Saddi Lays Out Hard-Line Reform Roadmap to Rescue Lebanon’s Electricity Sector from Debt, Decay, and Dysfunction

Beirut: Taking over one of Lebanon's most troubled ministries amid an unprecedented economic and institutional collapse, Lebanese Minister of Energy and Water Joe Saddi does not shy away from the scale of the challenge. In an exclusive interview with The Beiruter, Saddi outlines the short-term realities, long-term reforms, and structural obstacles facing Lebanon's electricity sector, while emphasizing that his mandate is not about temporary fixes, but durable solutions. According to National News Agency - Lebanon, Saddi describes the ministry as burdened by 15 years of failure, highlighting that the first decision was to stop the accumulation of further public debt solely for fuel purchases. Lebanon has spent nearly $25 billion on fuel for electricity generation over the past 15 years, which would exceed $35 billion today when interest is included. Additionally, there is more than $1.2 billion in debt owed to the Iraqi government. Saddi explains that Electricité du Liban (EDL) has started buying and paying for its fuel from its own collections, ceasing state loans and subsidies. He stresses that taxpayers ultimately bear the cost of these debts. In the short term, Saddi acknowledges that Lebanon's existing production capacity can only provide between 8 to 10 hours of electricity per day, while demand is nearly three times higher. EDL supplies about one-third of national demand, making improved collection critical. Saddi outlines a multi-track strategy for long-term solutions, including increasing production capacity through two new gas-powered plants and pushing for renewable energy projects. The ministry is securing investment for these power plants and pursuing discussions with Gulf countries for similar investments. He also emphasizes the transition from fuel oil to natural gas as essential for reducing costs and pollution. The ministry is focused on rehabilitating Lebanon's aging transmission and distribution grid, warning that increasing production without fixing the grid would be pointless. Talks are on going with an Arab fund to secure financing, and a $250 million World Bank loan has been approved to strengthen EDL's capabilities. Institutional reform includes establishing the Electricity Regulatory Authority to keep the sector away from political interference and restore credibility with investors. The reform roadmap involves unbundling the sector, with EDL becoming a transmission company alongside private entities. EDL will need to undergo corporatization and modernization, with applications open for a new board of directors. Addressing fuel supply, Saddi notes that electricity supply remains stable in the short term. The ministry is diversifying sources and securing fuel through short-term tenders, despite challenges with the long-term tender process. Reflecting on the past year, Saddi identifies lack of trust, staffing shortages, and institutional decay as major hurdles. The ministry is working to improve transparency, fill vacant positions, and revive institutions with expired mandates. Saddi concl udes that tackling electricity theft and improving collection is essential for reform. In conclusion, while challenges remain, Saddi's roadmap represents a shift from crisis management to systemic reform. Success hinges on enforcement, improved collection, and political will, without which Lebanon's energy future could remain unresolved.