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Adel Mourtada Energy Efficiency Expert ECOTECH 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. Case Studies on financing measures for low income households in Syria and Lebanon. Adel Mourtada Energy Efficiency Expert ECOTECH

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Adel Mourtada Energy Efficiency Expert ECOTECH 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 Case Studies on financing measures for low income households in Syria and Lebanon Adel Mourtada EnergyEfficiency Expert ECOTECH Lebanon

  2. Sources of Subsidy Finance Sources of Subsidy Finance Facilitating and supplying creative and dedicated energy efficiency financing to households would greatly assist in developing an energy efficient market.

  3. SPECIFIC EE FINANCIAL SCHEMES IN THE LEBANESE MARKET • No sustainable financial scheme, public incentive or subsidy available for EE and RE projects. • 3 major financial barriers: short repayment periods, high collaterals and energy subsidies. • 2 pioneer experiences: Solar energy lending by one of the major Lebanese bank followed by other banks and Energy Efficiency Revolving Funds (French GEF).

  4. Financing of SWH by commercial banks in Lebanon

  5. Exemple du Liban « Projet Efficacité Énergétique dans la construction, PEEC » FFEM Suivi : ALMEE Coordination : ADEME Cadre Institutionnel : Accord entre le Ministère libanais de l'Environnement et l'Agence Française de Développement (AFD) pour un soutien financier du FFEM, par une subvention de 0,89 Million € Durée: 1999 à 2004 ALMEE

  6. Energy Efficiency Revolving Fund • Demonstration projects (French GEF) in Lebanon

  7. Lebanon - Beirut No place for individual SWH

  8. Inauguration of “Magdouché”

  9. The demonstration operation included a follow-up mechanism and survey nearby of the users in order to evaluate improvements being introduced

  10. Results of the Project PEEC : An appreciable energy saving • The project shows a real electricity saving at least 1500 kWhe/year per flat of 150 m2 by using SWH and EE Lamps for an investment of 660 €/flat (Grants from 10 %). • If Energy Conservation Measures are applied for 150 000 apartments (total investment = 99 M€), the annual electricity saving will be 225 GWh with avoided generation cost of 15.6 M€ per year (in 2004) or 50 M€ Now day. • Other benefits : Jobs creation, environmental improvement…

  11. Lessons learned – reflected in strategies: • Grants versus Preferential Loans • Isolated grants and subsidies only partial effect, rest-finance is still needed • Low-interest rate special purpose loans combine investment subsidy with loan finance • Public-Private-Partnerships • Impact • Flexibility • (market transformation)

  12. Lebanon, Grants for CFL Announced by the Ministry of Energy, 12 March 2010 Distribution for free of 3 millions CFL is planned Example of unsustainable Energy Efficiency Policy 3million CFLs = $7 Million 164 MW Power Station avoided (Source MEW) Could be a “greatest failure” if not integrated in a long term strategy (of phasing out subsidies on electricity)

  13. Individual instruments have ”no impact” • only EE programs have impact : • Financial incentives • Loan finance for investments (including soft loans)

  14. % of Subsidy to EDL from GoL Expenditures Low electricity prices Raise burden at the expense of GoL

  15. Lebanon, Subsidies for SWH Announced by the Ministry of Energy, 12 March 2010 Subsidies of 200$ for 5000 SWH + Bank loan over 3 years planned. Example of unsustainable Energy Efficiency Policy Total subsidies= $1 Million Could be a “greatest failure” if not integrated in a long term strategy (of phasing out subsidies on electricity)

  16. SPECIFIC EE FINANCIAL SCHEMES IN THE SYRIAN MARKET No sustainable financial scheme, public incentive or subsidy available for EE and RE projects.

  17. Syria Law n°3 and Law n°18

  18. Syria

  19. Syria

  20. Syria - Damascus No place for individual SWH

  21. Conclusion • Recommendations for financing incentives • Subsidies are needed for a kick-start, over a limited period. • Awareness raising, technical assistance and capacity building • Market preparation and market assessment. • Improving legal and macroeconomic framework conditions for EE and renewable energy technologies. • Expanding development partnerships with the private sector (especially Banks).

  22. Recommendations Conclusion Finance the development of new technology “Combined Satellite – Solar Water Heater” • Towards a decentralized and balanced financing-funding • Transition to more EE needs financing, but… • Financing needs a stable source of funding… • Recommendation: • - It’s time to move from energy tariffs subsidies to EE & RE subsidies. • - How? small environmental tax on all energies, with adequately tuned parameters…

  23. Thank you for your attention Adel Mourtada adel.mourtada@yahoo.fr

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