The Power Cuts Cause Crisis in Arab Nations Threatening Economies and Livelihoods

Seven Arab countries are currently grappling with persistent power outages, causing significant strain on both their populations and economies. While the underlying causes of these electricity shortages differ from nation to nation, the consequences are universally severe, particularly during the sweltering summer months when access to air conditioning is often a matter of comfort and health.

The most severely affected countries include Egypt, Iraq, Lebanon, Syria, Yemen, Sudan, and Kuwait. In response to these challenges, many residents have turned to renewable energy sources, which, although helpful, have also placed a burden on their finances.

In recent months, Egypt’s electricity crisis has escalated, prompting the government to implement controlled power cuts lasting two to three hours daily. To help citizens plan their routines, the Egyptian Electricity Holding Company introduced a schedule for these outages. The government has also promised to address the technical issues contributing to the shortages, with Prime Minister Mustafa Madbouly noting that electricity consumption in 2024 has reached unprecedented levels, about 12% higher than in 2023. He acknowledged the need for an additional 3 to 4 megawatts of power daily, with plans to source this from new and renewable energy projects in collaboration with the United Arab Emirates. Currently, only 12% of Egypt’s electricity comes from renewable sources.

The power shortages also indirectly affect agricultural production. A soybean farmer reported difficulties in obtaining fertilizer due to the electricity crisis, which has forced several fertilizer companies, including the Misr Fertilizers Production Company (MOPCO), to halt operations. The state’s electricity company redirected gas supplies, which were meant for fertilizer production, to power its own stations, leading to a decline in fertilizer availability. This shortage has not only driven up fertilizer prices but also contributed to rising food costs, further fueling inflation.

Lebanon, too, has been severely impacted by power cuts, which sometimes last up to 24 hours, disrupting every aspect of daily life, including education. Although the state power company, Electricite du Liban, managed to increase the electricity supply to six to ten hours per day earlier this year, the situation remains dire.

In Iraq, protests erupted in the al-Diwaniyah province due to a “complete lack of electricity” amid scorching temperatures. Although Iraq is rich in oil and gas, it produces only 26,000 megawatts of electricity, far short of the 35,000 megawatts needed to meet local demand. Ironically, Lebanon relies on fuel imports from Iraq to alleviate its own power crisis despite Iraq’s ongoing struggles.

The power cuts across these countries are largely due to deteriorating infrastructure at electricity plants and fuel shortages. Despite having four times the gas reserves of Egypt, Iraq produces only a fraction of the electricity and depends heavily on gas imports from Iran.

The extent of power outages varies. Yemen experiences outages lasting up to 12 hours a day, Iraq and Sudan up to 14 hours, Lebanon up to 20 hours, Syria between 10 and 20 hours, and Egypt and Kuwait between two and three hours.

Electricity is crucial for economic growth and production. Yemeni economic expert Mustafa Nasr highlighted that countries facing power shortages have also seen declines in their GDP. He explained that a three-hour power cut in Egypt could lead to a loss of about 90 hours of production per month, equating to around 45 days of lost productivity annually, excluding the country’s 22 national holidays. In 2023, Egypt’s GDP was approximately $396 billion, while Iraq’s was $251 billion, Kuwait’s $162 billion, and Yemen’s last recorded figure was $21 billion in 2018.

Economics and finance professor Ahmed al-Sayyed attributed the recent electricity issues partly to rising global temperatures, predicting that 2024 could be the hottest year on record. He noted that different countries’ infrastructures and production capacities are affected differently by the heat.

The Copernicus Climate Change Service (C3S) reported that July 22, 2024, was the hottest day on record so far, with temperatures in Japan, Indonesia, and China reaching unprecedented highs. Meanwhile, Arab Gulf countries and other Arab nations faced extreme heat, with temperatures exceeding 60 degrees Celsius, and some European cities also experienced temperatures over 45 degrees.

Mohammed Youssef, director of economic research at an Arab center, emphasized that addressing power outages requires a multi-faceted approach. He suggested focusing on the ability to produce sufficient power, strengthening networks to ensure electricity reaches all regions, and regulating production in areas that receive power. Energy sector adviser Hafez Salmawy noted that Egypt’s electricity crisis is primarily due to a lack of fuel caused by a shortage of foreign currency, a problem that also affects Kuwait. In contrast, Syria and Yemen face more complex challenges due to damaged infrastructure and economic sanctions, making their situations more politically driven.

Oil-rich Libya is also struggling with political issues that hinder its ability to resolve power problems, while Iraq, despite having the financial resources, suffers from outdated networks and low production capacity.

Although the reasons for power outages differ across these countries, they all fall under the broader issue of energy security, which is affecting populations and threatening economies. Youssef suggested that renewable energy, particularly solar power, should play a more prominent role in the energy mix of Arab countries, given their climates. He also recommended developing early detection plans for crises, which could be formulated using data on climate change.

Iraqi economic expert Dargham Mohammed Ali echoed the sentiment, advocating for the increased use of renewable energy, especially solar power, as an effective solution for Arab nations facing these challenges.

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