The document discusses renewable energy potential and policies in Lebanon. It notes Lebanon's high solar radiation and existing reliance on imported fossil fuels for electricity. Though Lebanon has promising potential for wind and solar power, development has been hindered by laws limiting private electricity sales. Programs like CEDRO and NEEREA aim to support pilot renewable projects and financing. Future plans under Lebanon's NEEAP include adopting grid codes, carrying out prefeasibility studies, and providing incentives to develop utility-scale solar and wind farms.
Arab Region Progress in Sustainable Energy Challenges and Opportunities
Lebanon
1. Renewable Energy in Lebanon:
Promising Potential, Diminishing Challenges, and Evolving Policies
By: Nader Hajj Shehadeh
Pricing Renewables: Feed-in Tariff Design and Structure for Wind Farms and Solar (PV-CSP) Plants
NREA , Cairo
October 23-27, 2011
3. Lebanon in Brief
• Area: 10,452 m2 (1% of Egypt’s)
• Population: 4.1 million (5% of Egypt’s)
• Electricity Demand: 15,000 MWh (17% of Egypt’s)
• Electrification Rate: 99%
• Electricity Supply:
– 96% Thermal
– 4 % Hydro
• Electricity Deficit: ≈30%
• Fuel Supply: 100% import
• Solar Radiation: 1500 - 1900 kWh/m2
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4. Lebanon in Brief
• Electricity Prices (US Cents):
Residential 3.2 13
Commercial 9
Industrial 5 20.6
Production 19.6
Cost
Average 8.8
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5. The Market in Lebanon
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6. The PV Market in Lebanon
• Installed Capacity: ≈ 600 kW
• Major Applications:
– Electricity Production
– Water Pumping
– Street Lighting
• Major Sectors:
– Residential & Commercial
– Agricultural
– Public Services
– Telecommunication
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7. The PV Market in Lebanon
• 2005-2011: Growth of 700%
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8. The Wind Market in Lebanon
• Installed Capacity: ≈ 100 kW
• Major Applications:
– Electricity Production
– Water Pumping
– Street Lighting
• Major Sectors:
– Residential & Commercial
– Agricultural
– Public Services
– Telecommunication
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9. Obstacles
• Major Problem:
– The Electricity law in Lebanon limits the electricity trade to
the EDL
– People are allowed to generate their own electrify but not
sell it or trade it.
• Tax Incentives
– 0% custom on PV and Wind systems
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10. Support Programmes
• CEDRO
• Created in October 2007 for 5 years with a budget of $9.73
million funded by the Lebanon Recovery Fund by means of
a donation from Spain.
• Implements renewable energy pilot projects mainly in solar
thermal, solar PV, and recently wind energy.
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11. PV Support Programmes
• Achievements of CEDRO
• 26 PV projects (≈ 40 kW)
• 24 Electricity
• 2 street lighting
• Competitive bidding
shaving off prices
• Technical trainings and
capacity building workshops
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14. Wind Support Programmes
• Achievements of CEDRO
• Wind Atlas is published
Onshore 1.5 GW 6.1 GW
Potential
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15. Wind Support Programmes
• Data Gathering
• Anemometers installed on
site to gather wind speed
data
• Afterwards, micro-wind
applications will be installed
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16. The Financing : Net Metering
• Net metering is launched by the
ministry and the local authorities
to be implemented by the end of
the year
• This is to be a first step towards a
proper feed-in policy
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17. The Financing : NEEREA
• NEEREA is developed in coordination with BDL
(Circular No. 236)
• Applies to environmental projects including
collective solar water heating systems
• NEEREA helps facilities to have loans at 0% interest
and with full risk guarantee.
• It was officially launched and banks are being
trained.
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18. The Financing : NEEREA
Expressing interest in implementing an RE
project
Design of project & submittal of technical
offer
Preparation of feasibility study
Submittal of proposal (technical and
Beneficiary feasibility) to commercial bank
RE Company
Send application to Central Bank of
Lebanon
Commercial Bank
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19. The Financing : NEEREA
Sends Applications to LCEC
Reviews applications and sends
recommendations to Central Bank
Considers LCEC recommendation and
decides on the project
Commercial Bank
Sends official results to commercial bank
Central Bank
Commercial Bank notifies the beneficiary
LCEC
NB: Doesn’t apply to huge production farms
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21. The NEEAP of Lebanon
Initiative 6: Electricity Generation from Wind Power
This initiative aims to promote the generation of electricity through the use of
wind energy. This can only be achieved through technical and policy related
actions.
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22. The NEEAP of Lebanon
Initiative 6: Electricity Generation from Wind Power
Next Steps
•Wind energy market survey
•Adopt a grid code
•Independent Power Production (IPP) 100-200 MW by 2014.
•Financial incentives
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23. The NEEAP of Lebanon
Initiative 7: Electricity Generation from Solar Energy
This initiative aims to start the development and promote the generation of
electricity through the execution of Photovoltaic (PV) and Concentrated Solar
Power (CSP) farms. For this to be achieved, proper policy and technical actions
are to be taken in addition to ensuring the right financial modalities.
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24. The NEEAP of Lebanon
Initiative 7: Electricity Generation from Solar Energy
Next Steps
•PV market survey
•Adopt a grid code to serve as an implementation decree
•Prefeasibility study for PV and CSP farms
•Financial incentives
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