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Electricity System Climate Resilience underpins grid reliability amid heatwaves and drought, integrating solar, wind, hydropower, nuclear, storage, and demand response with efficient transmission, flexibility, and planning to secure power for homes, industry, and services.

Key Points

Power systems capacity to endure extreme weather and integrate clean energy, maintaining reliability and flexibility.

✅ Grid hardening, transmission upgrades, and digital forecasting.

✅ Flexible low-carbon supply: hydropower, nuclear, storage.

✅ Demand response, efficient cooling, and regional integration.

Summer is just half done in the northern hemisphere and yet we are already seeing electricity systems around the world struggling to cope with the severe strain of heatwaves and low rainfall.

These challenges highlight the urgent need for strong and well-planned policies and investments to improve the security of our electricity systems, which supply power to homes, offices, factories, hospitals, schools and other fundamental parts of our economies and societies. This means making our electricity systems more resilient to the effects of global warming – and more efficient and flexible as they incorporate rising levels of solar and wind power, as solar is now the cheapest electricity in history according to the IEA, which will be critical for reaching net-zero emissions in time to prevent even worse impacts from climate change.

A range of different countries, including the US, Canada and Iraq, have been hard hit by extreme weather recently in the form of unusually high temperatures. In North America, the heat soared to record levels in the Pacific Northwest. An electricity watchdog says that five US regions face elevated risks to the security of their electricity supplies this summer, underscoring US grid climate risks that could worsen, and that California’s risk level is even higher.

Heatwaves put pressure on electricity systems in multiple ways. They increase demand as people turn up air conditioning, driving higher US electricity bills for many households, and as some appliances work harder to maintain cool temperatures. At the same time, higher temperatures can also squeeze electricity supplies by reducing the efficiency and capacity of traditional thermal power plants, such as coal, natural gas and nuclear. Extreme heat can reduce the availability of water for cooling plants or transporting fuel, forcing operators to reduce their output. In some cases, it can result in power plants having to shut down, increasing the risk of outages. If the heat wave is spread over a wide geographic area, it also reduces the scope for one region to draw on spare capacity from its neighbours, since they have to devote their available resources to meeting local demand.

A recent heatwave in Texas forced the grid operator to call for customers to raise their thermostats’ temperatures to conserve energy. Power generating companies suffered outages at much higher rates than expected, providing an unwelcome reminder of February’s brutal cold snap when outages – primarily from natural gas power plants – left up to 5 million customers across the US without power over a period of four days.

At the same time, lower than average rainfall and prolonged dry weather conditions are raising concerns about hydropower’s electricity output in various parts of the world, including Brazil, China, India and North America. The risks that climate change brings in the form of droughts adds to the challenges faced by hydropower, the world’s largest source of clean electricity, highlighting the importance of developing hydropower resources sustainably and ensuring projects are climate resilient.

The recent spate of heatwaves and unusually long dry spells are fresh warnings of what lies ahead as our climate continues to heat up: an increase in the scale and frequency of extreme weather events, which will cause greater impacts and strains on our energy infrastructure.

Heatwaves will increase the challenge of meeting electricity demand while also decarbonizing the electricity supply. Today, the amount of energy used for cooling spaces – such as homes, shops, offices and factories – is responsible for around 1 billion tonnes of global CO2 emissions. In particular, energy for cooling can have a major impact on peak periods of electricity demand, intensifying the stress on the system. Since the energy demand used for air conditioners worldwide could triple by 2050, these strains are set to grow unless governments introduce stronger policy measures to improve the energy efficiency of air conditioning units.

Electricity security is crucial for smooth energy transitions
Many countries around the world have announced ambitious targets for reaching net-zero emissions by the middle of this century and are seeking to step up their clean energy transitions. The IEA’s recent Global Roadmap to Net Zero by 2050 makes it clear that achieving this formidable goal will require much more electricity, much cleaner electricity and for that electricity to be used in far more parts of our economies than it is today. This means electricity reaching much deeper into sectors such as transport (e.g. EVs), buildings (e.g. heat-pumps) and industry (e.g. electric-arc steel furnaces), and in countries like New Zealand's electrification plans it is accelerating broader efforts. As clean electricity’s role in the economy expands and that of fossil fuels declines, secure supplies of electricity become ever-more important. This is why the climate resilience of the electricity sector must be a top priority in governments’ policy agendas.

