Overview of the PV Market in Lebanon SWOT Analysis Elie Maalouf Business Unit Manager, ECOsys...
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Transcript of Overview of the PV Market in Lebanon SWOT Analysis Elie Maalouf Business Unit Manager, ECOsys...
Overview of the PV Market in
LebanonSWOT Analysis
Elie MaaloufBusiness Unit Manager, ECOsys
(Midware Data Systems Division)
‘Environment & Clean Energies’ Conference
Ecorient - June 5, 2014
About ECOsys
Overview of PV market in Lebanon
SWOT analysis
Conclusion & Recommendations
Some ECOsys PV Projects
Outline
PV installation in Aaqoura – Alfa Telecom site
ECOsys is a division of Midware Data Systems
1998: Established as Midware Data Systems (formerly part of Mideast Data Systems Lebanon incepted in 1978)
About ECOsys
Solar Photovoltaic Solutions
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
Identity
Overview of PV Market in Lebanon
Power grid is instable
Grid is heavily subsidized 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
Approx. 100 companies active in PV, in Lebanon
PV is not yet a sustainable business– All these companies are not solely focused
on PV, and have other means of revenue
PV installations in Lebanon (2013)– Less than 5 MW
Overview of PV Market in Lebanon
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
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
Overview of PV Market in Lebanon
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
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
Strengths
CEDRO: PV installation in Qartaba Municipality
Instable grid, frequent grid cuts
– Competitive PV prices: (in residential applications
vs generators)
– More people encouraged towards renewable energy and energy independency
Strengths
PV v/s Generator
EDL price is heavily subsidized– Rates/ kWh(for industry)
– EDL average cost: 3 X more than its selling price!
Weaknesses
Night80 LL
Day112 LL
Peak Hours320 LL
PV system is less cost effective, as opposed to countries like Germany, where cost is ~ 0.30$/kWh (450 L.L)
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
Weaknesses
Low awareness on PV technology & benefits
No national regulations on certified products & companies
No national certifications and trainings qualifying individuals & companies
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
Weaknesses
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
Opportunities
Considerable decrease of PV Systems prices
Opportunities
Decrease of PV prices by 66% (Graph of German residential prices)
Political situation of the country– Instable situation discourages people
to invest on PV systems
Introduction of very favorable 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
Threats
What after NEEREA loans?
– Actual financial facilities are VERY attractive
–What will happen without NEEREA financing?
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
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!
Threats
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
Conclusion - Recommendations