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CATALYZING SOLAR ENERGY IN LEBANON: A FIRST STEP TOWARDS A 100% RENEWABLE ENERGY ELECTRICITY SECTOR
JUNE
2016
A Greenpeace Mediterranean report
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List of Acronyms & Abbreviations
Amp Ampere IPP Independent Power Producer
BDL Banque du Liban IRI Industrial Research Institute
BRSS Beirut River Solar Snake ISO International Standards Organization
CAS Central Administration of Statistics kW Kilowatt
CEDRO Community Energy Efficiency &
Renewable Energy Demonstration
Project for Lebanon
kWh Kilowatt-hour
CSP Concentrated Solar Power LBP Lebanese Pound
DREG Small Decentralized Renewable Energy
Power Generation
LCEC Lebanese Center for Energy
Conservation
EDA Electricité de Aley LCOE Levelized Cost of Electricity
EDB Electricité de Bhamdoun MEW Ministry of Energy and Water
EDJ Electricité de Jbeil MW Megawatt
EDL Electricité Du Liban NEEAP National Energy Efficiency Action Plan
EDZ Electricité de Zahle NEEREA National Energy Efficiency and
Renewable Energy Action
EN European Norm PG Private Generators
GEF Global Environment Facility PSL Public Street Lighting
GHI Global Horizontal Irradiance PV Photovoltaic
GW Gigawatt RE Renewable Energy
GWh Gigawatt Hours UNFCCC United Nations Framework
Convention on Climate Change
Ha Hectare USC United States Cent
HFO Heavy Fuel Oil USD United States Dollar
IEA International Energy Agency
Wp Watt-peak
IEC International Electrotechnical
Commission
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Table of Contents
List of Acronyms & Abbreviations
Table of Contents
List of Figures
The Energy [R]evolution
What about Lebanon?
The Facts
The Electricity Sector in Lebanon
The Status Quo
Electricity Tariff
Solar & Renewable Energy in Lebanon
Solar PV and Renewable Energy Potential in Lebanon
Current Situation of Solar Energy in Lebanon
First steps towards 100% Renewable Energy
Barriers to renewable energy expansion
Recommended actions
CONCLUSION
References
Appendices
Appendix A: Tips on your next PV purchase
Appendix B: Questionnaire results PV market awareness
level of 997 respondents Lebanon
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List of Figures
Figure 1: EDL power supply breakdown 2015 [5]
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Figure 2: Electricity supply breakdown in Lebanon in GWh for 2015 [5] 9
Figure 3: Shares of renewable energy potential by capacity (internal) and power (External) 12
Figure 4: GHI levels in Lebanon [9] 12
Figure 5: Filtered potential land areas for PV farms in Lebanon [9] 13
Figure 6: PV installed and energy generated in kWp and MWh[6][7] 16
Figure 7: Application procedure for NEEREA loans 17
4
The Energy [R]EVOLUTION
In December 2015, a global climate agreement was reached in Paris and a clear signal
was sent to the world: The fossil fuel era is coming to an end. The transition to a world
powered by 100% renewable energy is inevitable. However, the real question is if this
transition will happen in time to limit the global average temperature increase to 1.5°C
and minimize the catastrophic impacts of climate change. According to the
Intergovernmental Panel on Climate Change (IPCC), humankind cannot emit more than
1,000 Giga-tons of CO2 from now, if we are to stay within this limit [1]. At the current and
projected rate of consumption, this entire carbon budget will be used by 2040. It is
therefore essential to move rapidly towards a decarbonized energy system – in an ideal
case one that delivers 100% renewable energy by 2050.
The Greenpeace Energy [R]Evolution global scenario not only shows that reaching a
world powered by 100% renewable energy by 2050 is crucial, it is feasible. There are no
major economic or technical barriers to moving towards 100% renewable energy by
2050 [2].
The global energy sector is changing rapidly. Renewable energy technologies have
become mainstream in most countries as a result of dramatically falling prices.
Renewable energy is being deployed on a massive scale, with the potential to provide
clean, accessible and affordable energy to all. In 2015, renewable energy provided 90%
of new electricity generation according to the International Energy Agency [3].
The renewable energy revolution has reached the Middle East. Morocco has
inaugurated Noor Ouarzazate, the biggest solar plant in the world and has pledged to
reach a renewable energy target of 52% of the total installed power capacity by 2030.
Other Middle Eastern countries such as Egypt and Jordan are increasingly relying on
renewable energy to reach true energy security and independence.
