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1. The National Policies in Lebanon to Improve
Energy Efficiency in the Construction Sector
The 11th CTI Workshop
on Climate Change and Energy policy in the Construction Sector
By Pierre El‐Hnoud
Advisor to the Minister
Ministry of Energy and Water
The Lebanese Center for Energy Conservation (LCEC)
November 12, 2010
Berlin, Germany
Serverlc...
ministry of
energy
officiel.jpg

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• The Government commitment: 12% renewable energy by 2020
• Overview of the policy paper of the electricity sector
• The Lebanese NEEAP (National Energy Efficiency Action Plan)
• The role of the LCEC
• Successful project implementation:
– 3 Million CFL’s project
– NEEREA financing mechanism
– EE standards and labels
Outline

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4. “ [ … ] 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 […]” 4
The Statement of the Government

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The Policy Paper of the Electricity Sector
In June 2010, the Ministry of Energy and Water (MEW) launched
the policy paper for the electricity sector
The policy paper was approved by the Council of Ministers as the
national plan to upgrade the electricity sector in the country
The policy paper includes 10 strategic initiatives, 3 of them
dedicated to energy efficiency and renewable energy, which shows
the commitment of the Ministry to push forward such policies
The 10 initiatives include a total of 42 action steps

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10 Strategic Initiatives
Infrastructure
Generation
Transmission
Distribution
Supply and Demand
Fuel sourcing
Renewable energy
Demand side management/Energy efficiency
Tariffs
Legal Framework
Norms and standards
Corporatization of EDL
Legal Status

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Examples of Action Steps in EE and RE
5.a “Complete a wind atlas for Lebanon and launch IPP wind farms with
the private sector in 2010”
5.d “[…] Setting the tariff of energy produced from renewable resources
(feed‐in and net‐metering) and synchronizing it to the electric network”
6.e “Set‐up the National Energy Efficiency and Renewable Energy Action
(NEEREA) as a national financing mechanism and develop the ESCO
(Energy Service Company) business dealing with energy audit applications”
8.b “Develop rules and laws that promote the largest penetration of
“Green Buildings” and “Energy Efficiency” in collaboration with concerned
institutions”

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NEEAP Lebanon 2011‐2015
Starting from the different action steps of the policy paper, the
Lebanese Center for Energy Conservation (LCEC) has recently
started to develop the National Energy Efficiency Action Plan
(NEEAP) 2011‐2015
The draft NEEAP is ready (including 15 initiatives). Currently, it is
being adjusted according to the requirements of the League of Arab
States (LAS)
This exercise is supported by the EU‐funded MED‐ENEC project,
including Ecofys, Germany
The final NEEAP will be ready by December 2010. the Minister of
Energy will submit it to the Council of Ministers for adoption

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An Overview
Declaration of the Government of Lebanon:
12% Renewable Energy by 2020
Ministry of Energy and Water:
Policy Paper for the Electricity Sector
National Energy Efficiency Action Plan (NEEAP)
developed by
the Lebanese Center for Energy Conservation
(LCEC)

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LCEC
The Lebanese Center for Energy Conservation (LCEC) is the
national energy agency for Lebanon catering for all energy efficiency
and renewable energy matters
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

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CO2
Emissions
Reduction
Work of the LCEC

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• Under the direct supervision of the MEW, LCEC is working on the
following axes:
1. The development of the CFL’s market;
2. The development of the SWH’s market;
3. The development of the Public Street Lighting, including
O&M;
4. The development of financing mechanism for energy audit
applications;
5. The development of the legislative framework for EE and RE.
Current Implementations

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• 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.
CoM Decision No. 59

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The Compact Fluorescent Lamps
(CFL) Program

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The National CFL Program

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• 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. Reduction in demand up to 163 MW.
• Currently, the distribution has started in all cities and villages of
Lebanon
• For quality control issues, the reference to each house will be based
on the EDL subscription number
The 3 Million CFL’s Project

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Ref. Description Budget Needed
1 Cost of 3 Million CFL’s 4.5 Million USD
2 Distribution Costs 2.0 Million USD
3 Marketing Costs 0.2 Million USD
4 Project Management Unit 0.2 Million USD
5 Miscellaneous Cost 0.1 Million USD
TOTAL 7 Million USD
The 3 Million CFL’s Project (cont’d)

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19. • On March 12, 2006, LCEC launched the national initiative towards
the adoption of EE standards for the CFL.
• On March 15, 2007, the EE standard developed by LCEC was
adopted as elective.
• On September 21, 2010, the Council of Ministers adopted the EE
standard for the CFL as mandatory.
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EE Standards for the CFL

20. • 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 end of 2010.
• NEEREA is developed in coordination with the Central Bank of
Lebanon (BDL).
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NEEREA

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Commercial Banks Reserves at BDL
Investment by Banks in Environmental
Projects
Process available by
BDL
Loans by Banks to Beneficiaries to
implement Environmental Projects
Equal Installments
3% “spread”
Risk Guarantee
Technical validation
Covered by NEEREA
Covered by NEEREA
(UNDP/LCEC
technical team)
Covered by NEEREA
(BDL/UNDP
coordina./ marketing)
Basic Concepts of NEEREA

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LCEC has built the energy audit market in Lebanon:
ESCO business development (6 audit firms, cost‐sharing model)
Financial support (national energy efficiency fund)
Transfer of know how (training, workshops)
Raising awareness (industries, private businesses)
Regulatory work (mandatory audits)
LCEC has initiated and supervised more than 100 audits:
Beirut International Airport, 4.5 Million USD
Casino du Liban, 4 Million USD
Hotel Dieu de France Hospital, 2 Million USD
ABC Mall Achrafieh, Solicar Industries, Coca Cola Plant
Energy Audits

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Energy Audits (cont’d)‐ for 58 Facilities

24. • The Ministry of Energy is focusing to develop renewable energy
production (solar PV, CSP, Wind, hydro, etc.)
• LCEC will give great attention to the “feed‐in” (or more specifically
“net‐metering”) of renewable energy to the national grid
• A dedicated committee of legal experts is working on the
finalization of the energy conservation law
• With the support of the World Bank, LCEC is working on the
update of the thermal standards and building code for the country.
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Next Steps..

25. Thank you!