Changing climate patterns and more frequent extreme weather events can hit all types of power generation sources. Hydropower resources typically suffer in hot and dry conditions, but so do nuclear and fossil fuel power plants. These sources currently help ensure electricity systems have the flexibility and capacity to integrate rising shares of solar and wind power, whose output can vary depending on the weather and the time of day or year.

As governments and utilities pursue the decarbonization of electricity systems, mainly through growing levels of solar and wind, and carbon-free electricity options, they need to ensure they have sufficiently robust and diverse sources of flexibility to ensure secure supplies, including in the event of extreme weather events. This means that the possible decommissioning of existing power generation assets requires careful assessments that take into account the importance of climate resilience.

Ensuring electricity security requires long-term planning and stronger policy action and investment
The IEA is committed to helping governments make well-informed decisions as they seek to build a clean and secure energy future. With this in mind, here are seven areas for action for ensuring electricity systems are as resilient as possible to climate risks:

1. Invest in electricity grids to make them more resilient to extreme weather. Spending today is far below the levels needed to double the investment for cleaner, more electrified energy systems, particularly in emerging and developing economies. Economic recovery plans from the COVID-19 crisis offer clear opportunities for economies that have the resources to invest in enhancing grid infrastructure, but much greater international efforts are required to mobilize and channel the necessary spending in emerging and developing economies.

2. Improve the efficiency of cooling equipment. Cost-effective technology already exists in most markets to double or triple the efficiency of cooling equipment. Investing in higher efficiency could halve future energy demand and reduce investment and operating costs by $3 trillion between now and 2050. In advance of COP26, the Super-Efficient Equipment and Appliance Deployment (SEAD) initiative is encouraging countries to sign up to double the energy efficiency of equipment sold in their countries by 2030.

3. Enable the growth of flexible low-carbon power sources to support more solar and wind. These electricity generation sources include hydropower and nuclear, for countries who see a role for one or both of them in their energy transitions. Guaranteeing hydropower resilience in a warming climate will require sophisticated methods and tools – such as the ones implemented in Brazil – to calculate the necessary level of reserves and optimize management of reservoirs and hydropower output even in exceptional conditions. Batteries and other forms of storage, combined with solar or wind, can also provide important amounts of flexibility by storing power and releasing it when needed.

4. Increase other sources of electricity system flexibility. Demand-response and digital technologies can play an important role. The IEA estimates that only a small fraction of the huge potential for demand response in the buildings sector is actually tapped at the moment. New policies, which associate digitalization and financial behavioural incentives, could unlock more flexibility. Regional integration of electricity systems across national borders can also increase access to flexible resources.

5. Expedite the development and deployment of new technologies for managing extreme weather threats. The capabilities of electricity utilities in forecasting and situation awareness should be enhanced with the support of the latest information and communication technologies.

6. Make climate resilience a central part of policy-making and system planning. The interconnected nature of recent extreme weather events reminds us that we need to account for many contingencies when planning resilient power systems. Climate resilience should be integral to policy-making by governments and power system planning by utilities and relevant industries, and debates over Canadian climate policy underscore how grid implications must be considered. According to the recent IEA report on climate resilience, only nine out of 38 IEA member and association countries include concrete actions on climate adaptation and resilience for every segment of electricity systems.

7. Strengthen international cooperation on electricity security. Electricity underpins vital services and basic needs, such as health systems, water supplies and other energy industries. Maintaining a secure electricity supply is thus of critical importance. The costs of doing nothing in the face of growing climate threats are becoming abundantly clear. The IEA is working with all countries in the IEA family, as well as others around the world, by providing unrivalled data, analysis and policy advice on electricity security issues. It is also bringing governments together at various levels to share experiences and best practices, and identify how to hasten the shift to cleaner and more resilient energy systems.

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California Income-Based Electricity Rates propose a fixed monthly fee set by income as utilities and the CPUC weigh progressive pricing, aiming to cut low-income bills while PG&E, SCE, and SDG&E retain usage-based charges.

Key Points

CPUC plan adds income-tiered fixed fees to lower low-income bills while keeping per-kWh usage charges.

