Qatar pledges to help modernise Lebanon's energy sector with electricity project

Qatar has committed to financing, implementing, and operating a significant electricity project in Lebanon to modernize the struggling energy sector, according to Prime Minister Nawaf Salam. The visit by Sheikh Mohammed bin Abdulrahman, Qatar's Prime Minister and Foreign Minister, highlighted the urgency of the issue. The project, to be developed jointly by QatarEnergy and French firm TotalEnergies, will initially focus on a solar power plant.

Despite recent growth in solar panel usage, the high initial costs remain a barrier for most Lebanese. The goal is to provide a more stable, cost-effective power source and rehabilitate the country's electricity infrastructure. Lebanon is facing a severe economic downturn, with GDP projected to decline by 6-7% this year, prompting reliance on external aid.

The National reported that nearly half of Lebanon's electricity in early 2023 was generated by diesel-powered private generators, a costly option for consumers. Qatar and Lebanon are reportedly nearing an agreement, with Qatar pledging continued support for comprehensive energy solutions. The energy crisis stems from Lebanon's heavy reliance on expensive diesel imports amid global oil price hikes.

State utility Electricite du Liban can only offer short power supplies daily, causing widespread inconvenience. The situation has been exacerbated by the 2019 economic crisis and strained by the absence of new investments from successive Lebanese governments. Historically, Qatar was a key source of financial aid post-2006 Israel-Hezbollah conflict, though funding has dwindled since 2024-2026.