The solution compromises of 3 major points starting with the development of the National Energy Efficiency and Renewable Energy Action (NEEREA)with the Central Bank of Lebanon (BDL) and the UNDP. NEEREA is a vehicle to finance energy efficiency and renewable energy projects across Lebanon.
The initiative also includes the development of a set of criteria to assess the technical eligibility of potential projects to benefit from the BDL incentive scheme. Compatibility with these criteria will also ensure the technical validation as well as the certification of potential projects submitted to BDL through the Lebanese Center for Energy Conservation (LCEC), hosted at the Ministry of Energy and Water.
On the other hand, the distribution of 3 million CFLs all over Lebanon was initiated with the Ministry of Energy and Water.
With a budget of 7 million US Dollars dedicated to buy and distribute 3 million Compact Fluorescent Lamps (CFLs), 23-Watt lamps were purchased to replace 100-Watt incandescent lighting bulbs at one million Lebanese residences all over the country, three bulbs per residence. The saving is estimated to be 28 US Dollars per person per year, equivalent to 76 million US Dollars per year saving to the government. Accordingly, the country would avoid building an additional capacity of 163 mega watts.
LCEC followed up and submitted the project as a CDM project, which was accepted and a purchase agreement was signed with an international company to buy the carbon credit leading to a revenue of 2.7 million dollars to the Ministry of Energy and Water.
Last but not Least, the LCEC and the Ministry of Energy and Water launched the first solar water heaters subsidy program that is based on subsidizing the purchase of solar water heaters by securing bank loans free of interest in cooperation with the Central Bank of Lebanon, and the ministry's support material worth $200 each solar heater.
The only condition to benefit from the subsidy is to have a qualified product and a qualified team to install it. For this purpose the LCEC launched a prequalification program to short list the SWH dealers in Lebanon and ensure high quality products and operation.
This budget set for this program was 1.5 million dollars, and was secured by the government of Lebanon upon the proposal by the Ministry of Energy and Water approved in March 2010 to support the LCEC in its target to achieve an added capacity of 190,000 square meters of solar water heaters by 2014, and achieve an annual sales of at least 50,000 square meters.
The ongoing project has led to an installation of more than 4000 solar water heaters, and when completed has an expected saving exceeding 22.5 GWh per year.
This program was successful in creating a positive momentum and the market witnessed a huge demand on solar water heaters. The solar companies also witnessed an obvious increase in their businesses which led to a wide range of dealers supplying and manufacturing solar water heaters.