Overview of the PV Market in

LebanonSWOT Analysis

Elie MaaloufBusiness Unit Manager, ECOsys

(Midware Data Systems Division)

‘Environment & Clean Energies’ Conference

Ecorient - June 5, 2014

About ECOsys

Overview of PV market in Lebanon

SWOT analysis

Conclusion & Recommendations

Some ECOsys PV Projects

Outline

PV installation in Aaqoura – Alfa Telecom site

About ECOsys

ECOsys is a division of Midware Data Systems

1998: Established as Midware Data Systems (formerly part of Mideast Data Systems Lebanon incepted in 1978)

About ECOsys

Solar Photovoltaic Solutions

Midware Data Systems is a member of ITG (Holding)

ITG is part of HOLCOM Holding– 200 companies in 35 countries– 4,350 professionals–Operating since 1967

Identity

ITG Solutions

Software

Services

Hardware & Infrastructure

Overview of the PV Market in

Lebanon

Overview of PV Market in Lebanon

Power grid is instable

Grid is heavily subsidized by the government

Need for hybrid solutions:– Not totally off-grid nor 24/7 stable on- grid solutions where PV is a cost effective solution– More challenging systems between ‘off-grid’ & ‘grid connected’, with higher costs and more complexity

Approx. 100 companies active in PV, in Lebanon

PV is not yet a sustainable business– All these companies are not solely focused

on PV, and have other means of revenue

PV installations in Lebanon (2013)– Less than 5 MW

Overview of PV Market in Lebanon

Overview of PV Market in Lebanon

Different types of PV systems installed:

– Active street lighting (By ministries of Energy & Water and Public Affairs:In South/ Bekaa / North / Dahr El Baydar

–Off-grid systems for Telecom applications (~ 20 sites with Alfa, Touch and other private companies)

– Residential systems with storage

– Industrial & commercial systems without storage

Government support mechanisms–NEEREA introduced 3 years ago• Low interest rate• Up to 4 years of grace period• Up to 10 years repayment period• BDL grant (5% or 15%)• Increasing use of NEEREA loans

–Net Metering introduced, 2.5 years ago• Smart meters installed by EDL• Increased use of Net Metering, for the past year

Overview of PV Market in Lebanon

SWOT Analysis

Favorable environmental conditions– 300 days of sunlight – Very suitable temperatures for the panels operation– Minimal dust and sand

Several professionalcompanies & individuals– Good local expertise– Challenging market situation & conditions, helped built expertise

Increasing PV market, created by a large number of companies

Strengths

LCEC/MEW & UNDP/CEDRO actively promoting PV in Lebanon– PV systems with backup

installed in many public schools& institutions(~ 65 sites via CEDRO)

– Grid connected sites: ~ 100kW/site, in private institutions, to be implementedwith CEDRO IV

– Beirut River Solar Snake PV project by LCEC

– NEEREA loan and Net Metering with UNDP, BDL & MEW support– Other awareness campaigns

Strengths

CEDRO: PV installation in Qartaba Municipality

Instable grid, frequent grid cuts

– Competitive PV prices: (in residential applications

vs generators)

– More people encouraged towards renewable energy and energy independency

Strengths

PV v/s Generator

EDL price is heavily subsidized– Rates/ kWh(for industry)

– EDL average cost: 3 X more than its selling price!

Weaknesses

Night80 LL

Day112 LL

Peak Hours320 LL

PV system is less cost effective, as opposed to countries like Germany, where cost is ~ 0.30$/kWh (450 L.L)

EDL instability– Situation in between completely off-grid

where PV is a very cost effective solution, & 24/7 PV with Feed-In Tariff (FIT)

No FIT, just NET metering

No regulation for IPP yet This is key for further market development

Weaknesses

Low awareness on PV technology & benefits

No national regulations on certified products & companies

No national certifications and trainings qualifying individuals & companies

Weaknesses

No ‘long term plan’ mentality in Lebanon, as opposed to European countries– Lebanese prefer to pay for

their actual consumption, rather than installing a system that produces their energy for 20 years ahead

Weaknesses

Low PV penetration rate Big potential– Residential– Commercial sector: Industries– Institutions: companies, universities..– PV Street lighting

Grid becomes stable 24/7 with non-subsidized prices => Increased potential

Introduction of FITs and IPP Quality control of products & companies by the

government Leading to the creation of a sustainable PV market

Opportunities

Considerable decrease of PV Systems prices

Opportunities

Decrease of PV prices by 66% (Graph of German residential prices)

Political situation of the country– Instable situation discourages people

to invest on PV systems

Introduction of very favorable support mechanisms should be well controlled– Example: Spain market boomed in 2008 due to very

generous support mechanisms (such as high FITs…), then dropped after removal of the support

Threats

What after NEEREA loans?

– Actual financial facilities are VERY attractive

–What will happen without NEEREA financing?

Threats

Too many companies involved in the PV market – Small market– PV business not sustainable – Poor know-how in several companies– “Low” quality products in several companies,

Negative effect on the PV market

Threats

Possibility of petroleum & natural gas in the Lebanese shores– Petroleum price will become more

attractive – Focus might shift to petroleum

instead of PV

Possible increase of PV prices, worldwide!

Threats

Conclusion - Recommendations

Opportunity for growth of PV market in Lebanon is well present

PV Market development is directly affected by the electricity & political situations, as well as PV incentives in Lebanon

Excellent incentives have been put forth in recent years (NEEREA, Net Metering..)

For a long term sustainable growth of the PV market, policy makers are required to build on these incentives and put forth stronger regulations (IPP, FIT..), spread more awareness, apply standardizations (companies, products..), and exercise quality control

Conclusion - Recommendations

Some of ECOsys’ PV Projects

UNDP - CEDROHybrid PV Systems in 17 sites across Lebanon (Public Schools, Municipalities…)

ACE New HQAC Coupled System (Grid Inverters with Batteries)

AlfaOff-Grid & Hybrid Telecom PV Installations

Holcom New HQGrid connected Crystalline Rooftop and Thin Film Façade

20|30 20|30 PV Façade Residential Towers, Jamil Saab Achrafieh (Ongoing)

Global Warming

Global Warming

Global Warming

Thank you for your

attentionFor more info:

www.ecosys.com.lb