The Lebanese Experience in Energy Efficiency and Renewable Energy

Transcription

1 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.

2 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

3 What Do We Really Do? Energy Audits CO2 Emissions Reduction National Pilot Projects

4 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.

5 With the overwhelming decrease in energy efficiency and renewable energy prices along with the acceptable local Financial facility and Grants. Energy Efficiency and Renewable Energy are no more a Luxury, They are simply Successful Feasible Alternatives

6 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

7 Hierarchical Approach Declaration of the Lebanese Government Political Commitment Policy Paper for the Electricity Sector Strategic Vision for the Energy Sector National Energy Efficiency Action Plan (NEEAP) Detailed Applicable Approach

8 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

9 14 Initiatives Energy Efficiency Renewable Energy Legal and Awareness 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 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 Adoption of Energy Conservation Law and Institutionalization of the LCEC Building Code for Lebanon Financing Mechanisms and Incentives Awareness and Capacity Building

10 Examples of Implementation NEEREA Global Solar Water Heaters Initiative BRSS Project

11 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.

12 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

13 Financing Technical Quality Review 0% Interest Rate Motivating Long Repayment Marketing Momentum, Initiative, Action.. NEEREA

14 Till date 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

15 Global Solar Water Heaters Initiative

16 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 m 2 of new installed collector area over the

17 NEEREA for Solar Water Heaters Policy and Finance Info & Marketing Technical and Pilot Projects Quality Control CoM Decision No March 2010 SWH Loan with 0% int.- 5 years 200 USD Grant Subsidy List of Qualified Companies

18 Ideal Projected Estimations Estimated Current and Future Solar Installations (in m 2 ) ( ) 1,003,988 1,053,988 Ideal Target for 2011: 38,000 m 2 783, , , , , , , , , , , , , ,

19 12,197 solar water heaters are installed in the residential sector of Lebanon in The estimated market value for solar water heaters in Lebanon reached 18,131,183 USD in ,557 citizens benefitted from interest-free loans

20 Ideal Versus Real Ideal Target for 2011: 38,000 m 2 Actual Real Target in 2011:43,500 m2 2012: 66,000 m2 2013: 77,000 m2

21 SWH Market 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

22 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

23 7 km 10 MW 10K houses 40M USD

24 Grid-connected to 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

25 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

26 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;

27 Capacity Building/ Technical Know-how Financial Support and Schemes Energy Efficiency Market Potential Legislative/ Admin. Support Marketing and Awareness Raising

28 Thank You! The Lebanese Center for Energy Conservation (LCEC) Ministry of Energy and Water- Corniche du Fleuve- First Floor- Room 303 Telephone: