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

Author

Listed:
  • Elie Bouri

    (USEK Business School, Holy Spirit University of Kaslik 1, Jounieh, Lebanon)

  • Joseph El Assad

    (Faculty of Sciences, Holy Spirit University of Kaslik 2, Jounieh, Lebanon)

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.

Suggested Citation

  • Elie Bouri & Joseph El Assad, 2016. "The Lebanese Electricity Woes: An Estimation of the Economical Costs of Power Interruptions," Energies, MDPI, vol. 9(8), pages 1-12, July.
    • Handle: RePEc:gam:jeners:v:9:y:2016:i:8:p:583-:d:74784
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    References listed on IDEAS

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    2. Jenail Mobaraka & Lian Elkazzaz & Niveen Rizkalla, 2022. "Challenges of Researchers in Conducting International Study during the Eruption of COVID-19: Student and Mentor Perspectives," IJERPH, MDPI, vol. 19(2), pages 1-12, January.
    3. Alix Chaplain & Éric Verdeil, 2022. "Governing Hybridized Electricity Systems: The Case of Decentralized Electricity in Lebanon," Post-Print hal-03814475, HAL.
    4. Wang, Qianzi & Zhou, Qi & Lin, Jin & Guo, Sen & She, Yunlei & Qu, Shen, 2024. "Risk assessment of power outages to inter-regional supply chain networks in China," Applied Energy, Elsevier, vol. 353(PB).
    5. Harajli, H. & Kabakian, V. & El-Baba, J. & Diab, A. & Nassab, C., 2020. "Commercial-scale hybrid solar photovoltaic - diesel systems in select Arab countries with weak grids: An integrated appraisal," Energy Policy, Elsevier, vol. 137(C).
    6. Rafal Ali & Ikramullah Khosa & Ammar Armghan & Jehangir Arshad & Sajjad Rabbani & Naif Alsharabi & Habib Hamam, 2022. "Financial Hazard Prediction Due to Power Outages Associated with Severe Weather-Related Natural Disaster Categories," Energies, MDPI, vol. 15(24), pages 1-25, December.
    7. Alix Chaplain & Éric Verdeil, 2022. "Governing Hybridized Electricity Systems: The Case of Decentralized Electricity in Lebanon," SciencePo Working papers Main hal-03814475, HAL.
    8. Nour Wehbe, 2021. "The future costs of renewable electricity generation technologies in Lebanon : what projections for 2030 ?," Post-Print hal-02951669, HAL.
    9. Gunduz, N & Kufeoglu, S. & Winzer, C. & Lehtonen, M., 2018. "Regional Differences in Economic Impacts of Power Outages in Finland," Cambridge Working Papers in Economics 1841, Faculty of Economics, University of Cambridge.
    10. Ikramullah Khosa & Naveed Taimoor & Jahanzeb Akhtar & Khurram Ali & Ateeq Ur Rehman & Mohit Bajaj & Mohamed Elgbaily & Mokhtar Shouran & Salah Kamel, 2022. "Financial Hazard Assessment for Electricity Suppliers Due to Power Outages: The Revenue Loss Perspective," Energies, MDPI, vol. 15(12), pages 1-24, June.
    11. Neda Hajibandeh & Miadreza Shafie-khah & Sobhan Badakhshan & Jamshid Aghaei & Sílvio J. P. S. Mariano & João P. S. Catalão, 2019. "Multi-Objective Market Clearing Model with an Autonomous Demand Response Scheme," Energies, MDPI, vol. 12(7), pages 1-16, April.

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