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Overview of the PV Market in Lebanon SWOT Analysis

Overview of the PV Market in Lebanon SWOT Analysis. Elie Maalouf Business Unit Manager, ECOsys (Midware Data Systems Division) ‘Environment & Clean Energies’ Conference Ecorient - June 5, 2014. Outline. About ECOsys O verview of PV market in Lebanon SWOT analysis Conclusion &

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Overview of the PV Market in Lebanon SWOT Analysis

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  1. Overview of the PV Market in LebanonSWOT Analysis Elie Maalouf Business Unit Manager, ECOsys(Midware Data Systems Division) ‘Environment & Clean Energies’ ConferenceEcorient - June 5, 2014

  2. Outline • About ECOsys • Overview of PV market in Lebanon • SWOT analysis • Conclusion & Recommendations • Some ECOsys PV Projects PV installation in Aaqoura– Alfa Telecom site

  3. About ECOsys

  4. About ECOsys • ECOsys is a division of Midware Data Systems • 1998: Established as Midware Data Systems (formerly part of Mideast Data Systems Lebanon incepted in 1978) Solar Photovoltaic Solutions

  5. Identity • Midware Data Systems is a member of ITG (Holding) • ITG is part of HOLCOM Holding • 200 companies in 35 countries • 4,350 professionals • Operating since 1967

  6. ITG Solutions Hardware & Infrastructure Software Services

  7. Overview of the PV Market in Lebanon

  8. Overview of PV Market in Lebanon • Power grid is instable • Grid is heavilysubsidized by the government • Need for hybrid solutions: • Not totally off-grid nor 24/7 stable on- grid solutions  where PV is a cost effective solution • More challenging systems  between ‘off-grid’ & ‘grid connected’, with higher costs and more complexity

  9. Overview of PV Market in Lebanon • Approx. 100 companies active in PV, in Lebanon • PV is not yet a sustainable business • All these companies are not solely focusedon PV, and have other means of revenue • PV installations in Lebanon (2013) • Less than 5 MW

  10. Overview of PV Market in Lebanon • Different types of PV systems installed: • Active street lighting (By ministries of Energy & Water and Public Affairs:In South/ Bekaa / North / Dahr El Baydar • Off-grid systems for Telecom applications (~ 20 sites with Alfa, Touch and other private companies) • Residential systems with storage • Industrial & commercial systems without storage

  11. Overview of PV Market in Lebanon • Government support mechanisms • NEEREA introduced 3 years ago • Low interest rate • Up to 4 years of grace period • Up to 10 years repayment period • BDL grant (5% or 15%) • Increasing use of NEEREA loans • Net Metering introduced, 2.5 years ago • Smart meters installed by EDL • Increased use of Net Metering, for the past year

  12. SWOT Analysis

  13. Strengths • Favorable environmental conditions • 300 days of sunlight • Very suitable temperatures for the panels operation • Minimal dust and sand • Several professionalcompanies & individuals • Good local expertise • Challenging market situation & conditions, helped built expertise • Increasing PV market, created by a large number of companies

  14. Strengths • LCEC/MEW & UNDP/CEDRO actively promoting PV in Lebanon • PV systems with backup installed in many public schools& institutions(~ 65 sites via CEDRO) • Grid connected sites: ~ 100kW/site, in private institutions, to be implementedwith CEDRO IV • Beirut River Solar Snake PV project by LCEC • NEEREA loan and Net Metering with UNDP, BDL & MEW support • Other awareness campaigns CEDRO: PV installation in QartabaMunicipality

  15. Strengths • Instable grid, frequent grid cuts • Competitive PV prices: (in residential applications vs generators) • More people encouraged towards renewable energy and energy independency PV v/s Generator

  16. Weaknesses • EDL price is heavily subsidized • Rates/ kWh (for industry) • EDL average cost: 3 X more than its selling price!  Peak Hours 320 LL Night 80 LL Day 112LL PV system is less cost effective, as opposed to countries like Germany, where cost is ~ 0.30$/kWh (450L.L)

  17. Weaknesses • EDL instability • Situation in between completely off-grid where PV is a very cost effective solution, & 24/7 PV with Feed-In Tariff (FIT) • No FIT, just NET metering • No regulation for IPP yet This is key for further market development

  18. Weaknesses • Low awareness on PV technology & benefits • No national regulations on certified products & companies • No national certifications and trainings qualifying individuals & companies

  19. Weaknesses • No ‘long term plan’ mentality in Lebanon, as opposed to European countries • Lebanese prefer to pay for their actual consumption, rather than installing a system that produces their energy for 20 years ahead

  20. Opportunities • Low PV penetration rate  Big potential • Residential • Commercial sector: Industries • Institutions: companies, universities.. • PV Street lighting • Grid becomes stable 24/7 with non-subsidized prices => Increased potential • Introduction of FITs and IPP • Quality control of products & companies by the government  Leading to the creation of a sustainable PV market

  21. Opportunities • Considerable decrease of PV Systems prices Decrease of PV prices by 66%(Graph of German residential prices)

  22. Threats • Political situation of the country • Instable situation discourages people to invest on PV systems • Introduction of veryfavorable support mechanisms should be well controlled • Example: Spain market boomed in 2008 due to very generous support mechanisms (such as high FITs…), then dropped after removal of the support

  23. Threats • What after NEEREA loans? • Actual financial facilities are VERY attractive • What will happen without NEEREA financing?

  24. Threats • Too many companies involved in the PV market • Small market • PV business not sustainable • Poor know-how in several companies • “Low” quality products in several companies,  Negative effect on the PV market

  25. Threats • Possibility of petroleum & natural gas in the Lebanese shores • Petroleum price will become more attractive • Focus might shift to petroleum instead of PV • Possible increase of PV prices, worldwide!

  26. Conclusion - Recommendations

  27. Conclusion - Recommendations • Opportunity for growth of PV market in Lebanon is well present • PV Market development is directly affected by the electricity & political situations, as well as PV incentives in Lebanon • Excellent incentives have been put forth in recent years (NEEREA, Net Metering..) • For a long term sustainable growth of the PV market, policy makers are required to build on these incentives and put forth stronger regulations (IPP, FIT..), spread more awareness, apply standardizations (companies, products..), and exercise quality control

  28. Some of ECOsys’ PV Projects

  29. UNDP - CEDRO Hybrid PV Systems in 17 sites across Lebanon (Public Schools, Municipalities…)

  30. ACE New HQ AC Coupled System (Grid Inverters with Batteries)

  31. Alfa Off-Grid & Hybrid Telecom PV Installations

  32. Holcom New HQ Grid connected Crystalline Rooftop and Thin Film Façade

  33. 20|30 20|30 PV Façade Residential Towers, Jamil Saab Achrafieh(Ongoing)

  34. Global Warming

  35. Global Warming

  36. Global Warming

  37. Thank you for your attention For more info: www.ecosys.com.lb

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