Lebanon's power sector has long been constrained by insufficient generation capacity and high network losses. In its Summer 2026 Lebanon Economic Monitor, the World Bank assesses that the economy is projected to contract by 6.4 per cent in 2026, after the recovery momentum of around 4.2 per cent growth recorded in 2025 was interrupted by renewed conflict, leaving reconstruction and recovery needs urgent. The World Bank-led Lebanon Emergency Assistance Project (LEAP) is structured as a USD 1 billion scalable framework with an initial USD 250 million from the World Bank; critical infrastructure and buildings across transport, water, energy, municipal services, education and healthcare sustained around USD 1.1 billion in damage during the 2023 to 2024 conflict, and energy is identified as a priority public service for restoration. Expanding domestic generation capacity and reducing dependence on imported fuel is the foremost task for the sector.
The Lebanese Electricity Regulatory Authority has announced an extension of the deadline for submissions under its expression of interest for electricity generation projects to 30 September 2026, giving investors and developers additional time to prepare their files; the announcement states that all other terms and requirements of the expression of interest remain unchanged. The expression of interest serves to identify potential electricity generation projects in Lebanon, covering grid-connected solar PV with battery storage alongside distributed thermal generation, and is structured under an independent power producer model, with any future contractual arrangements such as power purchase agreements at the discretion of the relevant public authority.
Distributed solar has been the fastest growing source of generation in Lebanon in recent years. According to figures published by the International Renewable Energy Agency, Lebanon's cumulative solar capacity rose from 1,081 MW at the end of 2024 to 1,505 MW at the end of 2025. The current call for up to 350 MWp of centralised solar with up to 1,000 MWh of storage extends that growth from distributed installations towards utility-scale projects.
| Item | Content |
|---|---|
| Scope of the Call | Grid-connected solar PV generation projects in Lebanon, with total capacity of up to 350 MWp across up to five projects |
| Storage Requirements | Battery energy storage systems paired with the solar projects, with total capacity of up to 1,000 MWh |
| Thermal Generation Component | Distributed thermal generation projects of 20 to 100 MW net capacity each, operating primarily on natural gas with heavy fuel oil available as a back-up fuel |
| Contract Model | Independent power producer (IPP) model |
| Developer Responsibilities | Selected developers assume land acquisition or leasing, all required permits, project design, financing, construction, interconnection, testing, commissioning and long-term operation and maintenance |
| Project Locations | The specific location and individual capacity of each project have not been published at this stage of the call |
| Subsequent Stages | The information received supports preparation of the subsequent licensing, procurement and project implementation stages |
| Item | Content |
|---|---|
| Contract Term | Utility-scale solar IPP projects ordinarily operate under long-term power purchase agreements of 20 to 25 years |
| Tariff Mechanism | Centralised renewable energy tenders ordinarily establish tariffs through competitive processes, priced per kilowatt hour with an annual indexation mechanism |
| Bid Security | Comparable tenders ordinarily require a bid guarantee, typically 1 to 2 per cent of the total bid value |
| Performance Security | A performance guarantee is ordinarily required after contract signature, commonly at 10 per cent of contract price |
| Advance Payment | Advance payment is generally not provided for IPP projects; the developer arranges construction financing |
| Payment Terms | Tariffs are settled monthly against metered generation, ordinarily subject to metering and settlement verification procedures |
| Risk Allocation | Grid connection conditions, land tenure and force majeure risks ordinarily sit with the public side, while construction and operating risks sit with the developer |
| Dispute Resolution | Comparable projects ordinarily apply the law of the host country with international arbitration as the final recourse |