Desperately needed by an energy starved nation, this deal highlights Lebanon’s need to attain at least a good amount of self-sufficiency in the energy sector.
Lebanon’s daily electricity needs call for over 2,300 MW, but the aging domestic energy industry is having trouble with coping with delivering just 1,500 MW. Day after day, whole sections of Lebanon are cut off from power due to strict electricity rationing. When the energy agreement with Egypt goes to effect, planned to be around next month, Lebanon will receive “one to two hours of additional electricity,” as Minister Tabourian stated. Hopes are also high for shipments of Egyptian gas to power the Der Ammar gas fired station in the Tripoli area.
For a modern country, Lebanon suffers some pretty third-word like energy woes. Power stations across Lebanon are, for the most part at least, aging and decrepit, of not completely obsolete. So, the nation not only cannot provide its citizens with reliable electricity, but really couldn’t if it wanted to without a massive overhaul of the domestic energy industry. Mix this with a complete dependency on other states for energy, and you have the makings of a total energy crisis, not that the situation isn’t already at that point.
The energy problem isn’t that straightforward though; energy problems have a direct correlation to the economy and industry. If there’s not enough energy, businesses can’t operate, people can’t work, which means no money is being made. There are two major problems: if the supply of energy is lower than demand, then the price is going to sky-rocket. The lack of electricity lowers productivity, which lowers the commodity output. Every hour a factory or business sits without power is an hour in which it is losing money.
All of the facts point towards Lebanon’s need to completely renovate its energy capacity. In this, Lebanon has a unique opportunity to lead the way in green, environmentally friendly power sources. The coast line offer space for wind turbines and wind fields, and the Bekaa Valley offers space for solar panels. This would obviously be very expensive, but the rewards would be many. Public works projects such as these would also provide jobs, and get more money flowing through the economy. If handled well, with adequate oversight, only gains will be made from refitting the energy production capacity of Lebanon.
