The Exclusive - Lebanon`s Energy Pulse by The Exclusive

THE EXCLUSIVE Lebanon's Energy Pulse

Extensive Editorial Supplement

SUCCESS STORY:

While the world was on pause, he pressed FastForward GLIMPSE OF HOPE:

The NEW Water Strategy in Lebanon UPCOMING EVENTS: ENERGY EFFICIENCY MARATHON

"FROM BEIRUT TO THE WORLD"

February 2021 | the-exclusive.digital

CONTENTS INTERVIEWS H.E. RAYMOND GHAJAR, FORMER MINISTER OF ENERGY AND WATER DR. TONY ISSA, VICE-PRESIDENT ITP SARAH MORSI, REGIONAL DIRECTOR AFD RABIH OSTA, GENERAL MANAGER PHOENIX ENERGY

GUEST EXPERTS BIFACIAL VERTICAL PANELS ARRANGEMENTS

THE ARGUMENT WHY NOT LEBANON, REALLY WHY NOT?

USE OF SMART MATERIAL FOR BUILDING ENERGY EFFICIENCY

SUCCESS STORY:

WHILE THE WORLD WAS ON PAUSE, HE PRESSED FAST FORWARD

THE ROLE OF CYBERSECURITY IN THE ENERGY SECTOR

FEATURES REESTART PROGRAM ENERGY STRATEGIES SUMMIT 2020: MAPPING THE FUTURE REGEND BY ESCWA

GLIMPSE OF HOPE:

INVESTMENT OPPORTUNITY:

UPCOMING EVENTS:

THE NEW WATER STRATEGY IN LEBANON

AN ALTERNATIVE EMERGENCY ACTION PLAN FOR LEBANON

ENERGY EFFICIENCY MARATHON: FROM BEIRUT TO THE WORLD THE FUTURE OF INFRASTRUCTURE

"Ma fi kahraba kermal el may sokhni, bet7amam bokra"

There are two types of people in Lebanon: The ones who think a change is needed and it can happen, through hard work and cooperation, and the ones who complain, and wait for an "extraterrestrial" invasion that might save Lebanon, form a new government and make it great again! After more than 24 months in Lebanon or better said, after a year (of the non-government, inefficient new government), the revolution, the resignation of the government, the fall of the holy banking system, the new government, the dollar peg that thinks it is an astronaut and skyrockets, the birth of the “Lollar” (ask Dan Azzi about it), the pandemic that messed up literally the whole world (we are sure that no Lebanese politician was involved in this), the worst economic crisis in the history of Lebanon, the “Boom” (neutral term used to define the 4th of August Explosion, in order to avoid feeling stupid for calling it “an accident”_and being accused of assuming things without any evidence for calling it “an attack”), the resignation of the government

(yes, again), a new future-ex Prime Minister; I can understand both categories. Maybe even think we are in a Sci-Fi series and wonder what the director has planned for the next season! But have we learned anything? Earth took a break from us, and it clearly liked it. I can`t stop wondering why (ironically speaking). What about us, though? Did we realize how fragile human systems are, yet? Did we realize that we are relying on particular circumstances? We know that if the climate changes, most of our processes won`t work in the future and we have noticed that now, in a couple of months, our power to adapt to special circumstances. Did we learn that the political leaders are not God or the Superheroes that might save the day yet? Or are we still blindfolded? What about Lebanese miracles? Is it still trending? Just asking for a friend!

THE ARGUMENT

WHY NOT, LEBANON?

Let`s go back a bit and remember what 2020 should have been for the Energy sector. For those who don’t know or forgot: In 2009, during the Conference of Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC), the Lebanese Government committed to increasing the share of renewables in the country to 12% of the projected total electricity and heat demand by 2020. Ambitious, considering the lack of renewable energy projects in Lebanon at that moment. In late 2018, Prime Minister Saad Hariri has ushered in a new renewable energy target of 30% for the year 2030. Well done, we applaud your high dreams, but on what grounds? How do we get there? Or committing to a target is like a Hocus-Pocus spell and with a secretly magic wound (secret weapon used by Lebanese Government “to solve" problems by pretending it doesn`t exist) it turns into reality and solar panels, wind farms appear and people will wake up of energy efficiency and …? Because, in that case, something went wrong with the spell! Most of the people have read “The Secret – The Law of Attraction”, some might have just seen the movie, but don`t get fooled by the “visualize your desires and they will come true”. I am pretty sure that does not work with electricity or renewable energy, or any other energy reforms, for that matter. For those wondering: NO, it doesn`t work for economic and financial problems either. The real world actually works in another way, and I will give an example, or two, or even more. Over the past 5 years, Costa Rica has achieved 95% renewable electricity. Their target was entirely carbon-neutral in 2021.

In 2012, Nicaragua invested the fifth-highest percentage worldwide of its GDP in developing renewable energies. Their target is 90% renewable energy by 2020, with the majority of electricity coming from wind, solar and g e ot h e r m a l s o u r c e s . Germany produced in the first half of 2018 enough renewable energy to power every home in the country a whole year. Their target is 65% renewable energy by 2030, even if we are talking about a not-so-sunny country of more the 80 million people. Denmark gets over half of its electricity from wind and solar power and in 2017, 43% of its electricity consumption was from wind – a new world record! That’s the highest percentage of wind power ever achieved worldwide. The country aims to be 100% fossil-fuel-free by 2050. Uruguay, almost 100 % powered by renewables, almost after less than 10 years of effort. How is Lebanon after 10 years? All of the above, and other, had strategies and plans that were implemented to get to that percentage. It wasn’t luck or a better spell or visualization, but it was a good strategy and implementation of the regulations needed. Most of you, especially if Lebanese, will say: but we had a war, and we had 1,5 million refugees, and we had/have political issues, and we did not have a president for a while, and corruption, the problems with the grid, external debts. And I keep forgetting “Lebanese mentality” and all the nonsense that makes you sleep better in the night! All the excuses are not

REALLY, WHY NOT? BY PUBLISHER

e n o u g h t o co v e r t h e l a c k o f c l e a r - d e c i s i o n making, will to make things work, a supportive regulatory environment, a strong partnership between the public and private sector, or else, today, we would be having at least one functional wind farm more than 60 MW of solar plants, at least a solar concentrated power plant in the making (I didn’t even consider being functional, but in the making would be good), a National Energy Authority (considering Law 462 exists since 2002), a passed Energy Conservation Law, and who knows, maybe we would have even had the smart electricity that some ministers were dreaming of, back in 2018. 2020, the year in which you promised us (for the 100th time) 24 hours per day electricity, like in the American movies, we got the worst economic crisis in decades, a banking system that even God with all its angels would have to struggle to get back to the Ground Floor, a Lebanese Lira that is worthless and people are starving and stuck. And with all your gifts, you still waste money on bad fuel (that evaporates), with no actual hopes in sight to use on a larger scale the abundance of sun, wind and water. And no, you are not allowed to blame this on COVID-19! Yes, I am talking to you, those currently holding the rains! Lebanon, wake up! Pardon me, future representatives of the Government, you are not capable of solving the energy problem by yourself! But, we have the professionals and the experts that can deliver competitive ideas and strategies and can manage profitable businesses at a global level, why not use them on a national level, instead of waiting for aliens? On another note, we all appreciate the small efforts that are being made to support the private sector in the transition for a greener future! But, still, let us not forget that in energy, staying inside your box condemns you to irrelevance (this could mean that having the same inefficient energy strategy and holding on to it for the last 10 years, might just not work)!

Raluca Buna

THE ARGUMENT

"Developers' appetite towards investing in the various sectors, especially in the energy sector, has diminished" Raymond Ghajar served as the Minister of Energy and Water from 21 January to 10 August 2020, in the cabinet of Hassan Diab.

What type of adaptive measures did the Ministry of Energy and Water need, in 2020? What were the lessons of this period?

The political and financial situation of the country in 2020 coupled with COVID-19 left the ministry of energy and water with no option but to pursue its investment plans using direct negotiations with original equipment manufacturers (OEMs) in collaboration with their government to secure financing. Traditional bidding processes were not possible under the financial default condition that Lebanon was facing. Unfortunately, these measures proved to be unsuccessful due to the insistence of all multilaterals to implement significant reforms in the sector prior to any investments. What is the status of the current projects/initiatives planned for 2020-2021? What strategies should be implemented in order to support the private sector?

Developers' appetite towards investing in the various sectors, especially in the energy sector, has diminished and has become subject to the provision of guarantees from multilateral agencies or sovereign guarantees which are not available under the extremely challenging fiscal situation the country is presently facing. Hence, the prerequisite of any infrastructure project is having minimum financial stability and vision towards the creditworthiness of the country. What

transformations

you

expect,

their

effects on the Lebanese energy sector, and in a regional perspective?

Given the high fuel cost of conventional thermal-based generation and the relatively rapid evolution of renewable energy technologies and their associated low-level energy costs, there should be increased reliance on such Renewable Energy sources to reduce the need for exportable foreign currency. I think RE are able to provide

sustainable and affordable energy supply in the region at competitive prices. How affected was the energy sector by the latest event in Lebanon and what are the

immediate

actions

that

should

taken?

The situation in the country post-October 17, 2019 coupled with the deterioration of the financial situation had already heavily strained the energy sector (big drop in billing collections, inability to continue the reduction of non-technical losses, loss of investment appetite…). The blast of Aug. 4 completely destroyed the EDL building including the national control center, the 220kV Achrafieh substation was also severely damaged in addition to the loss of 3 precious lives and more than 30 injuries including the EDL general manager. Immediate steps include procuring a temporary location for EDL employees to

to resume their works and work on repairing the building damages ASAP. We also have to reinstate the national control center to enable us to control the electrical grid and to restore works on the customers’ service floor. Electricity to the area most affected by the blast was restored within two weeks for all occupied buildings and homes. Normal services are gradually being supplied to all those who request it after ensuring safety before reenergization. What is the message that you would like to send to the Lebanese people?

Lebanese people have survived many tragedies throughout history. They have always managed to steadfastly rise from under the rubble because of their faith in this country. I have high hopes that Lebanon will rise up and shine again, by putting all our hands together.

"Renewables are able to provide sustainable and affordable energy supply in the region at competitive prices"

THE LEBANESE CENTER FOR ENERGY CONSERVATION (LCEC)

Efficient Resources, Sustainable Achievements

ABOUT LCEC The Lebanese Center for Energy Conservation (LCEC) is an independent organization within the Ministry of Energy and Water (MEW) in Lebanon. LCEC established itself as an independent technical national center offering the Lebanese Government and more specifically the MEW all kinds of services dedicated to energy efficiency and renewable energy. LCEC’s vision is to be a prominent center of excellence building a resilient and sustainable energy future for all. LCEC’s mission is to lead the efforts of Lebanon in the development of Energy Efficiency and Renewable Energy to increase energy security and de-carbonization levels. We proactively develop policies, implement projects, and shape the market in harmony with the global sustainable energy transition.

To know more about LCEC: www.lcec.org.lb 00961(01)565108 energy@lcec.org.lb

@LCEC.lebanon

@LCEC.tweets

LCEC'S WORK LCEC, with its highly professional and hard-working team, has succeeded in establishing itself as a technical point of reference specialized in energy conservation issues within the MEW. LCEC targets fundamental energy issues and its experts are determined to make LCEC the ideal and trusted leader in innovating programs delivering results that exceed the set goals. LCEC

works

Government;

setting well

national

the

strategies

and

implementation

action and

plans

the

quality

adopted

control

the

national

Lebanese

projects

and

initiatives in the country. LCEC is also involved in the update and development of the legal and administrative

framework

needed

for

the

greening

the

energy

sector.

Until

date,

LCEC

has

implemented numerous energy efficiency and renewable energy projects and initiatives that have resulted in many positive changes within the Lebanese society and economy. At the 2009 Copenhagen Climate Summit, Lebanon voluntarily pledged to increase the renewable energy share to 12% by 2020. This voluntary commitment was anchored within the “Policy Paper for the Electricity Sector” prepared by the MEW and officially adopted by the Council of Ministers in June 2010. The policy paper includes ten strategic initiatives for the improvement of infrastructure, supply

and

demand

systems

and

the

definition

legal

framework.

Two

key

initiatives

target

respectively the renewable energy and the demand side management/ energy efficiency. Developed by the Lebanese Center for Energy Conservation (LCEC), adopted in August 2010 by MEW and approved in November 2011 by the Lebanese Government, the National Energy Efficiency Action Plan (NEEAP) for Lebanon 2011-2015 summarizes all national objectives, programmes and policies in 14 independent but correlated initiatives in the energy efficiency and renewable energy sectors. NEEAP

was

2006/32/EC

prepared on

energy

conformance

end-use

with

efficiency

the

and

Arab

energy

guideline

service)

and

(based

Lebanon

the

was

the

directive first

Arab

country to officially adopt such plan. Subsequently, LCEC has updated the NEEAP 2011-2015 and has prepared a second NEEAP for 2016-2020 and the National Renewable Energy Action Plan (NREAP) for 2016-2020. The NEEAP (2016-2020) includes a number of energy efficiency initiatives targeting the different sector

the

Lebanese

economy.

These

initiatives

are

distributed

along

two

axes

dedicated

primary energy savings and end-use measures. The NREAP (2016-2020) is the main national document that will ideally lead the way for Lebanon to develop the different RE technologies needed to reach the 12% target by the year 2020. LCEC is currently developing the NEEAP (2021-2025) and the NREAP (2021-2025) which will include an evaluation of the previous action plans and a projection till 2025 and beyond. Moreover,

LCEC

provides

both

the

public

and

private

sector

with

expert

advice,

finance

and

accreditation, develops energy efficiency standards and labels, and provides national energy database indicators. LCEC is successful in establishing partnerships with the private and public sectors and in representing Lebanon in the international arena. LCEC is the national focal point for Lebanon in the Regional Center for Renewable Energy and Energy Efficiency (RCREEE), the League of Arab States (LAS), the EU-funded

MED-ENEC

project,

the

International

Renewable

Energy

Agency

(IRENA),

the

Mediterranean Solar Plan (MSP), the UNEP-funded En-Lighten initiative. LCEC also represents the Lebanon Committee of the World Energy Council (WEC)..

@LCEC.insta

lceclebanon

the-exclusive.digital

When most people hear the words ‘solar power’ they instantly think of good old solar panels on rooftops or in a solar farm in the desert. And with good reason: traditional utility-scale and rooftop solar panels have dominated the solar market until this point. But, there are some promising technologies that will revolutionize the way we think about not just solar, but energy production in general. Solar no longer requires large parcels of land or roof space, nor does it need to look boring. Take a look of these amazing projects that will change the way you look at solar panels.

The New ERA of Solar Panels!

