National Energy Efficiency and Renewable Energy Action (NEEREA) Financing Mechanism

The financial mechanism aims at tackling the issues of concern at the national level: - Improve the situation of the environment - Create a new national market to boost the economy Objectives of the National Financing Mechanism - Finance EE and RE Projects - Promote EE and RE Applications - Motivate the private sector to invest in the EE and RE sectors (energy efficiency, renewable energy, and green building projects result in money savings to the beneficiary, reaching up to 30-40% of the total energy bill, as well as in environmental added value that can serve as a marketing tool) Financing to subsidize environmentally friendly projects on: - Recycling - Ecotourism - Renewable Energy - Green Landscaping Loan size depends on the project, ranging from as low as 5,000 – 24,000 USD for residential building, up to more than 20 Million for big projects. Additionally, the Ministry of Energy is offering 200 USD grants to citizens installing individual solar thermal systems, together with interest-free loans. - Starting in November 2011, and until the end of 2013, more than 100 loans have been approved with a total of more than 100 Million USD. In 2014, till May, more than 40 million USD of loans have been approved and are under implementation. - In 2011, 3,557 citizens benefitted from the individual solar water heaters program, and solar installations in 2011 reached 43,500 m2 versus the 38,000 m2 initial target. The market kept increasing in 2012 and 2013 with similar targets reached. One of the success factors of the programme is the combination of legislation and financial support schemes with awareness raising activities for the private sector and capacity building activities for professionals in the field of energy efficiency and renewable energy. In 2012 and 2013, around 66,000 and 77,000 square meters of solar water heaters are installed and the market is in continuous increase. Dissemination to Commercial Banks by BDL and UNDP - 2 trainings at BDL headquarters - More than 90 representatives of Lebanese banks - 2 to 4 representatives from each bank - Tailored training to 9 banks - More than 50 participants in each training - More than 20 events and workshops dedicated to the explanation of NEEREA benefits (including Beirut Energy Forum, EcOrient, Lebanon Sustainability Week, etc.) - Audience: bank officers and branch managers - Wider dissemination to engineering consultants, energy experts, building developers, and private investors 6 examples: Existing House, Existing Residential Building, Existing Office Building, New Commercial Mall, and New Villa As the national energy agency for Lebanon, the concern of the LCEC is to reach the national targets set by the Lebanese Government and approved by the Ministry of Energy and Water in terms of energy efficiency (5% reduction by 2015) and renewable energy (12% by 2020) and to prove that Lebanon did achieve those targets Mr. Pierre El Khoury, L.C.E.C Director: Pierre.Khoury@lcecp.org.lb Ms. Melda Jabbour, LCEC Technical Engineer, melda.jabbour@lcecp.org.lb