Lebanon Member Committee

ENERGY ISSUES IN MOTION 

Lebanon’s energy sector continues to face profound structural challenges, with access to capital emerging as the most critical uncertainty. The country’s prolonged macroeconomic crisis has crippled the banking system, leading to a severe credit crunch that has curtailed financing for infrastructure projects, including those in renewable energy. This financial strain, compounded by political instability and regional geopolitical tensions, has severely restricted both public and private investment. Renewable energy initiatives, in particular, face elevated financial risks within this unstable economic environment. Further complicating the situation is Lebanon’s reliance on aging, heavy-fuel power stations, poor infrastructure maintenance, and frequent disruptions in fuel imports. The absence of a clear, enforceable energy policy and a functioning regulatory framework has stalled reforms and hindered long-term sector growth. In this context, regulatory upgrades are the top priority, especially those supporting Trilemma Management: balancing energy security, equity, and environmental sustainability. These must be supported by grid rehabilitation, real-time monitoring, and inclusive solar energy initiatives. 

Over the past year, Lebanon’s energy landscape has witnessed both progress and persistent challenges. A major development has been the rapid, widespread adoption of solar energy by businesses, hospitals, universities, and households responding to the unreliable public grid. This shift was reinforced by the Distributed Renewable Energy (DRE) Law, which allows users to sell excess solar power back to the grid, with the potential to add 800 MW of capacity. However, the delayed activation of the Electricity Regulatory Authority (ERA) has limited the DRE law’s full implementation, revealing deeper governance and institutional shortcomings. International fuel agreements, such as those with Iraq, have helped mitigate shortages. At the same time, energy security has seen a notable improvement: locally produced electricity has risen from just 2% to around 20%, driven largely by decentralized solar generation, marking a meaningful step toward reducing dependence on imported fuels. In light of recent geopolitical developments and the war on Lebanon, risk to peace remains a critical uncertainty, while access to capital and economic growth have emerged as new critical uncertainties. These developments are accompanied by a shift in action priorities, with accessibility and demand growth becoming more central in 2025. These evolving dynamics are reflected in Lebanon’s Energy Issues Map, which captures the contrast between growing solar adoption and enduring governance, economic, and geopolitical challenges. 

FROM BLIND SPOTS TO BRIGHT SPOTS 

Despite progress, several critical blind spots remain under-prioritized within Lebanon’s energy transition. The outdated transmission grid struggles to handle renewable energy, leading to power fluctuations and inefficiencies. Broader energy efficiency strategies are also lacking, with outdated appliances and poor insulation in buildings contributing to excessive consumption. A major overlooked issue is the lack of trained technicians. Without workforce development, the renewable sector cannot grow sustainably. Moreover, energy access remains deeply unequal, with wealthier communities relying on private solar or generators, while poorer areas endure unreliable power and unhealthy alternatives. Lebanon also has yet to fully explore alternative renewables such as waste-to-energy, and biomass, which could diversify its energy mix. Addressing these blind spots will require policy updates that include enforcement of building codes, incentives for energy efficiency, investments in technical education, and a comprehensive roadmap that integrates all energy sources into long-term national planning. 

Nonetheless, Lebanon has achieved notable progress that offers valuable lessons for other countries, standing out as the only developing nation to have met its Nationally Determined Contributions (NDCs) for 2030. A major driver has been the rapid growth of decentralized solar energy, fueled by private sector leadership and community action. Thousands of households and businesses have adopted solar systems - often paired with battery storage - to compensate for the collapse of the public grid. Remarkably, this transition occurred with minimal government support, highlighting the strength of market-driven solutions and local initiative. The newly enacted Distributed Renewable Energy (DRE) Law has accelerated this shift by enabling private generation and peer-to-peer energy trading. Solar companies have adapted with tailored offerings, from installation to maintenance, making clean energy more accessible. These developments have reduced demand on the national utility, cut emissions, and strengthened resilience. Lebanon’s experience shows how energy transitions can thrive even in the absence of strong central governance. 

ADDRESSING CRITICAL UNCERTAINTIES TO BALANCE THE WORLD ENERGY TRILEMMA 

In the context of the World Energy Trilemma - energy security, energy equity, and environmental sustainability - Lebanon faces complex, interconnected challenges. Political instability and reliance on imported fuels threaten energy security, as geopolitical shifts and supply chain disruptions can severely impact electricity access. Priority actions include diversifying energy sources, modernizing the grid, and strengthening regional interconnections. Energy equity is strained by tariff reforms, the rise of informal energy markets, and limited rural access. Policies such as targeted subsidies, affordable solar financing, and rural microgrids are essential to ensure equitable access. Environmental sustainability remains weak due to widespread use of diesel generators, poor enforcement of environmental standards, and limited climate adaptation planning. To address this, Lebanon plans to accelerate renewable energy deployment, implement energy efficiency programs, and enforce stricter environmental regulations. These efforts are guided by the upcoming National Renewable Energy Action Plan (NREAP) and the National Energy Efficiency Action Plan (NEEAP 2025–2030), which together aim to chart a sustainable and resilient energy future.  

Supply chains, demand management, international collaboration and the food-energy-water nexus are key issues to explore that can significantly influence Lebanon’s Energy Trilemma. Disrupted or unreliable energy supply chains, especially for fuel and solar equipment, weaken energy security and delay access to clean technologies. Improved demand management can enhance grid reliability, reduce energy waste, and lower costs, promoting both equity and sustainability. International collaboration offers access to funding, technology transfer, and best practices, helping Lebanon overcome its infrastructure and governance challenges while accelerating the clean energy transition. The food-energy-water nexus highlights the interdependence of critical sectors, showing how inefficient energy systems increase strain on water and agriculture, especially under climate stress. Together, these tools and frameworks can help Lebanon build a more resilient, inclusive, and sustainable energy future. 

Acknowledgments

Lebanon Member Committee