"WORLD'S FIRST RIVER SOLAR SNAKE" Generating 1,655 Mega Watt Hour per year (MWhr/yr)

emissions, the positive environmental impact of the project

Use 600 poly christaline PV panels supplied by the

Provide 100% availability, thus able to run 365 days of

partner of Phoenix Energy

the year without interruption, as the maintenance of the

and Yingli Energy, the

number one PV panel manufacturer in the world

plant could be carried after sunset

Include a full weather station with data logging capacity

Incorporate a remote monitoring system with remote

Feature state-of-the-art structural design, unique in the

trouble shooting

Middle East, combining a primary concrete structure

Use 60 inverters with an expandable topology, designed

and a secondary steal structure

in a decentralized manner

Consist of a display panel visible to the public showing

Feature High-level security with a 3 meter fencing around

the current production, the savings in KWhr and in

the plant and CCTV cameras in addition to around the

carbon

clock security personnel

LEBANON, DO YOU REMEMBER HOW HIGH YOU WANTED TO FLY? “The three most important ways to LEAD people are: by example… by example… by example” (Albert Schweitzer) Back in 2014 the installed capacity of distributed PV solar systems in Lebanon was of 4 MWp. After the commissioning of the first phase of the BRSS in 2015, Lebanon witnessed an increase in solar systems installed of 52 MWp in only 3 years. The $3.4 million contract was awarded to a joint venture between local firms Asaco and Phoenix and it is first grid-connected medium voltage (MV) solar photovoltaic (PV) system in the history of Lebanon. The implementation of the first phase has an installed capacity of one MW extending from the Yerevan Bridge to the Nahr Bridge over an area of 16,000 m2. The objectives of the project are to promote renewable energy and energy efficiency in Lebanon and reduce the large existing gap between supply and demand and regardless of any comments that might have been made about this project, the “World`s First Solar Snake” clearly

The project was designed to be built over ten phases, but

had a remarkable impact on the market.

unfortunately, even if Electricite du Liban (EDL) has launched the

The project is a solar farm covering a distance of 6.5 Km

tender to implement the second phase of the Beirut River Solar

of the Beirut River that generates and supplies EDL with

Snake, back in 2018, the project is now on hold and considering

clean energy from the sun’s radiations to eventually meet

the current COVID-19, economic and political crisis, it will

the energy needs of around 10,000 households.

probably take a while until the project will be completed.

_______________________________ Cover Story

Interview with Mrs. Radia Sedaoui. Chief of the Energy Section at ESCWA

What type of adaptive measures the company / project needed? What were the lessons of this period? A challenge commonly faced in Lebanon is the lack of adequate and reliable data and the need for the tedious process

"REGEND is currently preparing for the implementation of six small-scale RE field projects in rural Akkar"

of collecting data through field surveys in different sectors.

and transmission infrastructure.

ESCWA, through the REGEND project, faced this challenge

What is the status of your current project(s) and investments

during the design phase of the small-scale renewable energy

planned for 2020-2021? Which are the advantages of your

(RE) field projects in rural Akkar which took more time than

business and products, going forward?

expected. The low quality and the frequency of electricity

REGEND is currently preparing for the implementation of six small-

rationing and blackout, especially in Akkar, required a more

scale RE field projects in rural Akkar, namely Akkar Al-Atika and

sophisticated solar photovoltaic (PV) system design which

Chaqdouf. The beneficiaries of the projects are the agri-food, the

incorporates batteries and splits the electricity generated

beekeeping, and the agricultural supplies cooperatives in Akkar Al-

between feeding the loads and charging the batteries. This

Atika and the Live Akkar organization in Chaqdouf. The projects

required more data collection from the loads. Moreover, the

consist of on-grid and off-grid solar photovoltaic systems, solar

complexity of the electrical setup in the targeted buildings and

water heating systems, and energy efficient lighting renovation

the interconnection of the buildings with private generators

which will greatly reduce energy consumption and cost. Equally

also necessitated the collection of more data so that the

important, REGEND supplied the aforementioned entities with

system's size and modes of operation can be fully optimized

productive equipment and capacity-building trainings to broaden

for sustainable operation.

their skills and improve and enhance their income-generating

Another challenge pertaining to data collection in Lebanon

activities.

reflects the quality and interpretation of this data. For example,

The harmonized combination of the field projects, the productive

while electricity access shows 100% availability all over

equipment, and the capacity-building trainings were customized to

Lebanon, this data point does not really reflect the country's

match the rural beneficiaries’ activities so that they are utilized in

planned and unplanned service disruptions due to the highly

the most effective manner to reduce time, effort, and cost and hence

inadequate infrastructure and insufficient generation capacity

increase productivity, efficiency, and revenue. This integrated

business model will prove crucial in sustainably creating

Overall, Lebanon still needs to decouple its energy consumption from

rural economic growth with clean energy as an enabler.

its economic development, despite its current efforts to improve

What are your expectations from the public sector, state

energy

projects to support future business?

programmes. These programmes were bundled in two National Energy

Lebanon’s

crises

series

create

new

policy

drivers

emphasizing the need for an integrated rural development strategy. These drivers include ensuring food security, promoting sustainable and equitable growth, alleviating economic pressure and trade imbalance, creating jobs and reducing unemployment, developing more inclusive policy and consultation, and the recent institutional support for rural development. The public sector is hence required to develop a strategy with the objective of creating rural economic growth, of which affordable and clean energy is an enabler. A rural development framework is also required to be developed and

productivity

developing

several

energy

efficiency

Efficiency Action Plans (NEEAPs) covering the periods 2011–2015 and 2016–2020. The second NEEAP builds on initiatives developed for the first one by focusing on 26 energy efficiency measures. These are expected to reduce power growth from 7 percent to 5.8 percent by 2020. On the renewable energy front, Lebanon needs to reconsider its electricity tariff structure, define a national

plan

for renewable

energy equipment manufacturing and profit from existing industries to create

local

renewable energy components manufacturing.

Another key area to transform is to involve national centres in the practice of inspecting and testing locally manufactured components based on international standards.

adopted to govern rural development and to incorporate

What is your message to partners?

climate change and environmental laws and include an

ESCWA firmly believes that the promotion, demonstration, and

agriculture regulation integrating the food security law. Financing mechanisms such as soft loans should also be developed with the local and international finance institutes to alleviate the barriers for women economic inclusion.

dissemination of integrated business models based on the transfer of know-how rather than relying on the short-lived handout model is crucial to sustainably creating economic growth in rural areas. Hence, all stakeholders active in the aforementioned sectors can play an

What transformations you expect in your sector, their

immense role in this regard. As these business models bear fruit, policy

effects for the Lebanese economy and in a regional

makers need to accompany and support them with the needed strategies

perspective? (in areas like prices, costs, supply chain,

and frameworks to further develop and strengthen them towards mass

technology disruption, financing, HR, safety & security)

adoption and application.

WHILE THE WORLD WAS ON PAUSE, HE PRESSED FFW

Somewhere, in North-Eastern Lebanon, near the Syrian borders, there is a small village in the Baalbeck-Hermel Governorate, called Qaa. Until now, Qaa was known for things like the kidnapping of a former in 2012, an attack by suicide bombers in 2016, for an archaeological site - type site - of the Sheperd Neolithic Industry and also for being lightly cultivated with a thin soil covering conglomerates. Starting 2020, Qaa will also be known for being an example of agricultural uses of solar energy. In a time of global Lockdown, in the middle of the worst Lebanese economic crises in decades, HE, Said Riachi, an electrical engineer from Zahle, gave us the biggest lessons of all: if there is will, there is a way. One of the biggest problems of the area is the unavailability of the national electricity grid, so diesel gen-sets were used to power the water pump system. Considering the unstable situation of the country and the fear of diesel shortage, the owner was easily convinced to implement solar water pumping system, even though “fresh money” had to be used for its financing, especially because “currently, in Lebanon, diesel is a scarce commodity, and the decision taken was proved to be the right decision. In this case, it was not only about saving money by saving fuel, but it was also and most importantly about survival by being able to water the trees when diesel was not available”.

The 3.7 MWp off-grid system has a total area serviced of almost 2.5 million square meters, a PV installation of 20.000 square meters and the modules used are from tier 1 suppliers. All electric components are

NO FUEL, NO HASSLE

from the global technology leader, EATON. According

Said,

“the

main

challenge

this

particular project was to have longer operating hours at a constant flow of water. For the owner, and since drip irrigation is used, constant flow is a must, that is why, the system was designed to automatically use help from the generator in case water is needed in low light

conditions.

All

protective

measures

are

BENEFITS OF THE PROJECT:

implemented, but another challenge was that, the operation of the system is complex and the user in many cases is an illiterate person, so simplification was needed. We came up with a system that can run all by itself, all the operator has to do is flip a switch to start pumping water and flip it back to stop.”

"The potential for renewables in Lebanon is huge. All we need is some stability in the country and we will do wonders."

1. Fuel cost savings 2. No matter what happens, the sun will rise every morning and the pumps will run. the farm became less dependant on fuel availability. 3. Reduction in emissions from diesel engines 4. Noise reduction this was the most pleasant effect to the owner of the project.

"Our project was a complete success, and many farmers who visited the site are seriously considering solar pumping as a condition for survival."

THE

FLOATI NG

HUAI NAN,

SOLAR

CHI NA

I S

160, 000 PANELS, EACH

OTHER

I N

ATTACHED

STRUCTURE.

FARM

MADE

HUGE

©STR

I N OF TO

MOSAI C AFP

THE FUTURE OF SOLAR – WHERE ARE WE HEADED? Nowadays, technologies are changing rapidly and

Solar technologies have evolved a lot since they first

enhancing human life by providing alternative solutions,

made their debut in 1960s. While previously, solar

global communications, fastest information transfers,

photovoltaics (PV) were seen as a thing of the future,

comfortability and eases. All human life sectors are

today, technological breakthroughs have positioned the

fundamentally

industry for huge growth.

based

technology

development,

including the energy sector. Solar is already the world`s

Trending in 2020 are the floating solar farms. As the

fastest growing energy technology. Ten years ago, there

silicon panels are becoming cheaper and more efficient,

were only 20 GW of installed solar capacity globally – 1

if photovoltaic panels are placed on reservoirs and other

GW being roughly the output of a single large power

water bodies, they offer even greater efficiency.

station.

Floating solar farms can generate huge amounts of

By the end of 2019, the world`s installed solar power

electricity without using valuable land or real estate. The

had jumped to about 600 GW. Even with the disruption

installation costs of floating photovoltaic panels are less

caused by COVID-19, the forecasts of HIS Markit, a

than land-based photovoltaic panels. Also, research

London-based research company, are an extra 105 GW

showed that the power production of floating solar

of solar capacity worldwide by the end of 2020.

panels is greater by up to 10% due to the cooling effect of water. Besides producing clean solar power, floating

But how can we boast this market even more?

solar farms can help with water management.

Building-integrated

photovoltaics,

the

name

suggests, seamlessly blend into building architecture in the form of roofs, canopies, curtain walls, facades, and skylight systems. Unlike traditional solar PV panels, BIPV can be aesthetically appealing rather than a compromise to a building’s design. BIPV solar panel systems enable homeowners to save on building materials and electric power costs. By substituting BIPV for standard building materials, you can cut down on the additional cost of solar panel mounting systems. Solar skins are a novel PV technology to integrate custom designs into solar panel systems. The solar skin technology is similar to the ad wraps displayed on bus windows. Solar thin-film skins maintain high efficiency due to its selective light filtration advancements. The sunlight falling on solar skins is filtered to reach the solar cells beneath it. As a result, it simultaneously displays the custom image and provides solar energy. Space-based solar power (SBSP) involves collecting the sun’s

energy

space,

and

then wirelessly

transmitting it to Earth. A space-based solar power technological process includes using solar panels to collect solar energy in space with reflectors or inflatable mirrors that direct solar radiation onto solar panels, and then beaming it on Earth through a microwave or laser. The energy is then received on Earth via a microwave antenna (a rectenna). According to the National Space Society, space-based solar power has the potential to dwarf all the other sources of energy combined. They argue that space-based solar power can provide large quantities

energy

with

very little

negative

environmental impact. It can also solve our current energy and greenhouse gas emissions problems. Novatec Solar recently commissioned a promising energy storage solution for solar PV systems using a molten salt storage

technology,

called

Molten

Salt

Storage

Technology. The process uses inorganic salts to transfer energy generated by solar PV systems into solar thermal using heat transfer fluid rather than oils as some storage system have. The result is that solar plants can operate at temperatures over 500 degrees Celsius, which would

result in a much higher power output. This means that

Solar Roadways. Scientists are exploring ways to

costs to store solar would be lowered significantly and

actually line highways and roads with solar panels that

utility companies could finally use solar power plants

would then be used to deploy large amounts of

as base load plants rather than to meet peak demand

electricity to the grid. This would help overcome a

during prime daylight hours.

major

barrier

industrial

scale

solar,

which

opponents say threatens to take up too much land. Solar Panel with Built-In Battery. In a project

Solar roadways have already popped up in the

funded by the United States Department of Energy,

Netherlands.

Ohio State University researchers recently announced they created a battery that is 20% more efficient and

The ISP low-concentrating solar panel-plus-tracker

25% cheaper than anything on the market today. The

The conic mirrored aluminum reflector waves of the

secret to the design is that the rechargeable battery is

panel manage to boost cell efficiency 20× through the

built into the solar panel itself, rather than operating as

concentrated light, which strikes a trough of sliced

two standalone systems. By conjoining the two into

silicon cells that represent only 5% of the volume or

one system, scientists said they could lower costs by

area of a traditional crystal silicon panel. The ISP

25% compared to existing products.

panels use single junction monocrystalline silicon

Some of the technologies mentioned in this article exist already, some are in the research phase. Either way, this is a small outlook of the future of solar technology! Are we ready for it? deployed as arrays, with patent-pending processes that deliver efficiency close to multi junction cells.

coming from the sun, anti-solar panels use heat radiating off the Earth's surface. Anti-solar panels work according to the same basic principle as the

Researchers at Imperial College University in London

tradition solar panels, but in reverse. Air grows colder

believe they have discovered a new material - gallium

arsenide - that could make solar PV systems nearly

surface — which warmed during the day — toward

three times more efficient than existing products on the

space. In a phenomenon known as radiative cooling,

market. The solar cells are called "triple junction cells"

this heat radiates in the form of infrared light, which

and they're much more efficient, because they can be

these new devices can use to generate electricity.

night,

heat

radiates

from

the

Earth's

chemically altered in a manner that optimizes sunlight capture. The model uses a sensor-driven window blind

And there are actually lots of other innovative

that can track sun light along with "light-pipes" that

residential solar technologies in development or

guide the light into the system.

currently being rolled out in 2020. Perhaps the most

Anti-solar panels work in a way opposite to

promising new tech is Perovskite solar cells, which

traditional ones. Whereas current versions draw energy

could soon be used to create solar paint.

WES.FOUNDATION

Y C M N A E R I A C I T F HO F E N Y 20 G R | E

FROM BEIRUT TO THE WORLD Energy Efficiency Marathon is bringing together experts and companies aiming at creating awareness on energy efficiency. The virtual marathon of webinars will be held from the 30th of November until the 16th of December 2021. This first virtual Marathon was created to cover the ten most important topics related to Energy Efficiency. Discovering new technologies, new project implementations, and network with companies from more than 10 countries, in dedicated B2B matchmaking sessions. As an international annual gathering, the Marathon sets out to become the premier event in the MENA that promotes an energy efficiency ethic to drive action in the region. Policy-makers, local governments, NGOs, and business leaders are encouraged to participate in an open dialogue that expresses national and worldwide views on energy efficiency and the resulting impact on the environment, national security, and economic growth. With the emphasis on efficient use of our energy resources, it will help to elevate the understanding of energy efficiency issues in political debate and identify the repercussions on businesses.

