Lebanon seeks Gulf investment for solar projects

• Plan includes building two conventional plants
• World Bank to fund 150MW solar station
• Power sector devastated by 1975-1990 conflict

Lebanon is seeking investment from Gulf states to build solar power projects as it aims to repair its conflict-battered electricity network.

The projects are part of a seven-point programme that also includes the construction of two power plants with capacity of 825 megawatts each at a cost of $2 billion, Lebanon’s energy and water minister Jo Saddi said.

Lebanon’s power sector was devastated during the 1975-1990 civil conflict that has also wrecked the economy and the country’s infrastructure, utilities and services. The state provides no more than four hours of electricity per day, while the rest is supplied by private power generators.

Saddi told reporters in the capital Beirut this week that Lebanon has obtained a loan from the World Bank to fund a 150MW solar power station.

He said the government would seek loans and investors for the two conventional power stations in south and north Lebanon.

“We are in touch with investors from the Gulf countries to offer them projects to build solar power plants with a generation capacity of at least 100MW each,” Saddi said.

The plan for power sector rehabilitation includes importing gas to fuel electricity generation, including through a 1,200km pipeline that originates from Egypt and passes through Jordan and Syria, the minister said.

“We also need at least $500 million to maintain and update the existing electricity network so it will be ready when investors start coming,” Saddi said.

Further reading:

• Lebanon grants TotalEnergies new exploration permit
• World Bank to advise Lebanon on power generation
• Lebanon must be more ambitious with reforms, IMF says

Last November the International Finance Corporation, a member of the World Bank Group, said it would advise Lebanon on its first gas-to-power project that involves the installation of a floating storage and regasification unit.

In late 2019, Lebanon plunged into its deepest economic and financial crisis due to accumulating debt, the collapse of the financial sector and widespread corruption.

As a result, the local lira currency has lost over 95 percent of its value against the US dollar, sending inflation rocketing.