BDL Energy IncentivesBDL Energy IncentivesBIEF

September 22, 2016

National Energy Efficiency and Renewable Energy Action

‐ Energy Efficiency measuresEnergy Efficiency measures.‐ Renewable Energy base, i.e. Solar and Wind energy.

StructureStructure

Central Bank of Lebanon (BDL)

Official Technical Review Beneficiary Engineering  Commercial 

(BDL)

by LCECBeneficiary g g

Consultant Bank

Unofficial Technical Review by LCEC 

BDL Energy IncentivesBDL Energy Incentives

Cost of EE & RE InvestmentCost of EE & RE Investment

≤1%≤1%

BDL Energy Incentives

• Up to 14 years maturity• Up to 4 years grace period

New Projects• Up to 4 years grace period

• Up to 10 years maturityRe‐Modeling • Up to 2 years grace periodExisting Projects

MechanismMechanism

EU Grant for EE(November 11, 2010)

€12,200,000

Fully allocated with more than 100 beneficiaries

Mechanism

DREG Decentralized Renewable Energy Power Generation Projectgy j

Private Sector RE Investments

Grant co‐ financing of $150,000 or 25% of project’s cost

Mechanism

€80m. EE Loan

Productive Sectors

12 t 14 Y t it12 to 14 Yrs. maturity

≈ 1% interest rate

Mechanism

• The amount of the Energy loan extended would be based on the

Certified Green Buildings

• The amount of the Energy loan extended would be based on the following:Nature of Project Rating Energy Loan Amount

N P j t N t t d E C tNew Project Not rated Energy Cost

Certified 15% of Total Project Value

Silver 25% of Total Project Value

Gold 35% of Total Project Value

Platinum 45% of Total Project Value

Existing Project Rated or Not Rated Energy Cost

• The certification system developed by LEED  is adopted, or  equivalent classifications from other internationally recognized systems.

g j gy

Mechanism

Consumer Solar Water Heaters

0% I t t R t0% Interest Rate

Up to 5 Years Maturity

$200 Grant from the MOEW for the First 7,500 Applicants

Number of granted SWH loans ≈ 20,000Number of SWH loans that benefited from MOEW = 6,000

Projects

• More than 464 loans approved with a total of 322 million USD • Around 42 projects in the pipeline with a total of 12 million USD p j p p• 338 PV projects of a total installed capacity of 13.5 MWp• Green building loans took the biggest part with a total budget of 223 million USD223 million USD 

Roof mounted PV system

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Investments Under 

$400 000 000 00

$450,000,000.00 

$300,000,000.00 

$350,000,000.00 

$400,000,000.00 

$200,000,000.00 

$250,000,000.00 

$50,000,000.00 

$100,000,000.00 

$150,000,000.00 

$‐

$ , ,

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Indicators ‐ Statistics

Distribution of Investments Under NEEREA

RE10% EE

Loans Amount per Category

10% EE4%

R3E19%19%

GB67%

RE: Renewable Energy Projects

EE: Energy Efficiency Projects

R3E: Renewable Energy and Energy Efficiency Projects

GB: Green Certified Buildings Projects

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GB: Green Certified Buildings Projects

Indicators ‐ Statistics

Distribution of Projects Under NEEREA

GB

Number of Projects by Category

EE9%

R3E11%

GB5%

RE75%RE: Renewable Energy Projects

EE: Energy Efficiency Projects

R3E: Renewable Energy and Energy Efficiency Projects

GB: Green Certified Buildings Projects

75%

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GB: Green Certified Buildings Projects

Indicators ‐ Statistics

Distribution of Projects Under NEEREA

Number of Projects by TechnologyPV SWH Biomass Boiler LED Building Envelope Other Green Certified Buildings

265%

387%

224%

PV SWH Biomass Boiler LED Building Envelope Other Green Certified Buildings

338

194%

5510%

33863%

357%

%

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Indicators ‐ Statistics

Loans Amount Distribution of Projects Per Sector

$95 034 767 89

$4,012,837.68 1%

$16,387,794.25 5%

$95,034,767.89 30%$5,107,434.78 

2%

$17,640,389.48 $181,732,983.5

5 $ , ,5%

5 57%

Residential Industrial Commercial

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Educational Agricultural Non‐Profit

Indicators ‐ Statistics

Distribution of Projects Per Governorate

NorthNabatiyeh

2%

NUMBER OF PROJECTS LOAN AMOUNTMount Lebanon South Bekaa Beirut North Nabatiyeh

Mount 

18%

26%

4%5%

Lebanon42%

ATEGORY NAME]RCENTAGE]

1%4%

South16%

Bekaa15%

60%

17

16%

Indicators ‐ Statistics

Distribution of Projects Per Bank

$80,000,000.00 

$90,000,000.00 

$100,000,000.00 

$50,000,000.00 

$60,000,000.00 

$70,000,000.00 

$10 000 000 00

$20,000,000.00 

$30,000,000.00 

$40,000,000.00 

$‐

$10,000,000.00 

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Market

• NEEREA helped create more than 10,000 direct and indirect jobs in the sustainable energy sector in Lebanonthe sustainable energy sector in Lebanon

• The number of companies working in the field of solar water h t f 25 i 2010 t th 170 i t dheaters rose from 25 in 2010 to more than 170 companies today.

• The number of companies working in the green energy and energy audits business rose from 4 in 2010 to more than 30 companies in 2015.

• The number of companies working in solar photovoltaic sector increased from 5 in 2010 to more than 70 companies today.

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BDL Incentives

Financing Scheme Cost on Beneficiary Multiplier

EIB/AFD Energy 0% - 0.75% 150%

Energy Loans 3.75%- (50%*1Yr. Tbs ) 150%

Kafalat Energy 3.5% 100%

Solar Panels Loans 0.75% 150%

Solar Energy – Rural Areas 0.75% 150%

Pollution Abatement - Industry 2 Yr. Tbs – 1%LIBOR 3mths. + 4.5%

60%

World Bank – Pollution Abatement WB rate + BDL Comm + 3.5% Bank Spread -(100%*1Yr Tbs)

100%(100%*1Yr. Tbs)

Non Subsidized – EnvironmentalLoans

3.75%- (50%*1Yr. Tbs ) 100%

Environmental Subsidized Loans 2 Yr. Tbs – 0.75% 60%

Thank You

Mazen A. HalawiHead Of Subsidized Loans and Financing ProgramsBanque Du Liban

mahalawi@bdl.gov.lb