Facilitating Future NAMA’s Through an Integrated Policy Framework

By Pierre El Khoury, B.E. M.E.M. Manager, The Lebanese Center for Energy Conservation (LCEC)

Climate Policy Challenges and Opportunities for the Building Sector Climate Technology Initiative (CTI)- 12th Workshop

Neue Malzerei, Berlin- Germany 14 and 15 October 2011

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2

239,62 174,78 240,97 291,00 280,75 224,67 268,77

402,60 312,15 299,37

369,57 503,02

661,22 759,00

909,17

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270,17

266,45 267,28

264,64

286,15

406,52

354,16

497,01

663,52

0,00 $0

$500

$1.000

$1.500

$2.000

$2.500

$3.000

$3.500

$4.000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Yearly National Energy Bill $M (1993-2009)

Asphalt

Fuel Oil

Kerosene

Gasoil (Mazout)

Gasoline

Liquid Gas

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Fighting Climate Change

Limiting Energy

Dependency

Satisfying Growing Energy Needs

National Concerns

Energy Efficiency and Renewable Energy

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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 electric and thermal supply”

LCEC

• “ [..] NEEAP includes 14 initiatives in the energy efficiency and renewable energy sectors for the period 2011-2015”

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Hierarchical Approach

Declaration of the Lebanese Government

Policy Paper for the Electricity Sector

National Energy Efficiency Action Plan (NEEAP) 2011-2015

Political

Commitment

Strategic

Vision for the

Energy Sector

Detailed

Applicable

Approach

What is a NEEAP?

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The National Energy Efficiency Action Plan is an official document that should include:

-Set national targets in energy efficiency and renewable energy; -Actions to be taken in energy efficiency and renewable energy; -Potential savings due to energy efficiency; -Potential additional capacity from renewable energy; -Measures taken by the Government to lead by example.

DEFINITION

Lebanon’s NEEAP

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-The National Energy Efficiency Action Plan for Lebanon for the period 2011-2015 was developed by LCEC during September 2010.

-Lebanon’s NEEAP was officially adopted by the Ministry of Energy and Water on 21 December 2010.

-Currently, the NEEAP is on the agenda of the Council of Ministers.

-The NEEAP was developed in accordance with the requirements of the League of Arab States thanks to the support of the MED-ENEC project.

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Circles of Review

Lebanon’s NEEAP is a dynamic document. It is updated regularly.

NEEAP 2011-2015

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Lebanon’s NEEAP includes 14 independent but interrelated national initiatives.

1-EE Lighting 5-Public Street Lighting 13-ESCO’s 14-EE Standards and Labels

3-Decentralized PV/Wind 4-SWH 6-Wind 7-PV/CSP 8-Hydro 9-Geothermal

2-Energy Conservation Law 10-Building Code 11-Financing Mechanisms 12-Awareness and Capacity Building

NEEAP 2011-2015- Example of Lighting

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Initiative 1

Initiative 2

Initiative 3

Initiative 4

Initiative 5

Initiative 6

Initiative 7

Initiative 8

Initiative 9

Initiative 10

Initiative 11

Initiative 12

Initiative 13

Initiative 14

Towards Banning the Import of Incandescent Lamps to Lebanon

Energy Conservation Law

BEEC: Min. Performance for Lighting

NEEREA

Awareness and Capacity Building

ESCO

EE Standards and Labels

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Elements of Transition

3 Million CFL’s

Project

CDM Benefits

Mandatory Standards for CFL’s

CFL’s Testing Facility

Awareness Raising

Incentives/ Decentives

Market Survey

Building Code

Financing Mechanism

Notes on Efficient Lighting Approach

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-An integrated approach

-Supported by the Government (Decision)

-Direct and clear energy and money savings (76 Million USD over 4 years, 163 MW of reduction in the peak demand)

-Financed directly by the Government of Lebanon (9 Million USD)

-CDM benefits (900,000 CER’s expected), the first CDM project in Lebanon

NEEREA

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NEEREA is the National Energy Efficiency and Renewable Energy Action

•NEEREA is a “brand name” for the Circular No. 236 with a main slogan:

•“Finance your energy efficiency, renewable energy, or green building project through Lebanese banks with 0% interest rate and a repayment period of 14 years”

Advantages of NEEREA

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Beneficiary ESCO/ Agent/

Consultant

Commercial Bank

BDL LCEC BDL

Approval

Technical Proposal

Financial Information / Analysis

Nature of Project Rating Loan Amount

New Project Not rated Energy Measures Cost

Certified 15% of Total Project Value

Silver 25% of Total Project Value

Gold 35% of Total Project Value

Platinum 45% of Total Project Value

Existing Project Rated or Not Rated Energy Measures Cost

The Estimated Potential.. And Benefits

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-LCEC believes that NEEREA (Circular No. 236) will leverage investments of around 100 Million USD in the coming 5 years (opportunities for ESCO business and Green Building rating systems)

-BDL approved 2 projects: -A 3 Million USD loan for a luxury residential building -3.5 Million USD loan for the headquarter of an engineering company (LEED Gold) -12 Million USD in the pipeline -2 Million USD loan in the pipeline (BREEAM Very Good)

-EIB and AFD are exploring the potential for a 100 Million Euros subsidized loan to boost NEEREA

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Financing

Motivating

Risk Guarantee

0% Interest Rate

Long Repayment

Promoting

Momentum, Initiative, Action.. NEEREA

Last Example: Building Codes

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-Energy Efficient Building Codes result in huge savings for Lebanon (estimated at 16,282 GWh over 20 years)

-In 2012, LCEC plans to initiate the momentum for an EEBC including:

-Thermal standards -Regulations for SWH -Regulations for EE Lighting -Green Building rating system -Pilot projects (villages)

-Investment costs are high

-Clear lack of technical know-how

Facilitating Future NAMA’s through an Integrated Policy Framework…

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Energy Efficient Lighting

Solar Water Heaters

NEEREA (ESCO)

Building Codes… Decentralized PV/Wind… Wind Farms…

SUPPORTED NAMA’s ?

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Lebanon

Impact and Role..

Thank You!

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The Lebanese Center for Energy Conservation (LCEC) Ministry of Energy and Water- Corniche du Fleuve- First Floor- Room 303

Telephone: 01-569101 01-565108

Email: energy@lcecp.org.lb