The Lebanese Experience in Energy Efficiency and Renewable Energy

By Patil Mesrobian

LCEC Representative

Regional Seminar on: «Enabling Policies for Financing Energy Efficiency Investments»

14 April 2014, Ramada Plaza Hotel - Gammarth, Tunis - Tunisia.

What is LCEC?

The Lebanese Center for Energy Conservation (LCEC) is the national energy agency for Lebanon catering for all energy efficiency and renewable energy matters. In 2011, LCEC achieved to stand out as an independent organization affiliated to the Ministry of Energy and Water and is now financially and administratively independent and operates under the direct supervision of the Minister. LCEC has succeeded in establishing itself as the technical point of reference specialized in energy conservation issues within the structure of the MEW and the Lebanese Government

Energy Audits

National Pilot

Projects

CO2 Emissions Reduction

What Do We Really Do?

Lebanon, a Country… That relies heavily on energy import to generate 1,500 MW of Electricity. Exhausted with utility blackouts exceeding 30% of daily hours. Where electrical energy bill contributes almost 6% of GDP. Where environment and clean means of generating energy is another essential virtue. Where diesel backup generator is one other default household appliance.

Energy Efficiency and Renewable Energy are no more a Luxury, They are simply Successful Feasible Alternatives

With the overwhelming decrease in energy efficiency and renewable energy prices along with the acceptable local Financial facility and Grants.

Contributing to the common national goal

In the Copenhagen Summit in 2009, Lebanon committed itself to reach 12% of its electricity needs by renewable energy

Government of Lebanon

•“ […] The reduction in energy demand through the use of energy conservation measures and renewable energy applications”

•“[…] The setup of a national road map built on environmental concepts to reach 12% of renewable energy by the year 2020”

Ministry of Energy and Water

•“ […] Demand growth control in order to save a minimum of 5% of the total demand”

•“[…] Commits to launching, supporting and reinforcing all initiatives to adopt the utilization of renewable energies to reach 12% of electric and thermal supply”

LCEC

•“ [..] NEEAP includes 14 initiatives in the energy efficiency and renewable energy sectors for the period 2011-2015”

Hierarchical Approach

Declaration of the Lebanese Government

Policy Paper for the Electricity Sector

National Energy Efficiency Action Plan (NEEAP) 2011-2015

Political Commitment

Strategic Vision for the Energy Sector

Detailed Applicable Approach

NEEAP and Decision Makers

• Lebanon’s NEEAP approved by the Ministry of Energy and Water in December 2010

• NEEAP approved by the Council of Ministers in November 2011

• Whenever the NEEAP complements the vision and strategy of the government, an approved NEEAP could facilitate the fund raising of EE programs

• Lebanon is the first Arab country to have its NEEAP approved by the Government

14 Initiatives

Energy Efficiency

Renewable Energy

Legal and Awareness

Promotion of PV and Wind Applications in the Residential and Commercial Sectors Solar Water Heaters for Buildings and Institutions Electricity Generation from Wind Power Electricity Generation from Solar Energy Hydro Power for Electricity Generation Geothermal, Waste to Energy, and Other Technologies

3

4

6

7

8

9

Adoption of Energy Conservation Law and Institutionalization of the LCEC Building Code for Lebanon Financing Mechanisms and Incentives Awareness and Capacity Building

2

10

11

12

Banning the Import of Incandescent Lamps to Lebanon Design and implementation of a national strategy for efficient public street lighting Paving the Way for Energy Audit and ESCO Business Promotion of Energy Efficient Equipment

13

5

1

14

Examples of Implementation

NEEREA

Global Solar Water Heaters Initiative

BRSS Project

NEEREA is the National Energy Efficiency and Renewable Energy Action

•NEEREA is a national financing mechanism initiated by the Central Bank of Lebanon in collaboration with the Ministry of Energy and Water, the Ministry of Finance, UNDP, the European Union (EU), and the LCEC. •NEEREA allows private sector entities (individuals, SME’s, or corporate bodies) to apply for subsidized loans for any type of EE and/or RE projects. •NEEREA covers loans by any Lebanese commercial bank with 0.6% interest rate and a repayment period of up to 14 years, in addition to a grant amount released after the project is implemented.

Architecture of NEEREA

• MEW sets the strategic guidance and priority in energy efficiency and renewable energy

• As the national financing institution, BDL sets the framework of operation and offers benefits to banks

• MoF defines the subsidies on interest rates for the different sectors of the economy

• EU has offered BDL a grant of 12 Million Euros to encourage SME’s in applying for NEEREA

• UNDP partnered with BDL to offer technical support, training, marketing, and awareness raising activities

• LCEC is the technical consultant to BDL, reviewing

loan applications, and setting quality control criteria

Financing

0% Interest Rate

Long Repayment

Marketing

Motivating

Technical Quality Review

Momentum, Initiative, Action.. NEEREA

• More than 120 loans approved with a total of 150 million USD

• 3 types of loan size: • Tower XYZ: 22 Million USD • Mall XYZ: 13 Million USD

• Geitawi Hospital: 230,000 USD • Hotel XYZ: 214,000 USD

• Residential houses: ranging from 5,000 to 24,000 USD

Till date…

Global Solar Water Heaters Initiative

Framework: SWH Initiative

•In 2009, The Government of Lebanon signed a new project with UNDP entitled “The Country Programme of Lebanon under the Global Solar Water Heating Market Transformation and Strengthening Initiative” •This global initiative is funded by the Global Environment Facility (GEF) and co-managed by UNEP and UNDP •The initiative involves 6 countries: Albania, Algeria, Chile, India, Lebanon and Mexico •This initiative aims at accelerating the market development of solar water heating in Lebanon with an objective to facilitate the installation of 190,000 m2 of new installed collector area over the period 2009-2014

Policy and Finance Info & Marketing Technical and Pilot

Projects Quality Control

NEEREA for Solar Water Heaters

List of Qualified Companies

CoM Decision No. 59- 10 March 2010

SWH Loan with 0% int.- 5 years 200 USD Grant Subsidy

104,000 114,400 131,560

151,294 173,988

211,988 249,988

287,988 325,988

363,988 413,988

493,988

613,988

783,988

1,003,988

1,053,988

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Estimated Current and Future Solar Installations (in m2) (2005-2014)

Ideal Projected Estimations

Ideal Target for 2011: 38,000 m2

12,197 solar water heaters are installed in the residential

sector of Lebanon in 2011.

The estimated market value for solar water heaters in Lebanon

reached 18,131,183 USD in 2011.

3,557 citizens

benefitted from interest-free loans

Ideal Target for 2011: 38,000 m2

Ideal Versus Real

Actual Real Target in 2011:43,500 m2

2012: 66,000 m2

2013: 77,000 m2

•68% growth rate between 2008 and 2011 •Target installation for the years 2010 and 2011 is met and exceeded •All financing done by Lebanese private commercial banks

SWH Market

The Beirut River Solar Snake (BRSS) Project • To promote renewable energy and energy efficiency in

Lebanon. • Reduce the large existing gap between supply and demand

7 km

10 MW

10K houses

40M USD

Phase 1: PV Farm of 1 MW • Call for Expression

for Interest (EOI)

• PV farm of 1 MW capacity

• Available budget: 4 Million USD (actual cost 3.1 Million USD)

• Funding by the Ministry of Energy and Water through LCEC

• Grid-connected to EDL national grid

Measures and Concerns

• Project installation on the surface of the river (no flooding risk)

• Project will cover the river (less water evaporation)

• Panels will be spacious (no confinement)

• Project will be protected by a fence and security personnel (against vandalism)

• Farm will give a better “look” to the river

• Best applicable standards in engineering/ environment

MEW Policy Paper and Lebanon’s NEEAP

• The Beirut River Solar Snake (BRSS) will be a landmark to initiate a national momentum towards the implementation of solar technologies for electricity production;

• The involvement of the private sector will lead to the national targets of installing around 200 MW of solar farms by 2020;

Energy Efficiency

Market Potential

Capacity Building/ Technical

Know-how

Legislative/ Admin. Support

Marketing and

Awareness Raising

Financial Support

and Schemes

Thank You!

The Lebanese Center for Energy Conservation (LCEC) Ministry of Energy and Water- Corniche du Fleuve- First Floor- Room 303

Telephone: 01-569101 01-565108

Email: energy@lcecp.org.lb