Lebanese institutions focus on survival over growth
The article addresses the ongoing crisis in Lebanon's electricity sector and its impact on economic institutions, especially small and medium-sized enterprises. It explains that reliance on installing solar panels has not provided a comprehensive solution but has helped many businesses significantly reduce their electricity bills, with savings reaching up to $2,500 per month and operational costs decreasing by as much as 40%. However, the fundamental problem remains the weakness of the national electricity grid and the high costs associated with generators and losses, which limit the ability of institutions to expand and compete. The article highlights that temporary solutions lead to investments aimed at survival rather than growth, thereby constraining economic development opportunities and further weakening the competitiveness of Lebanon's industrial sector. It emphasizes that reform of the electricity sector requires structural transformations, including the independence of the regulatory authority, improving billing collection, diversifying energy sources, and organizing the generator sector, all with the goal of reducing overall costs and enhancing the investment environment.
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