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Nader Hajj Shehadeh Energy Engineer Lebanese Center for Energy Conservation (LCEC) Lebanon

Regional workshop WEC-ADEME “Evaluation of Energy Efficiency Policies in the MENA Region” organised by ANME with the support of UNDP Tunis, 15-16 March 2010. EE & RE Policies in Lebanon: Promising Progress. Nader Hajj Shehadeh Energy Engineer Lebanese Center for Energy Conservation (LCEC)

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Nader Hajj Shehadeh Energy Engineer Lebanese Center for Energy Conservation (LCEC) Lebanon

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  1. Regional workshop WEC-ADEME “Evaluation of Energy Efficiency Policies in the MENA Region” organised by ANME with the support of UNDP Tunis, 15-16 March 2010 EE & RE Policies in Lebanon: Promising Progress Nader Hajj Shehadeh Energy Engineer Lebanese Center for Energy Conservation (LCEC) Lebanon

  2. Lebanon in a Glance • Total Area: 10,452 km2 • Population: 4.1 Millions • Pop. growth: 1% per annum • Electricity: Fuel Oil, Diesel Oil, Natural Gas, Hydro. Combine Cycle Combine Cycle Gas Turbine Hydro The Lebanese Center for Energy Conservation (LCEC) 2010

  3. Electricity Problem 1: Supply doesn't meet demand • Demand: 2,300 MW • Supply: 1,400 MW • Gap Fill: Private Generation (Diesel Oil) The Lebanese Center for Energy Conservation (LCEC) 2010

  4. Electricity Problem 2: High consumption per capita The Lebanese Center for Energy Conservation (LCEC) 2010

  5. Electricity Problem 3: Price lower than production cost The Lebanese Center for Energy Conservation (LCEC) 2010

  6. Electricity Problem 4: Governmental Subsidies Government Subsidies (Million USD) The Lebanese Center for Energy Conservation (LCEC) 2010

  7. Institutions Related to Energy Efficiency: Ministry, Agency) .    • Ministry of Energy & Water • The central public organization in charge of competences in the field of water in Lebanon. • It is formed of 3 General Directions: • The General Directorate of Hydraulic and Electric Resources  • The General  Directorate of Exploitation, • The General Directorate of the Petroleum • The Lebanese Center for Energy Conservation • The national center for energy conservation and efficiency in Lebanon. • Technical arm of the ministry in EE & RE • Promotes EE & RE • Works on demand side management • Etc… The Lebanese Center for Energy Conservation (LCEC) 2010

  8. Institutions Related to Energy Efficiency: NGOs • Promote Solar Energy and Renewable Energies • Conduct Studies and researches ion the field of RE • Participate in Public event to spread awareness • Promote environmental activities • Spread environmental awareness among the public • Conduct environmental impact assessment for projects • Lead pilot projects in the fields of Energy and Environment • Play an important role in private – public connection • Conduct feasibility study on a national level • Promote green building design • Review and update the building codes • Issue a green building certificate The Lebanese Center for Energy Conservation (LCEC) 2010

  9. Funding of Programmes: Government Budget 2002: LCEC ($ 0.5M) Funding LCECP as a joint project with UNDP and the Ministry of Energy & Water 2010: RE Funds ($9.08 M) Phasing out incandescent lamps (3M CFL): $7 M Loans for SWHs: $1 M Efficient Street Lighting (Solar powered, Photo sensor): $0.5 M The Lebanese Center for Energy Conservation (LCEC) 2010

  10. Funding of Programmes: Donors The Lebanese Center for Energy Conservation (LCEC) 2010

  11. Funding of Programmes: Programmes • Creating a think-tank in the MENA region • Creating common goals and common strategies • Promotion of RE & EE • Implement EE Measures • Implement RE projects (SWH and PV) • Wind Atlas for Lebanon • Supports Sustainable Development • Has a dedicated Energy & Environment Programme with more than 20 project • Promotes economic and social development through regional and sub regional cooperation and integration The Lebanese Center for Energy Conservation (LCEC) 2010

  12. Funding of Programmes: Programmes • Euro-Mediterranean Energy Market Integration Project • Transfer regional experience in the fields of RE & EE • Stimulate market development • Mediterranean Energy Efficiency in Construction • Demonstration projects in RE & EE • Strengthen business and creating a reliable market • Mediterranean Association of the National Agancies for Energy Conservation • Current members are agencies from: France, Greece, Italy, Portugal and Spain, and Algeria, Egypt, Lebanon, Morocco, Palestinian Authority, Tunisia. • LCEC is the national Focal Point The Lebanese Center for Energy Conservation (LCEC) 2010

  13. Main Existing Regulation on Energy Efficiency: Energy Law 462 • Main Energy Law: Law 462 (2002) • Electricity Production: Monopoly EDL • Private Production: • < 1.5 MW: No restrictions • 1.5 – 10 MW: needs permission from Ministry of Energy & Water • >10 MW: needs License from Ministry of Energy & Water • NO FEED-IN POLICY • Taxes on RE products: 5% The Lebanese Center for Energy Conservation (LCEC) 2010

