| 22 Jun 2010 |
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Cabinet approves proposal to revamp electricity sector
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22 June 2010
BEIRUT: The Cabinet approved on Monday a plan submitted by Energy and Water Resources Minister Gebran Bassil aimed at overhauling the electricity sector in Lebanon.
“The Cabinet discussed … Bassil’s proposal concerning the country’s electricity policy and approved the plan, as well as necessary steps for its implementation in line with applicable laws,” Information Minister Tarek Mitri said after the Cabinet meeting at the Grand Serail.
Mitri added that the implementation of the four-year proposal would require Cabinet’s approval of a management and financing framework to develop projects as well as the adoption of a specifications catalogue in line with applicable laws.
But the Energy Ministry’s plan to develop the electricity sector is not expected to resolve the extensive power cuts before three to four years.
“Building power plants takes three to four years; thus we should not make unserious promises to people … We can call on people to halt their reliance on power generators, but a comprehensive solution would only take place when we guarantee a minimum of 15 percent of reserve power production,” Bassil told reporters.
The proposal provides a complete working plan for the treatment of the electricity problem by specifying deadlines for its accomplishment, in addition to the incurred costs and the sources of funding.
It includes 10 interrelated initiatives covering the three main components of the sector: infrastructure, sources of power generation and the required laws and regulations.
The plan offers solutions to all of the sector’s problems ranging from the increase in the production capacity aimed at covering the high deficit in power generation prevailing today to the improvement of the infrastructure of the transportation and distribution sector in order to secure a safe and economic power supply.
It focuses mainly on the most economic and environmentally friendly methods for power generation including gas and sustainable energy. It also aims at establishing programs for a better management of power consumption. “This will control the demand for electricity and decrease the rates of power consumption which will have a positive impact on the Lebanese economy,” it said.
An additional $1.65 billion will also be needed for the long run.
The new strategy will lead to a drop in the sector’s losses from $4.4 billion in 2010 to 0 percent in 2014 while securing 24 hours of power generation. It added that there was a great possibility to start generating profit from this sector starting 2015. However, it continued, if the sector is not reformed then losses will reach $9.5 billion in 2015.
EDL has become a real nightmare for all governments as the cost of financing the losses of the electricity sector mounts every year due to the surge in the prices of oil in international markets. The annual deficit of EDL is over $1.5 billion each year, and in some years it has reached $2 billion.
Many energy ministers submitted plans to solve the electricity problem, but once out of office and another minister assumes responsibility, the plans are shelved and new ones are introduced.
Bassil said his plan would create more job opportunities and boost the Lebanese economy. He noted he was keen on securing a political and professional consensus for the new plan prior to submitting it to the Cabinet.
© Copyright The Daily Star 2010.
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