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# Qatar Unveils Detailed Plan to End Lebanon’s Electricity Crisis Within Three Years
- URL: https://beirutwire.com/qatar-unveils-detailed-plan-to-end-lebanons-electricity-crisis-within-three-years/
- Published: 2026-10-20T06:32:42.000Z
- Updated: 2026-10-20T06:32:42.000Z
- Description: Qatar has proposed a comprehensive electricity investment program for Lebanon, including two 825-megawatt gas-fired power plants, a 20-year LNG supply agreement, 800 megawatts of solar energy, 440 megawatts of wind power and electricity imports from Syria.
- Author: Beirut Wire
- Tags: Economy

After decades of failed electricity plans, Lebanon has received one of the most ambitious proposals yet to rebuild its power sector.

Qatar is proposing two major gas-fired power plants, a 20-year natural gas supply agreement, large-scale solar and wind projects, battery storage and electricity imports from Syria.

The details emerged on October 19 in a document reviewed by Reuters, following Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani's visit to Beirut.

The proposal, titled the National Integrated Energy Investment Program, aims to transform Lebanon's electricity system within three years, using private financing without requiring the Lebanese government to provide the initial capital.

Unlike previous announcements involving emergency fuel shipments or limited financial assistance, this plan addresses several parts of the electricity system simultaneously.

And the numbers are substantial.

The centerpiece is the construction of two combined-cycle natural gas power plants.

One would be located in Deir Ammar in northern Lebanon.

The other would be built in Zahrani in the south.

Each would have a generating capacity of 825 megawatts, bringing their combined capacity to 1,650 megawatts.

Combined-cycle plants use both gas and steam turbines to extract more electricity from the same quantity of fuel, making them considerably more efficient than many older conventional power stations.

For Lebanon, that could significantly reduce the cost of producing electricity.

But generating power requires a reliable fuel supply.

QatarEnergy would therefore enter into a proposed 20-year liquefied natural gas agreement with Lebanon, creating a long-term source of fuel for the country's electricity infrastructure.

The plan includes a floating LNG storage and regasification unit with a capacity of 3.5 million cubic meters per day.

It also envisages using the Arab Gas Pipeline through Syria to deliver another 4.5 million cubic meters per day.

Together, these arrangements would diversify Lebanon's energy supply and reduce dependence on expensive diesel and fuel oil.

The proposal also contains a major renewable-energy component.

Qatar is considering investments in 800 megawatts of solar power and 440 megawatts of wind capacity, supported by battery storage systems.

That represents 1,240 megawatts of proposed renewable generating capacity.

Combined with the two gas-fired plants, the planned domestic generation projects would have a total nameplate capacity of 2,890 megawatts.

That does not mean Lebanon would receive 2,890 megawatts continuously, since solar and wind generation depend on weather conditions. Nevertheless, the scale would represent a substantial transformation of Lebanon's electricity infrastructure.

There is also a faster route to increasing supply.

The plan includes importing an initial 300 megawatts of electricity from Syria through two separate interconnections.

That could provide additional power before the new Lebanese generation facilities become operational, provided the necessary infrastructure and commercial arrangements are secured.

The ambition is clear.

Lebanon would move away from an electricity system dominated by aging state facilities and private diesel generators toward a diversified network combining natural gas, renewable energy, storage and regional electricity imports.

For Lebanese households, the potential benefits are enormous.

Families currently pay Electricité du Liban for limited state electricity and then spend additional money on private generators.

Businesses face even greater costs.

Factories, supermarkets, restaurants, hotels and offices are effectively forced to finance their own electricity infrastructure just to operate.

The economic damage extends well beyond monthly electricity bills.

Expensive power makes Lebanese manufacturing less competitive.

It discourages investment.

It increases the price of locally produced goods.

And it forces businesses to allocate money to diesel and generators instead of expansion, equipment and employment.

Reliable electricity would therefore function as an economic reform, not simply an improvement in public services.

But the financing structure deserves particular attention.

Prime Minister Nawaf Salam has said Qatar would finance, build and operate the project under a build, operate and transfer arrangement.

That means the Lebanese Treasury would not have to provide the initial investment.

However, the exact payment obligations, electricity purchase agreements, guarantees and eventual transfer terms remain subject to negotiation.

No upfront government investment does not necessarily mean free electricity or zero future financial obligations for the state.

Those details will determine whether the project is commercially sustainable.

Lebanon has spent decades accumulating losses through Electricité du Liban while failing to provide reliable electricity.

The sector became a major contributor to public debt, sustained by subsidies, inefficient infrastructure, weak collections and political interference.

Any new investment must avoid reproducing that arrangement under a different name.

The government will need to address electricity tariffs, technical losses, unpaid bills, grid infrastructure and the financial position of EDL.

Energy Minister Joe Saddi has already identified several unresolved issues, including unpaid electricity bills from public institutions, compensation owed to EDL and the financial burden of repairing infrastructure damaged during the war.

These are not minor administrative problems.

They affect whether any private investor can expect to be paid for the electricity it produces.

Qatar may be willing to finance power plants.

But investors will still require credible contracts, enforceable payment arrangements and functioning institutions.

The government also has to move quickly.

Lebanon has received electricity proposals before, including renewable-energy projects that were delayed or never implemented.

This time, the involvement of QatarEnergy, the proposed long-term gas agreement and the broader financing structure offer an opportunity to move beyond temporary solutions.

QatarEnergy has already reached an agreement with TotalEnergies to develop an initial solar project in Lebanon. Saddi has said that project could have a capacity of approximately 100 to 150 megawatts.

Yet the larger investment program is not finalized.

Both governments still need to approve the proposal, and its terms may change.

The framework will also require Lebanese institutional and parliamentary procedures before implementation.

That is where the real test begins.

Lebanon has repeatedly demonstrated that it can announce ambitious plans.

Its record of executing them is considerably weaker.

The country now has a proposal for two major power plants, long-term natural gas supply, renewable energy, storage and regional electricity imports.

It has a potential investor capable of mobilizing the financing.

It has a government that publicly acknowledges the need for private-sector participation.

And it has an economy desperately in need of cheaper, more reliable electricity.

If the project moves forward, Lebanon could begin dismantling one of the largest structural obstacles to economic recovery.

If it becomes another victim of political disputes and administrative paralysis, the opportunity will disappear like so many electricity plans before it.

For once, Lebanon may not need to find the money to solve its electricity crisis.

It needs to demonstrate that it can actually implement a solution.