Electricity Sector Policy Framework Released

The Electricity Sector Regulatory Agency focused on reviewing the sector policy paper prepared by the Council of Ministers, aimed at reforming and developing Lebanon's electricity sector. The paper emphasized that the core issue does not lie in a lack of laws, but in their ineffective enforcement. It also highlighted that the current model, which consolidates generation, transmission, and distribution within a single entity, no longer meets the sector's needs or keeps pace with developments in renewable energy. Therefore, the proposed reform involves reorganizing the sector by separating activities and establishing independent entities for generation, transmission, and distribution, in order to enable more accurate performance measurement and increase accountability. The transitional approach relies on creating a publicly listed company instead of the Electricité du Liban (EDL), accompanied by a phased plan to ensure service continuity during implementation. The paper further indicated that the regulatory authority will not be limited to issuing licenses; it will also establish regulatory rules covering tariffs, market regulations, and network management to ensure the application of standardized standards and protection of consumers' rights. It confirmed that microgrid projects are not considered a permanent alternative to the main grid but are an exceptional solution subject to approval by the authority. Ultimately, the paper stressed that reform is a gradual process requiring the cooperation of all stakeholders to ensure sector stability and achieve sustainable improvements in electricity services, fostering a regulatory environment that encourages investment.

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