Iran's offer to power Lebanon seen as 'publicity stunt'

BEIRUT -- Iran's offer to help Lebanon build two power stations amid its current electricity crisis has been dismissed as a publicity stunt in Lebanon and derided in Iran, where the population also faces rolling blackouts.

During a March 24-25 visit to Beirut, Iranian Foreign Minister Hossein Amir-Abdollahian reiterated an earlier offer to help Lebanon build two power plants.

When the offer was first made, in October 2021, critics accused Hizbullah of seeking to exploit the crisis to invite Iranian experts and technicians from the Islamic Revolutionary Guard Corps (IRGC) onto Lebanese soil.

This time around, Lebanese economists were quick to point out that Iran itself is suffering from a power generation crisis.

They also noted that accepting Iranian assistance would further strain Lebanon's relations with its Arab and Gulf neighbours, which Lebanon seeks to repair, and which recently have been on the mend.

In Beirut, Amir-Abdollahian met with Lebanese President Michel Aoun, Prime Minister Najib Mikati, Foreign Minister Abdullah Bou Habib and Hizbullah chief Hassan Nasrallah.

In addition to reiterating Iran's readiness to help Lebanon build power plants, using Iranian companies, he noted that Iranian companies are willing to assist with oil and gas exploration.

Mikati reportedly welcomed Iran's ideas, in terms of helping with the construction of power plants, but linked the timing of any assistance to the successful conclusion of Iran's nuclear agreement with world powers.

This is out of concern that Lebanon could be subjected to sanctions as a result of its dealing with Iran, which remains under sanctions.

Lebanon is facing a severe electricity crisis, which has seen Electricité du Liban (EDL) adopt a rigid rationing programme to supply the country with power.

The electricity sector is responsible for an estimated annual deficit of $2 billion, which has increased the public debt to more than $100 billion.

Iran's political sphere

Lebanese economist Violette Ghazal al-Balaa likened Amir-Abdollahian's recent visit to a "diplomatic raid" on Beirut's political decision to restore relations with its Arab and Gulf neighbours.

The Iranian move is an attempt to disrupt these relationships and "keep Lebanon in Iran's political sphere", she told Al-Mashareq.

The Iranian foreign minister's visit to Beirut came as Mikati headed to the Doha Forum, in the hope of softening the Gulf's stance on Lebanon, she said.

The Iranian proposal to build power plants in Lebanon and co-operate in other areas "is not serious and not feasible, and falls under the category of empty slogans", al-Balaa said.

"Building a power plant requires investment conditions that can be met, legally and economically, most notably the Public Tenders Law, on the basis of which Lebanon is working to develop its infrastructure," she said.

It can take years to build a power plant, she said, and the cost of such an undertaking can range between $500 million and $750 million.

The Iranian proposal "appears to be devoid of any guarantees about Lebanon's compliance with the obligations of the US sanctions laws", she added, noting that at present, Tehran is still under US sanctions.

"It is impossible for Lebanon to establish any economic or commercial co-operation with Iran without exposing itself to [the risk of] direct sanctions."

Iran's energy crisis

Lebanese Centre for Research and Studies head Hassan Qutb said the Iranian proposal to build power plants is a "stunt and not serious because Iran itself has been suffering from a power generation and distribution crisis since 2021".

Last July, this triggered widespread unrest and protests in Iran, he said, suggesting that the Iranian regime fix its own crisis before it steps in to try and resolve the issues Lebanon is facing.

"The solution is not to build new power plants, as the Iranian minister stated, especially since [existing] power plants produce about 80% of Lebanon's electricity needs," Qutb said.

It is rather "to put an end to the rampant theft of electricity, which is one of the primary conditions set by the International Monetary Fund (IMF) to finance the purchase of gas and electricity from Egypt and Jordan".

He noted that some Bekaa Valley villages have been exempted from paying for electricity on the pretext that they are "resistance villages".

"Hizbullah and the Amal movement are deliberately ignoring the implementation of the solution because their base is benefiting from the chaos," he said.