What about Lebanon?
Lebanon has great renewable energy potential. If fully exploited, solar energy alone
could fill the electricity demand of the country. Despite this great natural wealth,
Lebanon is clearly lagging behind. The government’s pledge to reach a renewable
energy goal of 12% of electric and thermal supply by 2020 seems more and more out of
reach. In 2015, the renewable energy share in electricity generation reached 2.7%,
mainly coming from hydro.
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If Lebanon wants to up its game and have a shot at true energy security and
independence, then the following needs to happen:
Update and perfect the legal and policy framework
Update and strengthen the regulatory framework
Increase and improve technical capacity and quality of infrastructure
Increase awareness around renewable energy.
The current political crisis is paralyzing the legislative and policy work and hindering any
needed regulatory reform that would enable large-scale renewable energy deployment
and set the country on a path towards true energy security and independence.
Despite this political deadlock, there is an enabling environment for the development
and proliferation of decentralized solar photovoltaic (PV) systems for private electricity
generation whereby Lebanon’s favorable climate conditions and the availability of
existing support program have allowed the Lebanese PV industry to grow and gain
expertise.
However, this growth is not happening fast enough. It has been plagued by myths and a
lack of awareness among the Lebanese population that is discrediting private PV
systems as a viable solution to the electricity woes of many Lebanese. According to a
recent Greenpeace Mediterranean questionnaire (Appendix B), more than 65% of
respondents have declared being unaware of the existence of net metering and of
attractive green loans in Lebanon. Furthermore, 60% of respondents that stated their
unwillingness to install a PV system mentioned the high cost as the main reason. Little
they know that PV prices have dropped tremendously since the beginning of the decade
to a level that can compete with private generators subscriptions when associated with
the available financing schemes.
Considering all these factors, raising awareness of the Lebanese population around
private PV systems is the most likely starting point to ignite the spark towards an energy
revolution. It wouldn’t be the first time people have shown the way.
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The Facts
EDL electricity shortage is estimated to be between 30% and 35% of the demand
In 2009, the average available capacity from EDL was of 1500 MW and the average
demand was of 2000 - 2100 MW
Around 70% of EDL’s electricity shortage is filled by private generators
Around 40% of electricity generated by EDL is lost in the distribution lines due to
technical and non-technical problems
Solar energy could fill all the energy demand in Lebanon
There is more than 300 sunny days a year in Lebanon. This is higher than Germany,
a European solar powerhouse!
The production costs as well as selling prices of PV components dropped by more
than 80% since the start of the current decade.
Between 2011 and 2015, more than $450 million were invested in renewable
energy, energy efficiency and green buildings in Lebanon
LCEC estimates an installation capacity of 20 MW of PV in 2015, forecasting more
than 50 MW of new projects to be installed in 2016
1 kWp PV system is more or less equivalent to what we know as 5 Amps
In Lebanon, a 1 kWp PV system would need a collection area of around 8 square
meters and would produce around 4.2 kWh a day, reducing greenhouse gas
emissions by no less than 996 kg of CO2-eq a year.
BDL offers a financing scheme to solar PV system (called NEEREA), with a soft loan
covering 100% of the system price at low interest rates between 0.325% and
1.075%.
Most Lebanese banks are offering NEEREA loans
The levelized cost of solar PV ranges between 5.6 and 11.5 USC per kWh which is
generally cheaper than levelized cost of generators (subscription and privately
owned)
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The Electricity Sector in Lebanon
Lebanon’s first electricity power plant was built in 1910, in Karantina, with an overall
capacity of 240 kW. The plant built by “Société Anonyme Ottomane des Tramways et
de l’Électricité de Beyrouth” with a Belgian capital was powered by fuel oil and delivered
power to the city of Beirut through a 5,000 Volt distribution network with 8 stations.
Thirteen years later, a French company called “Electricité de Beyrouth” was established
to take over until 1954 when the government of Lebanon cancelled the concession and
established a new department “Electricity and Public Transport Department”. In 1961,
the department was split into two separates department, the first for public
transportation and the second for electricity. The latter is what is now known as
Electricité Du Liban (EDL), which is responsible for the production and distribution of
electricity to reach all users.
The Status Quo
Lebanon has an electrification rate of more than 99%, with electricity demand estimated
to have reached 20,000 GWh per year, growing at an average of 6 to 7% per year [4].
Experts estimate EDL electricity shortage to be between 30% and 35% of the demand,
only 70% of which is supplied through private generators.
