The power sector is electrified again

Crisis and recommendations
discussed in two new books

The controversial electricity sector resurfaced as debates heated up again over the increased power cuts of late, across the country.

Several solutions are being discussed. The tariff increase would help Electricite du Liban develop its production capacities and reduce the deficit, according to Mansour Bteish, General Manager at FransaBank, author of ‘Power in Lebanon: Negative Repercussions on the Economy.”

Two ratified laws, nos. 462 and 181, which organize the sector, should be implemented. The solutions to the sector’s problems include stopping power production deterioration, the completion of transmission and distribution networks, and encouraging investments in renewable energy, according to ‘Power: The Hostage Sector 1993-2014’ published by the Almustaqbal Parliamentary Bloc.

The Central Bank (BDL) transfers to Electricity Du Liban (EDL) reached $15.1 billion between 2004 and 2014, compared to $2 billion between 1992 and 2003.

Among the required reforms are the improvement of bill collection through the installation of smart meters, the upgrade of distribution networks, the use of gas instead of gasoil and the augmentation of renewable energy production.

A second 571 MW plant in Deir Amar needs to be constructed, in addition to the restoration of the Zahrani plant and Litani dam, as another solution.

Both books recommended resorting to Liquefied Natural Gas (LNG) to operate power plants that were initially designed to run on LNG. They called for increasing the capacities of the plants, in order to reduce the gap between supply and demand. They also highlighted the role that Prime Minister Rafic Hariri played in improving the electricity sector’s efficiency and the need for privatizing it.

The Almustaqbal book concluded that the only way power could improve is by serious and constant commitment to political neutrality. Once accountability, transparency and competence prevail, reform could then be applied.

“If the power problem had been solved in the 1990s, public debt would have been reduced from $68 billion to $41 billion, by the end of 2014,” said Bteish.