Technical Aspects of the Circular No. 236 or the Setup of the NEEREA
By Pierre El Khoury, B.E. M.E.M.Manager, The Lebanese Center for Energy Conservation (LCEC)
March 28, 2011The 2nd Annual Build‐it Green Conference‐Monroe Hotel, Beirut‐ Lebanon
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What is LCEC?
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The Lebanese Center for Energy Conservation (LCEC) is the national energy agency for Lebanon catering for all energy efficiency andrenewable 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)
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
LCEC Achievements
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‐The draft energy conservation law for Lebanon
‐The national plan to phase out incandescent lamps in Lebanon
LCEC Achievements (cont’d)
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‐The National Energy Efficiency Action Plan (NEEAP) 2011‐2015‐ 14 initiatives in all sectors (lighting, solar, wind, hydro, etc.)
‐The accomplishment of around 120 energy audits in all sectors including:‐Beirut International Airport‐City Mall Dora‐Casino du Liban‐Coca Cola Plant‐Pampa Plant‐Hotel Dieu de France Hospital
LCEC Achievements (cont’d)
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‐The installation of a number of pilot project (Swedish, Greek, and Chinese grants)
‐The 3 Million compact fluorescent lamps (CFL’s) project
NEEREA
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‐Under the direct guidance of the Ministry of Energy and Water (MEW) and the Central Bank of Lebanon (BDL), the development of the new financing mechanisms for solar water heaters and the NEEREA
Why Would NEEREA Work?
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The Estimated Potential.. And Benefits
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‐LCEC believes that NEEREA (Circular No. 236) will leverage investments of around 100 Million USD in the coming 5 years, resulting in:
‐Direct money savings to the energy bill of beneficiaries (plants, facilities, houses)‐Direct money savings to the Electricité du Liban (EDL), national treasury‐Direct environmental benefits to Lebanon‐Creation of new jobs in the business‐Creation of a national momentum in a new market (positive economic activity)
Actual Potential: Example of 58 Sites
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Target Market
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• Since 2005, LCEC launched the energy audit market with more than 120 energy audit studies completed
• On average, the potential for savings is around 20% of the totalyearly energy bill
• The implementation rate of the audits completed is around 15%
• 7 qualified energy audit engineering companies (ESCO) work in the Lebanese market
Target Market (cont’d)
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• Casino du Liban: investment of 650,000 USD, annual savings of 488,000 USD
• Beirut International Airport: investment of 4.65 Million USD, annual savings of 2.13 Million USD
• The “Green Building” component in a new construction project is 5 Million USD (Downtown Beirut)
• Other examples:• City Mall• Coca Cola• Hotel Dieu de France Hospital• Phoenicia Hotel
Who Can Benefit?
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Example 1: Existing House
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‐A citizen owns a house in the 4th floor of a 5‐floor building in Beirut. The owner wants to change the following in his house:
‐Replace existing lighting with energy efficient LED lighting costing 3,000 USD and saving 100 USD per month‐Install a solar water heating system at the roof costing 2,000 USD and saving 70 USD per month‐Install a photovoltaic system at the roof costing 12,000 USD and saving around 130 USD per month
‐Is the house owner allowed to benefit from NEEREA and ask for a 17,000 USD loan with 0% interest and a repayment period of 5 years?Yes!
Example 2: Existing Residential Building
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‐A building has 8 floors, each with 2 apartments. The committee of the building wishes to install motion detectors in the entrance of the building, the stairs, and the parking at a cost of 3,000 USD and saving around 500 USD per year on the shared electricity and private generator bill ‐The committee wishes also to install a shared collective solar water heating system at the roof costing 21,000 USD and saving 6,000 USD per year
‐Is the committee of the buildingallowed to benefit from NEEREA and ask for a 24,000 USD loan with 0% interest and a repayment period of 5 years?
Yes!
