Background on the Energy sector

The institutional framework of the energy sector was established with the Law 462/2002 and its key implementing steps in July 2006 allowed the restructuration of the state-owned Electricité du Liban (EDL), responsible for generation, transmission and distribution of electricity in Lebanon.

According to the Law, the role of the Ministry of Energy and Water (MoEW) is to provide planning and implementation of sector strategies and energy regulation in the country.

During the last year, Lebanon suffered from frequent power cuts. The sector is unable to supply the electricity needed by the country. 

The demand for electricity in Lebanon is likely to increase by 60% by 2015. Lebanon has several options for new generation capacity. A reduction in technical losses is deemed as necessary to enable overall reforms in the sector. 

In June 2010, the Government adopted a Policy Paper for the electricity sector, which identifies an implementation plan over 5 years (2010-2015 and beyond), including ten specific initiatives and 42 action steps.

The ten initiatives cover three strategic areas, as listed below.

  • Infrastructure: Generation; Transmission; Distribution
  • Supply and demand: Fuel Sourcing; Renewable Energies, Demand Side Management / Energy Efficiency and Tariffs
  • Legal framework: Norms and Standards; Corporatization of Électricité Du Liban; Legal Status

For the implementation of the Policy Strategy, the MoEW has appointed a Policy Implementation Unit, which submits six-monthly implementation progress reports to the Government. A master plan for the energy generation and transmission has been developed. The creation of a National Control Centre is in progress.