On 13 and 24 June 2024, ARI’s Environmental Politics Program organized two town hall meetings titled “Lebanon’s Solar Energy Boom: From individual coping to sustainable strategy” in Beirut, Lebanon. The meetings convened activists, practitioners, researchers, and representatives from the public and private sectors working on energy in Lebanon.

The first panel, titled “Solar Energy Policy in Lebanon: What are the policy solutions to ensuring a just energy transition in Lebanon?”, aimed to foster dialogue and knowledge exchange on renewable and solar energy sectors in Lebanon. The panel was moderated by environmental journalist at L’Orient-Le Jour Suzanne Baaklini and featured insights from MENA Director at the Natural Resource Governance Institute Laury Haytayan, Program Leader for Sustainable Development Sectors at the World Bank Group Salim Rouhana, attorney at law and member of the International Union for Conservation of Nature’s World Commission on Environmental Law Christina Abi Haidar, and Mayor of Bechmizzine, Lebanon, Fawzi Kalash.

The second panel, titled “Enhancing Community Engagement through a Policy Implementation of the Decentralized Renewable Energy Law”, focused on the Decentralized Renewable Energy Law (DRE) that was passed in December 2023, and delved into the technicalities of the law; its challenges, benefits, implementation, and accountability aspects; and the role of the private sector, municipalities, and public entities. The panel was moderated by ARI’s Program Director of Environmental Politics Sarine Karajerjian and featured insights from member of the Lebanese parliament Ibrahim Mneimneh, attorney at law and member of the International Union for Conservation of Nature’s World Commission on Environmental Law Christina Abi Haidar, Founding Member and President of the Lebanese Foundation for Renewable Energy Rony Karam, Co-founder of Ebla Research Collective Zeina Abla, and Mayor of Beit Meri, Lebanon, Roy Abou Chedid.

1 – Energy Boom Attributed to Bad Governance

Laury Haytayan explained that the energy sector boom in Lebanon was driven by a need for electricity rather than climate action, with only those who can afford it able to transition to solar energy, which creates an unjust rollout. Haytayan highlighted the chaotic ecosystem where individuals and the private sector have adapted to the crisis, while the state takes credit for the transition. Haytayan addressed the Lebanese state’s failure to rehabilitate the energy sector over the past 30 years, noting that the 2019 crisis further exacerbated the sector’s collapse.

Christina Abi Haidar attributed the solar boom to the lack of legal frameworks in Lebanon that could have been established with the signing of the Paris Agreement in 2016: “It was only with the lack of affordability and availability of diesel to run generators in 2020, that people resorted to solar energy as part of individual solutions which are not sustainable. This shift should have been legally regulated to ensure societal solutions and achieve energy justice. Access to clean energy is a fundamental right for everyone, and the most vulnerable – now the majority of Lebanese citizens due to the disappearance of the middle class as a result of the economic crisis – should not be deprived of it”.

Abi Haidar stressed that the legal framework is an essential foundation. She explained that the DRE is based on a 1964 law that created a monopoly for the Électricité du Liban (Electricity of Lebanon): “It was not until 2002, during a series of reforms imposed by the international community, that a regulating law was enacted to break the monopoly and [give an] opportunity for private sector investments. While this was an essential entry point, the law was never implemented, and gave power and control over the electricity sector to a collapsed institution.”

Repercussions of the Boom

Salim Rouhana stated that the transition to renewable energy is primarily on an individual and municipal level which he believes poses significant challenges to Lebanese citizens , highlighting its inequalities: “If you study the result of this transition, there are a lot of disparities that have been created in terms of purchasing power, accessibility, and availability of space for solar panels on roofs or gardens, among others, leaving those fortunate enough as better off while the poorer are unable to access this energy and are still paying the high costs of electricity and generators.”

Rouhana also mentioned the current inability to scale beyond local initiatives, stressing the importance of developing existing capabilities in this emerging industry. He stated: “This boom is built on a new sector and industry that requires a new set of skills and knowledge, which Lebanon currently lacks. We need to improve and develop our capabilities to produce our own panels instead of relying on imports.”

Rony Karam shared a World Bank study on the energy transition in Lebanon, “The Lebanon Country Climate and Development Report”, published two months ago, which stated that if this energy transition were executed by 2040, the cost of energy on the Lebanese economy would decrease from 8% to 1.5% of GDP. “This shows the importance of energy transition. The goal is not to replace EDL. Energy is a right, and cheap and clean energy is crucial and will reduce the staggering rates of cancer. The DRE has the potential to make renewable energy one of the biggest industries in Lebanon”.

Zeina Abla discussed the field research conducted by the Ebla Research Collective in densely populated areas like Beirut, focusing on people’s living experiences regarding energy, coping strategies during the crisis, and the role of building committees as regulatory frameworks. She highlighted the disproportionate impact of the energy crisis on marginalized communities, including the elderly and women, as well as geographical disparities in coping capabilities and the widespread frustration toward public institutions. Referring to the Lebanon Country Climate and Development Report, she stated that 20% of inhabitants in Lebanon have no access to electricity, while another study identified three main barriers to solar installation: cost, type of ownership, and conflicts among neighbors. “These issues highlight a lack of collective ownership and governance at the local level”. 

2 – Purpose and Challenges of the Law

Ibrahim Mneimneh, Christina Abi Haidar, and Rony Karam discussed the significance and challenges of the legal framework for solar energy in Lebanon, emphasizing the importance of implementing Law 462 from 2002. This law facilitates public-private partnerships for renewable energy production up to 10MW and focuses on net metering and power purchase agreements.

