Insights on the Energy Efficiency and Renewable Energy Development in Lebanon By Pierre El Khoury, B.E., M.E.M. Director- Lebanese Center for Energy Conservation (LCEC)
CHEDE MED Workshop 5 June 2013
Institut des Finances- Beirut, Lebanon
What is LCEC?
2
The Lebanese Center for Energy Conservation (LCEC) is the national energy agency for Lebanon catering for all energy efficiency and renewable energy matters
LCEC is affiliated to the Lebanese Ministry of Energy and Water (MEW) and receives the direct managerial and financial support of the United Nations Development Programme (UNDP) (end of 2013)
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
National Pilot
Projects
CO2
Emissions
Reduction
Energy Efficiency and Renewable Energy
4
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”
5
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 2011-2015
6
Lebanon’s NEEAP includes 14 independent but interrelated national initiatives.
1-EE Lighting 5-Public Street Lighting 13-ESCO’s 14-EE Standards and Labels
3-Decentralized PV/Wind 4-SWH 6-Wind 7-PV/CSP 8-Hydro 9-Geothermal
2-Energy Conservation Law 10-Building Code 11-Financing Mechanisms 12-Awareness and Capacity Building
7
• 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
NEEAP and Decision Makers
8
RCREEE 2012.
2011الطاقة المتجددة فى دول المركز فى
Renewable Energy Production
RCREEE 2012.
RCREEE 2012.
Installed RE Capacity (w/o Hydro)
0%
2%
4%
10%
10%
10%
12%
15%
20%
25%
40%
40%
42%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Bahrain
Iraq
Syria
Jordan
Libya
Sudan
Lebanon
Yemen
Egypt
Palestine
Algeria
Tunis
Morocco
RE Share (%)
Renewable Energy Targets in RCREEE Countries
RCREEE
The countries considered are those members in the Regional Center of Renewable Energy and Energy Efficiency (RCREEE), i.e. the southern and eastern
Mediterranean Arab Countries plus Bahrain, Iraq, Sudan and Yemen.
The capacities include the awarded and under construction projects, e.g. the 60MW wind under construction in Libya and the recently awarded PV projects in
Bahrain are taken into consideration, the total capacity of wind in Egypt includes the operational 550MW plus the recently awarded 200MW, similarly, the
by 2020 (electricity)
by 2030 (electricity)
by 2030 (electricity)
by 2020 (energy)
by 2020 (electricity)
by 2025 (electricity)
by 2020 (electricity)
by 2016 (electricity)
by 2025 (electricity)
by 2020 (P.E.)
by 2030 (P.E.)
by 2030 (electricity)
RE Targets
NEEREA… vs. Oil and Gas
•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.
13
NEEREA is the National Energy Efficiency and Renewable Energy Action
14
• MEW sets the strategic guidance and priority in energy efficiency and renewable energy
Architecture of NEEREA
• 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
15
Financing
0% Interest Rate
Long Repayment
Marketing
Motivating
Technical Quality Review
Momentum, Initiative, Action.. NEEREA
16 NEEREA Circular No. 236 issued on 25 November 2010
International College, Beirut, Educational Loan amount: 22 Million USD LEED Gold (first LEED certified building in Lebanon)
ACE Engineering Headquarter, Sin El Fil, Commercial Loan amount: 3.7 Million USD LEED Gold
Khauli Building, Hamra, Residential Loan Amount: 2 Million USD EE and RE
Yarze 1674, Yarze, Residential Loan amount: 2.3 Million USD BREEAM Very Good
17
• More than 50 loans approved with a total of 87.7 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
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
20
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 Target for 2011:
38,000 m2
Ideal Projected Estimations
21
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
22
Ideal Target for 2011:
38,000 m2
Ideal Versus Real
Actual Real
Target in 2011:
43,500 m2
The Beirut River Solar Snake (BRSS) Project
24
7 km
10 MW
10K houses
40M USD
Phase 1: PV Farm of 1 MW
25
• Call for Expression for Interest (EOI)
• PV farm of 1 MW capacity
• Available budget: 4 Million USD
• Funding by the Ministry of Energy and Water through LCEC
• Grid-connected to EDL national grid
26
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
27
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;
28
Energy Efficiency
Market Potential
Capacity Building/ Technical Know-how
Legislative/ Admin. Support
Marketing and
Awareness Raising
Financial Support
and Schemes
EGY EGY LEB LEB MOR MOR PAL PAL TUN TUN ALG JOR
2011 2013 2011 2013 2011 2013 2011 2013 2011 2013 2011 2011
Technical Development of EE BCs
(Envelope)
Technical Development of EE BCs
(Active systems)
Legal Framework Development
Endorsement of Legislation
Institutional Set-up
Implementation
Enforcement
Monitoring & Evaluation
Upgrading / adjustment
www.med-enec.eu 29
Need to start
In progress
Achieved
EE Building Code Study September 2011 vs. April 2013
Energy Efficiency Progress in Construction Sector
30
Conclusion
Since 2008
National economy driver is real estate For the next years…
Lebanon’s economy driver would (probably) be green energy
Thank You!
31
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: [email protected]