Part of

Inspired by

Main Partner:

Organized by

November 30December 16 2021

Strategic Partner:

Knowledge Partner::

Beirut, Lebanon hybrid format

www.worldelitesolutions.com

the-exclusive.digital

HOW TO MITIGATE THE RISKS AND REMAIN IN THE MARKET OF RENEWABLES Since its conception in 2010, Earth Technologies has found itself committed to deliver excellence to its clients from a technical, financial, and technology perspectives. With the current events affecting economies worldwide, especially in Lebanon, Earth Technologies was forced to change its mindset and the approach to the market. In order to mitigate the risks and remain in the market of renewables as a major player, Earth Technologies followed the specificity of market demand. The purchasing power of people was slashed by 75%. People are now running after necessities, food, shelter, and security. The latter is what opened our eyes to a product we market in Africa, off-grid solar kits.

"Now is the time to start focusing on these clean sources of energy"

ET solar kits are a big seller for Earth Technologies in Africa, mainly in Rwanda, Zambia, Nigeria, and Ivory Coast. The team realized that this is becoming a need for Lebanon after rumors that the Electricity will soon halt. Lebanese living abroad feel concerned for their parents' well-being and are worried that their parents couldn't charge their phones to talk to them or have light at night. We made available different options ranging from 12 Wp to 7 KWp systems. The currency inflation that caused the dollar to rise from 1,500 LBP/dollar to 8,300 lbp/$ (30-06-2020), was the only draw-back as it limited the Lebanese' purchasing power, yet empowered the Lebanese expats in case they were paying for the system. Earth Technologies is currently engaged with several projects in Africa EU-funded mini-grids, solar kits, and telecom systems, and in Lebanon with UNDP, RMF-USAID, and a few commercial projects. We expect the next 18-36 months to be very hard, yet we hope to start seeing real advancement in the sector, with the right legislation, vision, and action.

Earth Technologies found itself committed to deliver excellence to its clients from a technical, financial, and technology perspectives.

A lot of the renewable energy companies in Lebanon went through hard times, and some couldn't survive due to the high costs of operation, lack of regulation, and the delay of decision-making for big projects. During this time, the energy supply in Lebanon was diminishing and getting worse, now is the time to start focusing on these clean sources of energy, as a lifeline and necessity rather than an energy mix add-on. We expect more decentralized energy systems in the future, and we urge governments of developing markets to embrace and support such projects. To our partners and clients, we promise to maintain our path to sustainable living, by being pro-active and technically advanced, hoping these hard days will be forgotten soon, and the age of prosperity rises again.

We expect more de-centralized energy systems in the future, and we urge governments of developing markets to embrace and support such projects.

the-exclusive.digital

"the major culprit in our economy's decline is fuel imports" INTERVIEW WITH MR, SAAD MAAKARON, PARTNER AT GREEN ESSENCE LEBANON

What type of adaptive measures the company / project needed? What were the lessons of this period? We had to cut costs drastically, reduce our operating cost and expenses. Laying off people was the hardest, but it was inevitable given the situation and the lack of new business. Lessons: we should have acted more aggressively to start expanding outside Lebanon.

What is the status of your current project(s) and investments planned for 2020-2021? Which are the advantages of your business and products, going forward? What are your expectations from the public sector, state projects to support future business? A few projects with NGO's continue on track. Old projects with private sector continue with difficult negotiations, as most can only pay in LBP or lollars. No new projects since the situation unraveled, and the lack of hard currency started ruling the market. Our solutions are based on integrating high tech solar equipment with more than 80% of cost in imported goods. Public Sector: from our perspective it is very disappointing; things continue to go in the opposite direction and away from sustainability, especially in the energy sector. Knowing that the major culprit in our economy's decline is fuel imports, and at a time when developed countries are divesting from fossil fuels, and aggressively integrating renewables into their energy mix, Lebanon new Policy is to sink deeper into the rabbit hole. To make things worse, now energy sold by EDL, or diesel generator "operators" is cheaper than ever, heavily subsidized via fixing the price of imported fuel on the old LBP/USD rate. This encourages consumers to waste more.

For the time being the future looks grim, but we look forward to a time when radical change in policy would shift us away from importing our energy and towards producing all we need from a combination of renewables in a short number of years.

- Energy Efficiency: we waste a whole lot of energy in buildings and transportation, we have to take a closer look at how we build our homes, the materials we use, and try to innovate in a clear direction to reduce pollution, consumption, and energy. - Renewables: We continue to pay dearly for energy imports when we can be a net exporter of renewable energy from solar, hydro, wind. Regulations that encourage the development and deployment of Lebanon made technology towards a 100% sustainable energy in < 15 years.

I would rather list the transformations I would like to see in the sectors we're involved in, and we hope to have the persuasive strength and might to effect change towards sustainability.

What is your message to clients and partners? We thank our clients and partners for getting us here. After all, they all have been pioneers in adopting our advocated concepts of reducing the use of energy and producing a whole lot from renewable sources. The near future may look troubled, but beyond the horizon, and after the struggle, a new society will emerge, a society that understands and defends sustainable practices.

Sa a d Ma a ka r o n i s a n e ne r g y e f f i c ie n c y a n d s o la r s ol u t i o n s e x p e r t . H e i s t he Co - f o u nd e r a nd di r e c t o r f o r b u s i n e s s d e v e lo p me n t , a t Gr e e n E s s e nc e , a c o mp a n y w i t h t he mi s s i o n t o br i n g t h e b e n e f i t s o f s o l a r t o e v e r y o n e . He i s a s t r o n g a d v o c a t e o f e ne r g y i n de p e n d e n c e w it h t h e t o o l s t o ma k e i t h a p p e n. the-exclusive.digital

We’re in the business of recycling energy, not ideas. What type of adaptive measures the company needed? What were the lessons of this period? At FREE energy we reduced our exposure to EPC projects and focused on energy and indoor air quality consulting in Lebanon; while focusing on taking our work outside the country.

What transformations you expect in your sector, their effects for the Lebanese economy and in a regional perspective? (in areas like prices, costs, supply chain, technology disruption, financing, HR, safety & security) Without a proper banking system and stable economy, we believe maneuvering the Lebanese market will be very tricky.

Antoine Skayem CEO & Managing Partner of FREE energy

"We are leading the way as the energy solution providers of the region, where our purpose is to manage energy resources in a creative and effective way, in an effort to create harmony between our existence and the environment. Our innovative solutions are customized according to our client’s needs: thus, every solution is unique and every project is a new challenge and opportunity for growth."

We believe in

"We want to change the world. One solution at a time."

"Our vision is to ensure that clean energy will dominate the energy sector in Lebanon"

What type of adaptive measures the company / project needed? What lessons have you learned from this period Due to the crisis, we have created an appropriate solution to the customer by extending the payback period from 3-4 years till 10 +. And since a new opportunity rose (power shortage – blackout), we are now promoting Off-grid solutions, systems with batteries, to fill the need for power during blackouts. The main lesson was to not stick with only one product, and to always expand the solutions to meet all the market needs.

What is the status of your current project(s) and investments planned for 2020-2021? Which products are going forward? What are your expectations from the public sector, state projects to support future business? We have lost half of the projects due to the financial situation (people couldn’t pay since their money is stuck in the banks and the banks stopped all the green loans). But on the other side, we implemented 4 medium projects in the beginning of 2020, for customers who believe in sustainability of their investment and benefits they will have. Solar energy = free and renewable energy. So the customer can have his own electricity anytime of the day/year without counting on the government. Going forward: SURE! Regarding the public sector, we are counting on joining the new wave of renewable energy due to its advantages. As to the state projects, we hope it regains the support that was lost during the crisis.

What transformations you expect in your sector, their effects for the Lebanese economy and in a regional perspective? (in areas like prices, costs, supply chain, technology disruption, financing, HR, safety & security) This sector is the future, so its progress is significant and independent of all factors. It will surely affect the Lebanese economy by creating new job opportunities, less electricity costs and new businesses (since the electricity costs will be ZERO)

What is your message to clients and partners? Invest in solar energy, it will pay back in all the ways.

was established in 2016 by a group of energy experts dedicated in bringing renewable energy to your home and business. With more than 10 years of experience in the renewable energy field, we know that free energy is now available through pv solar systems, and became committed to help creating the new wave of sustainable, clean energy.

the-exclusive.online

PV installations in Lebanon greater

than 500KWp With the support of

I N D E X

with the support of

Index BRSS Sector: Public Location: Beirut Central District Governorate: Beirut Capacity: 1080 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2015

UNIPAK Sector: Industrial Location: Halat, Byblos Governorate: Mount Lebanon Capacity: 579 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2016

SANITA - HOSRAYEL Sector: Industrial Location: Hosrayel, Byblos Governorate: Mount Lebanon Capacity: 688 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2016

www.phoenixlb.com Address: Safra, Kesrwan P.O.Box 11 – 2354, Beirut - Lebanon Phone: +961-9-855 690 Fax: +961-9-855 696 energy@phoenixlb.com

SANITA - ZOUK Sector: Industrial Location: Zouk Mosbeh, Keserwan Governorate: Mount Lebanon Capacity: 1008 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2016

NOTRE DAME DE SECOURS HOSPITAL - UNDP Sector: Commercial Location: Jbeil, Byblos Governorate: Mount Lebanon Capacity: 600 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2018

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ZAHRANI OIL INSTALLATIONS Sector: Public Location: Zahrani, Saida Governorate: South Lebanon Capacity: 1092 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2015

MARINA FROZEN FRIES Sector: Industrial Location: Riyaq, Zahleh Governorate: Beqaa Capacity: 807 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2018

CHEHAB BROTHERS Sector: Industrial Location: Debbeye, Chouf Governorate: Mount Lebanon Capacity: 1000 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2017

www.ecosys.com.lb

LIBANJUS PHASE 1+2

Address: HOLCOM Bldg., 460 Corniche Al-Nahr POB 17-5002, Beirut - Lebanon Phone: +961 (1) 595 501 Fax: +961 (1) 595 509 g.geha@itg.com.lb e.maalouf@ecosys.com.lb

Sector: Industrial Location: Hadath Beyrouth, Baabda Governorate: Mount Lebanon Capacity: 920 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2017

TRANSMED Sector: Retail & Wholesale Location: Choueifat, Aley Governorate: Mount Lebanon Capacity: 500 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2016

SMLC PHASE 1+2 - PEPSI Sector: Industrial Location: Choueifat, Aley Governorate: Mount Lebanon Capacity: 2000 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2019

with the support of

Index

MASTER CHIPS Sector: Industrial Location: Fourzol, Zahleh Governorate: Beqaa Capacity: 624.96 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2018

HOTEL DIEU DE FRANCE Sector: Medical Location: Achrafieh, Achrafieh Governorate: Beirut Capacity: 530.00 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2018

MASTER CHIPS Sector: Industrial Location: Fourzol, Zahleh Governorate: Beqaa Capacity: 888 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2019

SERUM AND SOLUTIONS Sector: Industrial Location: Serraine Et Tahta, Baalbek Governorate: Ballbek - Hermel Capacity: 1000 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2019

www.solarwindme.com Address: Beirut, Symposium Building, ,8th Floor, Wardieh Street, Horsh Tabel – Sin EL Fil Phone: +961 1 511 390 Fax: +961 1 511 390 ext. 12 info@solarwindme.com

with the support of

LIBAN CABLES www.arinaenergy.com Address: KORE Central, Jabra Building Charles Helou Street Horsh Tabet,Beirut Lebanon Phone: +961 1 333 938 info@arinaenergy.com

Sector: Industrial Location: Nahr Ibrahim, Byblos Governorate: Mount Lebanon Capacity: 601 kW Grid Interaction: Hybrid/Multisource Year of installation: 2017

PANDA PLAST Sector: Industrial Location: Niha, Zahleh Governorate: Beqaa Capacity: 700 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2016

www.elementssw.com Address: Sin El Fil, Beirut, Lebanon GGF Center, Block A, 8th Floor Phone/Fax: +961 1 492 305 info@elementssw.com

SOLINO GROUP Sector: Industrial Location: Bablieh Governorate: Saida Capacity: 500 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2017

DEMCO STEEL www.free-lb.me Address: Beirut, Symposium Building, ,8th Floor, Wardieh Street, Horsh Tabel – Sin EL Fil Phone: +961 1 511 390 Fax: +961 1 511 390 ext. 12 info@solarwindme.com

Sector: Industrial Location: Doura, Beirut Governorate: Beirut Capacity: 1017 kW Grid Interaction: Hybrid/Multisource Year of installation: 2018

KAA EL RIM SPRINGS FIELD www.greenessencelebanon.com Address: ZAATAR Bldg., Mar Elias Zahle 51135 - Lebanon Phone/Fax: +961 (8) 821 387 info@greenessencelebanon.com

Sector: Residential Location: Qaa Er Rim, Zahleh Governorate: Beqaa Capacity: 600 kW Grid Interaction: On-grid/Grid-tied/Online Year of installation: 2016

GUEST EXPERT

the-exclusive.digital

Unexpected events can change drastically corporate strategies.

Interview with Mr. Sami Soughayar, CEO of Matelec

MATELEC GROUP was f o u n ded i n 1974 to p r o d uce di s t r i b u t i o n tran sfo rm er s and si nce then ha s g ro w n i n t o a di v e rsi fi e d and res pected el ectr i ci ty b u s i n e s s pl ay e r wo rki ng acco r di ng to i nter n a t i o n a l stan dards. W i thi n i ts fi r st d eca de o f o p e r a t i o n , the g ro u p wa s abl e to enl ar g e i ts p r o d u c t s o ffe ri n g to swi tch g ear s, pa ckag e su b s t a t i o n s , and co n tr o l and pr o tecti o n sy stems. In p a r a l l e l , Mate l e c expanded i nto eng i neeri n g and co ntr acti ng acti v i ti es wi th the r ea l i z a t i o n o f co mpl e x H V , MV an d LV p r o j ects. Pr ese n t l y , t h e Gro u p ca rri es man ufa ctur i ng a nd co m m e r c i a l faci l i ti e s acro ss the Mi deast, Afr i ca a nd E u r o p e .

What type of adaptive measures the company needed? What lessons have you learned in this period? We applied all safety and regulatory measures required by the competent authorities (ministry of health, ministry of interior, regional governing bodies. Practically we haven`t stopped operating as our products are considered vital for the electricity sector for Lebanon. The crisis triggered a wake-up call that unexpected events can change all our strategies. This reminds us somehow of the black swan theory. We need to be flexible enough to cope as much as possible with changes that might affect the activity of our company.

