Blominvest has published an overview of the electricity sector in Lebanon, which says that Lebanon needs to speed up the rehabilitation of the sector and to consider seriously allowing the private sector to take part in mega energy projects.
The report claims that public transfers to Electricite du Liban (EDL) absorb an excessive amount of the government budget, amounting to $1.5bn in 2009 (14.3 per cent of GDP), and is expected to reach $2bn by the end of 2011.
Power cuts are common, exacerbated by a continuous 7 per cent annual rise in energy demand. The report also claims that developing renewable energy production is vital, in order to reduce fuel costs and to give Lebanon the chance to become self-sufficient in energy.
The five-year plan developed by the Ministry of Energy and Water does not allot any government funds to renewable energy schemes, but calls upon the private sector and international partnerships to do so.
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