✅ Adds fixed monthly fees by income to complement per-kWh charges

✅ Cuts bills for low-income households; higher earners pay more

✅ Utilities say revenue neutral; conservation signals preserved

California’s electric bills — already some of the highest in the nation — are rising as electricity prices soar across the state, but regulators are debating a new plan to charge customers based on their income level. 

Typically what you pay for electricity depends on how much you use. But the state’s three largest electric utilities — Southern California Edison Company, Pacific Gas and Electric Company and San Diego Gas & Electric Company — have proposed a plan to charge customers not just for how much energy they use, but also based on their household income, moving toward income-based flat-fee utility bills over time. Their proposal is one of several state regulators received designed to accommodate a new law to make energy less costly for California’s lowest-income customers.

Some state Republican lawmakers are warning the changes could produce unintended results, such as weakening incentives to conserve electricity or raising costs for customers using solar energy, and some have introduced a plan to overturn the charges in the Legislature.

But the utility companies say the measure would reduce electricity bills for the lowest income customers. Those residents would save about $300 per year, utilities estimate.

California households earning more than $180,000 a year would end up paying an average of $500 more a year on their electricity bills, according to the proposal from utility companies. 

The California Public Utilities Commission’s deadline for deciding on the suggested changes is July 1, 2024, as regulators face calls for action from consumers and advocates. The proposals come at a time when many moderate and low-income families are being priced out of California by rising housing costs.  

Who wants to change the fee structure?
Lawmakers passed and Gov. Gavin Newsom signed a comprehensive energy bill last summer that mandates restructuring electricity pricing across the state. 

The Legislature passed the measure in a “trailer-bill” process that limited deliberation. Included in the 21,000-word law are a few sentences requiring the public utilities commission to establish a “fixed monthly fee” based on each customer’s household income. 

A similar idea was first proposed in 2021 by researchers at UC Berkeley and the nonprofit thinktank Next 10. Their main recommendation was to split utility costs into two buckets. Fixed charges, which everyone has to pay just to be connected to the energy grid, would be based on income levels. Variable charges would depend on how much electricity you use.

Utilities say that part of customers’ bills still will be based on usage, but the other portion will reduce costs for lower- and middle-income customers, who “pay a greater percentage of their income towards their electricity bill relative to higher income customers,” the utilities argued in a recent filing. 

They said the current billing system is unjust, regressive and fails to recognize differences in energy usage among households,

“When we were putting together the reform proposal, front and center in our mind were customers who live paycheck to paycheck, who struggle to pay for essentials such as energy, housing and food,” Caroline Winn, CEO of San Diego Gas & Electric in a statement. 

The utilities say in their proposal that the changes likely would not reduce or increase their revenues.

James Sallee, an associate professor at UC Berkeley, said the utilities’ prior system of billing customers mostly by measuring their electric use to pay for what are essentially fixed costs for power is inefficient and regressive. 

The proposed changes “will shift the burden, on average, to a more progressive system that recovers more from higher income households and less from lower income households,” he said.

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OPG Credit Rating affirmed by DBRS at A (low) issuer and unsecured debt, R-1 (low) CP, Stable trends, backed by a supportive regulatory regime, strong leverage metrics, and provincial support; monitor Darlington Refurbishment costs.

Key Points

It is DBRS's confirmation of OPG at A (low) issuer and unsecured, R-1 (low) CP, with Stable outlooks.

✅ Stable trends; strong cash flow-to-debt and capital ratios

✅ Provincial financing via OEFC; Fair Hydro Trust ring-fenced

✅ Darlington Refurbishment on budget; cost overruns remain risk

DBRS Limited (DBRS) confirmed the Issuer Rating and the Unsecured Debt rating of Ontario Power Generation Inc. (OPG or the Company) at A (low) and the Commercial Paper (CP) rating at R-1 (low), amid sector developments such as Hydro One leadership efforts to repair government relations and measures like staff lockdowns at critical sites.

All trends are Stable. The ratings of OPG continue to be supported by (1) the reasonable regulatory regime in place for the Company's regulated generation facilities, including stable pricing signals for large users, (2) strong cash flow-to-debt and debt-to-capital ratios and (3) continuing financial support from its shareholder, the Province of Ontario (the Province; rated AA (low) with a Stable trend by DBRS). The Province, through its agent, the Ontario Electricity Financial Corporation (rated AA (low) with a Stable trend by DBRS), provides most of OPG's financing (approximately 43% of consolidated debt). The Company's remaining debt includes project financing (31%), including projects such as a battery energy storage system proposed near Woodstock, non-recourse debt issued by Fair Hydro Trust (Senior Notes rated AAA (sf), Under Review with Negative Implications by DBRS; 11%), CP (2%) and Senior Notes issued under the Medium Term Note Program (12%).