Due to the current economic crisis in Lebanon, the biggest transformation is the banking sector incapability to continue supporting domestic companies. We as Matelec are less affected by others since a major part of our production is for export markets. A shaping of Lebanese economy is underway. The extent of this shaping will be clear in the near future. Also safety and security measures will be maintained for a longer period. This might affect the travel of our personnel, and the visits of our customers and partners to Lebanon.

What is your message to clients and partners? Matelec is known as being able to deliver within difficult circumstances: although such events are unique over a period of 100 years, We tried to maintain our commitment towards our clients which are in need of our products and services.

the-exclusive.digital

What type of adaptive measures the company / project needed? What were the lessons of this period? The general mobilization took a toll on the whole supply chain in the energy and transport sector as businesses were ordered to close and mobility became scarce. From importation, storage, and transportation, to retail sales at gas stations, deliveries to SME's and homes etc., we faced disruptions in all aspects of our business. The first level of defense was to ensure our continuity throughout this unprecedented period. We started re-adapting our operations internally. On the level of employees and operations, we implemented very quickly the work from home concept, and set up systems to ensure continuity and efficiency. From video meetings to close follow up, we were able to ensure a smooth operation, from our supply departments to servicing orders for clients. As for building and attendance, a crisis committee was immediately formed

We insisted on close and constant communication with our teams to ensure they are following the guidelines set and start forming new habits. In terms of dealing with our clients, we stopped cash dealings and resorted to bank transfers to minimize physical interactions. As for stations and distribution, we had to keep following the guidelines imposed by the general mobilization, which included shorter and disturbed operating hours and closure of washing services, among other restrictions. These limitations led to a large slowdown and a drop of over 60-70% in sales. We had to quickly rethink our staffing schedules to ensure continuous service within the measures imposed. These measures led to further disruption in our importing schedules with our international suppliers, as the decrease in demand meant an unexpected low turnover in product and full storage capacity. This meant we had to turn to suppliers to renegotiate our supply schedule for that period.

What is the status of your current project(s) and investments planned for 2020-2021? Which are the

to ensure the health and safety of the Group. We closed our HQ for

advantages of your business and products, going

the first three weeks, then opened up with a third capacity, and

forward? What are your expectations from the public

eventually went back to normal operations. However, this was heavily coupled with several health and safety guidelines. Mostly

sector, state projects to support future business?

included the provision of gloves and masks that became mandatory

The general mobilization period unfortunately was not the beginning of

on work sites, abiding by social distancing etiquette, constant

the difficult period for IPT, but it did compound it. With Lebanon

washing of hands, disinfecting the buildings constantly, and lately

facing deteriorating economic and political circumstances as of October

the addition of the disinfecting fog machine for all people entering

2019, IPT, as for the rest of the energy sector, has slowly started seeing

the building.

alterations in the business medium. Our business model had to come to

"WHAT LEBANON NEEDS TODAY IS A COMPREHENSIVE REFORM PLAN THAT REVIVES ITS ECONOMY AND SOCIAL STANDARDS"

"IPT (Issa Petrol Trade) gets people and businesses moving. We offer premium oil and gas solutions in addition to a wide variety of services. At IPT we fully understand the energy and environmental challenges of today's rapidly changing world."

a quick change, while abruptly becoming an upfront payment type of business to our suppliers, we had to impose the same on our clients. Rather than providing customers with financing options which we also

countries' strategies.

What transformations you expect in your sector, their effects

had previously, the cash cycle has become a quicker one that ultimately

for the Lebanese economy and in a regional perspective?

relies on prepayment to avoid disruption of supply.

As the exceptional circumstances have been dragging on since October 2019, it

This now means that for the time being and as the Lebanese business

became very clear that as the general mobilization period gets lifted

landscape remains unclear, we had to freeze most of our expansionary projects. Our focus now is to consolidate IPT Group in its size today and continue to service our clients through the best of our abilities. Our reach across Lebanon will allow us to persevere, be it through our expansive network across the country, or through our owned fleet system that can ensure proper coverage. After all, the advantage of our business lies within our product; fuel is a primary resource that remains indispensable. Expectations in the near future unfortunately do not hold much promise when it comes to the private sector in the energy and transport sector, given several complications and issues the companies are facing in light of the financial crisis and the deeply entrenched political problems governing the country. We are facing complications and pressure negatively affecting our sustainability, especially that the relationship between the private and public sector has not recently been at its best. There are several points of view on the role of either in the sector in Lebanon today, whether the public sector takes charge of importation for the country, or whether the sector remains with private companies in the future. The struggle remains, as it is worsened by the political divisions over this vital commodity for citizens and an essential tool for

progressively, Lebanon would not go back to normal. The closure due to the pandemic slowed things down, but accelerated the deterioration of our economic and social conditions in Lebanon even further. For the energy sector, we face issues on two ends: demand and supply. On the demand side, we are seeing decreases in sales and demand for fuel, especially as more businesses are closing, less construction is happening, among other factors. We are also not confident that the state will be able to keep subsidizing the fuel sector by providing dollar liquidity for most of the shipments at the rate of 1515L.L. while the market rate today surpasses 8000L.L. On top of that, we are expecting additional taxes on gasoline and diesel that should be part of the government's reform plan in coordination with the IMF, which will increase financial strains locally and further decrease purchasing power. On the supply end, the constraints keep getting tighter: it has become almost impossible to open guaranteed letters of credit and our payment methods vis-a-vis international suppliers can only be executed through the central bank. Banking issues tend to slow down and disrupt the importing process. Given the economic situation today, we do not foresee an improvement in our financial system nor an improvement in confidence with international entities. One main transformation that has begun is the gradual difficulty of having and keeping foreign workers on gas stations, facilities, and terminals

the-exclusive.digital

Interview with Dr. Toni Issa, Vice Chairman – IPT Group

. With the dollar becoming more inaccessible and transfers almost impossible, we are seeing a vital need to replace our service employees. In light of this, IPT launched the unprecedented and responsible initiative to hire Lebanese workers, believing in the social responsibility towards our country and fellow Lebanese citizens. We wanted to change the old-school beliefs that fuel stations have to rely on foreign workers and open up new work opportunities for our local workforce. A confirmation of the necessity of this initiative came through the very high number of applications we received. In less than a week, we had received over 1,500 applications from all ages and regions, men and women alike. This showed us the change in the mindset of Lebanese people as the social and economic backdrop is getting tougher and unemployment keeps on rising. We have already launched three stations that offers 100% Lebanese service, and we are underway to open up another three in the near future. Eventually, we expect most of our stations to become serviced by the Lebanese workforce. The unexpectedly high number of applications received from all areas of Lebanon and of all age ranges allowed us to form an extensive database of Lebanese looking for employment. We decided to expand our initiative and reach out to our partners and franchisees of other IPT stations to encourage them to do the same, in the hope of spreading this over Lebanese territories and creating as many opportunities as possible for the Lebanese people.

What is your message to clients and partners? Despite the hardships we have been facing lately, it is important not to lose faith in our country and our abilities. Crisis brings opportunity; and this is how we are approaching these tough times. Whether it is through internal restructuring and improving our operations, or launching timely initiatives that contribute to our society, we are working twice as hard to remain relevant and buckle up to be ready to emerge stronger from the crisis. We would like to extend our invitation to this approach to our clients and our partners to get through these periods together, and figure out together the new business landscape we will be operating in. It is important not to give up on our country, since this is an opportunity to help rebuild Lebanon for the better. After all, it is worth a reminder that businesses in Lebanon are family businesses, and many projects are run locally. These Lebanese families and entities should not only succumb to the rules of investment, but remember that at the end of the day, we are trying to save and rebuild our own country. Today, more than ever, we should all feel involved and concerned in making the sacrifices needed today to get through the difficult years ahead in the hope of changing the current mentality. We should move away from resorting to importing all our products and services to fulfill local needs, and this huge responsibility falls on the citizens and the government and all its entities alike. What Lebanon needs today is a comprehensive reform plan that revives its economy and social standards, away from political conflicts. Finally, we can only hope this coming phase will pass as quickly as possible, with the least amount of damage possible, in the hope of better country and standard of life.

INTEGRATING DISTRIBUTED ENERGY RESSOURCES IN VIRTUAL POWER PLANT OPERATIONS FOR ELECTRICITY DU LIBAN - AN ALTERNATIVE EMERGENCY PLAN TO REFORM THE POWER SECTOR AND CREATE SUSTAINABLE JOBS

AN ALTERNATIVE EMERGENCY PLAN FOR LEBANON Dear Future Investor, Lebanon has been plagued by a long-lasting energy crisis that suffocated its economy. Over decades, Lebanon underinvested in its power infrastructure, leaving Electricité du Liban, the stateowned vertically integrated utility, to suffer from structural problems impacting the fiscal deficit of the Lebanese government and the economy. On one hand, Electricité du Liban has accumulated debt losses of US$ 40 billion over the past decades 40% of Lebanon’s total debt – because of a noncost reflective tariff policy, aging plus inefficient generation and grid infrastructure and poor revenue collection. On the other, the lack of generation capacity led to the emergence of private generation businesses, which profited from weak regulation to achieve high margins. In 2010 a plan for the electricity sector has been approved by the government to reform the sector. The plan was simple, build centralised capacity to phase out diesel generators. Forward 2021, we are in stand still, facing the same political barriers to implement the plan. In light of this endemic challenge, our group of experts is putting a forward a proposal to reform the electricity sector based on a) a different approach b) new cost of technologies c) new economic reality. If the proposal gets endorsed by authorities, we have the potential to create a virtuous circle within the Lebanese economy by aggressively pushing solar PV and maximizing the local content of every kWh produced in the country. As a potential investor your future investment is a building block of the policy. We hope this article will convince you of its financial attractiveness and social impact. We will address four key questions that are on the top of your mind: I. Why does Lebanon need an alternative emergency plan? II. What is our alternative emergency plan? III. How do we implement our plan? IV. What’s in it for you? We look forward to support your interest in lobbying this plan. We sincerely thank the local and international experts who kindly participated in discussions that informed this article. The Future Energy Leaders of Lebanon - Digitalization Taskforce team Farid Comaty, Dyaa el Rifai, Serge Saad, Perla Tannous, Ali Shebbo With the support from Francois Farage and Ahmad Diab

MEET THE TEAM

Farid Comaty – Team leader

Master in Energy Science and Technology from ETH Zurich in 2013 Mechanical engineer bachelor from McGill University in 2010Senior consultant with Guidehouse (ex. Navigant). 6 years of strategy consulting experience with leading utilities in Europe and Middle East. Expert on business strategies in the smart grid transformation. Core themes, virtual power plants, energy storage and demand response.1 year of research experience at the Power Systems Laboratory of ETH Zurich. Contact info: faridcomaty@gmail.com

Dyaa el Rifai – FELL team

Power System expert in the application engineering team of GE Digital Grid. French engineering diploma in Energy Management and a Master of Business Administration. Started career with Wind Farm projects in H2air-France. Moved to GE to work on Advanced Energy Management Systems (AEMS). Five years of experience: contributed in commissioning SCADA EMS systems and training end users for several TSOs and Generation companies in EURAF region: Statnett, ENERGINET, Vattenfall, RWE, Veolia. Contact info: dyaa.elrifai@gmail.com

Serge Saad – FELL team

Diploma in Mechanical engineering from Notre Dame University in 2017. Worked with energy independence solutions, as an energy consultant specialized in delivering energy savings solutions in Lebanon. Afterward, he joined Ogero the lead telecom provider in Lebanon as the project lead for the strategic planning and execution of the fiber optical nationwide program's power backbone in the strategic planning and PMO directorate. Contact info: sergesaad1@gmail.com

Francois Farage – External

Engineering degree from ULFG2 in 1999. In Renewable energy field since 2008. Implementing PV diesel in Lebanon since 2014. Chairman of Green Essence Lebanon a Lebanese EPC that implemented more than 7MWp solar in Lebanon. Contact info: francois@greenessencelebanon.com

Ahmad Diab – External

MSc in Energy Studies and BEng from AUB. 5 years of experience in the renewable field. Worked on systems modeling, renewable energy for development and empowerment and new technologies in Lebanon and MENA. Currently a Project Manager with SMAP energy to help connect capital with RE opportunities globally. Contact info: diab.4g@gmail.com

Perla Tannous – FELL team Diploma in Mechanical engineering from the Lebanese University in 2017. Professional master's degree from Arts et Métiers ParisTech, France in 2018. She worked at Engie Group for a single year, specialized in development and execution of photovoltaic solar plants in France. Moved back to Lebanon in June 2019 and joined ECOsys company part of ITG group as a presales consultant for photovoltaic projects in the MENA region. Contact info: perla_tannous@hotmail.com

Ali Shebbo – FELL team

Project Manager at Siemens Energy, Germany Diploma in Electrical Engineering from the University of Karlsruhe. He joined Siemens in 2011 as a Power Engineer and Service Project Manager, specializing in power plant upgrades and modernization (nuclear & CCGT) for the Middle East & Europe region. Contact info: ali.shebbo@gmail.com

Disclaimer: The content of this report are purely the views of the authors and do not represent the views of the company they work for or the board of the World Energy Council Lebanon

AN ALTERNATIVE EMERGENCY PLAN FOR LEBANON

CONTEXT OF LEBANON ENERGY SECTOR Lebanon electricity needs boils down to an electricity demand of 23 TWh and a peak demand of 3.5 GW. Electricité du Liban supplies two third of the electricity under subsidized tariff scheme while private generators supply the rest at a profitable rate. Electricité du Liban operates 1.6 GW of fossil fuel power plants and 0.2 GW of hydro power plants, generating a total of 16 TWh. Around 1.2 to 1.6 GW of diesel generators are installed at industrial and commercial sites, and around 2-3 GW diesel generators are installed as neighborhood generators. Diesel generators generates ca. 7 TWh.. In April 2019, the Council of Ministers approved the updated electricity sector reform plan of the Ministry of Energy and Water. Similar to 2010, the central policy of the plan was to build centralized gas generation plants to phase out diesel albeit this time combining a temporary and permanent solution in one contract to a multinational and pushing renewables in the mix to 30% by 2030. To ensure integration of renewables, the World Bank financed a least cost generation plan study conducted by Electricité de France to lay out the deployment of new conventional and renewable generation as well as battery storage capacity in the country. The plan is based on a centralized architecture of the power system and does not foresee a role for distributed energy resources at the medium to low voltage. The EDF study has still not been ratified in an official plan, and for now, the caretaker minister has been orienting his decision according to the 2019 plan.

