Mira Attieh

Lebanon has significant energy security challenges marked by a growing deficit in supplyand full dependence on aging and fossil-fuel-based power plants. As a result, Lebanesesuffer from around 12 hours of daily blackout, considerable financial losses, and thehighest rates of air pollution in the MENA region. Unlike the current state-owned electricitysector, decentralised renewable power generation could diversify the country’s energyresources, enable people to participate in solving the problem, and help the country reachits renewable energy target. So far, the sector has been promoted through occasionalinternational donations and the Government’s subsidised loans,the future of which is uncertaingiven the current fiscal crisis.

This research aims to find a sustainable business model for promoting decentralisedrenewable power generation in Lebanon and to pave the way for its implementation. Toanswer the research questions, the study draws upon literature, key-informant surveys,and semi-structured interviews conducted with experts in the Lebanese energy sector.The application of the host-owned model, community-owned model, and third-party-ownedmodel in Lebanon is evaluated using the business model canvas. A thematicanalysis is then conducted to identify the barriers facing the implementation of the mostsuitable business model and solutions for overcoming them. Finally, an economic modelis developed to analyse the impact of some of the identified barriers and the feasibility ofthe proposed solutions.

The analysis reveals that the third-party-ownership model is more feasible, desirable, andviable than the host-owned and community-owned models when combined with net metering.Moreover, the study identifies six barriers hindering the development of thethird-party-ownership business model in Lebanon and discusses solutions capable ofenabling the right environment for its application. This research reduces the gap in theliterature related to the renewable energy sector in Lebanon and serves to inform reformplans aimed at the power sector’s transition to renewables.