In March 2019, the Province introduced 'Bill 87, Fixing the Hydro Mess Act, 2019' which includes winding down the Fair Hydro Plan, and later introduced electricity relief to mitigate customer bills during the COVID-19 pandemic. OPG will remain as the Financial Services Manager for the outstanding Fair Hydro Trust debt, which will become obligations of the Province. DBRS does not expect this development to have a material impact on the Company as (1) the Fair Hydro Trust debt will continue to be bankruptcy-remote and ring-fenced from OPG (all debt is non-recourse to the Company) and (2) the credit rating on the Company's investment in the Subordinated Notes (rated AA (sf), Under Review with Negative Implications by DBRS) will likely remain investment grade while the Junior Subordinated Notes (rated A (sf), Under Review with Developing Implications by DBRS) will not necessarily be negatively affected by this change (see the DBRS press release, 'DBRS Maintains Fair Hydro Trust, Series 2018-1 and Series 2018-2 Notes Under Review,' dated March 26, 2019, for more details).

OPG's key credit metrics improved in 2018, following the approval of its 2017-2021 rates application by the Ontario Energy Board in December 2017, alongside the Province's energy-efficiency programs that shape demand. The Company's profitability strengthened significantly, with corporate return on equity (ROE) of 7.8% (adjusted for a $205 million gain on sale of property; 5.1% in 2017) closer to the regulatory allowed ROE of 8.78%. However, DBRS continues to view a positive rating action as unlikely in the short term because of the ongoing large capital expenditures program, including the $12.8 billion Darlington Refurbishment project, amid ongoing oversight following the nuclear alert investigation in Ontario. However, a downgrade could occur should there be significant cost overruns with the Darlington Refurbishment project that result in stranded costs. DBRS notes that the Darlington Refurbishment project is currently on budget and on schedule.

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BC Hydro Holiday Energy Saving Tips highlight electricity usage trends and power conservation during Christmas cooking. Use efficient appliances, lower the thermostat, and track consumption with MyHydro to reduce bills while hosting guests.

Key Points

Guidelines from BC Hydro to cut holiday electricity usage via efficient cooking, smart thermostats, and MyHydro tracking.

✅ Use microwave, toaster oven, or slow cooker to save power.

✅ Batch-bake cookies and pies to minimize oven cycles.

✅ Set thermostat to 18 C and monitor use with MyHydro.

BC Hydro is reminding British Columbians to conserve power over the holidays after a report commissioned by the utility found the arrival of guests for Christmas dinner results in a 15% increase in electricity usage, and it expects holiday usage to rise as gatherings ramp up.

Cooking appears to be the number one culprit for the uptick in peoples’ hydro bills. According to BC Hydro press release, British Columbians use about 8,000 megawatt hours more of electricity by mid-day Christmas — that's about 1.5 million turkeys roasted in electric ovens — while Ontario electricity demand shifted as people stayed home during the pandemic.
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About 95% of British Columbians said they would make meals at home from scratch over the holiday season, mirroring the uptick in residential electricity use observed during the pandemic. The survey found that inviting friends or family over trumped any plans people had to buy pre-made meals or order take-out. Six in 10 respondents said they would also rather bake holiday treats than pick them up pre-made from the store. 

The survey also showed people in B.C. are taking steps to reduce their electricity usage, echoing earlier findings that many British Columbians changed daily electricity habits during the pandemic. When participants were asked whether they were conscious of how much electricity they used when visiting friends or family, 80% said they would be taking steps to limit their usage.

And while cooking meals from scratch over the holidays may contribute to a spike in a person's electricity bill, some studies have found that, when comparing their overall environmental impact against that of ready-made meals, a roasted dinner has a lower negative impact.

