World Bank2012-06-142012-06-142008-01https://hdl.handle.net/10986/7990The Lebanese electricity sector is at the heart of a deep crisis. The sector is unable to supply the reliable electricity needed by homes, offices and industry. It is a massive drain on government finances, crowding out more valuable expenditures on education, infrastructure, social protection, and health, and putting macroeconomic stability at risk. The sector accumulates huge debt with little to show for it, and those who are least able to provide for themselves suffer the consequences most. The state of the electricity sector symbolizes to the public Lebanon's profound challenges of governance, inclusion and accountability. This report includes detailed calculations on these estimated high costs to the public. This additional spending and revenue loss has an obvious negative impact on these consumer categories, but also makes implementation of other macro-critical, non electricity sector reforms, difficult; as consumers have difficulty absorbing increased overall spending (for example tax increases). As such, this report presents an analysis of possible demand and supply scenarios for the future, and lays out options for the Government to consider in improving service and reducing the overall costs. Each option is presented with a savings potential, and time-line for implementation. Ultimately, however, the Government will have to consider how to sequence the reforms, in particular, the invariable tension between waiting with the much needed tariff level and structure adjustments for an observable improvement in service delivery versus starting the adjustments immediately and working on service improvements in parallel.CC BY 3.0 IGOADVERSE IMPACTAVAILABILITYBARRELBASE LOAD DEMANDCAPITAL MARKETSCOALCOAL PRICESCONSUMER DEMANDCONSUMPTION PATTERNSCONTINGENT LIABILITIESCONTRACTUAL OBLIGATIONSCOST MINIMIZATIONCROWDING OUTCRUDE OILCRUDE OIL PRICECRUDE OIL PRICESCYCLE POWER PLANTSDEBTDEMAND ELASTICITYDEMAND FOR ELECTRICITYDEMAND FOR ENERGYDEMAND FORECASTDIESELDIESEL OILDISTRIBUTION NETWORKDISTRIBUTION OF ELECTRICITYDOMESTIC NATURAL GASECONOMIC GROWTHECONOMIES OF SCALEELASTICITIESELECTRIC POWERELECTRICAL PRODUCTIONELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY PRICESELECTRICITY SECTORELECTRICITY SUPPLYELECTRICITY TARIFFELECTRICITY TARIFFSELECTRICITY UTILITIESELECTRIFICATIONEMPLOYMENTENERGY CONSUMPTIONENERGY CONVERSIONENERGY DEMANDENERGY INPUTENERGY INTENSIVEENERGY OUTLOOKENERGY SECURITYENERGY SHORTAGESENERGY STRATEGYENERGY SYSTEMSENVIRONMENTALENVIRONMENTAL ASPECTSENVIRONMENTAL DISASTEREXCHANGE RATEEXPENDITURESFIXED COSTSFOSSILFOSSIL FUELFOSSIL FUEL POWERFOSSIL FUELSFUEL CHAINFUEL CONSUMPTIONFUEL COSTFUEL COSTSFUEL EFFICIENCYFUEL FOR POWER GENERATIONFUEL HEATFUEL PRICEFUEL PRICESFUEL PROCUREMENTFUEL SHORTAGEFUEL SUPPLYFUEL SWITCHINGFUEL TANKSFUEL USEFUELSGAS CONSUMPTIONGAS OILGAS TURBINEGAS TURBINESGASIFICATIONGASIFICATION PROCESSESGENERATIONGENERATION OF ELECTRICITYGROSS DOMESTIC PRODUCTHEATHEAT RATEHEAVY FUEL OILHYDROCARBONSHYDROCARBONS SECTORIMPORTSINCOMEINDUSTRIAL SECTORINSURANCELIQUEFACTIONLNGLOAD FACTORMIDDLE EASTNATIONAL ENERGYNATURAL GASNATURAL GAS PIPELINENEW PLANTNEW PLANTSNORTH AFRICAOILOIL AND GASOIL PRICEOIL PRICESOIL STORAGEPEAK DEMANDPEAK TIMESPETROLEUMPETROLEUM CORPORATIONPIPEPIPELINEPIPELINE CONSTRUCTIONPIPELINE INFRASTRUCTUREPIPELINE INVESTMENTPIPINGPLANT EFFICIENCYPLANT PRODUCTIONPOLLUTIONPOLLUTION PROBLEMSPOWERPOWER CONSUMPTIONPOWER GENERATIONPOWER GENERATION CAPACITYPOWER GRIDPOWER PLANTPOWER PLANT CONSTRUCTIONPOWER PLANTSPOWER PRODUCERPOWER PRODUCTIONPOWER PURCHASE AGREEMENTSPOWER SECTORPOWER SECTORSPOWER SYSTEMPOWER SYSTEMSPRICE CHANGESPRICE ELASTICITYPRICE OF GASPRICE OF OILPRIVATE CAPITALPRIVATE PARTICIPATIONPRIVATE SECTORPRIVATE SECTOR INVOLVEMENTPRIVATE SECTOR PARTICIPATIONPRODUCTION COSTSPRODUCTION OF ELECTRICITYPUBLIC EXPENDITURESREFINERIESRELIABILITY OF SUPPLYRESIDENTIAL BUILDINGSRESIDENTIAL CONSUMERSSAVINGSSTEAM COALSTEAM CYCLESTEAM TURBINESULFURSULFUR CONTENTSUPPLY OF ELECTRICITYSUSTAINABLE DEVELOPMENTTARIFF STRUCTURETHERMAL PLANTSTHERMAL POWERTHERMAL POWER CAPACITYTHERMAL POWER PLANTSTRADEOFFSTRANSIT GASTRANSMISSION COMPANYTRANSMISSION LINESTRANSPORT COSTSVESSELSVOLTAGEWINDWORLD ENERGYWORLD ENERGY OUTLOOKWorld Bank10.1596/7990