Electricity in Lebanon: Frem and Attieh Propose a Roadmap to Cut Costs, Boost Solar Energy, and Open the Sector to Private Investment

• Potential Annual Savings of $3 Billion by Switching from Fuel Oil to Gas!
• Requiring Neighborhood Generators to Install Solar Power Systems Could Save $1.3 Billion Annually
• Where Is the Fuel Going? Frem Calls for a Clear Distinction Between Waste and Corruption and the Disclosure of Generation Figures

The President of Project Watan’s Executive Board, MP Neemat Frem, and the Head of the Public Works and Energy Committee, MP Sajih Attieh, held a press conference at Project Watan’s headquarters to discuss ways to reform Lebanon’s electricity sector.

The event opened with a discussion attended by the Head of the Telecommunications Regulatory Authority, Ziad Samakieh, and a member of the Authority, Christina Abi Haidar Nasrallah, along with a panel of specialists, media representatives, heads of news websites, and journalists.

In his speech, MP Neemat Frem stressed that Lebanon does not need an electricity policy, but rather a fuel policy. He noted that the waste accumulated over the past 30 to 35 years calls for a radical change in the country’s power generation strategy, greater transparency regarding electricity generation figures and fuel consumption, and a clear distinction between waste and corruption.

He called for requiring owners of private generators to install solar power systems, which, according to the calculations presented, would generate annual savings of approximately $1.3 billion.

He explained that switching from fuel oil to gas could yield estimated annual savings of around $3 billion, based on the cost of electricity supply and the cost per kilowatt-hour. This calls for examining options for securing natural gas or liquefied natural gas and transporting it overland through Jordan, Syria, and Egypt, or by sea using dedicated vessels.

As for solar energy, Frem pointed out that approximately 50% of electricity generation goes unused during midday hours. Therefore, he called for activating the net-metering system to accommodate and make use of surplus electricity generation, which could reach approximately 700 megawatts, according to the figures presented, generating annual savings of around $120 million.

He also stressed the need to strengthen decentralized power generation and enable the private sector to sell electricity to the state.

Frem warned against the continued accumulation of waste in the electricity sector, calling for a distinction between waste resulting from inefficiency and potential corruption and for subjecting power generation and operating procedures to rigorous and transparent monitoring.

He questioned the reliability of figures on Électricité du Liban’s power generation and diesel consumption, noting that the absence of accurate data makes it impossible to identify deficiencies and verify the reasons behind discrepancies between fuel consumption and actual electricity generation. He called for establishing a clear monitoring system for fuel consumption, while strengthening transparency and accountability to identify those responsible and address the shortcomings.

For his part, MP Sajih Attieh called for granting the Regulatory Authority the powers it needs to fulfill its role, enforcing existing legislation, and issuing the required implementing decrees to regulate the sector and encourage investment.

He also stressed the need to address electricity bill collection, including unpaid bills accumulated in Palestinian refugee camps over approximately 30 years, and to regulate electricity consumption in Syrian refugee camps through the installation of meters and improved bill collection, thereby reducing the financial burden on Électricité du Liban and the state.

Recommendations

The press conference put forward the following recommendations:

• Making greater use of natural or liquefied natural gas instead of fuel oil to potentially save $3 billion annually.
• Making better use of solar energy and integrating it, particularly with private generators, within a clear regulatory framework to generate annual savings of approximately $1.3 billion, according to the estimates presented.
• Keeping the transmission grid operational during daylight hours to accommodate surplus solar power generation, estimated at 700 megawatts, with savings of approximately $120 million annually, while also strengthening the grid and encouraging municipalities to establish solar farms.
• Studying the use of heavy fuel oil instead of diesel at power plants wherever technical conditions permit, to potentially reduce fuel costs, while combating illegal connections and encroachments on the grid with the support of the security forces.
• Updating the legislative framework, implementing Electricity Law No. 462, and issuing its implementing decrees. This would enable the private sector to generate electricity and sell it to the state or directly to consumers through long-term agreements, while clearly defining the roles of producers, transmission operators, distributors, and traders.

The conference concluded that reforming the sector requires a shift from crisis management to a comprehensive energy policy that combines lower generation costs, improved electricity supply, reduced waste, expanded renewable energy, and increased investment, placing the interests of citizens and the Lebanese economy at the heart of the solutions.