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Overview of the PV Market in Lebanon SWOT Analysis

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Presentation on theme: "Overview of the PV Market in Lebanon SWOT Analysis"— Presentation transcript:

1 Overview of the PV Market in Lebanon SWOT Analysis
Elie Maalouf Business Unit Manager, ECOsys (Midware Data Systems Division) ‘Environment & Clean Energies’ Conference Ecorient - June 5, 2014

2 Outline About ECOsys Overview of PV market in Lebanon SWOT analysis
Conclusion & Recommendations Some ECOsys PV Projects PV installation in Aaqoura – Alfa Telecom site

3 About ECOsys

4 About ECOsys ECOsys is a division of Midware Data Systems
1998: Established as Midware Data Systems (formerly part of Mideast Data Systems Lebanon incepted in 1978) Solar Photovoltaic Solutions

5 Identity 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

6 ITG Solutions Hardware & Infrastructure Software Services

7 Overview of the PV Market in Lebanon

8 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

9 Overview of PV Market in Lebanon
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

10 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

11 Overview of PV Market in Lebanon
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

12 SWOT Analysis

13 Strengths Favorable environmental conditions
300 days of sunlight Very suitable temperatures for the panels operation Minimal dust and sand Several professional companies & individuals Good local expertise Challenging market situation & conditions, helped built expertise Increasing PV market, created by a large number of companies

14 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 implemented with CEDRO IV Beirut River Solar Snake PV project by LCEC NEEREA loan and Net Metering with UNDP, BDL & MEW support Other awareness campaigns CEDRO: PV installation in Qartaba Municipality

15 Strengths Instable grid, frequent grid cuts
Competitive PV prices: (in residential applications vs generators) More people encouraged towards renewable energy and energy independency PV v/s Generator

16 Weaknesses EDL price is heavily subsidized Rates/ kWh (for industry)
EDL average cost: 3 X more than its selling price! Night 80 LL Day 112 LL Peak Hours 320 LL PV system is less cost effective, as opposed to countries like Germany, where cost is ~ 0.30$/kWh (450 L.L)

17 Weaknesses EDL instability No FIT, just NET metering
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

18 Weaknesses Low awareness on PV technology & benefits
No national regulations on certified products & companies No national certifications and trainings qualifying individuals & companies

19 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

20 Opportunities 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

21 Decrease of PV prices by 66% (Graph of German residential prices)
Opportunities Considerable decrease of PV Systems prices Decrease of PV prices by 66% (Graph of German residential prices)

22 Threats 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

23 Threats What after NEEREA loans?
Actual financial facilities are VERY attractive What will happen without NEEREA financing?

24 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

25 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!

26 Conclusion - Recommendations

27 Conclusion - Recommendations
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

28 Some of ECOsys’ PV Projects

29 UNDP - CEDRO Hybrid PV Systems in 17 sites across Lebanon (Public Schools, Municipalities…)

30 ACE New HQ AC Coupled System (Grid Inverters with Batteries)

31 Alfa Off-Grid & Hybrid Telecom PV Installations

32 Holcom New HQ Grid connected Crystalline Rooftop and Thin Film Façade

33 20|30 20|30 PV Façade Residential Towers, Jamil Saab Achrafieh (Ongoing)

34 Global Warming

35 Global Warming

36 Global Warming

37 Thank you for your attention
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