I.WHY DOES LEBANON NEED AN ALTERNATIVE EMERGENCY PLAN? Lebanon needs an alternative emergency plan for the following five reasons: 1. We need to stay ahead of the curve and not behind it – Both plans, 2019 plan or EDF plan, are based on a centralized traditional planning approach that disregards the value of flexibility of existing distributed energy resources, when globally, system planning has shifted towards the integration of distributed energy resources to maximize the shares of renewable energies and reduce operating cost. If we now rebuild our system the old way, we will be missing the opportunity to optimize our existing asset base and learn from the lessons of operating systems with high shares of renewable energies. 2. We need to think win-win and not win-lose – Both plans, 2019 plan or EDF plan, fail to incentivize all stakeholders of the power sector, walking with a win-lose mentality that would shift away all revenues from one sector to another. This led to a deadlock between vested political and business interests to execute the reform plan and in a period of ten years no new power plants have been built. 3. We need to stay as flexible as possible and free from lock in effects Both plans, 2019 plan or EDF plan, locks Lebanon in take or pay contracts with fossil fuel power plants for 20 years at >9ct/kWh, offering these a share

in the energy mix of 70%. In a country where the solar energy potential has been evaluated by local institutions to reach 20 GW, moving along in such a direction would considerably hinder the development of the renewable energy sector. We would put the country in 2030 in the same impasse that Jordan is facing today, unable to sign low-cost solar bids at 2-3 ct/kWh, while we can take today advantage of our existing diesel generators in pay as you go contracts to balance the plant portfolio and increase the shares of renewable beyond 30%. 4. We need to adapt to the new economic reality and maximize local value - The current economic crises demand that we localize the solution and that aggressively push distributed solar PV in the country while ensuring system stability. We can only do so by designing a feed-in tariff policy for hybrid PV-diesel plants that would be virtually connected to the MV substations of the distribution grid. The tariff will be the same across all the country to

INVESTMENT OPPORTUNITIES give a clear and fair market signal to all investors for a period of ten years. It is necessary to combine the PV and Diesel assets as the two sources complement each other – the contract will be over valuating the LCOE of a PV plant but under valuating the LCOE of the diesel generator, yet from a portfolio perspective, the contract will be profitable. That is, the contract incentivizes investors to maximize solar PV in their portfolio while minimizing Diesel to the strict minimum as every kWh produced with diesel is a loss, but every kWh produced with PV compensates that loss and is an over profit. It is not possible to separate the contracts and incentivize the integration of diesel generators in such away. 5. We need to create a virtuous circle to spur economic growth and innovation in Lebanon – Scaling aggressively solar PV and integrating distributed energy resources in the national electricity system has several benefits that get created through cycles. The first cycle triggers the innovative mind of Lebanese engineers to develop the solutions for aggregating and managing distributed energy resources in what we call virtual power plant operations. Second, it is the quickest way to get a reliable and unified power system. Third, it improves Lebanon's balance of payments by reducing fuel imports. Fourth it creates thousands of jobs for every GW of solar installed and future virtual power plant operators. Fifth the loop closes itself as the more DERs are integrated the more flexible the system becomes and the higher the shares of renewable energies can be integrated and in turn improve Lebanon's balance of payment. This circle is a virtuous circle, where the result of each cycle increases the beneficial effect of the next.

Figure 1 The economic virtuous circle when integrating distributed energy resources

I I . W H A T I S O U R A L T E R N A T I V E E M E R G E N C Y A C T I O N P L A N ? Our emergency plan rests on the 3-D trends of the energy transition that we observe globally: Decarbonization, Digitalization, and 1

Democratization. Instead of renting a temporary solution from a multinational power company to phase out diesel generators, our alternative emergency action plan is designed to aggressively push solar PV in Lebanon by aggregating diesel generators and batteries in virtual power plant operations. As such, our BAU scenario to which we compare our results is the original updated plan of the Lebanese government approved by the Lebanese government in 2019. That is, to rent for 5 years a temporary solution to provide 7,000 TWh at 10 ct/kWh. We explain in this section the what of the 3Ds. In the next section, we explain the how. 1. Decarbonization: We are pushing for a steep acceleration of solar PV in Lebanon. In our plan, solar PV capacity shares reach 4 GW by 2025, if not before. Best-in-class diesel generators will be acting as balancing resources to cover the residual load that EDL is 2

unable to supply. There are three reasons why EDL could not supply a) lack of generation capacity b) technical constraint due to fast ramping requirements c) local grid congestions. Figure 2 illustrates the results of an hourly dispatch simulation of the power system in Lebanon with 4 GW of solar PV. We did not model in our simulations the effect of b) or c). This would require more detailed modeling in power system software analysis. As can be observed in the left part of figure 2, solar gets priority dispatch (green curve), EDL (orange curve) ramps up or down accordingly with minimum load constraints and maximum generation constraints while diesel generators (blue curve) cover the rest of the residual load. The curtailment of solar energy (purple curve) that appears on the negative y axis represents solar

{1} Study from the Lebanese Foundation of Renewable Energy and the National Council of Scientific Research. The study considered the details of elevation, slope, hill shade, land use, geology type, vegetation density and hazardous area across all solar sites to come to 20 GW {2} By best-in class diesel generators we mean the newest generators bought by the private sector that respect above than average operational efficiencies and environmental emissions standards (e.g Caterpillar C32 model 2015 and above). We took a share of 30% of the existing diesel generator of 4 GW to be best in class i.e 1.6 GW.

sources we will require to improve the visibility and control of these assets by installing at

their

premise’s

smart

communication

controllers. These controllers will be the building block of the virtual power plant platform, a platform that will aggregate several dispersed DER sources across its control area to emulate the power and energy capacity of one large power plant. This platform will be operated by a Figure 2 Hourly and yearly dispatch view of Lebanon power system: 24 TWh electricity demand, 3.4 GW peak load, 1.8 GW EDL power supply, EDL national supply 16 TWh, solar 5 TWh, diesel generator 2 TWh

energy that could not be integrated due to an excess in-feed at certain hours of the day. These instances happen when EDL generators reach their ramp down limit to avoid shutdown and start-up costs. On the right part of figure 2, we observe the annual dispatch of the power system. In the same energy context of today i.e electricity demand of 23 TWh, peak demand of 3.4 GW, EDL generation of 16 TWh, diesel generators 7 TWh, it would be possible to integrate 80% of the generated electricity of 4 GW of solar PV plants and reduce diesel generation by 70%. Compared to the BAU solution, Lebanon would save 7.3 million tons of CO2e. Valued at today CO2 price of 25 €/ton in the European market, this could mean potential climate financing opportunity of 180-220 million USD with very low interest rates.% . of the solar PV generation would need to be curtailed, equivalent to 1 TWh. This 1 TWh is the driver of the business case to introduce battery storage systems in Lebanon. Figure 3 illustrates the results of a dispatch simulation that maximizes renewable energy integration and includes the deployment of distributed battery storage systems that cumulates to 1.8 GW and 4 GWh of reservoir capacity.

new entity in Lebanon the Virtual Power Plant Operator who will be responsible to manage the DERs contracts and ensure they balance their region with respect to EDL flexibility needs. The VPP operator will centralize all the DER-related business processes by providing the following: Bi-directional communication between the control center and aggregated DERs By receiving active power measurements and forecasts from the aggregators and sending active power targets towards the DERs. Active power remote control By collecting data from different sources: first, day-ahead generation forecasts submitted by the VPP aggregators. Second, day ahead forecasts of EDL power plants and active power forecasts on the feeders. Then, this collected data will be combined and processed to generate VPP generation plans that will be translated into active power setpoints sent to the aggregators. Energy accounting and billing By using the active power measurement, VPP platform will be providing accurate energy accounting and billing as per the contractual pricing with aggregators. Interoperability with EDL Energy Management System The VPP platform will be providing active Power forecasts of VPPs to EDL as an input to their N-1 network analysis. Moreover, in the future, an installed Automatic Generation Controller in the control center can feed the VPP platform with real-time power signals that will be transferred to the aggregator. User interface The EDL will be using the user interface to visualize actual VPP

Figure 3 Hourly and yearly dispatch view of Lebanon power system: 24 TWh electricity demand, 3.4 GW peak load, 1.8 GW EDL power supply, EDL national supply 16 TWh, solar 6 TWh, diesel generator 1 TWh, battery energy storage 1 TWh

We observe on the left part of figure 3 how batteries are dispatched (dark

power generation, available VPP power reserves, export invoices and energy accounting reports. These business processes are illustrated in figure 4.

green) after being charged (purple curve) when there is an excess of solar electricity in the grid. The diesel generation (blue curve) are dispatched as least measure when the batteries are fully discharged in one cycle. On the right part of figure 3, we observe the impact of introducing batteries on the yearly dispatch of diesel generators. The charge/discharge cycles of batteries (reddotted line) have reduced the need of diesel generators. Under such scenario, diesel generation electricity will be reduced by 85% and Lebanon will integrate fully the 4 GW of solar PV. Lebanon would save an additional 0.7 million tons of CO2 by introducing batteries. Valued at today CO2 price of 25 €/ton in the European market, this could mean potential financing opportunity of 15-25 million USD going as additional revenues to batteries.

Figure 4 Integrating Distributed Energy Resources in Lebanon: The Virtual Power Plant framework

2. Digitalization: The center of our plan is to push the integration of Distributed Energy Resources (DER) in the national control system of EDL.

Creating such platform will be a cornerstone in reforming our power

These DERs will consist in the short term of the best-in class distributed

sector not to only integrate the 4 GW of Solar PV we have planned

generators existing, the new distributed PV plants that will come online

but to integrate in all future DERs in the systems, be it small scale or

aggressively and new distributed battery energy storage systems we expect to

large scale solar and wind plants, run of river hydro, batteries,

penetrate the market when there will be excess solar electricity in Lebanon (see

electric vehicles, flexible industrial or commercial loads, fuel cells,

figure 3 above). To effectively integrate Distributed Energy Resources (DER)

heat pumps etc.

INVESTMENT OPPORTUNITIES 3.Democratization: The third D in the energy transition. Countries globally have used feedin tariffs to accelerate their energy transition and distribute welfare effects within their society. For example, in Germany citizens and cooperatives owned 47% of the 74 GW total renewable installed capacity in Germany, while large utilities owned 12% in 2012. This had a positive welfare effects as a much larger number of German citizens benefited from a positive business case compared to few utilities, while it pushed the utilities to innovate their business model and transit progressively in platform operators that provide services to manage the distributed energy resources. This is the dynamic we want to create in Lebanon by given a feed in tariff for hybrid PVdiesel plants that would be virtually connected to the MV substations of the distribution grid. That means, one diesel plant in Beirut could apply for the tariff if he partners with a local renewable developer that would build the plant wherever he finds appropriate land and where the grid capacity is enough to integrate the PV plant output. Similarly, renewable developer will have to partner with a diesel generator that respect high standard of operational and environmental efficiencies to apply for the feed in tariff. As such, we would offer 1000 to 1,500 feed-in tariffs licenses that will be distributed on a pass/fail criteria and first-come first-serve basis across the country and depending on the available MV substation grid capacity. The pass fail will mainly be based on the diesel gen specs having to meet minimal requirements of ±5% of the CAT C32Gen Set. Figure 5 illustrates the distribution of licenses in Lebanon according to the single line diagram of the HV/MV in Lebanon that was provided to us.

Figure 5 Overview of the distribution of PV-Diesel feed-in tariff licenses across Lebanon regions

Maximum capacity licenses represent the sum of the maximum capacity of the MV substations installed in one region. That is, according to the data we have received, the current maximum capacity of integration of PV in the existing MV substations reaches 6.7 GW. We allocate 25% of this to the diesel generator and the minimum PV capacity that will be mandated in the feed in tariff. In the next section we dive in the details of a) the feed in tariff policy, its mechanism, its return on investment, its financing b) the pilot project c) the next steps for key stakeholders.

III. HOW DO WE IMPLEMENT OUR PLAN? In laying the elements for implementing our vision into reality, we have designed the policy framework, assessed the impact on BDL $ reserves, proposed a pilot project and recommended a roadmap of actions for key stakeholders in the sector.

1. POLICY FRAMEWORK The policy rests on a technology agnostic feed-in-tariff has been designed to incentivize the integration of a pool of dispatchable plants of min 1MW to max 10 MW with a minimum 60% to maximum 150% of solar PV capacity. We name this license PV-X license, as X describes any dispatchable/storage technology that the private sector is free to choose under our proposed feed in tariff and the legal framework of the contract. We describe the key elements of the policy: Size of the PV-X plant: The license will be given to a pool of dispatchable/storage technology in an area is of 1 MW, this pool of dispatchable/storage technology owners will need at year 1 to build a PV plant of minimum 0.6 MW up to maximum of 2.5 MW. If the owners chose to build the minimum, then by contract signature they are mandated at each following year to increase the PV capacity by 0.5 MW until they reach the maximum allowed. If the pool of dispatchable/storage technology comes to 10 MW, then the min PV capacity that should be built is 6 MW up to 25 MW. Feed-in tariff: The feed-in tariff is designed such that it ensures for the PV-X license that is choosing a minimum of Solar PV installments per year an Internal Rate of Return of 16% with a Return on Investment of 20-35% over a period of ten years. The tariff for the contract signed on year 1 will be at 15 ct/kWh for ten years. This tariff will remunerate the X generator/storage technology for the first five years, while the minimum solar PV capacity will continue to be be remunerated until year 10. The additional minimum PV capacity coming online every year, the tariff will be gradually decreasing every year from 8 ct/kWh, 7.5 ct/kWh, 7.0 ct/kWh to 6.5 ct/kWh. These tariffs are purely remunerating solar energy in the PV-X license and are extended by year+1, year+2, year+3, year+4 to the original contract signed on year 1. If now the investor chooses to invest more than the minimum solar PV capacity, than his internal rate of return will increase. If the substation capacity permits it and the investor succeed in submitting the first pass application with a maximum solar PV, the internal rate of return of the investment on year 1 will go up to 32%. As such the tariff incentivizes investors to maximize solar PV in their portfolio while minimizing Diesel to the strict minimum as every kWh produced with diesel is a loss (18 ct/kWh), but every kWh produced with PV (5.6 ct/kWh) compensate that loss and is an over profit. All our financial calculations are based on the results of our hourly techno economic simulation model. Snapshots illustrated in figure 2 and figure 3. Legal framework: In our PV-X contract there will be three main conditions. A) Solar PV contracts will be signed on a take or pay basis B) generation/storage X technology contracts will be signed on a pay as you go under extension of law 129 C) the PV-X plant needs to come online within the time of construction of the PV plant. Take or pay contracts will guarantee secure returns to the investors as solar PV plants will get paid even if they need to be curtailed. Pay as you go for technology X will mean that EDL via the interim of the VPP operator, will only pay technology X when it needs it to balance its pool over the course of a day. There is no obligation to use technology X. The constraint on the time of construction of X is put as the goal of the policy is to aggressively push PV and not delay its integration. Payments: The PV-X contracts will be paid 80% in $ and 20% in LBP. The central bank will guarantee a fixed exchange rate against the $ for PV investments. 20% will be paid in LBP as this represents the local value of producing one kWh with a PV plant built by a local developer. Social equity: The PV-X contract will incentivize community investment through a tax relief to maximize the social welfare impact of the policy. That means, the more diluted the investment capital is with respect with the number of investors, the higher the tax relief will be on earnings and in turn the higher the return on investment.

