Kiribatia and the EU

REESTART: Renewable Energy and Energy Efficiency for Sustainable energy Transition and Reinforced Trust

15/10/2020 - 13:08
Energy

The projects aims to promote entrepreneurship, innovation and job creation in support of Lebanon's clean energy transition.

 

Budget: €2,496,759 (80% financed by EU funds)
Location: Lebanon
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.

 

  • Contribute to promoting entrepreneurship, innovation and job creation in support of Lebanon's clean energy transition
  • Encourage higher levels of investment in Renewable Energy and Energy Efficiency through the creation of an enabling environment for ESCOs to operate in and grow

 

  • Outreach to 300 SMEs through awareness-raising campaigns on sustainable energy
  • Support to 35 SMEs in implementing  energy interventions and in improving access to existing SE finance mechanisms
  • Support to 50 Lebanese ESCOs in deploying viable and profitable business models
  • Support to 20 national and international institutions in improving regulatory framework to better promote ESCOs grow and private investments in sustainable energy

 

  • Design and delivery of SME awareness raising campaign
  • Completion of partially subsidised energy audits and intervention plans for selected SMEs by ESCO
  • Investment support package to SMEs and ESCOs to facilitate access to sustainable energy finance
  • Realisation and dissemination  of feasibility study on ESCO business models/EPC to relevant stakeholders
  • Design ad delivery of capacity building programme for ESCOs on technical and business aspects
  • Pilot for 6 partially subsidised innovative sustainable energy interventions by ESCOs for SMEs, with on-the-job assistance
  • Design and development of web portal to monitor renewable energy production and energy savings achieved by pilot interventions and future sustainable energy installations
  • Launch of the Lebanese Federation of ESCOs
  • Comparative study on Lebanese energy sector regulatory framework
  • Development of a feasibility study and action plan for the set-up of a guarantee fund for ESCOs for discussion with the relevant stakeholders

 

  • Sustainable energy demand by SMEs is increased
  • Sustainable energy offering by ESCOs is vigorous
  • Sustainable energy ecosystem is more supportive and efficient

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