Budget: €2,496,759 (80% financed by EU funds)
Date of project: November 2019 – October 2022
Implementing Partner: Istituto per la Cooperazione Universitaria (ICU), Lebanese Solar Energy Society (LSES), Viridis Investment Fund, ENEA, Federesco
Despite Lebanon’s favourable environment for the generation and use of renewable energies, they remain largely underexploited. Renewable energy generation only represents 0,85 % in the electricity mix, and mostly comes from hydropower as opposed to wind and solar energy.
Reducing the cost of energy generation and consumption in Lebanon has become essential for both households and companies. Currently, the cost of energy supply is a major burden for Lebanese enterprises, which are heavily reliant on private generators as a source of electricity. The cost of energy represents up to 30% of a Lebanese enterprise’s annual spending.
The national technology and financial landscapes are ready to support large-scale renewable energy adoption. Nevertheless, there are many bottlenecks on the demand and supply side, and a lack of trust between the two sides is hindering such a widespread adoption. Low demand is due to low awareness about renewable energy solutions and their economic advantages, and poor investment capacity. Poor supply on the other hand, is due to the low presence of alternative financing models such as those relying on Energy Service Companies (ESCOs).
In this complicated scenario, the sector requires empowerment, fostering of supportive ecosystem and, mainly, trust building between the private sector/Small and Medium-sized Enterprises (SMEs) and ESCOs. If duly empowered, ESCOs can provide alternative financing models for renewable energy. ESCOs and SMEs can develop mutual trust.
The European Union is committed to supporting the adoption of renewable energies in Lebanon as an alternative to traditional, costly and polluting sources of energy. REESTART will do so through activities geared towards piloting innovative technologies, supporting access to available sustainable energy finance, creating a supportive institutional environment for ESCOs.