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Electricity Shortages Cost the Economy 4,000 Billion Syrian Pounds

The direct and indirect losses resulting from the shortage of electricity are estimated at 4,081 billion Syrian pounds, B2B writes.
Electricity Cuts Cost the Economy More than 4,000 Billion Syrian Pounds
Electricity Shortages Cost the Economy 4,000 Billion Syrian Pounds

A local memorandum revealed that the failure to supply electricity to the industrial and utility sectors caused significant losses to the national economy. The estimated indirect losses to the Syrian economy (in terms of opportunity costs) caused by electricity shortages since the end of 2020 amounted to around 4,081 billion Syrian pounds (Around 1,130 billion dollars at the free market rate, editor’s note).

A Ministry of Electricity source revealed that the average electric load and the base cost of supplying a new house with electricity in Syria currently reach 2,000 USD, according to the local newspaper al-Watan.

The base cost for electricity generation is 1,200 USD per kilowatt, 400 USD per kilowatt for electricity transport, and 300 USD per kilowatt for electricity distribution. These figures do not account for fluctuations in the Syrian pound and global inflation costs on future equipment prices.

Read Also: Electricity Sectors Losses in Syria up to 100 Billion Dollars

Investment credits (excluding operational costs) of up to 1.5 billion USD annually to expand the generation, transportation, and distribution capacity of the Syrian electricity grid, equivalent to 1,900 USD per kilowatt. This estimate does not take into account the high prices of electrical equipment globally; nor does it factor in reliable technologies such as coal or nuclear power plants, or some high-cost renewable energy plants.

An estimate exists for the total losses suffered by the electricity sector from the beginning of the war in Syria until the end of 2020. This estimated value amounts to around 2,040 Syrian pounds, and covers damage suffered in various parts of the electricity network, including transmission and distribution infrastructure, as well as damage to buildings and equipment (cranes, engineering, and utilities).

The estimated direct and indirect losses from the failure to provide electricity are 4,081 billion Syrian pounds, calculated based on the value of the unused kWh (kilowatt per hour), equivalent to 50 SYP/kWh (50 Syrian pounds per kilowatt per hour) on the basis of the exchange rate of 50 SYP/USD (50 Syrian pounds per one USD).

This article was edited and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.

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