Lebanon's 2 main state power plants shut down, out of fuel

BEIRUT (AP), Lebanon's main power plants had to close due to lack of fuel. The state electricity company stated Saturday that the two power plants in Lebanon were shut down. This left the country without any government-produced power.
Lebanon is currently facing a severe energy crisis that has been made worse by its dependence on imports of fuel. Hospitals and other essential services are in crisis mode due to erratic power supplies. Despite the unprecedented collapse of the national currency, Lebanese are increasingly dependent on private operators for supplies.

Power cuts have been a constant problem for many years due to a lack of diesel and fuel. Blackouts that were once lasting three to six hours can now leave whole areas without power for more than two hours per day.

The state electricity company stated that the Zahrani power station in the country's south had to be shut down due to fuel shortage. On Thursday, the main plant was shut down in the north.

Electricite De Liban stated that the shutdown reduced the total power supply to less than 270 megawatts. This means that the grid stability will suffer. It stated that it would contact fuel facilities in the country's south and north to determine if they can obtain enough fuel to restore power. A new shipment of fuel from Iraq will be arriving next week, the company said.

The company is responsible for the majority of the government's debts and is dependent on credit from the central bank of the country, which is in trouble with its shrinking reserves.

As the central bank reduced its subsidies dollars for imports, the government gradually increased the prices of fuel and diesel. This has added to the hardships in Lebanon where nearly three quarters of the population have fallen into poverty in the past year.

Many families are giving up their private generators and relying on the state for power. With unemployment at an all-time high and prices rising, there is no way to ensure that they don't get too much.

Distributors of gas canisters for heating and cooking stopped operations on Saturday. They claimed that they were losing money due to cuts in subsidies.

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For decades, the energy sector has been a major drain on state coffers.

Annual losses of up to $1.5 Billion are suffered by the electricity company, which has been a major source of state debt for more than $40 Billion over the last decade. The International Monetary Fund and the World Bank have made energy sector reforms a priority demand.

Lebanon received fuel from Iran via Syria to help ease the crisis. The government of Iraq also reached a swap agreement with Lebanon that allowed the state electricity company to remain operational for several days.

The new Lebanese government also negotiates supplies of electricity from Jordan as well as natural gas from Egypt through Syria. These deals will likely take several months.

Walid Fayad, Lebanon's Electricity Minister, told The Associated Press that the new shutdowns have left his government in crisis management for a few days. He stated that the government would seek emergency fuel supplies from its stock reserves and turn to the military while it awaits the fuel cargo from the Iraqi swap.