EDL provides electrical energy to end-users through a number of methods and sources,
with a big portion produced by local thermal power plants owned and operated by EDL.
These power plants use heavy fuel oil and diesel, although most of them were designed
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to operate on natural gas. The unavailability of natural gas forces EDL to use diesel oil
instead.
Other sources of EDL electricity come from hydropower plants operated in a variety of
locations. The electricity provided through hydro varies by and range from a few
megawatts to a few thousands per month, depending on the weather conditions and
water availability.
In addition, EDL purchases power from Syria to supply bordering locations. Power is
purchased at a flat rate with the source of power unknown, but mainly considered
thermal. In 2013, the Ministry of Energy and Water signed a contract with Turkish
barges to provide Lebanon with power.
Figure 1: EDL power supply breakdown 2015 [5].
These sources, combined, are sufficient to supply around 70% of the local energy
demands. The rest is either left unsupplied or provided through private and public
generators. The concept of “generator subscription” relates to individuals or companies
owning and running private diesel generators and supplying electricity to the public
through paid subscriptions. The subscription is normally bound by “Amperage”, normally
5 Amps, 10 Amps, 15 Amps, or 20 Amps.
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Figure 2: Electricity supply breakdown in Lebanon in GWh for 2015 [5].
On the other side, the use of renewable sources of energy is an emerging method
where private users install their own PV ministrations to provide power for their
residence, office, business, or even industrial facility. These installations are still in the
range of few kilowatts, with only a few in the range of hundred kilowatts.
Electricity Tariff
Most Lebanese end-users pay two electricity bills by the end of the month. The first for
EDL electricity (the main power supplied) and the second for back-up power, which is
normally done either through an on-site generator or a subscription to a commercial
diesel generator.
The first is billed per kWh consumed based on a tariff structure adopted in 1994 and
never adapted since then. The other is billed through diesel bills in case of an on-site
generator or based on the subscription rating ranging from 5 Amps to more than 30
Amps.
EDL Tariff
Users pay for EDL electricity based on the subscription type they have. The bill is
usually paid on monthly basis, or bimonthly in some cases, billed per kWh consumed of
active power, and that of reactive power in some cases.
Low Voltage (Domestic)
Applied to: Lighting, homes, and some commercial use
Tariff type: Slots
Tariff: From 35 LBP/kWh (2.3 USC) to 200 LBP/kWh (13.3 USC)
Low Voltage (Public)
Applied to: Street lighting, public buildings, medical centers, worship places, etc...
Tariff type: Flat
Tariff: 140 LBP/kWh (9.33 USC)
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Low Voltage (Handicraft and Agriculture)
Applied to: Industry, craftsmen, agriculture, water treatment and pumping
Tariff type: Flat
Tariff: 115 LBP/kWh (7.6 USC)
Medium Voltage (Handicraft and Agriculture)
Applied to: Industry, craftsmen, agriculture, water treatment and pumping
Tariff type: Flat
Tariff: 130 LBP/kWh (8.6 USC)
Medium Voltage (Industry)
Applied to: Industrial facilities
Tariff type: Slots
Tariff: From 80 LBP/kWh (5.3 USC) to 320 LBP/kWh (21.3 USC) based on day-night-peak slots
High Voltage
Applied to: All high-tension users
Tariff type: Flat
Tariff: 115 LBP/kWh (7.7 USC) for all industries
75 LBP/kWh (5.0 USC) for Sibline & Kadisha
Generator Subscription
In 2011, the Ministry of Energy and Water launched a new scheme by which it issues
tariff guidelines at the end of every month for the pricing of generator services in
Lebanon. All providers have to abide by the Ministry’s tariff guidelines according to
Decree No. 2 issued by the Council of Ministers on 2011/12/14.
The tariff guidelines indicate a fair price for each hour of generator use depending on
the level of subscription (5 or 10 amperes) based on the price of diesel fuel and the
associated costs for generator operation, as well as a profit margin for their owners. The
tariff is published on monthly basis on the Ministry of Energy and Water official website1.
The most recent guideline of November 2015 was based on an average diesel price of
13,217 LBP per 20 liters (0.44 USD/liter), setting the price of 225 LBP (15 USC) per
hour of supply for 5 Amp subscriptions, and 450 LBP (30 USC) for 10 Amps. During the
month of November, the average cutoff time was of 267 hours (outside Beirut). This
leads to an average of 40 USD for a 5 Amp subscription and 77 USD for a 10 Amp
subscription.
