I saw this interesting video on the Lebanese Institute for Market Studies FB page where they are promoting the idea of legalizing electricity production and distribution to solve Lebanon’s Power Crisis.
They are arguing that since the electricity crisis is mainly due to the financial losses that the EDL is enduring on a yearly basis and their inability to provide 24/7 electricity to all, we should encourage the private sector to produce electricity and compete. That way, prices will eventually drop as more competitors join the market and 24/7 electricity will be available to all.
In theory, this sounds great but in practice it will never work. Given how corrupt the government is, they will never allow competition and give licenses to their own people only. Take for example the generator owners nowadays, each has his own area and no one is “allowed” to compete with him even though it’s perfectly legal to do so.
The only solution to Lebanon’s power crisis is to privatize EDL or reproduce the EDZ model in different areas. More importantly, the authorities should raise awareness on renewable energies and encourage people to invest in solar panels and other eco-friendly means.