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Lebanon Electricity Faces $190M Deficit
The article discusses the financial and operational crisis facing Lebanon's electricity sector, which is suffering from a nearly $190 million deficit and limited liquidity, leading to reduced electricity supply hours. Full outages are expected if urgent funding is not secured. Since 2022, Lebanon's Electricite du Liban has seen a sharp decline in revenues, with monthly losses of around $12.85 million, while damages to infrastructure and generation facilities amount to approximately $67.5 million. The sector faces high production costs exceeding 31 cents per kilowatt-hour, compared to the current tariff rate of 27 cents, worsening the losses. Challenges also include a plan to import fuel oil from Iraq, with an anticipated need of about 290,000 to 667,000 tons of fuels for the upcoming summer, at costs ranging from $435 million to $1 billion depending on different scenarios. This could result in a monthly deficit between $20 and $48.5 million. Proposed solutions rely on paying off accumulated government debts, implementing financial reforms, and preparing to minimize damages. However, the unstable financial situation may exacerbate the crisis and lead to a complete shutdown of the electricity network if the necessary funds are not secured.
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