Elie Ecorient Presentation PV SWOT

Report
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
Outline
 About ECOsys
 Overview of PV market in Lebanon
 SWOT analysis
 Conclusion &
Recommendations
 Some ECOsys PV
Projects
PV installation in Aaqoura – Alfa Telecom site
About ECOsys
About ECOsys
 ECOsys is a division of Midware Data Systems
Solar Photovoltaic
Solutions
 1998: Established as Midware Data Systems
(formerly part of Mideast Data Systems
Lebanon incepted in 1978)
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
ITG Solutions
Hardware & Infrastructure
Software
Services
Overview of the PV
Market in Lebanon
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
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
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
Overview of PV Market in Lebanon
 Government support mechanisms
– NEEREA introduced 3 years ago
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•
•
•
•
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
SWOT Analysis
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
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
Strengths
 Instable grid, frequent grid cuts
– Competitive PV prices:
(in residential applications
vs generators)
PV
– More people encouraged towards
renewable energy and energy
independency
v/s
Generator
Weaknesses
 EDL price is heavily subsidized
– Rates/ kWh
(for industry)
Night
80 LL
Day
112 LL
Peak Hours
320 LL
– EDL average cost: 3 X more than its selling
price!
PV system is less cost effective,
as opposed to countries like Germany,
where cost is ~ 0.30$/kWh (450 L.L)

Weaknesses
 EDL instability
– 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
Weaknesses
 Low awareness on PV technology & benefits
 No national regulations on certified products
& companies
 No national certifications and trainings
qualifying individuals & companies
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
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
Opportunities
 Considerable decrease of PV Systems prices
Decrease of PV prices by 66%
(Graph of German residential prices)
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
Threats
 What after NEEREA loans?
– Actual financial facilities are VERY attractive
– What will happen without NEEREA financing?
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
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!
Conclusion Recommendations
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
Some of ECOsys’ PV
Projects
UNDP - CEDRO
Hybrid PV Systems in 17 sites across Lebanon (Public Schools, Municipalities…)
ACE New HQ
AC Coupled System (Grid Inverters with Batteries)
Alfa
Off-Grid & Hybrid Telecom PV Installations
Holcom New HQ
Grid connected Crystalline Rooftop and Thin Film Façade
20|30
20|30 PV Façade Residential Towers, Jamil Saab Achrafieh (Ongoing)
Global Warming
Global Warming
Global Warming
Thank you for
your attention
For more info:
www.ecosys.com.lb

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