Figure 7 Comparison of the current plan of the MEW vs the Alternative: Impact on BDL $ reserves

Figure 6 A new policy framework for integrating virtual power plant operators in Lebanon as a new business model

2. POLICY FINANCING Gone are the days where we could say that Lebanon is a “dollarized”

sign an IPP with 1.5 GW for a capacity factor of 55% in a take or pay

economy and the currency stable. Following a decade of fiscal and current

basis. Assuming a best-case scenario negotiated deal that contract would

account deficits the government defaulted for the first time on its

come at 11 ct/kWh for heavy fuel oil plants and 8 ct/kWh following a

Eurobond payment in March 2020. With dwindling foreign inflows, the

fuel switch to gas post 2025 with operational FSRU plants. Comparing

LBP lost 80% of its value, inflation rose by 90% and 50% of the

our alternative plan on that basis, the central bank can save 1.7 billion

population is unemployed.

USD reserves until 2030 if it were to guarantee $ reserves for solar PV

With that context in mind, financing every $ now counts and we need to

imports and digital equipment in the first five years. From experience,

very carefully prioritize allocation to optimize our reserves. Because our

we know that no new investment will be signed at 55% in take or pay at

policy aggressively pushes solar PV in the country, it reduces our fuel

11 ct/kWh for fuel oil or 8ct/kWh for gas. These prices have been

imports bill and improve our balance of payment. For every $ spent on 1

offered at a capacity factor of 90%. Compensating this loss, we estimate

kW of PV, we can save 0.3 $ of oil imports. That means that following

prices will be offered at a PPA of 13.5 ct/KWh for fuel oil and 10.5

year 4, we are saving every year a NET 0,3$ on the balance of payment.

ct/KWh for gas. Our policy in that case would save up to 3 billion USD

Extrapolated, this means our alternative plan has the potential to save

in reserves.

USD 1,7 - 3 billion by 2030 compared to the existing plan of the ministry.

To capitalize on these savings, the central bank will need to guarantee

Hence in our view the central bank needs to reserve $ to guarantee a fixed

more $ reserves for the alternative plan in the first two years of the plan

currency exchange for the import of solar PV and digital equipment in

in order to import the solar 2 GW of solar PV equipment (an additional

order to attract private investors in the sector and enable the

500 M$ on year 1 and an additional 200 M$ on year 2). From year 3 on,

establishment of VPPs.

the alternative plan cost less on the $ reserve (savings of 120 M$) and

We have compared the cost of the two plans on a $ basis until 2030

every year forward savings cumulate. To finance the additional cost in

considering a varying ct/kWh cost for the future IPP signed in the

the first two years, climate finance funds can be solicited as we save a

government plan and an interest LIBOR rate of 3% for the time value of

potential to save to save CO2 emissions 7.3 million tons of CO2e that are

money. Our results show that if the government is to generate the gap of

valued at 180-220 million USD at today CO2 prices in Europe (refer to

~7000 GWh with a temporary and permanent solution, he would need to

section II.1).

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3. PILOT PROJECT VPPs are in operation since early 2010s in Europe. The technology to

Several digital technology suppliers and energy operators are highly capable of

aggregate DERs is today mature and technology suppliers are renting their

supporting us (e.g Siemens, EDF, Next Kraftwercke, 50 Hz, ABB …), Our

software solutions as white label. Actually the first DER technology that was

first estimate of the pilot project comes to 4.5-6.5 Million $, between:

integrated in Germany were diesel generators. To prove the concept we propose to conduct a pilot project on one feeder of the MV grid in Lebanon where we will test the concept of synchronizing a pool of generators with the national grid frequency, balance the infeed of new solar PV plants locally and ensure 24 hour electricity supply at MV feeder level of 10 MW. Figure 8 illustrate the current situation of Lebanon power system operation principles, our pilot project and proposed rollout scheme.

• VPP platform (0.5-2 M$): software licenses, servers, support contract • Transmission Management System Upgrade (2M$): AGC functionality. Communication gateways, software licenses, support contracts • Telecom (0.1M$): Telecom routing, DER controllers • Administrative Processes and contracts (1.5-2M$): PPA Agreements, EDL Processes creation/update, consultancy support, capacity training

4. STAKEHOLDER ACTIONS AND ROLL OUT PLAN The Ministry of Energy and Water, Electricité du Liban, the World Bank and Electricité de France are the key players that need to coordinate their actions to put this plan in execution and succeed in piloting a test case by end of 2021. In figure 9 and 10 we list the actions of each per quarter until end of 2021 and the roll out plan for distributing PV-X licenses in two years in Lebanon. Ministry of Energy and Water: Reviews plan feasibility Collect data from distributors of generators Write a letter of intent to IFI to test concept Conduct stakeholder workshop Support EDL in design RFP for pilot Define roles & responsibilities of VPP Determine prequalification criterias Define pass/fail for licensing PV-X Prepare a bylaw to create VPP entities Design RFP to create VPP entities Electricité du Liban: Authorize DSPs to share MV capacity data Approves PV-X distribution licenses Design RFP for piloting VPP Evaluate and Award RFP Set up Pilot Project World Bank and Electrité de France: Run additional decentralized scenario in least cost plan Support EDL in designing RFP Support MEW in defining prequalification criterias for VPPs and prepare bylaw

Figure 8 Schematic of Lebanon power system operation principles, VPP pilot project and VPP rollout plan

Figure 9 Roll out plan of PV-X licenses until 2023

“You have to be willing to be misunderstood if you are going to innovate”

What’s in it for you? As a local or international investor, this policy is designed to attract small to medium impact investors willing to take risks in investing in the infrastructure of developing countries. The feed in tariff policy, backed by guarantees from the central bank to import solar PV equipment, will secure a 16% IRR and ROI of 20-30% in a period of ten years for your investment in a new solar PV plant in Lebanon of minimum size of 600 kW to maximum 25 MW. The social impact advantages of the policy are five-fold as your investment would help Lebanon: 1) Get to a 24/7 electricity in two years 2) Save on average up to USD 170 to 300 million in $ reserves every year 3) Create more than 30,000 jobs in the sector 4) Save 7 million of tons of CO2e 5) Support innovation in Lebanon by pushing in digitalization of the power sector. “You have to be willing to be misunderstood if you are going to innovate” said Jeff Bezos, CEO of Amazon. Mr. Bezos disrupted the retail sector by digitalizing operations. Our vision is to turn Lebanon as an innovative disruptor developing country that can leapfrog in the operation of virtual power plants and export his knowledge and savoir-faire to other developing countries that wish to accelerate their energy transition. For that we are willing to be misunderstood to turn the image of diesel generators from a curse to a valuable asset in the reform of the power sector.

USE OF SMART MATERIAL FOR BUILDING ENERGY EFFICIENCY PHASE CHANGE MATERIAL (PCM)

Ghina Annan is a senior sustainability specialist and climate leader with 10 years of experience at Dar al Handasah. She received her Bachelor of Engineering degree and Master of Engineering in Applied Energy from the American University of Beirut in 2014. She has multiple international certifications in sustainable performance based systems, energy management and district scale urban development. She is a member of several Technical Committees including ASHRAE global climate change and smart building systems. She is a board member in the Association of Energy Engineers – Lebanon Chapter (AEE) and the Council on Women in Energy & Environmental Leadership (CWEEL). She is also a member of the Order of Engineers and Architects of Beirut - Lebanese Women Committee.

Realizing smart material to reform our world by ensuring energy efficiency and reducing carbon footprint

As head of buildings sustainability unit at Dar al Handasah (Shair and Partners), Balsam Nehme plays an influential role in the development of sustainable innovative high performance design. With over 15 years’ experience in the sustainability field, she facilitates design charrettes, and has a comprehensive background in building physics, sustainable design, and integrated design processes. Through the sustainability networking firm-wide; Dar is now an internationally recognized leader in the sustainable design movement.

GUEST EXPERTS

Technologies focus on both enhancing performance and minimizing or eliminating environmental impacts with a challenge to keep the commercial implications as low as possible. Innovative Phase Change Material (PCM) technology contributes to major energy consumption reduction in the built environment as this material discharges adequate energy at phase change to make available advantageous heating or cooling operations. What makes PCMs distinctive is the retained high latent heat of fusion which allows the absorption of thermal energy and further stores it throughout the solid-to-liquid phase conversion. In fact, PCMs effectively preserve internal temperatures at any preferred level exclusive of the utilization of gas or fuel.

Bio-based PCMs are the best type to be introduced in the construction field since they are sustainable, cheap and available. PCMs reduce the cost of energy by reducing the HVAC runtime & cycling. PCM performance is responsive to climate zone, project design, melting and freezing points and latent heat. Also, the best energy reduction is achieved by Bio-based PCMs with melting point 29°C. The payback period of using Bio-based PCMs is less than 10 years.

Essentially, PCMs foster a significant reduced amount of heat loss to the atmospheres in comparison with sensible heat storage. They also discharge and accumulate heat at a uniform temperature performing as a regulator scheme. Prominently, PCMs require no machine-driven cooling or massive energy density. PCM categories take account of various origins including inorganic, organic and bio-based summarized in the table below:

By maintaining the latent heat in the solid liquid state of the PCM, temperature variations inside interior spaces is decreased. Hence, peak loads due to heating and cooling is significantly reduced.

The integration of PCMs into various building features, including roofs, walls and floors is possible.

Buildings in the MENA region are mostly distinctive of a hot climates, accordingly PCMs entail a higher melting point. PCMs positioned in a wall cavity freeze during the night from the ventilation process. Subsequently, during daytime he temperature upsurge to more than the PCM’s melting point, so when the outside air move into the cavity, the PCM absorb the air thermal energy causing it to discharge into the interior environment. Finally, internal temperatures are dropped. Key Performance Specification Criteria Shall Include the following: Latent heat capacity (KJ), Phase transition temperature (°C), Thermal conductivity and cycling stability. PCM contributes to LEED green building rating system as it enhances the Indoor Environmental Quality, through promoting

Table 1: Assessment of the main Types of PCMSt

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occupants’ productivity, comfort, and well-being. PCM applications include air conditioning, heat pump, free cooling, heat recovery, chilled water and passive cooling as show in the figure below:

Applying PCM in air conditioning is through a TES tank implemented into a storage system, storing any excess heat or cold. This scheme ensures reduced cooling and heating yet a larger provision of enough volume storage. As a result, both cooling and heating loads are shifted to the off-peak times such that the sources of both cooling and heating source are not used during the peak periods and thus accomplishing lower-cost electricity bills. How does PCM perform in a heat pump? Heat pumps use air, water, or possibly ground geothermal energy sources to take away energy from one side of the refrigeration circuit and relocate it to the other side of the refrigeration cycle. As a result, reduced running costs are anticipated because of a decreased night electricity rates. Moreover, an impactful increase of the combined coefficient of performance of the Heat pump also considerably diminishes the inclusive power requirement of this system.

Free Cooling PCM application is evident in particular weather conditions, especially as low night temperatures supply cold energy storage that may also be applied during the day for cooling. This scheme proved success in the Headquarters of Melbourne City Council where a cooling tower is used to decrease wet bulb temperature to charge PCM tanks in absence of refrigeration. Again, the cooling energy, stored in PCM overnight, is then used in the day all over the building. A heat recovery system with PCM base, is incorporated to ensure that heat energy leaving the furnace is not unexploited but rather absorbed. PCM thermal Energy storage charging process starts with having the elevated temperature exhaust gases enable the PCM to transition its phase to liquid while storing the heat in the form of latent heat capacity. Next, gas through thermal energy storage causes air combustion flow and while heat is freed the PCM solidifies again. Chilled water PCM application considers using +8~/+10°C PCM energy storage. The advantage is exploiting a common water chiller excluding a low temperature Glycol chillers. So, depending on unit type and location, the anticipated COP is almost 17-36% improved while making use of 24/7 hour load distribution. Finally, passive cooling depends on normal existing temperatures variations in both day and night times. In this passive cooling system pattern, night cold energy is absorb by the PCM and is then taken advantage for solar gain absorption in the day time.

"Spreading energy awareness in the local market and mentoring young energy professionals" The Association of Energy Engineers is present in Lebanon via two bodies: the AEE Lebanon Chapter and the AEE Lebanon Training Partner. In 2017, a group of enthusiastic professionals had the idea of founding an AEE Chapter in Lebanon with the aim of creating a national growing network of professionals in the dynamic fields of energy engineering and energy management, renewable and alternative energy, power generation, energy services, sustainability, and related areas. Moreover, the AEE Lebanon Chapter is involved in spreading energy awareness in the local market and mentoring young energy professionals through its student chapters publications share the word root. On the training level, the AEE Lebanon Training Partner in charged with bringing the AEE international certification programs to Lebanon in order to increase Lebanese energy professionals’ competence in the energy and sustainability fields and give them an edge when competing with other engineers in the MENA market.

We plan to realize 19 our vision as set by

the new board.

What were the key developments for Association of Energy Engineers - Lebanon in the last year? n 2020 and against all odds, The AEE Lebanon chapter kicked off by renewing its leadership through an e-election, pioneering among similar community circles in Lebanon. The new enlarged and dynamic board set the Chapter vision, founded on 4 Pillars: A chapter of value to its members, developing a strong and united members’ community, creating business opportunities for members and promoting their achievements. A chapter of value to Lebanon and its energy sector, focused on the training and certification of professionals and on supporting students for successful energy careers. A leading national entity in the energy field, building strategic collaboration relationships within the energy and sustainability circles. The dynamic AEE ambassador to Lebanon and its active partner in the MENA region

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Hence we successfully enlarged the membership base to over 150 members and student members, a growing network of multiskilled, diverse but like-minded members that benefit the country while enjoying the AEE membership benefits. We launched a new student chapter at the Lebanese American University to raise the number of student chapters to Four. We also started a local Council for Women in Energy and Environmental Leadership (CWEEL). The CWEEL Lebanon Chapter will foster a network for women in the energy and environmental industries who can assist in supporting career development for professional women, mentor young and aspiring women to pursue technical education and careers in the energy and environmental fields, and establish a forum to promote policy in the energy industry. The AEE Lebanon chapter website www.aeelebanon.org is created, a quarterly newsletter with rich content highlighting chapter and members’ achievements and studies is issued, webinar series, large conferences, multi-faceted collaboration initiatives with various universities and NGOs went along.

