Solar Energy in Lebanon

Report
By: Ramzi AbouSaid
President of the Lebanese Energy Society
Solar PV In Lebanon/ Ecorient 2012
SOLAR PV IN LEBANON
IS IT FINALLY FEASIBLE?
FACTS AND HOPES
THE DOMAIN
In
SOLAR PV is no more a Luxury,
it is simply
Successful Feasible Alternative
Solar PV In Lebanon/ Ecorient 2012
a country exhausted with utility blackouts
exceeding 30% of daily hours with little hopes for a
near future change for this sad reality
In a country where electrical energy bill contributes
almost 6% of GDP.
In a country where the public utility budgetary
heavily falls under devastating deficit of over
$2B/annum
In a supposedly “touristic” country where
environment and clean means of generating energy is
another essential virtue.
In a county where diesel backup generator is one
other default household appliance.
In a country blesses with long solar hours of over
2000 h/year
With the overwhelming decrease in PV prices along
with the acceptable local Financial facility and Grants.
INTERNATIONAL PV PRICE GRAPH
Solar PV In Lebanon/ Ecorient 2012
SYSTEM PRICE GRAPH
Solar PV In Lebanon/ Ecorient 2012
OPTIMUM SYSTEM CONFIGURATION AND COSTS

Off grid
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On-Grid
Cost about $3K/Kwp and no batteries are needed
Best for net metering
There should always be a backup generator running during utility
blackouts.
 Sizing is made against maximum power generation.
 Example: Power plants, Industrial facilities, Micro grids in private
compounds, ext.


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
Interactive (Combination between On and Off-Grid)


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Cost about $5K/KWp
Best for Home and small application with limited power requirement
Acts as a good backup system during blackouts
Surplus energy will be injected to the grid when available.
Storage capacity is reduced due to limited Autonomy requirement.
Examples: Households, Schools, offices, etc..
Solar PV In Lebanon/ Ecorient 2012

Cost about $10K/Kwp
Best used in very remote places( rarely found in Lebanon)
Sized against the worst months of the year
Examples: Remote areas such as resorts, Communications BTS,
protected area
INTERACTIVE SYSTEM
RE Energy Generator
Solar PV In Lebanon/ Ecorient 2012
~
Energy Flow
Net Meter
Utility
Generator
Back
UP
Battery
Load
LOCAL SOLAR RESOURCE (LEBANON)
1450Mwh/Kwp/Year
Solar PV In Lebanon/ Ecorient 2012
Average Solar Insolation : 5.4Kwh/sqm/year
Average Temperature: lower 20C
Average Specific Production (Lebanon):
SOLAR ENERGY COST (ROUGH ESTIMATE)
Cost of Energy = Initial system cost / amount of production over Life time
Cost of Solar KWh from on-grid solar=
$3000 / 1450 /25=
about $0.085
While Current Cost of KWh from EDL ranges
between $0.08-0.12~$0.10!!!!!
Solar PV In Lebanon/ Ecorient 2012
Kwh = cost of Kwp / production(Kwh/Kwp/year)
System Life time
ENERGY COST
(ACTUALLY PAID)
* Application specific and may vary due to Diesel price and the amount
of blackout periods as well as various load curves.
Solar PV In Lebanon/ Ecorient 2012
Actual Energy Cost for consumers working both on EDL
and Back up diesel Generator*
1.
100% Diesel Generator: $0.35-0.5/ KWh
2.
50% EDL, 50% Diesel Generator: about $0.30/Kwh
3.
70% EDL, 30% Diesel Generator: about $0.22/Kwh
4.
100% EDL about $0.10/Kwh
PAY BACK PERIOD
(DIFFERENT SCENARIOS)
$0.30/KWh
Solar PV In Lebanon/ Ecorient 2012
$0.22/KWh
Incentives are Critically important:
loans and Grants (NEEREA)
FACILITY AND GRANTS
NEEREA Scheme (10-14years loan, 15% grant) for 25KWp
Solar PV System: (Rough Estimate)
Monthly Installments
(W/o grant)
$730
Monthly installments Equivalent Energy
(15% Grant)
Monthly Bills
$620
$875
$0.22/Kwh cost:
Monthly Installments
(W/o grant)
$730
Monthly installments Equivalent Energy
(15% Grant)
Monthly Bills
$620
$640
Solar PV In Lebanon/ Ecorient 2012
$0.3/Kwh cost:
EXISTING PROJECTS
Total installed capacity all over Lebanon is disappointedly
less than 1MWp all in all
Solar PV In Lebanon/ Ecorient 2012
There might be a gap for an accurate statistical information
about existing project and types integrated locally. A rough
estimate would be as follows:
 Privately funded project sector: ~ 300Kwp
 Externally Funded project (UNDP, USAIS, UNIFIL, GTZ….): ~ 500Kwp
 Public Sector: <30KWp
3-4Years pay back period
against 100% diesel
@ $0.75/Kwh
Solar PV In Lebanon/ Ecorient 2012
40Kwp On-Grid
(Micro-Grid environment)
70Kwp On-Grid
(Micro-Grid environment)
Solar PV In Lebanon/ Ecorient 2012
3-4Years pay back period
against 100% diesel
@ $0.75/Kwh
2Kwp interactive
(Back up with Net-metering)
2Kwp interactive
(Back up with Net-metering)
8-10Years pay back period
Solar PV In Lebanon/ Ecorient 2012
8-10Years pay back period
Solar PV In Lebanon/ Ecorient 2012
Solar PV In Lebanon/ Ecorient 2012
FEED IN TARIFF (NEVER TOO EARLY)
1.
Solar PV In Lebanon/ Ecorient 2012
Going one step Further with Net Metering and merge the
scheme with some “Lebanese customized” FET (Feed in Tarrif)
practice: as to have a hybrid N.M-FET system: In such a case
only surplus power be sold to EDL at a higher rate above
the break even value ($0.22-0.25/KWh exported from net
balance).
 Average EDL actual cost $0.17-$0.18/Kwh Ex-factory, while the
maximum cost for EDL is as high as $0.38 (according to the 2010
MOPE National plan with current diesel price ).
Why not buy RE energy at this already existing prices??
 According to the MOPE plan the selling price of Kwh will have
to rise to about $0.15/Kwh as of 2014.
why not start increasing the RE price portion to encourage
implementation.??
 Each KWp installed by the consumer will help increasing the
National grid Capacity already in sever deficit. Thus reducing
the cost of investment required to increase this Capacity from
the government side.
PRIVET RE PLANTS
(IT IS THE CORRECT TIME)


