Lebanon s distributed energy storage peak regulation government subsidy policy

Does Lebanon rely on distributed power generation?

In Lebanon, there is already some reliance on distributed power generation due to the wide use of diesel generators that cover the deficit between supply and demand.

What is the Lebanese electricity sector policy paper?

The Policy Paper for the Electricity Sector that was endorsed by the Council of Ministers in 2010 depicted the necessary initiatives needed to reform the Lebanese Electricity Sector in order to ensure a reliable electricity supply and quality of service while ensuring a balance in the sector’s fiscal budget and the elimination of its deficit.

How did political instability affect the energy sector in Lebanon?

Between 2000 and 2010, the energy sector was affected by the political turmoil that engulfed Lebanon – the assassination of Prime Minister Rafic Hariri and Israel-Lebanon war, and political instability, notably in 2007. In this period, there was a lack of a clear investment plan to keep up with increased demand and deal with EDL’s losses.

Why does Lebanon need a power grid?

This requirement is mainly to protect the grid’s infrastructure and for the safety of personnel who might be working during power cuts. The islanding effect is prominent in Lebanon, given the high frequency of power outages, which leads to an economic challenge due to wasted energy (in the absence of storage).

Do distributed renewables affect Lebanon's economy?

However, the economic impact of distributed renewables should be measured based on unsubsidized cost estimates that are reflective of their real cost on Lebanon’s economy. Furthermore, the sustainability of the NEEREA mechanism is under pressure given the escalating fiscal crisis in Lebanon.

How much does EDL cost the Lebanese economy?

Finally it is worth noting that the indirect costs on the Lebanese Economy resulting from the inability of EDL to supply energy continuously is equivalent to 4 billion $ per year for each 1,000 MWh not supplied, as estimated by the World Bank and stated in the Policy Paper for the Electricity Sector.