This paper examines in detail the electric energy sector in Lebanon on the levels of both the supply and end-use sides. The aim of the study is to assess the feasibility of implementing some energy efficiency options in the country. For this purpose, baseline scenarios will be first developed to examine the effects of government policies with regard to the energy balance, and then energy efficiency scenarios will be built for the residential, commercial and industrial sectors. Feasible options will be highlighted and recommendations to remove barriers hindering the fast penetration of energy efficiency programmes in the Lebanese energy sector will be provided. Throughout the analysis, uncertainties related to factors such as discount rates, demand growth and technology penetration rates will be treated by defining lower and upper bounds on their variations, and will be accommodated through scenario-type analysis, Copyright (C) 2001 John Wiley & Sons, Ltd.