The rates vary based on the international fuel prices. For example in September 2014
the average diesel price was 24,890 LBP per 20 liters (0.83 USD/liter), setting the price
of 365 LBP (24 USC) per hour of supply for 5 Amp subscription, and 730 LBP (49 USC)
for 10 Amps. With an estimated average cutoff time of 267 hours (outside Beirut) this
leads to an average of 65 USD for a 5 Amp subscription and 125 USD for a 10 Amp
subscription.
1 http://www.energyandwater.gov.lb/pages.asp?Page_ID=53
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In reality, subscription fees paid by the end consumer are not always in line with the
rates guidelines published by the Ministry of Energy and Water.
Solar & Renewable Energy in Lebanon
Solar PV and Renewable Energy Potential in Lebanon
Although it only contributes marginally to the country’s energy supply, renewable energy
remains a promising alternative for clean and reliable electricity in Lebanon, especially
with the availability of high solar radiations with more than 300 sunny days a year, and
the potential for wind power and hydro-electricity. In addition, biomass and geothermal
are also available in considerable potential in the country.
The potential for renewable energy in Lebanon reaches 106,712 GWh per year
distributed among the different technologies utilized at 60.3 GW of capacity. The highest
contributions come from solar technologies (both CSP and PV), followed by wind and
hydropower.
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Figure 3: Shares of renewable energy potential by capacity (internal) and power (External)
With Lebanon’s convenient climatic conditions and current development in the solar PV
technology, the overall potential is 110 GW from Solar PV [7].
Figure 4: GHI levels in Lebanon [9]
The real achievable potential from solar PV to start with is reduced to 4.9 GW when
eliminating areas where solar PV is least feasible and also eliminating areas where CSP
is more feasible than solar PV. The overall land area estimated is around 40 square km.
On the long run, the achievable potential could easily reach 50 GW.
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Figure 5: Filtered potential land areas for PV farms in Lebanon [9]
Harnessing the overall renewable energy potential requires an overall capital
investment of around 190 billion USD, and a land area of around 150,000 ha (1,500
km2).
Current Situation of Solar Energy in Lebanon
Lebanon is clearly not exploiting its natural renewable energy wealth to its fullest. The
most notable government commissioned Mega-scale renewable energy project is the
1.08 MW PV plant installed on the top of Beirut River that is producing more than 1,600
MWh per year [8]. This is the first stage of a 10 MW plan to be executed within the
coming few years. In addition, the Ministry of Energy and Water launched a 1.5 MW
project in Zahrani, the contract was awarded to a local company and is expected to be
completed by the end of 2016. This will be followed by a second phase for a 1 MW PV
plant at the same location.
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Legislative and Policy Framework
National Commitments & Targets
At the Copenhagen Climate Change Conference in 2009, the government of Lebanon
pledged that Lebanon’s share of energy from renewable resources would rise to 12% by
2020.
At the Paris Climate Change Conference in 2015, the government updated its target to
20% of the power and heat demand in 2030 is generated by renewable energy sources,
conditional of international support [10].
Law 462 (and its amendments)
The one and only law directly related to renewable energies in Lebanon is Law 462 of
2002. The law, that is yet to be implemented, includes an option for electricity
production through “thermal resources, water, renewable or other resources”,
recognizing Independent Power Producers (IPP) to participate in the electricity
generation.
Law 462 calls for the establishment of the Electricity Regulatory Authority (ERA), whose
major role is issuing concession licenses to companies for maximum 50 years. This
would lead to more utilization of renewable energy. The law states that:
Private electricity producers may generate between 1.5 and 10 MW to meet their
own needs, upon authorization by the regulatory institution.
Private electricity producers may generate and provide the grid with 10 to 25
MW, upon authorization by the regulatory organ following a bidding process.
Law 775
Article 7 of law 462 was amended in 2006 under law 775 dated November 11, 2006.
The amendment stipulates that until creation of ERA, temporary licenses and permits to
produce electricity can be granted by decision of Council of Ministers upon proposal of
the Minister of energy and water (MEW).
Law 228
Law 288 was issued in April 2014 as an amendment of law 462. It gives the Council of
Ministers, upon joint recommendations from the MEW and the Ministry of Finance, and
for a period of two years, the ability to license IPPs pending the implementation of Law
462 and ERA.
