Written by: Karim Hammam
The project to rehabilitate the electricity sector in Lebanon, funded by Qatar, is preparing to move from the general framework to the first organizational phases, including negotiating technical details in preparation for obtaining the approval of both governments, leading to actual implementation.
Developments in Governmental Discussions and the Implementation Path
The Prime Minister confirmed that significant progress has been made in the ongoing discussions with the Qatari side, noting that the Ministry of Energy is following up on the technical aspects to present the project to the Council of Ministers within the next two weeks. The consensus on adopting the Build-Operate-Transfer (BOT) model has removed a key political obstacle to Qatari investment in vital sectors.
The project is expected to be implemented over three years according to the Integrated National Energy Investment Program, with the Qatari entity taking charge of financing, implementation, and operation without upfront investment costs for the Lebanese treasury, which will provide electricity under more stable conditions and at a lower cost to citizens.
Electricity Plan Figures and Targets
The program aims to add approximately 2890 megawatts of production capacity, including 1650 megawatts from two gas-fired power plants in Deir Ammar and Zahrani with a capacity of 825 megawatts each, through a floating storage and regasification unit and utilizing the Arab Gas Pipeline through Syria. The project also includes the production of 800 megawatts of solar energy and 440 megawatts of wind energy.
Challenges and the Current Reality of the Energy Sector
The project faces several challenges, represented by the approval of both governments and addressing the grid waste that has reached about 40 percent, in addition to the crisis of weak collection. Total electricity demand is estimated at about 3000 megawatts against current production that does not exceed 950 megawatts, as production plants are operating at half capacity due to the high cost of fuel.