Still, there are many ways to improve your energy efficiency and save some money over the holiday season, and conserving can also help the grid during events like the recent atypical storm response noted by BC Hydro. BC Hydro recommends:

• using smaller appliances whenever possible, such as a microwave, crockpot or toaster oven as they use less than half the power of a regular electric oven;

• baking cookies or pies in batches to save energy;

• turning down the household thermostat to 18 C when possible to reduce costs during peak hydro rates where applicable;

• and tracking how much electricity you use through the MyHydro tool alongside potential time-of-use rates for smarter scheduling

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Ukraine Electricity Imports surge to record levels as EU neighbors bolster grid stability amid Russian strikes, supporting energy security, preventing blackouts, and straining cross-border transmission capacity while Ukraine rebuilds damaged infrastructure and diversifies with renewables.

Key Points

Emergency EU power purchases stabilizing Ukraine’s grid after war damage.

✅ Record 19,000 MWh per day from EU interconnectors

✅ Supports grid stability and blackout prevention

✅ Cost and transmission upgrades challenge sustainability

Russia's ongoing war in Ukraine has extended far beyond the battlefield, with critical infrastructure becoming a target. Ukraine's once-robust energy system has sustained significant damage amid energy ceasefire violations and Russian missile and drone strikes. To cope with these disruptions and maintain power supplies for Ukrainian citizens, the country is turning to record-breaking electricity imports from neighboring European nations.

Prior to the war, Ukraine enjoyed a self-sufficient energy sector, even exporting electricity to neighboring countries. However, targeted attacks on power plants and transmission lines have crippled generation capacity. The situation is particularly dire in eastern and southern Ukraine, where ongoing fighting has caused extensive damage.

Faced with this energy crisis, Ukraine is looking to Europe for a lifeline. The country's energy ministry has announced plans to import a staggering amount of electricity – exceeding 19,000 megawatt-hours (MWh) per day – to prepare for winter and stabilize supplies. This surpasses the previous record set in March 2024 and represents a significant increase in Ukraine's reliance on external power sources.

Several European nations are stepping up to support Ukraine. Countries like Poland, Slovakia, Romania, Hungary, which maintains quiet energy ties with Russia today, and Moldova have agreed to provide emergency electricity supplies. These imports will help stabilize Ukraine's power grid and prevent widespread blackouts, especially during peak consumption hours.

The reliance on imports, however, presents its own set of challenges. Firstly, the sheer volume of electricity needed puts a strain on the capacity of neighboring grids. Upgrading and expanding transmission infrastructure will be crucial to ensure a smooth flow of electricity. Secondly, the cost of imported electricity can be higher than domestically generated power amid price hikes and instability globally, placing additional pressure on Ukraine's already strained finances.

Beyond these immediate concerns, the long-term implications of relying on external energy sources need to be considered. Ukraine's long-term goal is to rebuild its own energy infrastructure and regain energy independence. International assistance, including energy security support measures, will be crucial in this endeavor. Financial aid and technical expertise can help Ukraine repair damaged power plants, diversify its energy mix through further investment in renewables, and develop more resilient grid infrastructure.

The war in Ukraine has underscored the importance of energy security. A nation's dependence on a single source of energy, be it domestic or foreign, leaves it vulnerable to disruption, as others consider national security and fossil fuels in their own policies. For Ukraine, diversification and building a more resilient energy infrastructure are key takeaways from this crisis.

The international community also has a role to play. Supporting Ukraine's energy sector not only helps the nation weather the current crisis but also strengthens European energy security as a whole, where concerns over Europe's energy nightmare remain pronounced. A stable and independent Ukraine, less reliant on Russian energy, contributes to a more secure and prosperous Europe.

As the war in Ukraine continues, the battle for energy security rages on. While the immediate focus is on keeping the lights on through imports, the long-term goal for Ukraine is to rebuild a stronger, more resilient energy sector that can power the nation's future. The international community's support will be crucial in helping Ukraine achieve this goal.

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Lebanon Power Barge Controversy spotlights Karadeniz Energy's Esra Sultan, Lebanon's electricity crisis, prolonged blackouts, and sectarian politics as Amal and Hezbollah clash over Zahrani vs Jiyeh docking and allocation across regions.

Key Points

A political dispute over the Esra Sultan power ship, its docking, and power allocation amid Lebanon's chronic blackouts.

✅ Karadeniz Energy lent a third barge at below-market rates.