Net metering
In December 2011, the MEW launched the "Net-metering" scheme in support to
domestic renewable energy installations. Net metering allows the export of the
electricity produced through renewable energy systems to the grid, the amount of which
to be deducted from the EDL bill.
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The application of net metering is one objective of the Policy Paper of the Electricity
Sector adopted by the Council of Ministers in June 2010, the National Energy Efficiency
Action Plan for Lebanon (NEEAP 2011-2015) and the Council of Ministers in November
2011.
Net metering was adopted as a practical solution to be followed with Feed-in Tariff at a
later stage. Feed-in Tariff would allow local energy producers to sell or at least offset
part of their electricity load through renewable energy installations. This application
would require the adoption of a feed-in law.
In fact, net metering provides clear incentives for the installation of PV systems.
However, few in Lebanon seem to be aware of its existence. Results from a
Greenpeace Mediterranean questionnaire shows that only 30% of respondents knew
that excess electricity generated by a solar system could be fed back to the grid and
contribute to lower their monthly bill.
The Renewable Energy Market
With the clear electricity problem Lebanon suffers from, the emergence of renewable
energy as an alternative source of electricity should come as no surprise. Although the
EDL tariff has not changed since 1994 remaining at a relatively low cost on the
consumer, private entities and institutions are actively investigating alternative power
sources due to EDL’s inability to meet the country’s electricity demand. With the
unstable and unreliable fuel price, solar and other renewable energy technologies are
being increasingly considered as an alternative to diesel generators for back-up power
supply. However, this emergence is happening at a pace that is not in adequacy with
the potential of solar energy.
Market Growth
The market has been growing steadily since the beginning of the decade, especially
with the massive drop in prices of PV, a technology that makes the biggest share in
renewable energy being installed in the recent years. The production costs as well as
selling prices of PV components dropped by more than 80% since the start of the
current decade. Currently, the levelized cost of electricity for solar PV ranges between
5.6 and 11.5 USC per kWh, affected by capacity factor and plant scale. An average of
8.5 USC/kWh is a good reflection.
The government of Lebanon has kicked off a few initiatives to promote utility scale
renewable energy with a pilot 1-MW PV plant recently commissioned by the Ministry of
Energy and Water to cover part of the Beirut River (BRSS), and another 2.5 MW
planned to be installed in Zahrani Oil Installations under two phases. The growth in
renewable energy as an electricity provider is led by domestic and small commercial
applications. According to LCEC, a total of 20 MW of solar PV was installed in 2015
alone. At the current market growth LCEC expects an additional installation of 50 MW in
2016 [6].
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Figure 6: PV installed and energy generated in kWp and MWh[6][7]
Market Structure
Utility scale renewable energy has always been limited to hydropower until 2015’s first
mega scale PV project, the BRSS installed on the Beirut River.
Other renewable energy applications are private initiatives, installed by institutions,
residences, and other private industries as a source of either primary or secondary
power supply. In order to assess the market structure, a review of NEEREA-funded
systems would give a market estimation, showing that the biggest shares are for
systems between 3 and 10 kWp, with a share of 55%. Systems of sizes between 100
and 500 kWp are also common with 9% market share.
Support Programs
BDL’s NEEREA
NEEREA, the National Energy Efficiency and Energy Efficiency Action, is a financial
support initiative developed by the Central Bank of Lebanon. NEEREA is a scheme
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targeting energy and environmental projects, offering low-interest loans supported by
the Central Bank of Lebanon over extended periods that can reach up to 14 years.
The period of the loan is identified based on the project itself. Existing projects can
benefit from a grace period of up to 2 years (6 months minimum) and a repayment
period of 8 years, while new projects can benefit from a grace period of up to 4 years (6
months minimum) and a repayment period of 10 years. NEEREA loans are governed by
intermediary circulars 236, 313, 318, 346, 365, and 382 issued in 2010, 2013 and 2014
by BDL. The loan is offered through commercial banks to individuals as well as
corporate clients and small and medium sized enterprises, following a pre-set scheme
set by the Central Bank of Lebanon. Environmentally friendly loans are classified as
energy or environment loans, and can cover up to 100% of the investment cost. Private
legal entities and natural persons whose place of residence is within the Lebanese
territories can apply to get the NEEREA loan for their energy efficiency and renewable
energy projects. The application acceptance is subject to normal loan conditions. The
applicant’s financial situation is studied according to the commercial bank’s
requirements and the Central Bank of Lebanon’s obligations. Applicants applying for a
NEEREA loan shall follow a similar procedure to that of any other loan application.
