The lack of fuel for power stations or diesel for private diesel Gensets has caused severe power outages. These power outages seem to have paralyzed Lebanon and resulted in a crisis situation where businesses are struggling to survive and hospitals are pushed to capacity.
Mohamad Mneimneh, Business Development Manager at Mashriq Energy (Lebanon), identified “decades of built-up losses for the national electric utility (EDL)” as the reason behind this debacle.
In a webinar conducted by EQ Magazine on ‘Outlook for Lebanon Solar Energy – Opportunities and Challenges’, Mneimneh reasoned how power outages are paralyzing Lebanon, the reasons behind it, and a way forward. Ever since the Electricité du Liban (Electricity of Lebanon) or EDL has been subsidized, it has been in loss and is rapidly using the foreign reserve, he added. This was further aggravated by the October 2019 financial crisis. He said, “This problem is (an) energy problem, and the solution is also (an) energy solution,” calling out the energy crisis as a political issue. He added Lebanon is resistant to the idea of importing electricity from Jordan and Egypt (which has 2-3 GW of electricity surplus).
The $800 million annual deficit of EDL and the fact that citizens in Beirut face daily power outages of at least 20 hours are all reminders of the urgent need for immediate action. To counter this problem, the potential of abundant natural resources (water, wind, and sun) in Lebanon needs to be recognized. As a result, a possible alternative can be the exploration of renewable energy sources such as solar energy. It will not only have environmental benefits but also economic advantages and bring down dependence on fossil fuels. This change can shield Lebanon from changing energy market trends and ensure stability, providing a political advantage.
In Lebanon, the adoption of solar energy to the national grid would significantly contribute to the growth of clean energy since the country has around 3000 hours of sunlight per year and GHI (Global Horizontal Irradiation) of 2000 kWh/m2/year. Solar is intriguing to the Lebanese market as it has diverse applications and low maintenance costs. It is a renewable source of energy that reduces electricity bills and has evolving technology supporting its growth.
Although solar offers great prospects in Lebanon, there are some challenges to this energy resource too, like high initial CAPEX (capital expenditure), expensive energy storage, lack of regulation, and standardization. Investment in solar energy is a risky investment and is subject to change because of policies that do not allow captive generation in Lebanon. This instability gets the investors nervous. Another barrier is population clusters in the cities. Solar installation requires space; however, due to the high population concentration in cities, there is very little space to facilitate solar installations.
To conclude, according to Lebanon’s geographical and meteorological landscape, renewable energy is a viable power source. Although, there is a need to address the political hurdles first. While solar PV cannot completely solve Lebanon’s electricity problems, it can contribute to economic growth, significantly boost the country’s energy independence, and reduce pollution levels. Solar energy, along with other energy sources, can ensure a 24/7 supply of electricity. This will significantly bring the price of electricity up, reducing EDL’s deficit.
