Distributed energy cost recovery for a fragile utility: The case of Électricité du Liban


Previous research on distributed solar PV (DPV) systems in Lebanon has focused on studying these systems from the perspective of developers. This study examines the impact of DPV expansion from the perspective of a fragile and inefficient power utility, Électricité du Liban. Specifically, this paper studies the economics and policy options of on-grid systems via a net-metering scheme. The analysis yields two primary recommendations: In the absence of tariff reform for cost recovery, DPV policies should promote self-consumption; and after cost recovery is achieved, DPV tariff should ensure an adequate price differential that balances the interests of EDL and prosumers.