There are no facilitations or special treatment in terms of financial requirements,
keeping the loan approval or rejection decision dependent on the applicant’s financial
standing, credit record, and income level.
Figure 7: Application procedure for NEEREA loans
1. The beneficiary hires a consultant or a company to prepare a technical study
2. The beneficiary submits the study with all needed documents to the bank
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3. The bank submits the file to the central bank of Lebanon (BDL)
4. BDL consults the LCEC on the technical parts and requires their approval
5. The LCEC technical team studies the files and submits a technical report to the BDL
6. The BDL informs the bank of the result
7. The bank gets back to the client with an approval or a rejection
First steps towards 100% Renewable Energy
Barriers to renewable energy expansion
Many barriers stand in the way of renewable energy development of Lebanon. Current
legislative, policy and regulatory framework are outdated and do not provide enough
incentives for renewable energy proliferation. In addition to the insufficient regulatory
framework, grid issues are major when it comes to renewable energy plants. Integrating
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large-scale renewable energy power plants into the grid would require an upgraded grid.
Finally, relatively low awareness level around solar energy among the Lebanese
population is also a limiting factor to the emergence of the decentralized PV market.
Recommended actions
Renewable energy can be promoted at two levels, the first is at private installations and
the second is at utility scale. Actions at the first level include setting up an attractive
environment for business, individuals, and private institutions to utilize renewable
energy and reduce their reliance on fossil fuels, while those at the second level are
more related to large scales of investments, Independent Power Producers, and
governmental commitments. Below is a set of actions and recommendations to facilitate
the move towards 100% renewable energy by the year 2050.
Policy and Legal Framework
The overall aim should be to set and enforce sustainable energy efficiency, energy
conservation and renewable energy laws and policies. These would boost the
development and the investment in the sector.
1. Set new and ambitious renewable energy target shares
Lebanon should first commit to new, more ambitious renewable energy targets, while
setting a clear plan of action to achieve those. These targets should lead to 100%
renewables by 2050.
2. Remove government subsidies on electricity and fuel
Heavily subsidized fuel and electricity only reduce the competitiveness of renewable
energy alternatives. All subsidize should be removed gradually until the price of fuel and
that of electricity fairly represent their real values.
3. Establish a feed-in law
To maximize net-metering and the benefits of excess electricity fed into the grid, a feed‐
in‐law should be established allowing local energy producers to sell or at least offset
part of their electricity load through renewable energy installations.
4. Properly design system-specific feed-in policy
It is important that the feed-in policy is properly designed and performed in a system
specific manner. This would increase confidence in the renewable energy market, and
thus encourage investments. Different systems and models could be used, but it is
recommended to start with a tariff digression system, where tariffs start attractive and
then be reduced gradually.
5. Establish quality labels for all renewable energy products
Renewable energy equipment might soon be massively entering the country, which
requires a proper standard and certification scheme in place to avoid falling in the low-
quality market problem that the country once suffered from in the solar thermal sector.
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6. Apply tax exemption to renewable energy products
Tax reduction would improve the competitiveness of renewable energy and definitely
lead to increase utilization of solutions such as PV that would reduce the annual energy
bill in the country, and thus reduce the governmental cost of subsidy.
Regulatory Framework
1. Set up the Electricity Regulatory Authority (ERA)
The roles and duties of the ERA were defined by Law 462, which is yet to be enforced.
The absence of the regulatory authority is hindering the development of renewable
energy in the country. In the absence of a codified legal framework and a strong
regulatory authority, investors may not choose to invest in RE facilities in the country.
The constitution of ERA is a major challenge for it leads to a major push to the
renewables’ sector in the country, mainly due to the fact that establishing this authority
will allow issuing permits and licenses for a duration of 50 years.
2. Simplify the administrative and licensing process for renewable energy
The construction and operation of a renewable energy systems and power plants could
require various administrative permits and various legislations have to be obeyed in the
permitting process, including environmental protection, water, health and safety laws.
The facilitation of the process and simplification of the requirements would play a
supportive role in promoting renewable energy.
Technical
1. Establish a grid code for Lebanon
Lebanon still has not adopted a grid code despite the different attempts and draft codes
prepared by local authorities and international experts. Having a grid code is essential
to move forward with renewable energy at utility scale level, and be able to successfully
integrate variable renewable generation into the grid without compromising the security
of the electrical power system.
