Electricity production
increases by 42 percent

Tariffs raised to near production cost

Electricity generated by Electricite du Liban (EDL) soared by 42 percent in 2023 to nearly four million megawatt-hours (MWh), according to Central Bank data.

The growth was driven by an increase in the hours of power supply after the tariff was raised to an amount that nearly covers actual costs of power generation but production still represents 26 percent of its level in 2018.

EDL’s collection of electricity bills totaled $50 million per month which was enough to cover its costs while its working capital needs exceed that amount, according to the Ministry of Energy and Water (MEW).



Source: Central Bank

As stated by MEW, the cost of producing one kWh by EDL is less by 16 US cents than the same amount produced by private generators which results in annual savings to the economy of $2 billion. However, the country’s electricity cost remains among the highest in the region. The World Bank said in its Country Climate and Development Report released earlier this year: “EDL and private generators generate electricity from brown sources (heavy fuel), which is expensive—in addition to the fiscal cost, energy (mostly fuel) imports contribute to Lebanon’s balance-of-payments deficit, and the cost to consumers is among the highest in the Middle East and North Africa—has a large carbon footprint, and is a major source of air pollution.” On the other hand, the share of renewable energy reached more 25 percent of total electricity consumption by the end of last year, according to the Lebanese Center for Energy Conservation. This is well ahead of the national target of reaching 30 percent of total electricity consumption by 2030.

The World Bank said in its report: “If no new centralized power plants are built starting from 2031, existing EDL capacity will at most serve only ten percent of demand, which will further increase dependence on diesel generators and stand-alone solar for households and businesses.”