Example 3: Existing Office Building
‐An office building has 4 floors being the headquarter of a commercial company. As part of the management plan to “go green”, the management decides to replace all inefficient lighting with good efficient lighting costing 23,000 USD and saving around 7,000 USD per year‐In addition, 60 computer screens need to be changed with LED screens costing 8,000 USD and saving around 3,000 USD per year‐The management also decides to install window films on the glassfaçade of the building costing 9,000 USD and saving around 2,000 USD per year
‐Is the company allowed to benefit from NEEREA and ask for a 40,000 USD loan with 0% interest and a repayment period of 5 years? Yes!
Example 4: Existing Industrial Plant
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‐Pampa plant has assigned an ESCO to conduct an energy audit study at its facilities. Pampa management decides to implement some solutions due to their attractive rate of return
Example 4: Existing Industrial Plant (cont’d)
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Is Pampa allowed to benefit from NEEREA and ask for a 485,000 USD loan with 0% interest and a repayment period of 5 years?Yes
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Example 5: Existing Commercial Mall
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‐An existing commercial mall is a part of a global network. To be consistent with the requirements of the mother company in the United States, the management of the mall decides to get a LEED (leadership in energy and environmental design) GOLD certification scheme label‐To become certified, the management needs to invest around 120,000 USD in different environmentally‐friendly measures
‐Is the commercial mall allowed to benefit from NEEREA and ask for a 120,000 USD loan with 0% interest and a repayment period of 5 years?Yes
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Example 6: Existing Hospital
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‐An existing hospital has a flat roof of more than 1,000 square meters in a windy area of Lebanon‐The owner of the hospital decides to install a combined system of wind turbines and solar photo voltaic systems that will ensure the supply of around 20% of the hospital’s energy bill‐The combined system costs 160,000 USD and saves around 20,000 USD per year
‐Is the hospital allowed to benefit from NEEREA and ask for a 160,000 USD loan with 0% interest and a repayment period of 5 years? Yes
!
Example 7: New Residential Tower
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‐An entrepreneur has finalized the design of a new luxury residential tower that will cost around 30 Million USD. In order to comply with the new environmental wave, the entrepreneur assigned a consultant to study the possibility of getting a LEED PLATINUM certification label
Average for offices and schools, based on 40 buildings in the US (ref. EEG)
PLATINUM (2 buildings)
GOLD (9 buildings)
SILVER (21 buildings)
6.8%
2.2%
1.9%
.66%CERTIFIED (8 buildings)
Conventional B
uilding Cost (100%
)
Example 7: New Residential Tower (cont’d)
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‐To become certified, the entrepreneur needs to invest an additional amount of 5 Million USD to add triple glazing to windows, double walls with insulations, water treatment and recovery plant, etc.
‐Is the entrepreneur allowed to benefit from NEEREA and ask for aloan of 15.75 Million USD (45% of the total project value, 30+5 Million USD) loan with 0% interest and a repayment period of 5 years?
Yes!
Example 8: New House
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‐A businessman wants to build a new duplex villa in his village of origin ‐According to the engineer, the house will cost around 450,000 USD‐For environmental reasons, the businessman decides to add special features to the house making it an environmentally‐friendly house‐The business decided to add the following systems: geothermal system for space heating, solar PV system for electricity production, insulations on all the house envelope. All these measures would cost an additional investment of 180,000 USD
‐Is the businessman allowed to benefit from NEEREA and ask for a 180,000 USD loan with 0% interest and a repayment period of 5 years? Yes
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Role of LCEC
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Technical review (national role)
National database (suppliers, systems, etc.)
Similar experience (compilation of efforts)
Success story (future grants)
Our Concern
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‐The concern of LCEC is to reach these targets, and to prove thatLebanon did
‐To do so, LCEC cannot be paid by the private sector for the services
‐Rather, as a national center, LCEC is supported by the MEW, UNDP, EU, and BDL
Objectives of the Lebanese Government:‐12% renewable energy by 2020‐5% reduction in energy demand by 2014‐1% reduction in GHG emissions by 2020
Conclusion: Tools by the GoL
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‐Application of net‐metering‐The wind atlas of Lebanon‐The energy conservation law
Thank You!
The Lebanese Center for Energy Conservation (LCEC)Ministry of Energy and Water‐ Corniche du Fleuve‐ First Floor‐ Room 303
Telephone: 01‐56910101‐565108
Email: [email protected]
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