2. Perform reliable grid impact studies for proposer utility-scale RE plant
It is essential to perform grid integration and impact study before integrating new
renewable energy generating systems to the grid. This would help analyze the impact of
planned and existing generators on the power grid when injecting renewable electricity.
3. Introduce smart grids to accommodate for fluctuating generation
It is important to properly design the renewable energy generation and storage to match
the fluctuating levels or renewable energy systems. This could be done properly by the
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use of smart grids. Smart grids intelligently use input data and controls the systems
factor to ensure optimum operation. These grids use advanced technologies form
hardware and software integrated with computer-controlled communication systems.
Awareness and Education
1. Encourage energy efficiency and energy conservation
Demand side management is an important aspect to achieve a 100% renewable energy
mix by 2050. If the demand on electricity remains growing at the same pattern, the
country would reach an extremely high-energy bill. Actions at the demand side would
reduce the growth rate and lead to a decrease in the anticipated power demand, which
would make it more likely to achieve renewable energy targets.
2. Promote existing incentives and success stories
While everybody knows about housing loans, education loans, and other business
loans, only a few would know about green loans and how much benefits it brings to
consumers. The same can be said about Net Metering. The best way to promote the
viability of PV systems is too shed light on existing success stories through public
awareness campaigns.
3. Boost research
Academic institutions, research centers and universities are key to the further research
and development in the renewable energy sector and a growing number of skilled labor
and knowledgeable professionals in this field.
CONCLUSION
There is no shortage of international and regional commitments and agreements and
scientific advice declaring the need to limit the global average temperature increase to
1.5°C and minimize the catastrophic impacts of climate change. What is lacking is the
political will to make this a reality. This must change, and Greenpeace believes that
people will play a crucial role in bringing this about. The fossil fuel era is coming to an
end. The transition to a world powered by 100% renewable energy is inevitable. There
are no major economic or technical barriers to moving towards 100% renewable energy
by 2050.
We need to tell decision makers – local, regional and international – that this is our
planet and we must protect it. We need laws and proper enforcement of these to make
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it possible to limit our carbon footprint and boost the shift to renewable energy. Change
starts now and every set of actions counts – at all levels, in small and big nations.
References
[1] International Panel on Climate Change (2014). 5th assessment report;
[2] Greenpeace International, Global Wind Energy Council & Solar Power Europe
(2015). Energy [r]evolution a sustainable world energy outlook 2015.
[3] International Energy Agency (2016). Decoupling of global emissions and
economic growth confirmed.
[4] Ministry of Energy and Water (2010). Policy Paper for the Electricity Sector
(Vol. 1). http://climatechange.moe.gov.lb/viewfile.aspx?id=121
[5] CAS. (2015). Monthly Data by Category - Energy. Beirut.
http://www.cas.gov.lb/index.php/monthly-data-matrix
[6] El Khoury, P. (2015). Article in Executive Magazine & Commerce du Levant;
http://www.executive-magazine.com/opinion/cleaning-up-and-going-green
[7] Dr. Harajli, H., CEDRO-UNDP project manager (2015, December 8).
Discussion on the Renewable Energy Sector in Lebanon [personal interview
with Nader Hajj Shehadeh].
[8] About Beirut River Solar Snake. (2015). Retrieved December 10, 2015, from
http://www.brsslebanon.com/
[9] Solar-Med-Atlas (2015). Retrieved December 10, 2015, from http://www.solar-
med-atlas.org/
[10] Republic of Lebanon (2015). Lebanon’s Intended Nationally Determined
Contribution under the United Nations Framework Convention on Climate
Change
http://www4.unfccc.int/submissions/INDC/Published%20Documents/Lebanon/
1/Republic%20of%20Lebanon%20-%20INDC%20-
%20September%202015.pdf
23
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Appendices
Appendix A: Tips on your next PV purchase
Appendix B: Questionnaire results on PV market awareness level in Lebanon
Appendix A: Tips on your next PV purchase
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Investigate the quality
It is very important to know what you are buying. All solar PV components should come
with relevant certificates and lab test results. These are normally issued by
internationally recognized testing labs confirming product conformity with international
standards such as IEC, ISO, and EN standards. Ask your supplier to furnish all relevant
certifications and make sure you are buying a certified unit.
Country of production versus certification
Almost all solar modules are being manufactured in China, with outstanding efficiency,
while other components are still being produced in some European countries as well.
The country of origin is not as much important as the certifications the products come
with.
