Public Disclosure Authorized WORLD BANK ENERGY EFFICIENCY STUDY IN LEBANON Public Disclosure Authorized Public Disclosure Authorized FINAL REPORT - December 2009 - Public Disclosure Authorized World Bank Energy Efficiency Study in Lebanon Final Report ABBREVIATIONS AND ACRONYMS ALI Association of Lebanese Industrialists ALMEE Lebanese Association for Energy Saving & for Environment CCGT Combined Cycle Gas Turbine CDM Clean Development Mechanism CFL Compact Fluorescent Lamp CRW Combustible Renewables & Wastes ECSWA Economic and Social Commission for Western Asia EDL Électricité Du Liban EDZ Electricité de Zahlé EE Energy Efficiency ESCO Energy Services Companies GDP Gross Domestic Product GEF Global Environment Facility GWh Gigawatt Hour HV High Voltage IEA International Energy Agency IRI Industrial Research Institute ISES International Solar Energy Society ktoe Kilo Tons of Oil Equivalent LAMP Lebanese Action for the Management of Power Usage in Lighting LCEC Lebanese Center for Energy Conservation Project LIBNOR Lebanese Standards Institution LSES Lebanese Solar Energy Society LV Low Voltage MEW Ministry of Energy and Water MSP Mediterranean Solar Plan MV Medium Voltage MW Megawatt OEA Order of Engineers and Architects in Beirut PPP Purchasing Power Parity RE Renewable Energy TEPS Total Primary Energy Supply TOE Ton of Oil Equivalent UNDP United Nations Development Program Econoler International ii REF: 5515 World Bank Energy Efficiency Study in Lebanon Final Report TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS .................................................................................................. II EXECUTIVE SUMMARY ..................................................................................................................... VII INTRODUCTION ................................................................................................................................... 1 1 ENERGY AND EE MARKET REVIEW ........................................................................................ 2 1.1 PRIMARY ENERGY SUPPLY ............................................................................................... 2 1.2 ELECTRICITY SECTOR ........................................................................................................ 6 1.2.1 Primary Energy Consumption .......................................................................................... 6 1.2.2 Production Capacity ......................................................................................................... 7 1.2.3 Electrical Load Curve ....................................................................................................... 9 1.2.4 Electrical Energy Losses ................................................................................................ 10 1.2.5 Electricity Tariffs ............................................................................................................. 11 1.2.6 Electrical Consumption by Sector .................................................................................. 12 1.2.7 Electricity Demand Forecast .......................................................................................... 14 1.3 EXISTING ENERGY EFFICIENCY PROGRAMS ................................................................ 15 1.3.1 Energy Audits ................................................................................................................. 16 1.3.2 Standards and Labelling ................................................................................................. 19 1.3.3 Thermal Standards for Buildings .................................................................................... 20 1.3.4 Compact Fluorescent Lamps ......................................................................................... 22 1.3.5 Solar Water Heaters ....................................................................................................... 23 1.3.6 CEDRO Project .............................................................................................................. 24 1.3.7 Street Lighting ................................................................................................................ 25 1.3.8 Use of Natural Gas for Power Generation ...................................................................... 25 2 LEGAL FRAMEWORK AND KEY EE PLAYERS ..................................................................... 26 2.1 OverView of Existing Energy Legislation in Lebanon .................................................... 26 2.1.1 Production of Electricity by the Private Sector ............................................................... 26 2.1.2 Renewable Energies ...................................................................................................... 26 2.1.3 Energy Conservation ...................................................................................................... 26 2.1.4 The National Environment Fund ..................................................................................... 27 2.2 PRESENTATION OF MAIN EXISTING KEY PLAYERS ..................................................... 27 2.2.1 Policy of Institutional Players .......................................................................................... 28 2.2.2 EE Services Providers (Technical Operators such as ESCOs) ...................................... 29 Econoler International iii REF: 5515 World Bank Energy Efficiency Study in Lebanon Final Report 2.2.3 EE Financing Institutions ................................................................................................ 31 3 ACTION PLAN PROPOSALS .................................................................................................... 32 3.1 SHORT-TERM ACTION PLAN ............................................................................................ 34 3.1.1 Compact Fluorescent Lamp Program ............................................................................ 34 3.1.2 Solar Water Heater Program in the Residential Sector .................................................. 46 3.2 MEDIUM-TERM ACTION PLAN .......................................................................................... 56 3.2.1 Energy Efficiency Program in the Industrial Sector ........................................................ 56 3.2.2 Energy Efficiency in the Street Lighting .......................................................................... 67 3.3 LONG-TERM ACTION PLAN .............................................................................................. 75 3.3.1 Standards (MEPS) and labelling program ...................................................................... 75 3.3.2 Thermal Standards for new Buildings ............................................................................ 94 3.4 OTHER RECOMMENDATIONS ........................................................................................ 110 3.4.1 Legal Framework Development ................................................................................... 110 3.4.2 Nomination of Energy Managers in Government Buildings .......................................... 110 3.4.3 Development of a Database on Energy Consumption ................................................. 111 3.4.4 Development of the Use of Natural Gas ....................................................................... 111 3.4.5 LCEC Capacity Building ............................................................................................... 111 CONCLUSION ................................................................................................................................... 113 APPENDIXES .................................................................................................................................... 115 APPENDIX 1 EDL TARIFS ................................................................................................................... 1 APPENDIX 2: ADDITIONAL ENERGY DATA ...................................................................................... 1 APPENDIX 3: LABELLING ................................................................................................................... 1 APPENDIX 4: OTHER EE ACTORS ..................................................................................................... 1 APPENDIX 5: INDUSTRY SAVINGS AND INVESTMENT ASSESMENT ............................................ 1 Econoler International iv REF: 5515 World Bank Energy Efficiency Study in Lebanon Final Report LIST OF TABLES Table 1: Consumption of Oil Products .................................................................................................... 5 Table 2: Energy Audits Performed per Sector ...................................................................................... 16 Table 3: Energy Experts Companies from Lebanon ............................................................................. 30 Table 4: Summary of proposed actions ................................................................................................ 33 Table 5: General Assumptions for the CFL Program ............................................................................ 40 Table 6: Cost of the CFL Program ........................................................................................................ 41 Table 7: Role and responsibilities of the key players ............................................................................ 42 Table 8: Cumulative Penetration