Levant: Where politics defeat alternative energy disruptions

Abstract

This chapter suggests that while alternative energy—AE—is sought after to improve the energy security and the economy, it can challenge the political status quo. This is the case in the Levant, a region heavily reliant on fossil fuel imports. Countries across the region are investing in AE. They have adopted regulations and financing models endorsing public–private partnerships. Consequently, AE is expected to challenge hitherto highly monopolized electricity markets but intensifies competition with incumbent fossil fuel imports and vested interests. In Lebanon, decentralized AE may impact the governance structure and circumvent bottlenecks that have prevented improvements in the electricity sector for decades. AE would improve Jordan’s political and economic stability and transform its relationship with foreign actors. As for Palestine, AE could reduce electricity dependence on Israel. On the regional level, AE may increase the prospects for electricity exchange, which may also subject countries to a risk of a switch of vulnerability from a supply disruption caused by pipelines, to one caused by grids, or may foster cooperation. The analysis covers the political economy and examines the opportunities and shortcomings in AE implementation. In so doing, it unravels the competition and conflicts of interests of the various stakeholders.