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

Qatar has promised to fund and oversee a project aimed at modernising Lebanon's struggling energy sector, according to Prime Minister Nawaf Salam. The news came during a visit by Qatar's own Prime Minister, Sheikh Mohammed bin Abdulrahman. The dire state of Lebanon's electricity supply was a major topic of discussion among senior officials.

"Qatar will finance, implement and operate the electricity project without Lebanon bearing any prior investment cost," Salam stated, alongside Sheikh Mohammed, who is also Lebanon's Foreign Minister. Sheikh Mohammed revealed that QatarEnergy has agreed to collaborate with French firm TotalEnergies to develop a solar power plant in Lebanon as a first step.

The goal is to create a major investment project that would benefit both Lebanese and Qatari companies. While solar energy use in Lebanon has grown in recent years, the high initial costs have limited its adoption among households. Salam mentioned that the project's aim is to offer a more stable, affordable electricity source, contributing to the "rehabilitation, development and modernisation of Lebanon's electricity production infrastructure."

Lebanon is in a dire financial position, with its economy projected to shrink by 6 to 7 percent this year, leaving the government heavily reliant on external aid. A recent report highlights that diesel-powered generators supplied about half of Lebanon's electricity in early 2023, a figure likely to have increased since then, but at a significant cost to consumers.

"There's a strong desire to resolve Lebanon's electricity issue," a Lebanese official told The National. Qatar and Lebanon are reportedly nearing an agreement. "Qatar will continue to support Lebanon and strive to provide comprehensive solutions to the energy challenge in the country," Sheikh Mohammed said following meetings with President Joseph Aoun and Foreign Minister Youssef Raggi.

The energy sector is seen as crucial to Lebanese interests, with Qatar aiming for integrated solutions. Sheikh Mohammed also met influential figures like Parliament Speaker Nabih Berri and army commander General Rodolphe Haykal. Lebanon's reliance on costly diesel imports, driven by private generators, has driven up energy bills amid rising global oil prices due to the Iran conflict.

This has exacerbated hardship for households and businesses still recovering from the 2019 economic crisis. The state utility Electricite du Liban can only provide a few hours of power daily. The energy sector has suffered from a lack of investment from successive governments, which has faltered due to perceived Iranian influence over Lebanese affairs.

Qatar, however, played a crucial role in Lebanon's reconstruction following the 2006 Israel-Hezbollah war. Such support has been less forthcoming following more recent conflicts in 2024 and 2026.