Renewable Energy in Lebanon: Chaos, Individualism, and the Drive for Survival

lebanon View Solar Panel
lebanon View Solar Panel (c) Hicham Maatouk

The lights are still on in Lebanon's streets, towns, cities, and homes, but at what cost? What do we lose and what do we gain from this situation? While this situation shows the resilience of people, the private sector, and the country's entire institutionalized systems, it also reflects imbalance and inequity in the provision and availability of basic services. This inequity has always existed in Lebanese society and has not been addressed despite the opportunities given to the governance system since the first days of independence.

No sustainability or equity in renewable energies today

Since the economic collapse of 2019, the Lebanese government has done little to get out of a crisis that has affected everything in the country. What has been remarkable, however, is the way people have been able to adapt to the major changes that occurred since. One manifestation of this ability to adapt is clear in the electricity sector.

It is no secret that the electricity sector has been plagued by corruption, poor management, and political tensions, resulting in poor services and reliance on outdated technologies. It was no surprise that the electricity sector collapsed in the face of the crisis. The state's electricity, as we like to call it in Lebanon, was cut off, and the private generator owners could no longer meet people’s needs. Those who could turned to solar energy. And thus began Lebanon's new story with renewable energy.

Previously, the Lebanese Ministry of Energy sought to encourage people to use renewable energy, especially solar energy. However, it failed to increase the use of solar energy for electricity production and consumption. The ministry's efforts remained modest, with figures indicating only 100 megawatts. Today, the figures used by the Ministry indicate approximately 1000 megawatts and more, all through personal use and individual capabilities. Therefore, the momentum and demand for renewable energies grew out of necessity and suffering, and solar energy did not spread because people believed in the need for energy transition or thanks to the policies of the ministry or the government. It is always necessary to recall this context, not to criticize the ministry or the government, but rather to highlight the unfairness in the spread and use of renewable energies in Lebanon and the urgent need to correct this injustice. The situation today in the electricity and renewable energy sector can be summarized as follows: Randomness and chaos in terms of deployment and resource utilization; individualism in that people have resorted to their personal means to deploy solar panels to produce electricity; and finally, the sense of survival that is pushing these people to rely on renewable energies. This is far from the concept of sustainability. Therefore, the renewable energy sector in Lebanon is unsustainable and unfair; and this is what needs to change.

Good governance, the drive for survival, and the race between reform and laissez-faire

Today, the struggle in Lebanon is between hardline reformists and those who favor laissez-faire policies in all sectors, including energy. The policy of non-intervention and reliance on market corrections will undoubtedly widen the social class gap and deepen inequalities in access to energy, regardless of its source. The believers of non-intervention base their theory on a realistic reading of what is happening in the country politically and institutionally, arguing that political and institutional inertia cannot be transmitted to society, and society must act, even if driven by survival, to continue providing services regardless of the presence or absence of a role for the state. Inequality and injustice are the price of continuity and societal dynamics.

Reformists believe in institutions and the necessity of strong governance foundations that ensure sustainability, justice, and well-being for all citizens. They argue that what is built on falsehood is false and will not last. They seek to correct the course and demand that officials play their role in restoring institutions to serve everyone equally. Unfortunately, reformists have not succeeded in convincing officials or bringing to power people who can launch the corrective reform process. However, their presence in the public sphere and their continued struggle for reforms are essential and should be encouraged by giving them platforms to constantly reiterate the need to establish the rule of law and strengthen the governance foundations, especially in the energy sector.

Risks and institutional and political paralysis do not lead to a just energy transition

The big question is how to make Lebanon's energy transition fair and sustainable, and how good governance can contribute to this fairness and sustainability.

There is no doubt that private generators, especially after the country’s collapse, have become an environmental and health hazard, particularly as they are the main energy producer in Lebanon today. There is also no doubt that the problem of Electricité du Liban (EDL) remains unresolved despite the increase in tariffs. The random spread of solar panels will undoubtedly cause problems in the future, while the oil and gas sector in Lebanon is in turmoil. Therefore, it has become necessary to reconsider the policies of the energy sector in Lebanon. The Ministry of Energy is required to cooperate with relevant ministries such as Environment, Health, Finance, and Economy, among others, and work together through joint working units to develop a comprehensive energy policy. They should seek consultation and cooperation with specialists, municipalities, local communities, and donors to agree on a new energy strategy that takes into account all the changes that have taken place since 2019. The basis of this strategy should be to provide energy for all at prices that are affordable for all and sustainable for everyone. The strategy should learn from past mistakes and build a modern energy system, and determine the role of EDL, ensuring clarity about the institution’s role in the new energy system that will be built and whether it will remain the sole, primary, or secondary producer in the future.

