Results of lebanon’s national energy efficiency and renewable energy action (neerea)

Results of lebanon’s national energy efficiency and renewable energy action (neerea)

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  Results of Lebanon’s NationalEnergy Efficiency and Renewable Energy Action (NEEREA) By Pierre El Khoury, B.E., M.E.M. Director- Lebanese Center for Energy Conservation (LCEC) Energy Efficiency Policies for the SEMED/ Arab Region Amman, Jordan- 15 April 2013
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  Policy Framework 2 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 renewable energy” LCEC • “ [..] NEEAP includes 14 initiatives in the energy efficiency and renewable energy sectors for the period 2011-2015”
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  3 • NEEAP approvedby the Ministry of Energy and Water in December 2010, and the Council of Ministers in November 2011 • Lebanon’s NEEAP includes 14 initiatives: • EE (4) • RE (6) • Finance, legal, and awareness raising (4) • Initiative 11: Financing Mechanisms and Incentives • “This initiative aims to provide proper financing mechanism in order to promote the use of energy efficiency and renewable energy. This is mainly linked to the collaborative work with the Ministry of Finance and the Central Bank of Lebanon.” Lebanon’s NEEAP
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  •NEEREA is anational 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. 4 NEEREA is the National Energy Efficiency and Renewable Energy Action
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  5 • MEW setsthe 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
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  6 Financing 0% Interest Rate Long Repayment Marketing Motivating Technical Quality Review Momentum,Initiative, Action.. NEEREA
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  7 • A needfor Parents: NEEREA is a national momentum including many players • A comprehensive approach: NEEREA is not only about financing, it is also about marketing, training, and motivating • Tailored to fit: NEEREA was built on existing financing mechanisms, but was modeled to the EE and RE sectors Notes and History Circular 197 • In 2009 • Environmental Loans Circular 236 • In 2010 • Energy and Environmental Loans Circular 313 • In 2013 • Energy with focus on energy efficiency, certified green buildings, and renewable energy
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  8 Timeline for EnergyAudits Energy Audits 100% funded by UNDP 70% by UNDP 30% by Beneficiary 50% by UNDP 50% by Beneficiary 100% by Beneficiary, but can be included in the NEEREA loan application 2006 2008 2009 Starting 2010
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  9 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
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  10 • More than70 loans approved with a total of 90 million USD • Around 20 projects in the pipeline with a total of 48 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…
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  11 • In January2013, BDL has dedicated 90 Million USD to the NEEREA • In March 2013, the amount was increased from 90 to 150 Million USD • A new credit line by EIB and Afd with a total of 65 Million Euros will be initiated in 2014 Moving Forward
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  Policy and FinanceInfo & 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
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  13 104,000 114,400 131,560 151,294 173,988 211,988 249,988 287,988 325,988 363,988 413,988 493,988 613,988 783,988 1,003,988 1,053,988 2005 20062007 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
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  14 12,197 solar waterheaters 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
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  15 Ideal Target for2011: 38,000 m2 Ideal Versus Real Actual Real Target in 2011: 43,500 m2
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  16 Energy Efficiency Market Potential Capacity Building/ Technical Know-how Legislative / Admin. Support Marketing and Awareness Raising Financial Support and Schemes To developthe EE market:
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  17 Conclusion Since 2008 National economydriver is real estate For the next years… Lebanon’s economy driver would (probably) be green energy
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  Thank You! 18 The LebaneseCenter for Energy Conservation (LCEC) Ministry of Energy and Water- Corniche du Fleuve- First Floor- Room 303 Telephone: 01-569101 01-565108 Email: [email protected]