Think of it as a package
By deciding to solar-power your house, you might be looking to save on your energy
expenses and reduce your carbon footprint. For best results, consider combining power
supply with demand reduction. Your investment would pay back best when you start by
reducing your consumption through energy efficiency measures such as switching to
LED lamps, moving towards energy efficient appliances, improving the building
envelope using thermal insulation and infiltration prevention, and optimally running your
air conditioning system. With this done, you can now have a more optimized and cost
effective PV system. Preferentially choose a PV supplier that would perform an energy
audit for your home.
Avoid oversizing the system
More is not always merrier. It is very important to properly size the PV system.
Oversizing it could be as bad as under-sizing it. In order to decide on the perfect sizing
of the system, studying monthly electricity bills and performing a preliminary energy
audit is essential.
Make sure to request from the contractor/project developer a detailed energy modeling
study that shows the performance of the system. A rule of thumb to know the average
size of the PV system needed: divide the annual energy bill in kWh by 1,450 to get the
system size in kWp. An example, if your energy bill is 3,600 kWh a year, then a PV
system with the capacity of 2.48 kWp should be sufficient.
Get it financed
You do not have to pay for the whole system at once. With the existing support
programs and green loans, you can get your PV system financed through a long-term
soft loan with no additional hassle. The process is simple and easy to initiate. Loans
are applied through commercial banks.
Consider net-metering
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Your PV system can save more than you expect. When connecting your system to the
grid, using a contract with your utility, you can feed in the national grid with surplus PV
energy production and get it deducted from your electricity bill at the end of the month.
Choose what works for you
Ready-made solar kits are now obsolete. A system that works for your neighbor might
not work for you. It is important to consider all circumstances and conditions when
choosing the system components and the perfect design. Shading conditions, roof type,
load variation, peak demand, and operation profile are all factors that affect the
performance of the system. Furthermore, the system should be adapted to your need
and your electricity situation.
Choose from a qualified company
It is recommended to check the track record of more than one company, study the
offers, review their technical expertise, and confirm by checking previous installations.
Behold the warranty
Warranty is king. It is important to validate warranties provided on major components,
namely PV modules, inverters, and storage batteries. Warranties range from 2 to 10
years, and should confirm the PV modules maintaining at least 80% of its efficiency
after 25 years.
Appendix B: Questionnaire results PV market awareness level of 997
respondents Lebanon
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Are you aware that solar energy can provide electricity to your home through solar
electric systems?
Did you know that solar electric systems for homes are available in Lebanon?
Do you know someone in Lebanon who has installed a solar electric system for his/her
home?
Blue = Yes
Red = No
Orange = No, I am only aware
about solar energy for hot water
Blue = Yes
Red = No
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Would you consider installing a solar electric system for your home?
Blue = Yes
Red = No
Orange = Yes, I own a solar
electric system
Blue = Yes
Red = No
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Why Yes?
Good for the environment = 77.2%
Interesting financially = 65%
To be less dependent on other sources (government, generator)= 59.2%
Other = 8.3%
Why No?
Expensive = 61.1%
Technology is not reliable yet = 16.1%
Only works when the sun is out = 6.7%
Lack of space = 17.8%
Too complicated to change = 12.2%
My landlord wouldn’t accept = 11.1%
Other = 13.3%
Did you know that loans for solar electric systems at near 0 interest rate are available in
Lebanon?
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Did you know that excess electricity produced by solar electric systems can go into the
grid and reduce the owner's electricity bill in Lebanon?
How old are you?
Blue = Yes
Red = No
Blue = Yes
Red = No
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Greenpeace Mediterranean
Red = >50
Blue = 36-50
Orange = 26-35
Green = 18-25
Purple = <18
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June 2016
Contact: [email protected]
Greenpeace is a global organization that uses non-violent direct action to tackle the most
crucial threats to our planet’s biodiversity and environment. Greenpeace is a non-profit
organization, present in 40 countries across Europe, the Americas, Africa, Asia and the
Pacific. It speaks for 2.8 million supporters worldwide, and inspires many millions more
to take action every day. To maintain its independence, Greenpeace does not accept
donations from governments or corporations but relies on contributions from individual
supporters and foundation grants. Greenpeace has been campaigning against
environmental degradation since 1971 when a small boat of volunteers and journalists
sailed into Amchitka, an area west of Alaska, where the US government was conducting
underground nuclear tests. This tradition of ‘bearing witness’ in a non-violent manner
continues today, and ships are an important part of all its campaign work.