The Lebanese Electricity Woes: An Estimation of the Economical Costs of Power Interruptions

Elie Bouri () and Joseph El Assad
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Joseph El Assad: Faculty of Sciences, Holy Spirit University of Kaslik 2, Jounieh, Lebanon

Energies, 2016, vol. 9, issue 8, 1-12

Abstract: This paper contributes to the political and scientific debate surrounding the economic costs entailed by the regular power cuts in Lebanon. Examining the data on electricity consumption that was produced by onshore and offshore power plants, this paper estimates the economical costs of power interruptions in Lebanon over the period 2009–2014. Based on 700 USD/MWh, representing the average value of lost load (VOLL) in that period, results indicate that electricity shortages continue to render significant transfers of wealth to the detriment of economy and society as a whole. Over the period 2009–2014, the total losses for the Lebanese economy reached 23.23 billion USD. Just as importantly, some evidence suggests a sharp decline in the economical costs of power interruptions with the inception of the two floating power plants in 2013. The results are crucial for the decision makers to identify the economic efficiency of alternative measures to enhance the security of the Lebanese electricity supply.

Keywords: electricity outage costs; security of electricity supply; floating power plants; Lebanon (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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