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An initiative by green future lebanon

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The National CDM Project for Solar Energy - DEC 2011

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An initiative by green future lebanon

  1. 1. AN INITIATIVE BY: GREEN FUTURE LEBANONRESPONSIBILITY, SUSTAINABILITY
  2. 2. • Sustainability• Climate Change• Kyoto & CDM• Water Heating Macroeconomic Analysis – Energy sector in Lebanon – Research Findings – Economic & Environmental Impact – Growth Barriers• The National CDM Project for Solar Energy (NASEL) • Mission, Vision & Value Statements • Stakeholders • Project description • Municipal role • Progress • SWOT Analysis • Promoting NASEL
  3. 3. Meeting the needs of the present withoutCompromising the ability of futuregenerations to meet their own needsMain challenging factors: Income Growth : increasing consumption Population Growth : fewer resources per head Source: Our Common Future; Gro Harlem Brundtland
  4. 4. Fewer resources for future generations due to:Higher GHG emissions and Shortage in food and watermore abrupt climate change with widespread famine andwith recurring natural plagues while population isdisasters still on the rise Photo by: Kevin Carter
  5. 5. Source: Climate Directorate of the National Centre for Atmospheric Science, University of Reading•Blue shading indicates that most models (>75%) show an increase in annual rainfall•Red shading indicates that most models show a decrease in rainfall•Lightly shaded areas are where models show inconsistent results
  6. 6.  A protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC), aimed at fighting global warming. The UNFCCC is an international environmental treaty with the goal of achieving the "stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system The Protocol was initially adopted on 11 December 1997 in Kyoto, Japan, and entered into force on 16 February 2005. The only remaining signatory not to have ratified the protocol is the United States Under the Protocol, 37 countries (“Annex Countries”) commit themselves to a reduction of four greenhouse gases (GHG) produced by them, and all member countries give general commitments The Protocol allows for several “flexible mechanisms”, such as emissions trading, the clean development mechanism (CDM) and joint implementation to allow Annex 1 countries to meet their GHG emission limitations by purchasing GHG emission reductions credits from elsewhere, through financial exchanges
  7. 7. CDM aims to direct 1. Development of project concept noteprivate sector 2. Development of Project Design Docinvestment intoemission-reduction 3. Host Country Approvalprojects in developing 4. Validation of PDDcountries while promoting 5. Publish PDD for 30 dayssustainable developmentin these countries. 6. Project ValidationIn return, the 7. Registration with CDMindustrialized countriesinvesting in projects will 8. Project Implementation & Monitoringreceive credits against 9. Verification & Certificationtheir Kyoto targets 10. Issuance of CERs Source: The Clean Development Mechanism; Energy & Environment Group, Bureau for Development Policy, UNDP
  8. 8.  KYOTO CDM activity has been successful so far in creating a dynamic carbon market More than 2.8 billion CERs generated CDM has been a catalyst for the transfer of high technology to underprivileged areas and given them access to investments without which they would never get CDM is leading to a Market Mechanism for Sustainable Development (MMSD) CDM is the founding structure of any future carbon market
  9. 9. SOURCE: THE GREEN PACT RESEARCH 2011 UNDP/ LCEC RESEARCH 2009 GREEN ARMS RESEARCH 2007
  10. 10. Lebanon depends almost exclusively on imported fossilfuels to fulfill its energy needs.Around 99% of its primary energy consumption is imported,with electricity generation being the main fuel consumerThe use of renewable energy in Lebanon has been limitedto hydropower whose share has been dropping withincreased electricity production and consumptionHouseholds consume around 200 MW of electricity forheating water (equivalent to 1,500 Gwhr/yr and an actualcost of $330 Million/ yr)Heating water electrically costs EDL $202 Million/ yr inpower subsidy sale to households
  11. 11. The UNDP Environment and Energy Office in Beirut has created alongside with the Ministry of Environment and Ministry of Energy an initiative known as Lebanese Center for Energy Conservation (LCEC)In 2007 and 2008, they have jointly conducted several studies on solar power and specifically a pilot test on domestic solar water heatersMajor Findings: Average annual hot water consumption 13 m3/person and 645 lit/m2 of built area Equivalent thermal energy is 618 KWh/person and 30.9 KWh/m2 of built area Evacuated tube systems can offset around 98.6% of electricity needed to heat water Household actual saving for an SWH system on electricity bill is $195/yr whereas the actual cost of the offset power is $610/yr Each SWH unit will offset 1.6 ton of CO2 emissions/ yr
  12. 12. National need for SWH is estimated at around 1.2 million sq. meters of collector aperture areaSWH systems will save 100 MW of power generation (including grid losses of 25%)SWH systems will offset $202 Million/ yr in government power subsidy and 700,000 tons of CO2 emissions/ yr (assuming all electricity generation is from oil-fired power plants)
  13. 13. The major factor impeding the growth of solar water heater installations in Lebanon is: People who most need solar water heaters (rural and suburban areas) are not capable of financing or affording its price Low technical expertise of installers where many installed units do not perform to the expected or promised standard and warranties are left unfulfilled Lack of commitment and credibility due to the absence of a capable standardizing body where many installed units do not meet the minimum critical point of failure or their improper installation leads to a reduction in performance Low value for money where good quality products are very expensive and low price products are very low quality