  14. Main Planned Regulation on Energy Efficiency: Energy Conservation Law • Draft of the Energy Conservation Law • Draft 1 is prepared and submitted to the minister. It shall be discussed in the CoM coming meetings • Main Points: • Institutionalization of LCEC • Mandatory & regulatory energy audit for large facilities • Close collaboration with ESCOs • Promotion of Energy Efficient equipment • Apply Energy Conservation Measures to all public and governmental facilities to be pilot projects The Lebanese Center for Energy Conservation (LCEC) 2010

  15. Main Planned Regulation on Energy Efficiency: Standards & Labels • Setting the MEPs and Standards • SWH: Phase 3 • CFL: Phase 3 • Refrigerator: Phase 3 • A/C: Phase 1 • Electric Heater: Phase 1 • Phase1: Draft copy issued and submitted • Phase2: Libnor’s technical committee adopts the standards • Phase3: CoM reviews the standards and issues a decree nader.hajjshehadeh@lcecp.org.lb The Lebanese Center for Energy Conservation (LCEC) 2010

  16. Main Planned Regulation on Energy Efficiency: Government Statement 2010 • “[…] The institutionalization of the Lebanese Center for Energy Conservation (LCEC) and the setup of a national road map built on environmental concepts to reach 12% of renewable energy by the year 2020. • […] The reduction in energy demand through the use of energy conservation measures and renewable energy applications. • […] The setup of financial mechanisms to help develop renewable energy applications and energy efficiency. • […] To encourage all energy conservation measures with special focus on the development of the solar water heaters market and the energy efficient lighting […]” The Lebanese Center for Energy Conservation (LCEC) 2010

  17. Main Financial and Tax Incentives to Consumers to Promote Energy Efficiency: Kafalat Project: SMEs Loan Support Administrator: Kafalat SAL Target:SMEs Role: Assist companies to access commercial bank funding Method:Kafalat helps SMEs by providing loan guarantees based on business plans / feasibility studies that show the viability of the proposed business activity. It processes guarantee applications for loans that are to be provided by Lebanese banks to SMEs operating throughout Lebanon. Sectors: Industry, Agriculture, Tourism, Traditional Crafts, High Technology Other Benefits: Kafalat guaranteed loans benefit from interest rate subsidies. The Lebanese Center for Energy Conservation (LCEC) 2010

  18. Main Financial and Tax Incentives to Consumers to Promote Energy Efficiency: Kafalat Project: National Energy Efficiency and Renewable Energy Account (NEEREA) Administrator: Banque du Liban Target: EE & RE projects Role: provide 0% interest loans with full risk guarantees Sectors: All The Lebanese Center for Energy Conservation (LCEC) 2010

  19. Example of Innovative Programme in The Country: The Energy Audit Programme Audits Conducted: > 120 Qualified ESCOs: 8 Potential Savings: 10 million dollars annually LCEC Contribution: 60,000 dollars For: Ghobeiry Municipality The Ministry of Energy & Water The Ministry of Public Works Annual Saving:39,749 dollars The Lebanese Center for Energy Conservation (LCEC) 2010

  20. Example of Innovative Programme in The Country: The Energy Audit Programme The Lebanese Center for Energy Conservation (LCEC) 2010

  21. Example of Innovative Programme in The Country: The Energy Audit Programme Capacity Building 2007 Energy Auditing Training 2008 Reactive Power Enhancement Energy Efficiency in Mechanical Systems Energy Efficiency in Electrical Systems ESCO Business Development CO2 Calculations Energy Saving in Steam Systems Measurements in Energy Auditing 2009 E.A. Applications & Methodologies Sending 4 Engineers for an international training

  22. Example of Innovative Programme in The Country: The Energy Audit Programme • 4 outstanding performance engineers were selected for a technical one-week tour in Tunisia. • The training was coordinated by the Tunisian company CRA2E. • The visit included the visit of the STEG, the ANME, as well as actual energy efficiency and renewable projects. The Lebanese Center for Energy Conservation (LCEC) 2010

  23. Examples of Innovative Programme in The Country: The Energy Audit Programme Energy Audit Firms • Growth of the Market: • Local Firms:8 • Specialized Engineers: 21 • Development of Firms: • Activity increase: 30% • Staff increase: 16% The Lebanese Center for Energy Conservation (LCEC) 2010

  24. Regional workshop WEC-ADEME “Evaluation of Energy Efficiency Policies in the MENA Region” organised by ANME with the support of UNDP Tunis, 15-16 March 2010 Thank you for your attention! Lebanese Center for Energy Conservation (LCEC) www.lcecp.org.lb Nader Hajj Shehadeh Energy Engineer

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