In parallel, the AEE Lebanon Training Partner increased remarkably its program offering to 6 certifications, 3 of which being offered for the 1st time in Lebanon. The AEE training partner saw an opportunity in the midst COVID 19 pandemic, offering the training online at a more reduced fee and attracting Lebanese expats to this offering. Thanks to this effort, the following certifications were made available: - Certified Energy Manager (CEM) - Certified Energy Auditor (CEA) - Carbon Reduction Manager (CRM) - Certified Water Efficiency Professional (CWEP) - Certified Building Commissioning Professional (CBCP) Certified Measurement and Verification Professional (CMVP) Till date the AEE Lebanon Training Partner trained more than 150 energy professionals and promises to enlarge its portfolio of certification program in the next year. What is AEE' mission in this constantly changing environment? The Association of Energy Engineers® (AEE®), founded in 1977 by Albert Thumann, is a non-profit professional society of over 18,000 members in more than 100 countries. The mission of AEE is “to promote the scientific and educational interests of those engaged in the energy industry and to foster action for Sustainable Development.” AEE offers a full array of informational outreach programs including seminars (live and online), conferences, journals, books, and certification programs. Moreover, AEE offers scholarship programs through the Foundation of the Association of Energy Engineers. The Foundation of the Association of Energy Engineers is a nonprofit organization that is dedicated to furthering education in energy and management. To date, the Foundation has awarded over $1,000,000 in scholarships for use by outstanding students. AEE is at the heart of the transition to decarbonization, distributed energy and innovation, much needed for Lebanon, How do you see the energy sector developing in Lebanon in the next few years? How are the global trends impacting this country? The energy sector in Lebanon faces several barriers and challenges. Insufficient government policy frameworks and regulations are considered to be the most significant barrier facing the implementation

of energy efficiency programs, especially in the industrial sector. Subsidies for fossil fuel-based energy negatively affect our industry, and sparse grid infrastructure is also a critical factor. On the market level, the energy efficiency jobs market in Lebanon is still young and suffers from a shortage of energy efficiency professionals. However, countries such as UAE and KSA have introduced new regulations that mandate a minimum number of certified staff for the licensing of energy service and energy efficiency companies. While others, such as Jordan and Egypt, are supporting certification programs, Lebanon still misses the legislative framework required for the energy management market to flourish. Improving energy efficiency can provide significant benefits to Lebanon, especially onsidering there is a tremendous opportunity for energy efficiency improvements. There is a wide array of measures on both the supply and demand sides for energy, to boost energy efficiency levels by promoting stringent environmental, energysaving policies to combat climate change.

The energy efficiency jobs market in Lebanon is still young and suffers from a shortage of energy efficiency professionals. Formal energy efficiency programs and voluntary measures combined will help the region to maintain its economic strength. Energy conservation programs in residential, commercial, and industrial sectors can significantly reduce carbon emissions and augment energy supply. A robust regulatory and institutionalized framework can help to achieve a reduction in GHG emissions through a bundle of non-market based and market-based instruments. In general, the energy efficiency and energy services market in Lebanon is still underdeveloped. One of the reasons for the slow development is the lack of Energy Service Companies (ESCO). For an ESCO market to flourish, there are several vital necessities needed, such as available financing, expertise, and a mature legal system. The need for energy efficiency is largely overlooked when energy rates are subsidized. So, although finance was available to promote rapid growth, the lack of necessity combined with the immaturity of the legal system led to a poor environment for ESCO market growth.

What are the plans of AEE in Lebanon and the main advantages of professionals joining the organization? We plan to realize our vision as set by the new board and to grow steadily while doing so in order to have an increasingly

"Towards an unprecedented contribution to raising the level of knowledge in energy management and sustainability among Lebanese professionals"

positive impact on the energy sector in Lebanon. An increasing number of professionals from the leading engineering firms, Energy companies, NGOs& Associations, and governmental bodies are seeking the AEE certifications in Lebanon. With this, we are heading towards an unprecedented contribution to raising the level of knowledge in energy management and sustainability among Lebanese professionals, and to a growth in chapter membership and network. As a member of the AEE

Membership advantages also include: - Free monthly webinars from industry experts

and AEE Lebanon Chapter, one will be able to access the latest education and training in the energy and sustainability field,

- Free access to the AEE Career Hub to post jobs and resumes

research and technical journals, and networking, along with

- Access to Newsletters, Journals, Magazines & Conference Proceedings &

discounts on AEE products and events such as conferences,

Recorded Presentations

books, and seminars. As a part of a Global Community of

- VIP Member Discounts on Conferences & Seminars - Opportunity of recognition of work and contribution through regional and international awards - Open channels to AEE international and the opportunities this presents - Belonging to a distinguished network of energy and sustainability experts

Energy

Professionals,

you

are

able

connect

with

professionals who deal with challenges and opportunities similar to those you are facing and to keep up to date on the latest developments in energy.

LEBANON CLIMATE ACT The world is changing, and not because of the COVID-19 epidemic. Actually, it has been changing for some time now. Due to increased environmental awareness and international community efforts to address environmental challenges, the green economy has been one of the most rapidly growing sector globally. The private sector investments in renewable energy have driven prices down and created the market forces that favored clean energy over fossil fuels. Globally, solar photovoltaic installation grew by 34% in just one year during 2018, and its price dropped by 85% in the past eight years, just to name one example. Experts predict the end of the combustion engine as early as 2040. Numerous governments, UN agencies, and organizations are pushing for to end of fossil fuels by 2050, and the private sector is responding positively. Thousands of multinational corporations, such as Unilever, Nike, IKEA, TATA Group, Apple, Google, and others are now putting climate change centerstage in their business strategy. In 2019, around

around 500 investors worth 35 trillion USD committed to shifting their investment to climate change solutions and urged governments to increase their sustainability ambition. The We Mean Business Coalition has registered more than 1000 companies globally that have committed to zero-carbon targets, and more are joining every year.

"The green economy has been one of the most rapidly growing sector globally" This trend will only increase, especially after the COVID-19 crisis is over. Many governments, such as the European Union, are working on a green economic plan to recover from the economic impact of COVID-19. Thus, the urgency to shift to a green economy will increase, providing new investment opportunities. Lebanon’s economy has reached rock-bottom, and any economic strategy will

require rebuilding the economy from scratch. Reforms are required in all sectors. This provides Lebanon with a unique opportunity to rebuild the economy based on the green economy, the economy of the future, that is profitable, creates maximum jobs, and is sustainable. That is why Green Mind, a Lebanese NGO, in collaboration with the UN Development Program and the support of the Central Bank of Lebanon and the Ministry of Environment have created the Lebanon Climate Act Program. The Lebanon Climate Act (LCA) is a platform for non-state actors, like businesses, unicipalities, and others, taking leadership on climate change. Across Lebanon, an increasing number of businesses, cities, municipalities, and others are recognizing the economic opportunity of climate change action and are joining the LCA.

1000 companies globally that have committed to zerocarbon targets

150 companies have joined this program

Program members aims at creating transformational change towards a decarbonized and climate resilient economy through leading by example and showing the economic and social benefits of climate change action. More than 150 companies have joined this program so far, and they have pledged to act on climate change, not only to protect the environment, but also because it makes economic sense. Becoming sustainable increases market share and prepares the company for the economy of the future. These companies believe that since we are rebuilding Lebanon’s economy, we should do it right!

www.lebanonclimateact.com

BEIRUT RIVERLESS A holistic approach, based on systems level and biomimicry thinking.

Adib Dada is the founder of theOtherDada [tOD] Integrated Consultancy & Architecture, which mission is to activate projects across architecture, design, and art by creating unconventional links at the frontier of science.

What made you think of the concept Beirut Riverless? The installation of a solar array over Beirut River in 2013. While the project is a great win for the renewable energy sector, it signaled another nail-in-thecoffin for the river, the communities alongside it, and the natural environment. Beirut RiverLESS is a research and action project studying the transformation of Beirut River from a natural ecosystem to a waste infrastructure, discharging into the Mediterranean sea. Beirut RiverLESS proposes a set of urban interventions with the power to transform an urban blight into a healthy socio-economic success-story.

"Communities need to stop thinking of the river as a dirty canal." If you had to name the most important challenge lying ahead for the “Beirut RiverLESS” idea to be finalized, what would it be? A shift in mindset: Communities need to stop thinking of the river as a dirty canal, and remember the time where their parents and grandparents used to gather along the banks of the river to fish, swim, picnic and coexist. Ministries and Municipalities need to stop thinking of the river as a waste infrastructure, where the clean water is pumped at source and is replaced by solid waste,

industrial effluent, agricultural runoff and raw municipal sewage. Beirut River is a natural asset that could be reclaimed in the same manner as other cities around the world have managed to re-nature their urban rivers and turn them back into functional ecosystems and vibrant spaces for community. This leads to economic empowerment of vulnerable communities and environmental resilience of the city. What is your strategy of making this dream come true? A holistic approach, based on systems level and biomimicry thinking. Our .

strategy breaks the challenges down to manageable parts, easy to implement and replicate, soft and hard interventions across cities all over Lebanon. These cover environmental rehabilitation, inclusive urban planning, access to soft mobility, green infrastructure… One major step we have taken is the planting of 2 dense native urban forests in May 2019, one by the concrete banks of the river in Sin El Fil, and the other in Ghobeiri. The Miyawaki method of afforestation we employ with our partners, is a low-cost, proven methodology that has proven to be successful worldwide. It consists of rewilding very small to large urban areas, leftover spaces, roundabouts and sidewalks. Afforestation is scientifically recognized as one of the most effective ways to mitigate climate change, reduce urban pollution and heat island effect, and restore the natural water cycle. Hence its importance as a strategy alongside Beirut River. To curtail political and administrative disinterest, our approach is geared towards empowering local communities and businesses to demand action and take ownership of these leftover spaces, turning them into urban forests and vibrant social and economic spaces. What strategic argument would determine investors to develop Beirut RiverLESS?

environmental problems such as coastal landfills and unregulated burning of waste]. The river and its surrounding areas are dead environmental as well as almost-dead economic zones due to the pollution. By cleaning the river and valorizing it, we are jump-starting economic growth and gaining valuable land on both sides of the river. The aim is to do this with a sensitive long-term view to avoid short-term economic gains and urban gentrification, favoring instead a regenerative circular economy. The positive impacts would also be felt in the tourism sector which has seen a great expansion and move towards slow and conscious ecotourism. Which measures would you like to see taken by the authorities /administration to make Beirut RiverLESS a reality? First and foremost, stop the massive dumping of solid waste, industrial effluent, agricultural runoff and raw municipal sewage. Limit the amount of water pumped at source, to allow the natural water cycle to be restored. Stop the expansion of the solar

array over the river. While it may have been a useful pilot project, there are more efficient ways and places to develop such projects while reducing the negative on the neighborhoods and communities. Empower communities to voice their concerns and act upon them to regenerate their neighborhoods. Recognize and facilitate PPP, offer incentives to companies and individuals to positively impact their surroundings. We can plant very dense native urban forests for as little as 8,000 dollars per 100 square meters. Forests which will become completely self-sufficient within 2 years. That means 400 native trees and shrubs, which will sequester CO2 and reduce pollution and heat levels. That means a restored natural water cycle, recharging are overexploited underground aquifers. That means helping Lebanon with its [national voluntary reductions target ??] formulated at COP21, helping businesses comply with the UN Sustainable Development Goals 11, 13 and 15. That means giving Lebanon a chance to become more resilient in the face of worldwide social, economic and climate crisis.

Environmental degradation costs. The deterioration of the river and the whole ecosystems related to it, are costing the public sector 485 million dollars per year [as per 2013 data, figure should now be much higher because of recent

| 8

ENERGY STRATEGIES SUMMIT: Under the Patronage of the President of the Council of Ministers, His Excellency Dr. Hassan Diab, Energy Strategies Summit 2020: "Mapping the future" was organized by the Order of Engineers and Architects of Beirut - 3rd branch (Electrical Consulting Engineers), the Women Engineers Committee, in collaboration with World Elite Solutions, with the support of the Ministry of Industry and co-sponsored by UN-ESCWA. Around 30 speakers, Lebanese and foreign experts, with senior official levels from the government and institutions, in addition to top managers, and savvy representatives of professional associations, had the opportunity to speak their minds in front of their peers, in the most important event for the Lebanese energy industry, under the title: Energy Strategies Summit 2020, Mapping the Future, that was held on Dec.17th, 2020. Panels in the summit addressed the hot topics for the Lebanese and regional energy industry, in 8 thematic sessions for the leaders of thought in the most dynamic organizations, sharing their views on strategies for integration, strategies for sustainability, strategies for technology, and strategies for cooperation.

The panels were moderated by top experts specialized in the energy sector, who discussed the most prominent issues to renewable energy, Oil & Gas, Power - generation, transport and distribution, Smart Cities - energy efficiency, cogeneration, e-mobility, and others. Energy Strategies Summit aimed at providing all those interested - Government, Parliament, public authorities, external partners, with insights from companies and experts. Lebanese

energy

industry

currently

navigating in the troubled waters moved by three types of strategies: In the field strategies, national strategies and global strategies. Energy Strategies Summit aimed at providing all those interested with insights on possible approaches and actual projects for them to draw a better image of their future steps. Influenced by sudden changes in the market, instability of currency and political scene, or by unexpected,

unannounced

and

unprepared

global events, companies and authorities have to take decisions and change their directions for staying afloat. National strategies mean, in Lebanon`s case, the 2019 updated policy paper for the electricity sector, the Lebanon Energy Outlook, published by IRENA, and all the other sectorial strategies impacting the energy industry (infrastructure, agriculture, environment etc.). People and companies have to take all these into account when trying to prepare for the near future. During the whole event, a virtual exhibition promoting energy and power projects, financial services, innovative technologies in energy, green buildings, architects, associations and institutions, were available on a dedicated platform.

The

2020

edition

summoned

the

most

influential decision makers in Lebanon`s energy industry in a hybrid format, for an extensive analysis of the national, regional and corporate strategies.

2020 was different. We learned to interact differently, we learned how to move forward in a more digitalized

MAPPING THE FUTURE

manner, but even so, we haven`t lost our need for human interaction, which is why we kept Energy Strategies Summit,

traditional

physical

conference, even if in with restricted number of participants. This edition, while hybrid, we provided a broad range of energy topics and brought together hundreds of practitioners, developers,

experts,

representatives around

the

and

region

governmental leaders to

from best

practices, gain valuable information and make new connections in the industry. We’re excited that we now understand better what our attendees’ worlds look like and discover what they’ve learned in 2020 and what is expected from 2021.” Raluca Buna, event organizer

Inspired by:

Organized by:

Co-organized by:

With the support of:

Co-Sponsor:

Sustainability Partner:

Community Partner:

Safety Partner:

Supporting Partners:

Strategic Media Partners:

"A CLEAR CONFIRMATION OF BEIRUT'S STEADFASTNESS"

This a summarized outcome of a long day aiming for the welfare of Lebanon, and its prosperity in renewable energy. In the middle of the crisis, the coming panels endeavored to light the first light hopefully, in a country full of darkness. Mrs. Zeina Majdalani (President of the Women Engineers Committee of the Order of Engineers and Architects of Beirut), started her opening speech with the progress the Syndicate has achieved in empowering women and enlightening her achievements. She stressed the efforts done in coordination with the Ministry of Energy and Water facing climate changes, amidst Lebanon`s crucial economic crisis. Said Riachi, head of the Electrical Engineers Consulting Branch in the Order of Engineers and Architects of Beirut, addressed Prime Minister in the caretaker government, His Excellency Dr. Hassan Diab, to indulge the Order of Engineers and Architects in industrial projects in Lebanon, and not to neglect its role to contribute in developing the country. President of the Order of Engineers and Architects of Beirut, Jad Tabet, assured the necessity of such conferences that discuss energy strategies in the middle of climate changes and progress of technology and thanked the organizers and World Elite Solution for that. He also referred to the role of the Order of Engineers and Architects in Lebanon in such approaches, while facing globalization challenges. His Excellency, Dr. Imad Hoballah, the Minister of Industry, representing the President of the Council of Ministers, His Excellency Dr.Hassan Diab, considered the summit as an example of Beirut's persistence and flexibility in the middle of the crisis, calling on politicians to move forward to form a transparent, independent government, to meet citizens’ needs and proceed with the reforms.