  14. 14. Water quality in Lebanon is very bad Very high hardness resulting in scaling and reduction in heat transfer Very high chlorine and other corrosive anion concentrations resulting in quick deterioration and corrosion of metalsLimited roof space in Beirut and its suburbs due to the densely developed land with an average population of 19,195/ sq.km and average building height of 21 m
  15. 15. Mission: we will engineer financial models through which we can harness solar energy to make it widely affordable to every household Vision: to act as a catalyst for the exponential growth in the rate of adoption of solar energy in Lebanon
  16. 16.  Adopt cutting edge clean technologies exclusively Support government initiatives as a means of offsetting high technology costs Be a reliable developer, service provider and advisor Create long term alliances with stakeholders which outlive project lifetimes Create enterprise value by properly hedging risks and maintaining growth
  17. 17. 1. Households consume around 200 MW of electricity for heating water (equivalent to 1,510 Gwhr/yr and an actual cost of $330 Million/ yr)2. Heating water electrically costs EDL $202 Million/ yr in power subsidy sale to households (baseline of 0.5 million HH with electric heating tank)3. National need for Solar Water Heaters is estimated at around 1.2 Million m2of collector aperture area
  18. 18. The Green Future Solar Heating reduce EDL subsidy by $20 MillionProject will save 155 Gwhr of yearlypower generation per yearSWH systems will offset 120,000 equivalent to removing 55,000tons of CO2 emissions/ yr circulating cars out of service(assuming all electricity generationis from oil-fired power plants)Green Future will provide Solar through subsidized interestWater Heaters and retrofit financing and CER claim under acollector systems at a Zero Net CDM modelCost to end users
  19. 19.  Each municipality will be offered to participate in the project upon signing an MOU through which it will act as a mediator between the households and The Green Pact For each participating municipality an administrator from within the community will be hired to handle applications and payments Groups of 50 will be bundled and applied together as a group loan unwritten against default by Green Arms especially that more than 50% of rural households are not eligible for credit from private banks Technicians from within the community will be hired to do the installation, maintenance and repair of systems. They will be trained free of charge by The Green Pact Each municipality will stock the purchased units and a reserve of 2% to cover any warranty claim or repair The municipality will provide advertising space and location for the gatherings related to promoting the project
  20. 20.  Households will pay a deposit of $200 which will be deposited in a cash-co account as a guarantee against default In case of default of any of the bundled group members the bank will withdraw the full borrowed amount and deduct from the deposit until depletion where after this point Green Arms will come in to settle the payments The balance remaining after deduction of defaulted payments by group members will be used against payment of last installments In case of default on payment the share will be acquired by the Green Arms The municipality administrator will collect monthly the due installments and deposit them at the designated bank A central call center will be dedicated to handle customer queries and complaints in order to refer them to the designated repair technician and log the event for monitoring Engineers employed by The Green Pact at the LCEC will conduct 100% site audits to ensure proper installation of units before the fees due to installers are paid by The Green Pact
  21. 21. Lebanon Capital CDM MOU LebanonEnergy Raised for signed with CDM CPAResearch CDM PA UNDP AnnouncedMar 2005 Apr 2006 Aug 2009 Jan 20101st draft ofPDD CER off-takesubmitted PIN CPA PIN secured with Approved Submittedfor review MGMJul 2011 Mar 2011 Aug 2010 Apr 2011Final PDD Lebanon CPA initiated First CER toApproved for be claimedsubmission Dec 2012 (2,500 m2 ofNov 2011 collector area installed) Dec 2011
  22. 22.  Capitalize on the CDM benefits and subsidized interest to reduce end user price and offer the solar heating system at a Zero Net Cost (i.e. the monthly installment is equivalent to the household saving on electricity or energy bill) Positioning: premium quality systems at a Zero Net Cost Consumer Promise:  Financing model such that monthly installment equivalent to energy saving  Premium quality product with 5 years warranty endorsed by LCEC (a UNDP entity)  Advanced technology and High performance guaranteed by regular maintenance and monitoring
  23. 23.  With the support of the Ministry of Environment the LCEC and the Ministry of Energy a continuous PR campaign will be maintained throughout the project duration through:  Monthly press releases in daily newspapers highlighting major activities undertaken on the project  Frequent TV talk show hosting with community leaders, sector experts, public figures and government officials to endorse the project and clarify its objectives to the public  Technical TV program free sponsorship on MTV and FTV educating the public on product usage and maximizing savings  Frequent seminars inviting municipalities, heads of syndicates and unions to initiate their involvement
  24. 24.  Four branded panels will be placed on the four main entrances of Beirut (Khalde, Hazmieh, Dora, Mansourieh). Each panel will have 4 digital counters displaying:  Pollution index at the location  Number of units installed to date  Carbon credits saved to date  Deficit saved on the government budget to date The objective of the panels is:  to show the impact of this project on both the environment and the budget deficit  To call for action those who did not participate in the program and incite them to install SWH
  25. 25. JOIN THE PACT !!!

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