For the implementation of these strategies and policies, there must be clarity about the responsibilities and institutions that will implement and operationalize any newly created modern energy system. Clarity in roles helps accountability and course correction. Therefore, there is a need today to know who is responsible for the renewable energy sector within the Ministry of Energy, and there is a need to clarify the role of the Lebanese Center for Energy Conservation as well as its relationship with the ministry and donors and international institutions concerned with renewable energies. Most importantly, there is an urgent need to establish the electricity sector regulatory authority. The delay in setting up a regulatory body to manage the sector means the decentralized renewable energy law that was passed in December 2023 cannot be implemented. The role of this authority becomes crucial when the private sector enters the production of renewable and clean energies to meet the needs of users and to regulate and manage this sector in a way that prevents monopolies and corruption.

Transparency and participation are essential in the renewable energy sector. It is fundamental that the terms of reference are made public, that tenders are clear that their results are announced, and that the ensuing contracts are published. It is essential to declare whether there is any form of conflict of interest or any kind of beneficial ownership and proximity to politicians or parties in the country. The authorities must also announce without undue delay any change in the ownership of the companies holding the contract or contracts. The ministry, companies, and municipalities should involve local communities in public consultations before signing any contract to implement clean energy projects. Community acceptance of clean energy projects is a fundamental right and an integral part of any just energy transition project.

It does not matter whether a centralized or decentralized energy transition strategy is adopted. What matters today is to have a clear vision, an implementation plan, and the ability to attract funds and investments for this energy transition in Lebanon, whether for government projects or projects implemented by the private sector. Today, there are not enough incentives to attract investments to Lebanon. Projects implemented with foreign funds fall within humanitarian aid projects and not as investments to develop and expand the Lebanese economy. Today, security, military, institutional, and economic risks are too great to encourage investments. For this reason, we do not see large new projects on a national scale; instead, they are all individual or small local projects within humanitarian projects. Therefore, procrastinating in addressing the economic collapse, prolonging the political vacuum, and accepting the military-security situation may lead to the loss of opportunity for a just energy transition in Lebanon.

When the Lebanese government announced its intention to develop the oil and gas sector, it made unrealistic promises. However, the announcement motivated many young men and women to study petroleum engineering and other related fields, and it encouraged universities to invest in establishing study units in this specialization. Today, what is needed is clarity in the vision regarding renewable energies and, more importantly, the green economic infrastructure that we need to build and establish today to keep up with global developments concerning future green economies. This could motivate young people to build their capacities to play a crucial role in the economy and to have the skills to obtain new jobs in Lebanon and abroad. Young people should be encouraged to focus on research and new technologies required to build green communities and economies. Justice is achieved by giving young people the opportunities they need to play a fundamental role in building their local, national, and regional economy.

One last chance?

While waiting for governance to stabilize in Lebanon to have effective government institutions that care for citizens and residents and provide services efficiently, people are taking matters into their own hands and doing what they think is suitable. Therefore, between what should happen and what reformists wish for, and the reality, we must provide a solution that does not marginalize segments of society. The solution may not be ideal, but it can create some form of justice at the local level among residents in towns by establishing decentralized clean energy systems not connected to the public grid. Residents, along with the Lebanese diaspora, can invest in these systems to produce electricity. This could help give more responsibility to citizens in their towns for the rational use of electricity, making them more aware of responsibilities and accountable in case of failure.

In conclusion, we must recall that the spread of solar panels and the production of clean energy in Lebanon is not part of the national energy transition plan nor part of a national commitment to reduce the impact of climate change. Rather, it is a result of the failure of the government to provide electricity to people. Therefore, this transition is neither fair nor sustainable, and this problem should not be neglected if we want to build a just society. Today, the state is absent, making the situation difficult. However, we must keep public spaces open to discuss what the proper situation should be. This also requires us to think of ways to bring justice as much as possible. Therefore, cooperation between citizens and their municipalities may be the best way to achieve a minimum level of justice in obtaining electricity. Resorting to building decentralized energy systems not connected to the main grid may be the possible solution for a just energy transition in Lebanon today.

The views represented in this paper are those of the author(s) and do not necessarily reflect the views of the Arab Reform Initiative, its staff, or its board.