased from Qatar.

The gas will reach Lebanon through two channels: natural gas supplied through Syria and liquefied natural gas (LNG) transported by ships. The latter requires regasification.

The current proposal includes supplying the Deir Ammar power plant and two floating terminals to supply the Zouk and Zahrani plants.

Under the proposal, a company would operate the project for 20 years before transferring it to the state. This arrangement is known as Build-Operate-Transfer (BOT).

Power plants generate electricity, while transmission lines and substations deliver it to homes. That is why the plan also includes upgrading the electricity grid, with $150 million in financing being sought for this purpose.

The four existing service provider companies operating in Lebanon would be responsible for distributing electricity to consumers, removing illegal connections and collecting bills.

The Cabinet has approved the general framework of the plan and asked the energy minister to continue negotiations with Qatar on pricing, financing and guarantees.

In other words, the plan has been approved, but the agreements and implementation still require further negotiations and follow-up.