Subsidizing Electricity in Lebanon

Marie Tyl

“Electricity is the mother of all problems in Lebanon … the size of the problem is beginning to pose a danger to public finances” – M. Chatah, Lebanese former Finance Minister.

Electricite du Liban (EDL), the state’s electric utility, operates seven thermal plants fueled by gasoil, fuel oil, and natural gas. It also runs six hydro-electric power plants. The national utility enjoys a quasi-monopoly over the power sector in Lebanon. However, for reasons ranging from inefficient operation and management to a freeze-of-tariffs government policy, the electricity company has to rely on significant subsidies from the Ministry of Finance to cover its deficit. During 2011, for example, approximately USD 1.57 billion were transferred from the state treasury to EDL, 93% of which was allocated to purchase oil. This subsidy constitutes one fifth of total public expenses, and according to a 2009 social impact analysis by the World Bank “is putting macroeconomic stability at risk”.

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Sustainable Transportation in the Middle East

Karim Elgendy and Wissam Yassine

Developing transportation networks and facilitating access and mobility are major constituents of the economic development of any country or region. Yet transportation also poses great economic and environmental challenges as a major energy consumer and a major contributor to global greenhouse gas emissions.

In the Middle East, the transportation sector is challenged on both fronts. On one hand, its underdeveloped and inefficient networks continue to hinder economic development. In addition, the transportation sector represents a major consumer of energy in the region and a primary contributor to carbon emissions. In 2008, the transportation sector was estimated to be responsible for 31% of the region’s total energy use – a relatively high proportion compared to the global average of 27% – while the road sub-sector alone was responsible for 18% of energy use – compared to 14% globally.

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The Power Sector in Lebanon

Guy El Khoury

From Electricity Concessions to National Grid

1885 is generally considered as the birth year of the electricity network in Lebanon. It is the year where the first concession for a network of gas lighting was established in Beirut when the city was still under Ottoman rule. Over the following decades, the development of the electricity infrastructure across the country was carried out by similar independent regional concessions.

Although the electricity network progressively expanded to cover major cities of the country, this scheme of infrastructure development failed to benefit all citizens and regions equally. Industrial development for example was only concentrated in areas where concessions provided reliable supply (Beirut suburbs and Chekka in the North).

It is only in the early 1960s that the improvement of access to electricity became a government priority. In fact, electrification was a key pillar of nation-building efforts spearheaded by president Fouad Chehab (1958 – 1964), who saw extending the electricity network to the entire Lebanese territory and unifying tariff schemes across the country as a guarantee for reliable and equal access to electricity for all citizens.

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Averting Crisis: Managing Energy Use in Abu Dhabi

Lara El Saad

Recognised as one of the world’s largest oil producers, Abu Dhabi, the capital of the United Arab Emirates, holds 94% of the country’s proven oil reserves and 90% of its natural gas, making it the wealthiest of the seven emirates in the federation. In recent years, and despite the recent economic downturn, Abu Dhabi maintained a steady pace of development that was accompanied with steady increases in energy demand and consumption.

This growth of energy demand and consumption has been as result of a number factors. Prime amongst which is economic growth and the demographic pressures of a growing population. But equally important to these factors are the heavy subsidies on the domestic energy market, which encourages overconsumption, and the heavy subsidies on domestic water use, which play a major factor in the growth of energy use in Abu Dhabi.

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Passive Cooling: Responding to Electricity Demand in the UAE

Wissam Yassine and Karim Elgendy

During the 1990s and the early 2000s, the UAE, and the city of Dubai in particular, witnessed a rapid rate of growth in its built environment driven by a real estate bubble. In the span of a few years the city’s unprecedented rate of growth, which was driven by both demand and speculation, completely transformed the city. But such growth came at a price.  Driven by their need for quick returns, developers cared little beyond delivering a building on time and on schedule. Speed of construction often came at the expense of quality, and issues of performance and energy use played almost no role in the design and construction processes. Common disregard of performance was also fueled by the fact that most buildings were commissioned for developers – rather than owner/occupier clients – since their focus lied solely on reducing initial capital expenditures without considering operating costs that are typically borne by tenants.

Figure 1. Photo of the Masdar Institute Courtyard showing the wind tower, and the layered facades of residential units. Copyrights: Nigel Young/ Foster+Partners

These commercial forces, coupled with relatively cheap electricity across the UAE, and a lack of demanding building regulations have paved the way to the development of unsustainable design practices over the last decade. A typical office building in the UAE today is a predominantly glazed high rise tower. Basic design decisions such as orientation, massing, and envelope design are usually made without much regard to their impacts on the buildings’ energy performance, and passive cooling strategies are rarely considered.

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A Visual Guide to Energy and Emissions in the Middle East

Karim Elgendy

Following on Carboun’s recent article discussing the two trends of energy and carbon emissions in the Arab World. Carboun has recently released a visual guide to energy and emissions with the goal of explaining the fundamentals of energy use in the region and how it relates to carbon emissions, economic development, climate change, and renewable energy. The guide, which was researched and designed by Karim Elgendy, was based on raw data provided by the World Bank and the World Resources Institute. It aims to explain the regional trends in local details but within the global context. Copyrights for all infographics are reserved for Carboun. No reproduction or republishing of any infographic or part thereof without prior written consent from Carboun.

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Two Trends of Energy and Carbon Emissions in the Arab World

Karim Elgendy

Discussions on the environment in the Arab World have traditionally been limited to the negative impact of region’s fossil fuel exports on climate change. In recents years, a more regional discourse has emerged that also addressed the region’s water scarcity, rapid urbanization, environmental degradation, and the expected impact of global climate change and sea level rise on its most vulnerable regions.

Map showing emissions in countries of the arab world as percentage of global emissions. Copyrights: Carboun

However, such discussions often overlooked the region’s own energy and ecological footprints and the impact of its own energy use on climate change. In the past , such disregard may have been justified by the fact that the region had not yet experienced the kind of economic development and prevalent consumerism that was common in most of the developed world. Such justification was supported by the region’s historically low rate of energy use and carbon emissions. In fact, the Arab world which constitutes 5% of the world’s population, emits just under 5% of global carbon emissions according to World Bank data, and except for Saudi Arabia, no single Arab country is responsible for more than 1% of global emissions. The energy use of an average Arab person is still below the world average and less than half that of an average european.

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