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Lebanon without centrally produced electricity after its two main power plants shut

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October 10, 2021
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Lebanon’s two main power plants were forced to shut down after running out of fuel, leaving the small country with no government-produced power.

Key points:

  • The state electricity company says a power plant in the south was shut because of a fuel shortage
  • Electricite De Liban says the shutdown reduces the total power supply to below 270 megawatts
  • The country’s electricity minister says Lebanon will use military supplies of fuel for power

Lebanon is grappling with a crippling energy crisis made worse by its dependency on fuel imports. Erratic power supplies have put hospitals and essential services in crisis mode.

The Lebanese increasingly depend on private operators that also struggle to secure supplies amid an unprecedented crash of the national currency.

The shortage of diesel and fuel, along with an antiquated infrastructure, has worsened power cuts that have been a fixture for years.

Blackouts that used to last for three to six hours could now leave entire areas with no more than two hours of state power a day.

On Saturday local time, the state electricity company said the Zahrani power plant in the country’s south was forced to shut down because of fuel shortage; the main plant in the north was shut down on Thursday.

Electricite De Liban said the shutdown reduces the total power supply to below 270 megawatts, which means a major drop in the stability of the grid.

Lebanon is now turning to emergency military supplies of fuel.(

Reuters: Mohamed Azakir

)

It said it would reach out to fuel facilities in the country’s north and south to see if they can procure enough fuel to bring back power.

But the company, responsible for most of the government’s debts, is dependent on credit from the country’s central bank, which is struggling with dwindling reserves.

The government has gradually raised prices of fuel and diesel as the central bank cut back on subsidising dollars for imports, adding to the hardships facing the Lebanese.

Distributors of gas canisters used for cooking and heating stopped operating, saying subsidy cuts amid black-market currency fluctuations meant they were selling at a loss.

Lebanon turns to emergency military supplies

Five lanes of traffic at a standstill.
Lebanon is making deals with its neighbours to source fuel.(

Reuters: Aziz Taher

)

The energy sector has been a huge drain on state coffers for decades.

The electricity company has annual losses of up to $2 billion, and has cost the state more than $54 billion over the past decades. Energy sector reforms have been a key demand by the World Bank and the International Monetary Fund.

How Beirut went from ‘Paris of the Middle East’ to economic collapse

Many buildings grouped together with trees between them.

As their country spirals into economic collapse, many in Beirut say they face four-hour waits for fuel as well as food and medicine shortages, blackouts and job uncertainty.

Read more

To help alleviate the crisis, Lebanon has received fuel shipments from Iran via Syria.

Iraq has also made a swap deal with the government that has helped Lebanon’s state electricity company stay operational for days.

The new Lebanese government is also negotiating supplies of electricity from Jordan and natural gas from Egypt, also through Syria. But those deals are likely to take months.

Lebanon’s Electricity Minister Walid Fayad told The Associated Press that said the new shutdowns leave his government in “crisis management for a couple of days.”

He said the government would turn to the military to get emergency fuel supplies from its stocks “while we await the fuel cargo from the Iraqi deal and swap.”

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.

Play Video. Duration: 5 minutes 27 seconds

Inside Lebanon’s worst economic crisis in 150 years

AP



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