✅ Docking disputes: Zahrani refused; Jiyeh limited; Zouq connected.

✅ Amal vs Hezbollah split exposes sectarian energy politics.

It was supposed to be a goodwill gesture from an energy company in Turkey.

This summer, the Karadeniz Energy Group lent Lebanon a floating power station to generate electricity at below-market rates to help ease the strain on the country's woefully undermaintained power sector.

Instead, the barge's arrival opened a Pandora's box of partisan mudslinging in a country hobbled by political sectarianism and dysfunction.

There have been rows over where it should dock, how to allocate its 235 megawatts of power, and even what to call the barge, echoing controversies like the Maine electric line debate that pit local politics against energy needs.

It has even driven a wedge between Lebanon's two dominant parties among Shiite Muslims: Amal and the militant group Hezbollah.

Amal, which has held the parliament speaker's seat since 1992, revealed sensationally last week it had refused to allow the boat to dock in a port in the predominantly Shiite south, even though it is one of the most underserved regions of Lebanon.

Power outages in the south can stretch on for more than 12 hours a day, much like the Gaza electricity crisis, according to regional observers.

Hezbollah, which normally stands pat with Amal in political matters, issued an exceptional statement that it had nothing to do with the matter of the barge at Zahrani port. A Hezbollah lawmaker went further to say his party disagreed on the issue with Amal.

Ali Hassan Khalil, Lebanon's Finance Minister and a leading Amal party member, said southerners wanted a permanent power station, not a stop-gap solution, in an implied dig at the rival Free Patriotic Movement, a Christian party that runs the Energy Ministry.

But critics seized on the statement as confirmation that Amal's leaders were in bed with the operators of private generators, who have been making fortunes selling electricity during blackouts at many times the state price.

"For decades there's been nothing stopping them from building a power plant," said Mohammad Obeid, a former Amal party official, in an interview with Lebanon's Al Jadeed TV station.

"Now there's a barge that's coming for three months to provide a few more hours of electricity -- and that's the issue?"

Hassan Khalil, reached by phone, refused to comment.

Nabih Berri, Amal's chief and Lebanon's parliament speaker, who has long been the subject of critical coverage from Al Jadeed's, sued the TV channel for libel on Wednesday for its reporting.

Energy Minister Cesar Abi Khalil, a Christian, lashed out at Amal, saying the ministry even changed the barge's name from Ayse, Turkish for Aisha, a name associated in Lebanon with Sunnis, to Esra Sultan, which does not carry any Shiite or Sunni connotations, to try to get it to dock in Zahrani.

Karadeniz said the barge was renamed "out of courtesy and respect to local customs and sensitivities."

"Ayse is a very common Turkish name, where such preferences are not as sensitive as in Lebanon," it said in a statement to The Associated Press.

Finally, on July 18, the barge docked in Jiyeh, a harbour south of Beirut but north of Zahrani, and in a religiously mixed Muslim area.

But two weeks later it was unmoored again, after Abi Khalil, the energy minister, said the infrastructure at Jiyeh could only handle 30 megawatts of the Esra Sultan's 235 capacity, and upgrades such as burying subsea cables are expensive.

With Zahrani closed to the Esra Sultan, it could only go to Zouq Mikhael, a port in the Christian-dominated Kesrouan region in the north, where it was plugged to the grid Tuesday night, giving the region almost 24 hours of electricity a day.

Lebanon has been contending with rolling blackouts since the days of its 1975-1990 civil war. Successive governments have failed to agree on a permanent solution for the chronic electricity failures, largely because of profiteering, endemic corruption and lack of political will, despite periodic pushes for electricity sector reform in Lebanon over the years.

In 2013, the Energy Ministry contracted with Karadeniz to buy electricity from a pair of its barges, which are still docked in Jiyeh and Zouq Mikhael.

This summer, Abi Khalil signed a new contract with Karadeniz to keep the barges for another three years. As part of the deal, Karadeniz agreed to lend Lebanon the third barge, the Esra Sultan, to produce electricity for three months at no cost - Lebanon would just have to pay for the fuel.

The company said Lebanon's internal squabbles do not affect how long the Esra Sultan would stay in Lebanon, even amid wider sector volatility and the pandemic's impact highlighted in a recent financial update. It arrived on July 18 and it will leave on Oct. 18, it said.

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