Lebanese Center for Energy Conservation

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National Policy for Energy Efficiency and Renewable Energy and the Role of the Lebanese Center for Energy Conservation (LCEC) By: The Lebanese Center for Energy Conservation (LCEC) Pierre El Khoury, B.E. M.E.M. Acting Project Manager YMCA Event July 1, 2010 Dunes Holiday Inn- Beirut, Lebanon

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“[…] 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 […]” 3 The Declarationof the Government

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The MEW Action Plan 4 MEW proposed using 9.08 Million USD to implement three initiatives in energy conservation: 7 Million USD to implement the 3 Million Compact Fluorescent Lamps (CFL) project; 1.5 Million USD to offer subsidies on Solar Water Heaters (SWH); 0.58 Million USD to implement a national O&M plan on public street lighting; The plan was approved by the Council of Ministers (Decision No. 59) during the session of March 10, 2010.

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5 The Compact Fluorescent Lamps (CFL) Program

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The 3 Million CFL’s Project 6 The project aims at replacing 3 Million incandescent lamps with 3 Million CFL’s at a rate of: 3 lamps per house, thus covering 1 million houses; With a one-time investment of 7 Million USD, this project would result in savings of 76 Million USD annually over a period of 4 years; Currently, the distribution plan is being developed and finalized; For quality control issues, the reference to each house will be based on the EDL subscription number.

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The National CFL Program 7

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8 “Developing the Solar Water Heaters Market in Lebanon” Initiative

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The OBJECTIVE This initiative aims at accelerating the market development of solar water heating in Lebanon with an objective to facilitate: 1- the installation of 190,000 m2 of new installed collector area over the period 2009-2014; 2- an annual sale of 50,000 m2 reached by the year 2014; 3- and with expected continuing growth to reach the set target of 1,050,000 m2 of total installed SWH capacity by 2020. 9

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Increase in SWH Installations 10

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The MEW Initiative 11 The 1.5 Million USD will be used within the framework of a national financing mechanism to be developed with the Central Bank of Lebanon (BDL); The proposed project poses the challenge to ensure another 3 Million USD of grant money to be added to the 1.5 Million USD, making the total sum 4.5 Million USD; The initiative will allow EDL subscribers to benefit from a 5-year loan with 0% interest, with a 200 USD to be deducted from the total cost of the system.

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NEEREA LCEC is working on the development of the National Energy Efficiency and Renewable Energy Account” (NEEREA). NEEREA will be a flexible mechanism to fund energy efficiency and renewable energy projects all over Lebanon. NEEREA will help facilities to have loans at 0% interest and with full risk guarantee. It is expected that NEEREA will be operational by mid 2010. NEEREA is developed in coordination with the Central Bank of Lebanon (BDL). 12

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Legislative Framework The GoL has set a target of 12% renewable energy by 2020. To achieve this goal, renewable energy production is needed (wind farms, concentrated solar power (CSP) plants, PV farms, hydro power); In 2010, LCEC will give great attention to the “feed-in” (or more specifically “net-metering”) of renewable energy to the national grid. This issue needs to be closely coordinated with EDL; A dedicated committee of legal experts is working on the finalization of the energy conservation law. 13

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14 The Lebanese Center for Energy Conservation (LCEC)

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15 Who Are We? The Lebanese Center for Energy Conservation (LCEC) is the national energy agency for Lebanon catering for all energy efficiency and renewable energy matters.

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16 Where do We Stand? LCEC is directly linked to the Lebanese Minister of Energy and Water (MEW) LCEC has succeeded in establishing itself as the technical point of reference specialized in energy conservation issues within the structure of the MEW LCEC is supported by: The Prime Minister of Lebanon, Council of Ministers The Lebanese Parliament, the Energy Committee Other Ministers and Electricité du Liban (EDL)

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17 What Do We Really Do? CO2 Emissions Reduction

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Work of LCEC 18 Under the direct supervision of the MEW and with the direct support of UNDP, LCEC is working on the following axes: The development of the CFL’s market; The development of the SWH’s market; The development of the Public Street Lighting, including O&M; The development of financing mechanism for energy audit applications; The development of the legislative framework for EE and RE.

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19 Capacity Building

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Grants

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21 Pilot Projects Implementation

“It took us 125 years to usethe first trillion barrels of oil.We’ll use the next trillion in 30” : 

22 International Herald Tribune-Monday, September 5, 2005 “At Chevron, we believe that innovation, collaboration, and conservation are the cornerstones on which to build this new world. We cannot do this alone. Corporations, governments and every citizen of this planet must be part of the solution as surely as they are part of the problem. We call upon scientists and educators, politicians and policy-makers, environmentalists, leaders of industry and each one of you to be part of reshaping the next era of energy.” David J. O’Reilly Chairman & CEO Chevron Corporation “It took us 125 years to usethe first trillion barrels of oil.We’ll use the next trillion in 30” Final Thought

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Thank you!