Small Decentralized Renewable Energy Power Generation
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United Nations Development Programme Country: Lebanon PROJECT DOCUMENT1 Project Title: Small Decentralized Renewable Energy Power Generation UNDAF Outcome(s): By 2014, improved accessibility and management of natural resources and enhanced response to national and global environmental challenges UNDP Strategic Plan Environment and Sustainable Development Primary Outcome: Increased effective response to climate change reflected in national programmes and external assistance programmes UNDP Strategic Plan Secondary Outcome: Environmental considerations are mainstreamed in sector and local‐level strategies and plans Expected CP Outcome(s): Climate change considerations mainstreamed in national priorities Expected CPAP Output (s):. National sustainable energy strategy developed and its implementation promoted Executing Entity/Implementing Partner: Ministry of Energy and Water Implementing Entity/Responsible Partners: United Nations Development Programme Brief Description The project will catalyze the development of the small, decentralized, grid‐connected renewable energy (RE) power generation market in Lebanon. The target is to facilitate the installation of at least 1.75 MW of new decentralized RE power generation capacity during the lifetime of the project, resulting in direct GHG reduction benefits of approximately 35,500 tonnes of CO2eq. Complementary indirect mitigation benefits are expected from the sustained market growth of decentralized RE power generation investments after the project and from paving the way for larger RE power plants – for example, by clarifying the technical and institutional aspects of connecting RE‐based intermittent power generation sources into the grid and leveraging financing for RE investments from new sources such as carbon and climate financing. This indirect GHG reduction impact of the project has been estimated to range from 317,000 tonnes to over 1.7 million tonnes of CO2eq depending on the assumptions made. Programme Period: 2013-2017 Total resources required US$ 13,066,000 Total allocated resources: US$ 13,066,000 Atlas Award ID: 00073116 Regular UNDP (TRAC) US$ 125,000 Project ID: 00086064 Other UNDP US$ 6,257,000 PIMS # 4695 Other: Start date: Jun. 01, 2013 o GEF US$ 1,450,000 End Date May 31, 2017 o Other Cash US$ 4,734,000 o Gov’t in-kind US$ 500,000 Management Arrangements NEX PAC Meeting Date ______________ 1 For UNDP supported GEF-funded projects, as this includes GEF-specific requirements UNDP Environmental Finance Services Page 1 Agreed by (Government): Date/Month/Year Agreed by (Executing Entity/Implementing Partner): Date/Month/Year Agreed by (UNDP): Date/Month/Year UNDP Environmental Finance Services Page 2 TABLE OF CONTENTS TABLE OF CONTENTS 3 LIST OF ACRONYMS 5 1. SITUATION ANALYSIS 6 1.1. Context and Global Significance ................................................................................................... 6 1.2. Baseline, barriers and current government policy to address the root causes and threats ...... 7 1.3. Market Analysis and Current Status of Small Decentralized RE Applications in Lebanon ....... 10 1.4. Institutional Framework and Stakeholder Analysis .................................................................. 13 1.5. Other Related Past and On‐going Activities .............................................................................. 15 2. PROJECT STRATEGY 18 2.1. Project Objective, Outcomes and Outputs ................................................................................ 18 2.1.1. Outcome 1: Investments in decentralized renewable energy power generation increased 18 2.1.2. Outcome 2: A supportive policy and regulatory environment enforced for attracting investments for privately‐owned, grid‐connected renewable energy power generation 20 2.1.3. Outcome 3: Monitoring and quality control of RE‐based decentralized power generation introduced and sustained 21 2.2. Project indicators, Risks and Assumptions ................................................................................ 22 2.3. Expected Global, National and Local Benefits ........................................................................... 23 2.4. Project Rationale and GEF Policy Conformity ............................................................................ 24 2.5. Country Ownership: Country Eligibility and Country Drivenness ............................................. 25 2.6. Financial Modality and Cost‐Effectiveness ................................................................................ 25 2.7. Sustainability (including Financial Sustainability) ..................................................................... 26 2.8. Replicability ................................................................................................................................. 27 3. PROJECT RESULTS FRAMEWORK 28 3.1. Project Outputs and Related Target(s) / Sub‐target(s), as applicable ...................................... 30 3.2. Total Budget and Workplan ........................................................................................................ 31 3.3. Budget Notes ............................................................................................................................... 33 3.4. Summary of Funds: ..................................................................................................................... 33 3.5. Summary of project co‐financing (in USD) ................................................................................. 34 4. MANAGEMENT ARRANGEMENTS 36 5. MONITORING FRAMEWORK AND EVALUATION 38 5.1. Project Start ................................................................................................................................ 38 5.2. Quarterly ..................................................................................................................................... 38 5.3. Annually ...................................................................................................................................... 39 5.4. Periodic Monitoring Through Site Visits .................................................................................... 39 5.5. Mid‐term of Project Cycle ........................................................................................................... 39 5.6. End of Project .............................................................................................................................. 39 UNDP Environmental Finance Services Page 3 5.7. Learning and Knowledge Sharing ............................................................................................... 40 5.8. Communications and Visibility Requirements ........................................................................... 40 5.9. M & E Workplan and Budget ...................................................................................................... 41 6. LEGAL CONTEXT 43 7. ANNEXES 44 Annex 7.1. Offline Risk Log .................................................................................................................... 44 Annex 7.2. Agreements .......................................................................................................................... 49 Annex 7.3. Terms of Reference ............................................................................................................. 51 Annex 7.4. Greenhouse Gas Emission Reduction Analysis ................................................................... 57 Annex 7.5. Major Elements of the Current Energy Policy ................................................................... 63 Annex 7.6. Potential for and Current Status of Renewable Energy Use and Planning in Lebanon .... 65 Hydro Power 65 Wind Power 66 Bioenergy / Biomass 68 Photovoltaic (PV) 69 Geothermal 69 Annex 7.7. Tables .................................................................................................................................. 70 Annex 7.8. List of Solar Thermal Companies (Solar Water Heaters) in Lebanon Compiled by the Lebanese Center for Energy Conservation (LCEC) .................................................................................. 74 Annex 7.9 List of Solar Photovoltaic Companies in Lebanon Compiled by the Lebanese Center for Energy Conservation (LCEC) .................................................................................................................... 83 Annex 7.10. List of Wind Energy Companies in Lebanon Compiled by the Lebanese Center for Energy Conservation (LCEC) .................................................................................................................... 87 8. ENVIRONMENT & SOCIAL SAFEGUARDS 89 SIGNATURE PAGE 98 UNDP Environmental Finance Services Page 4 LIST OF ACRONYMS BoT Build, Operate and Transfer CEDRO Country Energy Efficiency and Renewable Energy Demonstration Project for the Recovery of Lebanon CO UNDP Country Office CO2 Carbon dioxide CoM Council of Ministers CSP Concentrating Solar Power EE Energy Efficiency EENS Expected Energy Not Supplied EU European Union GDP Gross Domestic Product GEF Global Environment Facility GHG Greenhouse Gas HQ UNDP Headquarters IEA International Energy Agency ICT Information and Communication Technology LCEC Lebanese Center for Energy Conservation LGBC Lebanese Green Building Council LOLE Loss of Load Expectation M&E Monitoring and Evaluation MoEW Ministry of Energy and Water MRV Monitoring, Reporting and Verification NAMA Nationally Appropriate Mitigation Action NEEREA National Energy