Electricite du Liban (EDL) is responsible for 90% of Lebanon's total electricity production - a total of 2.5GW in 2004 - and the bulk of transmission and distribution. After the end of the civil war in 1990, EDL oversaw a significant investment program to rehabilitate the sector. However, investment in new generating capacity did not take place until 1998, when Italian Ansaldo built two 440-MW plants at Beddawi and Zahrani - Lebanon's two only dual-fuel Combined Cycle plants capable of burning on gas.

Electricite du Liban, which owns and operates a total of 7 thermal plants, is marred by many problems - namely an ageing infrastructure, high technical and non-technical losses (total of over 40%), burdensome political interference and large financial losses (estimated at some US$500 million a year).

In 2003, the Lebanese privatization authority - the Higher Council for Privatization - released an electricity law, which parliament approved, and initiated a privatization road show. The law paves the way for an experienced operator to acquire an initial 40% stake in the generation and distribution assets of EDL, with full control of management. Unfortunately, this plan has been stored away for the time being due to political infighting.