Tackling Lebanon’s Electricity Crisis: Lessons from Yemen
Lebanon’s electricity system is in a deep crisis. Power from Electricite du Liban (EDL)—the insolvent state-run utility—is now available for barely two hours a day, as the population has to rely on increasingly expensive diesel generators for power. In light of this crisis, it is useful to learn lessons from other countries that have faced similar circumstances. One such country is Yemen. Lebanon’s situation is, fortunately, not yet as dire as that facing the people of Yemen, where war has been raging since 2015.But the very different responses to the collapse of Yemen’s electricity system from the two authorities fighting for control over the country reveal some important and relevant lessons for Lebanon.
This brief outlines the Yemeni experience following the collapse of its electricity sector and derives lessons to be learnt for Lebanon. It discusses the approaches taken by the authorities controlling different parts of the country to address a near breakdown in service, notably the Houthi administration in the North, who fully liberalized the market, and the Internationally Recognized Government (IRG) in the South, who maintained a state monopoly on energy production and a highly subsidized tariff.
Neil McCulloch
is a Director of
the Policy Practice. His main
area of focus is on the political
economy of reform in the
energy sector. This has
included work on corruption
in the electricity sector in
Lebanon; power sector reform
in Kyrgyzstan, Pakistan, and
Nigeria; energy access in India;
aid to power sector reform in
Africa; and fuel subsidy reform
in Indonesia and Nigeria.
Previously, Dr. McCulloch was
the Director of the Economic
Policy Program at Oxford Policy
Management and, before that,
the Lead Economist of the
Australian Aid program in
Indonesia.