Lebanon’s cabinet has approved a plan to overhaul electricity supply and asked the energy minister to continue negotiations with Qatar over potential power projects and their financing.
The decision on 13 November came as a separate law was published authorising additional budget funds to cover part of the money owed to the state electricity utility by public bodies. Together, the measures address immediate financial pressure on the utility and a longer-term effort to change how electricity is produced and delivered.
Neither step means that new power stations are operating or that the country’s electricity shortages have been resolved. The plan sets out a direction for the sector, while important terms of a potential partnership with Qatar remain to be negotiated.
Gas, renewables and the grid
Energy and Water Minister Joe Saddi presented the plan to ministers at a cabinet meeting in Beirut. Information Minister Paul Morcos said the cabinet approved its main elements, covering natural gas, electricity generation, transmission, distribution and the collection of bills.
One near-term proposal is to bring natural gas to the Deir Ammar power station through the Arab Gas Pipeline and change its operation from gas oil to natural gas. The government’s plan also envisages importing liquefied natural gas to supply Deir Ammar and the Zahrani and Zouk plants.
Liquefied natural gas is cooled for transport and must be turned back into gas before use. The Qatari proposals considered by the cabinet include infrastructure for receiving and processing it. The government hopes that switching away from more expensive liquid fuel can reduce generation costs, but the benefits depend on fuel arrangements and the necessary infrastructure being put in place.
Over the coming years, the plan aims to raise generation capacity to a range of 3,000 to 3,500 megawatts, with the larger share intended to come from renewable sources. Solar and wind power, battery storage and improvements to hydropower are among the measures envisaged. Gas-fired plants would provide a steadier source of electricity alongside them.
The plan also calls for investment in transmission lines so that electricity from new plants and renewable projects can reach centres of demand. Increasing generating capacity alone would not ensure that power can be delivered where it is needed if the network cannot carry it.
Talks with Qatar continue
Ministers took note of Qatari proposals involving power stations, gas infrastructure, renewable energy and battery storage. They instructed Saddi to pursue talks on the financial aspects, including tariffs, guarantees and possible cooperation between the two governments, and to bring the results back to the cabinet.
Saddi said progress had been made in the discussions, but that some points remained under consideration. The cabinet’s approval of Lebanon’s own plan should not be confused with a final agreement on the Qatari proposals. The cost to consumers and the commitments sought from the Lebanese state depend on matters still being discussed.
For distribution and bill collection, the plan envisages private operators working in different areas under a framework set by the electricity regulator. The operators would be expected to invest in local infrastructure, reduce losses and improve collection, with performance monitored by the regulator. The plan says ownership of the network’s assets would remain with the state.
Funding for unpaid public bills
The separate funding measure became law after parliament approved it on 12 November and President Joseph Aoun promulgated it the following day. It was then published in a special edition of the official gazette.
Law 72 authorises an additional appropriation of 8,950 billion Lebanese pounds, roughly equivalent to US$100 million, in the 2026 budget. It is intended to settle part of the accumulated amounts owed to Électricité du Liban, known as EDL, by government departments and public institutions.
The appropriation is an authorisation for a specified purpose; it is not evidence that every outstanding bill has already been paid. Saddi has said the funding could help increase the hours of electricity supplied, but no specific increase has been guaranteed.
The utility has faced pressure from unpaid public-sector bills as well as the cost of supplying power. Earlier in November, the authorities began cutting electricity to public institutions with outstanding payments. The new funding is intended to address part of those arrears, rather than pay off every obligation across the electricity sector.
A long-running shortage
Lebanon has experienced power cuts for years, with state supply falling sharply after the economic and banking crisis that began in 2019. In Beirut, state electricity has in recent years often been available for only a few hours a day. Many households and businesses rely on private generators to fill the gap, adding another cost to everyday life.
The cabinet’s approach therefore combines several different tasks: securing fuel, expanding production, making the grid capable of carrying the power and improving the collection of bills. Each requires separate decisions and practical work. The immediate budget measure may ease one pressure on EDL, while the wider plan will depend on negotiations, investment and implementation before households can judge its effect on supply.
