The National CDM Project for Solar Energy - DEC 2011

1. AN INITIATIVE BY: GREEN FUTURE LEBANON
RESPONSIBILITY, SUSTAINABILITY

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. Meeting the needs of the present
without
Compromising the ability of future
generations to meet their own needs
Main challenging factors:
Income Growth : increasing consumption
Population Growth : fewer resources
per head
Source: Our Common Future; Gro Harlem Brundtland

4. Fewer resources for future generations due to:
Higher GHG emissions and Shortage in food and water
more abrupt climate change with widespread famine and
with recurring natural plagues while population is
disasters still on the rise
Photo by: Kevin Carter

6. 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

8.  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

9. CDM aims to direct 1. Development of project concept note
private sector 2. Development of Project Design Doc
investment into
emission-reduction 3. Host Country Approval
projects in developing 4. Validation of PDD
countries while promoting
5. Publish PDD for 30 days
sustainable development
in these countries. 6. Project Validation
In return, the
7. Registration with CDM
industrialized countries
investing in projects will 8. Project Implementation & Monitoring
receive credits against
9. Verification & Certification
their Kyoto targets
10. Issuance of CERs
Source: The Clean Development Mechanism; Energy & Environment Group, Bureau for Development Policy, UNDP

10.  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

11. SOURCE: THE GREEN PACT RESEARCH 2011
UNDP/ LCEC RESEARCH 2009
GREEN ARMS RESEARCH 2007

12. Lebanon depends almost exclusively on imported fossil
fuels to fulfill its energy needs.
Around 99% of its primary energy consumption is imported,
with electricity generation being the main fuel consumer
The use of renewable energy in Lebanon has been limited
to hydropower whose share has been dropping with
increased electricity production and consumption
Households consume around 200 MW of electricity for
heating water (equivalent to 1,500 Gwhr/yr and an actual
cost of $330 Million/ yr)
Heating water electrically costs EDL $202 Million/ yr in
power subsidy sale to households

13. 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

14. 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)

15. 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

16. 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

18. 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

19.  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

22. 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

23. The Green Future Solar Heating reduce EDL subsidy by $20 Million
Project will save 155 Gwhr of yearly
power generation per year
SWH systems will offset 120,000 equivalent to removing 55,000
tons of CO2 emissions/ yr circulating cars out of service
(assuming all electricity generation
is from oil-fired power plants)
Green Future will provide Solar through subsidized interest
Water Heaters and retrofit financing and CER claim under a
collector systems at a Zero Net CDM model
Cost to end users

25.  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

26.  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

27. Lebanon Capital CDM MOU Lebanon
Energy Raised for signed with CDM CPA
Research CDM PA UNDP Announced
Mar 2005 Apr 2006 Aug 2009 Jan 2010
1st draft of
PDD CER off-take
submitted PIN CPA PIN
secured with Approved Submitted
for review MGM
Jul 2011 Mar 2011 Aug 2010
Apr 2011
Final PDD Lebanon
CPA initiated First CER to
Approved for be claimed
submission Dec 2012
(2,500 m2 of
Nov 2011
collector area
installed)
Dec 2011

30.  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

31.  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

32.  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

33. JOIN THE PACT !!!