Mneimneh highlighted the DRE’s goal of breaking the energy monopoly and collaborating with the private sector, stating: “We need to implement Law 462 and initiate partnerships with the private sector, break the monopoly, and provide energy for the people.” Abi Haidar echoed this sentiment, noting the law’s role in market liberalization and environmental benefits: “That way, we prevent more chaos, we get rid of parallel grids, we improve environmental and energy justice, and ensure the sustainability of renewable energy which we lack from individual endeavors and solutions.”

Karam agreed on the law’s potential for market liberalization and emphasized the state’s inefficiencies, with electricity losses of around 35%-40% since the beginning of the crisis in 2019. He highlighted the opportunity presented by the renewable energy transition: “We have a golden opportunity today with the renewable energy transition and our natural resources to locally produce and distribute inexpensive and clean energy, reducing reliance on 97% of our costly fuel imports. Effective regulation of these initiatives under the law will facilitate rapid solutions for both individuals and the government.”

Mneimneh also outlined several challenges in drafting the law, including ensuring the technical and financial sustainability of EDL, integrating renewable energy projects with environmental and land distribution plans, and addressing the impact of parallel grids on the public grid’s efficiency. He stressed the need for compliance with new and existing laws: “Personally, the bigger challenge was linking the DRE with the 462 law and the regulatory body, and with its non-implementation, the transfer of powers would go to the energy minister.”

Abi Haidar added that the DRE was amended to make the energy minister responsible until a regulatory body is appointed, which impacts Lebanon’s solar energy scene. She remarked: “Had we implemented the law, we wouldn’t have reached the chaos we are witnessing today. We would have been able to work more on community solutions, ensure energy justice, and not allow access to energy and renewable energy only for people that are well-off”.

3 – Role of Local Communities: Bechmizzine and Beit Mery

Case of Bechmizzine

Fawzi Kalash explained the importance of having a vision for creating local projects, citing their own vision titled “Bechmizzine Clean and Green”. In addition, to ensure transparency and accountability, the project decided to create different committees not affiliated with the municipality and made up of organizations, civil society, and the population. Funds came from municipal sources and other organizations like the US Agency for International Development (USAID) and the diaspora, which is also playing a role and funding projects that benefit the village, such as the solar-powered waste-sorting plant and the water treatment plant.

Case of Beit Mery

Roy Abou Chedid emphasized the need for clear regulations and the inclusion of renewable energy into building regulations, similar to shared utilities like water. He advocated for unified grid models and strategies for residential units that could be imposed on municipalities, and proposed mandatory surveys and timely reports to ensure compliance with solar-installation regulations and aim for equity. Regarding solar production in the village, he highlighted two key issues that would benefit from designated zones for solar farms from a study they had done: the distance from centralized residential units, and grid connectivity issues. Abou Chedid asserted the need for mandatory laws enforced nationwide to ensure implementation across all regions: “We as Lebanese people can’t accept the idea of implementing anything voluntarily; we need a law that is imposed by force that will be executed by force in all regions.”

4 – Recommendations

Implementation of Laws and Good Governance

All speakers agreed on the importance of implementing Law 462 as a crucial step toward achieving a just energy transition and facilitating the implementation of Law 318 for renewable energy. Mneimneh emphasized advocating for the implementation of Law 462: “We won’t move forward unless we start implementing it.” Abi Haidar highlighted its necessity in today’s climate: “The importance of Law 462 is that it breaks up the monopoly and involves the private sector in energy production and distribution. With the financial collapse, we need partnerships with the private sector done transparently and within legal criteria.”

Abla suggested reviewing the law on building committees to better regulate the current situation, stating: “When that law was passed, the committees weren’t playing the role of municipalities in providing essential services such as water and electricity.”

Haytayan underscored the need for a vision and improved governance: “We need to have a clear vision for this sector and a good governance system to create more sustainable and inclusive energy strategies.” Kalash and Karam stressed the importance of long-term planning and addressing political corruption in the energy sector, while Rouhana advocated for broader reforms with a long-term impact and highlighted the role of international financiers in the transition.

Localized and Decentralized Solutions

The speakers advocated for engaging with municipalities and local authorities. Haytayan stated: “If we have a government that is unable or unwilling to work on reform, then we should look toward local solutions, decentralized and off-grid.” Rouhana emphasized setting higher quotas for renewable energy production and decentralizing power generation. Abou Chedid discussed the importance of unified criteria for protecting decentralized initiatives and highlighted the essential role of municipalities being in direct contact with citizens.

Accountability

Haytayan raised crucial questions about accountability and transparency in the energy sector: “Who is the regulatory body? Who is monitoring this rollout? Who is held accountable? How are we dealing with solar waste?” Abi Haidar stressed the need for more transparency, monitoring, and a justified index for the numbers provided. She pointed out the significant issue of energy loss and waste from acid batteries, emphasizing the need to focus on energy rationalization and reducing the environmental burden.

The speakers called for accountability from parliament and emphasized the application and implementation of laws as essential first steps. They also highlighted the need for diversified and transparent solutions to attract donor investment and reduce dependency on finite resources like fuel from Iraq.

The “Lebanon’s Solar Energy Boom” project is funded by the Porticus Foundation, which aims to understand the photovoltaic ecosystem and identify reforms for broader, equitable, renewable energy adoption. It highlights the challenges and opportunities in solar rollout amidst energy impoverishment, urging stakeholders to reflect on their role in the energy transition and address energy inequities through the principles of just transition.