Lebanese Electricity from Iran? Not so Fast

The supply of Electricity from Iran to Lebanon would be convenient for Iran and for some Lebanese parties, but it won’t be happening anytime soon.

Tehran, we have a problem

In the news today is a statement by an Iranian official that Lebanon could be getting Iranian electricity as soon as next week. Considering the state of affairs of the electricity in Lebanon, many would gladly (if begrudgingly) take that offer. But don’t hold your breath, it won’t happening anytime soon.

For such a deal to come through, according to a Lebanese ministerial source, three things need to happen:

• Cables would need to be laid from Iran to Lebanon via Aleppo, which is logistically impossible considering what is happening in Syria today
• Iran would need to find way to finance the deal without breaking international sanctions. Its current plans are not acceptable.
• The two sides need to agree on pricing. That didn’t happen yet.

Considering how immature such a project is, why are some Iranian and Lebanese officials talking about it in the media?

A political convenience for two sides.

From the Lebanese side, a lot of people are desperate for better electricity. Some politicians are calculating that an improvement of the electrical supply in Lebanon, even if it came from Iran, would be a popular thing to do. It also doesn’t hurt that these politicians are strategically aligned to Iran in the regional game of chess.

From the Iranian side, Tehran is feeling the heat from international sanctions on its banking sector. It’s trying hard to find new channels to get hard currency in. Selling electricity to Lebanon using cash would provide a nice little source of Euros to the Islamic Republic.

Too bad those pesky Lebanese bankers are more afraid from the American treasury department than they are of Iranian guns. But who knows? The Iranians are persistent and they will keep dangling that forbidden fruit in front of the starving Lebanese..