As AI advances worldwide, Lebanon still battles daily electricity shortages

Report by Bassam Abou Zeid, English adaptation by Mariella Succar

In a world racing to capitalize on artificial intelligence, Lebanon continues to struggle to secure 24-hour electricity.

Electricity in homes is currently limited to about four hours per day due to insufficient fuel supplies needed to increase production at power plants.

Global energy prices have risen significantly amid the U.S.-Iran conflict in the Strait of Hormuz, further straining Lebanon’s already fragile energy sector.

Lebanon’s two main power plants, Deir Ammar and Zahrani, which rely on fuel shipments, have been operating at reduced capacity. The country previously allocated about $50 million per month to secure fuel, which allowed for more than eight hours of daily electricity supply. Reduced financing has since led to lower fuel purchases and fewer hours of electricity.

Despite the decline in production, sources from Électricité du Liban say the country has not reached a full blackout.

Meanwhile, essential infrastructure, including the airport and port, continues to receive 24-hour electricity under the utility’s rationing policy.

The utility says it could increase supply and raise monthly fuel procurement to $70 million, but only if tariffs are adjusted. Electricity prices currently range between 10 and 27 cents per kilowatt-hour, compared with up to 60 cents for private generators.

A second condition involves the settlement of outstanding government arrears dating back to early 2022, estimated at $265 million, including about $30 million owed by the airport and additional annual consumption costs from Palestinian refugee camps.

A source from Électricité du Liban said the situation has reversed, with the utility now effectively financing the state rather than the other way around.

The government has also been reluctant to settle these debts in foreign currency, citing concerns over pressure on the Lebanese pound.

The situation at the Zouk Power Plant, like in previous years, reflects ongoing structural and financial challenges in the sector.

Meanwhile, broader regional tensions between Israel and Hezbollah continue to overshadow domestic crises.