Solar PV In Lebanon/ Ecorient 2012

With the significant decrease in PV price, the energy
produced from a good solar PV plant located in
somehow low land cost, may currently achieve a cost
of production of about USD$0.10-$0.15!
The Utility is in urgent need of each additional MW to
increase local capacity and accepting to buy Energy as
high as $0.25 and to produce it with diesel at
shocking cost of $0.35/Kwh
If the government is not willing, or the least not
capable, to engage in proper investment, then why
not open the door for the private sector to conclude
this job? All it takes is to accept to buy RE at
reasonable price lower than EDL maximum cost but
higher than the subsidized rates. Setting a buying
rate with long term contracts while setting a Cap for
production. BOT is one simple approach!!!
CONCLUSIONS AND RECOMMENDATIONS
Net Metering is an excellent startup and is a MUST to realize
big RE systems, but is certainly not enough!!
2.
Net Metering is more effective in niche sectors such as
industrial and commercial applications where energy is needed
and cost most.
3.
Currently Net Metering is more Feasible when the actual cost of
energy from the consumer side is above $0.2/Kwh.
Further steps to push the sector forward:
1.
Additional Financial incentives
2.
More grants proportion to encourage the first few systems.
Hopefully Arriving to 30-50% with Special funding with grant
for few pilot projects..
3.
Obligatory codes and attractive incentives should be imposed in
the Building law to encourage the use of RE.
4.
Taxation and Facilities especially for industrial and commercial
projects.
5.
Additional incentives from EDL especially for big size systems.
6.
Ultimately FIT or Modified FIT schemes should be adopted
Solar PV In Lebanon/ Ecorient 2012
1.
Lebanese Solar Energy Society (LSES)
In Short:
LSES main objectives focus on developing solar energy in all its aspects and gradually
guarantee a “Quality Label” linked to the design, manufacturing, installation, exploitation,
education programs, training , marketing, awareness , etc..
WWW.LSES-LB.ORG
Solar PV In Lebanon/ Ecorient 2012
1) To get together associations of professionals, as well as individuals
interested in the development of solar energy in all its various aspects.
2) To develop education programs and training sessions regarding the
various applications of renewable energies in general and more particularly direct solar
energy.
3) To set up gradually "Quality Label" with a view to guarantee the quality of services linked
to the design, manufacturing, installation and exploitation of solar energy fields.
4) To encourage development and protection of the manufacturing of solar systems, in order to
achieve a good quality of the equipment for the benefit of the users.
5) To inform and lead the public opinion on any matters regarding solar energy for the benefit
of the national economy and environment in Lebanon.
6) To take part in scientific activities and to participate in appropriate exhibitions and
seminars.
7) To back any initiatives to elaborate laws and to improve the existing ones, with the aim of
developing the solar energy market, as well as other renewable energies.
Solar PV In Lebanon/ Ecorient 2012
Contact Info:
Ramzi AbouSAID
President of Lebanese Energy Society
[email protected]
www.lses-lb.org

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