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Hoballah urged officials to build economic and financial policies. He also stressed the need to build a productive economy and work on corrective actions and reforms to improve the local industry, so as to diminish imports and create jobs for the Lebanese people. The Minister of Industry also focused on the importance of alternative and solar energy, assuring on improving the infrastructure as well.

HUMANIZING ENERGY

" Dr. Angela Wilkinson, Secretary-General and CEO of World Energy Council, started her speech by recalling the origins of the world energy council in 1924, where the first step to practice the world's power strategies of humanizing was launched, while the world was recovering from a global influence pandemic back then. She compared it to the year 2021, highlighting the importance of energy in the lives of everyone, especially while people are working remotely, during the Covid-19 pandemic. Dr. Wilkinson said: “Energy is more than carbon, it's a bigger story of human development”. She assured the need to prepare for the term global energy demand growth too, where we should anticipate a tsunami of demand, as this was clear during the Covid-19 crisis, which already stressed the world, explaining how the recovery process will not be easy. She also revealed that a new social energy agenda is on the rise, and it will “involve rethinking the metrics from the EST reapportion agenda, that is now engaged with many energy businesses with an even better picture.” She said the energy industry is starting with a new energy

"Lebanon needs to be prepared for new and different energy opportunities and challenges." transition for people and the planet during the 24th world energy congress in Abu Dhabi. Dr. Wilkinson stressed how people have changed, and how they are supporting energy approaches now in a faster manner and more " fundamental than before, driven by the new pattern of demand-side and destructive innovation, which lead to improving diversity in energy. She also pointed out how energy consumption differs from one country to another. She gave an example, where energy strategies in Africa or Asia might not be appropriate in Europe and vice versa. Lebanon, she said, also needs to be prepared for new and different energy opportunities and challenges. She continued, “that's why over a decade ago we have carried the world energy trilemma index, as an objective tool, designed to help readers across the world to balance the need of energy security, for the sake of better equity and environmental sustainability.

Strategies for Integration In energy, staying inside your box condemns you to irrelevance. More and more companies decide to take actions outside their traditional field or outside national borders, in order to capitalize on new opportunities or " to minimize anticipated perils: From power generation to energy supply, " from natural gas production to electricity, and maybe further, from and downstream oil to e-vehicles infrastructure. In this panel, the discussion was performed about some case studies and insights from top-level decision-makers. This discussion was between Mrs. Radia Sedoaui, Dr. Joseph Al Assad, Gabriel de Lastours and was moderated by Mrs. Laury Haytayan, Laury Haytayan, started the session with an introduction about the misunderstanding of integration in Lebanon, especially when it is related to energy, “locally it is related to electricity only, where people wonder if they will have electricity on January 2021 or not.” Haytayan stated that it's very important to understand that what worked in 2010 might not work in 2020, especially when it comes to financing projects. She also revealed how Lebanese are confused about whether they should focus on electricity or on oil, or on renewable energy.

Dr. Joseph Al Assad stated that oil and gas are hot topics in Lebanon, and more public than renewable energy, though they should be complementing each other, as a part of a whole solution, assuring that it is not possible to have totally renewable energy in the near future, in the country. Regarding projects of the ministry of energy, he revealed the prepared _but not yet accomplished plans, blaming it on the crucial circumstances and political instability in Lebanon. In 2016, he said, the Ministry of Energy in Lebanon was the first country in the region to adopt an energy renewable plan, while conducting different consultations to prepare the 2030 vision. “We have set a target of having 10 percent of renewable energy in 2020 for heating and electricity, and we have worked to develop the second phase too, achieving acceptable results.” Regarding the Akkar project, he said it is in process, but needs more financial support.

BEIRUT - GENEVA - LONDON - BERLIN Gabriel de Lastours elaborated about his journey in renewable energy programs in the region, whereas Lebanon was involved,

"Predictability is what companies want and what their shareholders appreciate most"

investments, to support the Ministry of Energy in transmission

Lebanon, the operation needed, and other details in the matter. " To have productive solar energy in Lebanon, Comaty

and distribution, reminding again that it is not possible to reach

recommended the reduction of imports, “and that's how we

for 100 percent renewable energy in the country.

increase our energy security with fewer imports, creating local

He also complained of the delay in the execution of projects in

jobs, and saving resources.” To prove his point, Comaty

Lebanon, assuring the need for proper implementation, abided by

presented some energy analysis, about how the process to solar

international standards, and following clear protocols, and adhere

energy works in the industrial and commercial sides, even at the

to the timeline, so as to gain investment.

public sector.

and revealed trials to ensure Lebanon attracts international

Regarding the Akkar project, he awarded ‘the work done so far.”

Strategies for Sustainability

De Lastours emphasized the need to create a transparent and

Predictability is what companies want and what their

steady environment, especially on the political aspect, so as to

shareholders appreciate most. From different fields, the speakers " commented on the challenges they met, providing us with their

attract investors.

An Alternative Emergency Action Plan for Lebanon

diagnosis and their solutions. They also presented their forecasts on how each of them prepares for further developments in their

Farid Comaty elaborated 3 key questions: Why do we need an

sector.

alternative emergency action plan? What's the plan? And how are " we going to apply it?

Zeina Majdalani: Engineers and architects from different fields,

He explained how digital retail put everything online in all

the challenges they have met, providing us with the diagnosis

countries in the world, and emphasized the importance of

and the solutions, and how each of them prepared for the further

transmission of energy, referring to the importance of that in

developments in the prospective sector.

pushing Lebanon to go forward in applying renewable energy

Ghina Annan started her speech by elaborating about the

with diesel, referring to the challenges it faces regarding

importance of healthy buildings for our well-being, especially

pollution and cost, and the steps taken to solve such factors.

during the quarantine, referring to other consequences of the

Comaty recommended an adjustment to the current plan that was

pandemic, that imposed isolation and working remotely, and the

launched in 2010 in that matter, where the technology costs of

effect of that on human mental health, by decreasing stressful

renewables back then were different from the current time. He

impacts and challenges, and creating a better environment.

explained how the plan aimed at getting power 24/7 in 2 years,

She pointed out also the importance of healthy buildings in

and how it aimed also to reduce our import deposit, so as to

means of design, like air ventilation, and construction prevention

create local jobs and save storage.

filtration, provided with high water and food quality, and healthy

Comaty cleared out that currently, “the plan is now not ambitious

light exposure where the acoustic comfort is being improved by

enough in solar.” He explained how the plan needs 4 gigawatts of

meeting all the above standards.

solar by 2025, and “we will reduce diesel use by 80 percent”,

In addition to that, she assured the importance of avoiding

revealing the need of future power plants operations in Lebanon

hazardous material such as volatile organic compounds.

to provide services, to grasp 1.6 gigawatts, “and this could be

She also explained the criteria of a healthy building that is safe to

applied through attracting thousands of investors.”

our wellbeing, revealing important statistics showing that by

He said, “batteries don't generate electricity by themselves”,

sticking to the design strategies and complying with them, people

advising to estimate the cost of the size of the battery in

will be more productive.

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who are pioneers in energy and water sectors, will comment on

Speaking of heritage conservation, Rima Sorour Al-Housseiny

applying it to health and all other sectors, to get more than

gave Beirut as a typical example regarding urban challenges. She

50 percent energy saving. She revealed that he can be done

said that “The definition of the cultural heritage has been

in water efficiency plan too, by saving water in the medical

changing by time, and currently it is not anymore about the

and kitchen equipment, and efficient waste management.

physical and geographical, rather about movable items, and about

Racha Itani, the expert in sustainability development,

the intangible practices and values among people and

revealed the importance of a resilient city in the middle of

communities.” She described building up heritage as a picture of

a crisis as in 202O, and how they are able to survive from

the cultural practices and beliefs, social memories, or traditional

disasters, and sustain wellbeing.

ways of the life of communities.

Suzy Hoayek talked about the sustainability of the water

In 2015, she added, the UNDP adopted the 2030 agenda, and the

sector in Lebanon, elaborating the plans for water

SDG 11 title was sustainable cities, which make human

sustainability, to fulfill the needs of the future generation

settlements inclusive safe and guard the world’s cultural and

while facing climate change.

natural heritage, amplifying that the snow heritage is taking a lot

She also revealed the importance of the availability of

of importance worldwide.

water, while providing affordable drinking water equitable

So, she continued, “heritage plays an important role in setting the

to all, and preparing water policy in that matter, assuring

boundaries”, stressing the need to balance between the past, the

on the reduction of pollution, and adhering to water

present, and the future, while having a comprehensive approach

resources management, focusing on the need to move

regarding the physical, the economic, the social spiritual, and

forward in renewable energy.

governance issues.

She also revealed a major problem in Lebanon, regarding

Balsam Nehme referred to energy and water efficiency, where

the hidden locations for around 60 to 65,000 illegal wells,

we need to reduce local carbon, and reduce the demands by,

and the danger that it may cause.

GLIMPSE OF HOPE

THE NEW WATER STRATEGY IN LEBANON During the Energy Strategies Summit 2020, Suzy Hoayek, Advisor to the successive Ministers of Energy and Water for the Water sector since 2016, stressed the sustainability of the water sector and elaborated the plans for water sustainability, to fulfill the needs of the future generation, while facing climate change. One of the points highlighted was the importance of providing affordable drinking water equitable to all, and preparing water policy in that matter, assuring on the reduction of pollution, and adhering to water resources management, focusing on the need to move forward in renewable energy. She also revealed a major problem in Lebanon, regarding the hidden locations for around 60 to 65,000 illegal wells, and the danger that it may cause.

Suzy Hoayek, Advisor to the successive Ministers of Energy and Water for the Water sector since 2016

In her presentation, Hoayek elaborated the axes of National Water Sector Strategy as governance (Targeting MoEW & WE thru TA, Capacity Building, Legal & Institutional reforms, etc.), climate change (Hydrometric,

The new water strategy, is by far one of the most complex strategies

meteorological, hydrogeological, Flood and drought

create for the water sector in Lebanon, targeting all the problems that

studies thru the reactivated LCWMC), and infrastructure

exist, solutions for each of them a whole new approach regarding

(CEDRE, Grants, Soft loans, through MoEW and WE’s.).

groundwater. In that regard, it is worth mentioning the strategic

She pointed out the aims of the Ministry of Energy in

components covered by this new plan: sustainable & Integrated

sustainable and integrated management of the water

Management of the Water Sector, Legal & Institutional Reforms,

sector, revealing the strategic components as financial &

Reporting & Monitoring, O&M, Services Coverage, Fighting Climate

commercial reforms, legal & institutional reforms,

Change, Financial & Commercial Reforms, and Capacity Building.

capacity building, service coverage, fighting climate

The strategy reviews all the water, wastewater, and irrigation needs

change, reporting and monitoring.

across Lebanon, existing operational systems and identified gaps that

She also referred to the challenges in that matter: Human

should be filled to cover the needs of all the citizens across the territory;

resources, financial -commercial framework, financial

gaps that were translated into projects in all three sectors, and these

balance and billing system, supervision, monitoring and

projects prioritized by order of urgency and impact.

reporting, operating and maintenance of facilities and

The cost estimate of the water governance priority action plan is 14,3

services, information system and the plans to overcome

million USD and the cost of infrastructure projects goes up to 8,25 USD

each of these challenges.

for all three sectors.

Strategies for technology Most of us believe that there is a technology for each of our

main things: the technologies used, and the innovative measures used

professional needs. Strangely enough, it seems like technology has

upstream power sector, and the technologies used in the downstream and

solutions even for needs that we do not identify as such yet.

used sectors.

Nevertheless, we are threatened by a lack of manpower or cyber-

For the power sector, the trend is to move towards a clean intelligent

attacks. The next panel discussion is about renewable energy and its

decent, and flexible grid. And the way to do this is to promote the use of

challenges in the digital world.

advanced metering infrastructure smart grid internet.

Yousef Ghantous: Discussion today is about energy, digitization,

We are promoting renewable energy levels and energy efficiency

and innovation. Digitization is present and energy will be part of it.

measures notably heat pumps to cater to the heating demand, which is a

In the 4th industrial revolution, artificial intelligence is of great

very important factor in the building sector.

interest. Our panelists will discuss that with young engineering

We are targeting the shape to transform the regular consumers into

experts, and shareholders in Lebanon’s renewable and green

prosumers, meaning that not only the consumption of electricity or

energy.

energy in general.

Rawad Nasser: LCEC is an active player in the energy sector in

As well as the contribution to energy and electricity production, this can

Lebanon, and it has recently developed a renewable energy outlook

be done via demand-side measures, change trading pear to pear trading,

for 2030. The target for 2030 is to supply 30 percent of the total

behind the meter battery storage, which are all innovative measures that

electrify consumed from renewable sources. This plan was

help to transform the consumer to prosumer.

developed in collaboration with the international renewable energy

Regarding electric mobility and the transport sector, there are pilot

agency, and lead by the Ministry of Energy and Water.

projects all around the world that are combining a smart charging

The LCEC is currently developing an action plan for 2050, under

infrastructure for electric vehicles and combining them to do control

the guidance of the Ministry of Energy, and now the plan is in the

systems with the grid to provide ancillary services and to allow better and

intermediate level, trying to reach successfully the 2030 targets.

feel the more flexible operation of the grid.

The documents here include a strategic policy that measures

Alan Aoun: I'm sure that most of you haven't heard of blockchain

different aspects of financial legal regulations. However, for the

technology, but most of you have heard about Bitcoin, the famous

sake of this panel technological part, we can divide them into 2

cryptocurrency and digital currency. It has been trending lately.

If I want to send you money, I have to pay the bank to do the transaction. So I'll be paying my bank and you'll be paying your bank to do this transaction. But with Cyprus currency and blockchain, we can exchange bitcoin without paying for it. The benefits of blockchain technology are that it gives you more transparency, more privacy, and more security. It's a new infrastructure and a new concept. Rudy Shoushany spoke about cybersecurity in renewable energy, which is a new tool, in the middle of technology fast growth, as well as digital transmissions, assuring security methods. He revealed how technology was used the most during the current pandemic, which he considered unsafe, due to the absence of security. Shoushany gave examples of the latest hacks in the world, and how major cities' systems went down because their systems were hacked. Blockchain is actually about technology. Most of you

As to Lebanon, the security systems are not updated, and this raises dangerous risks,

know the World Wide Web, it's the layer that covers

especially for companies, he revealed.

the internet, so when you want to access a web page,

“Even if we buy new transformers, it might be broken if not secured. Thus, power is

you go to www. You write it, and you write the

the main source here, and without it, things might become critical, especially when

webpage name and you access information of that

humans are the risk since the date of hacking could not be precisely determined.”

web page, so blockchain is parallel to the www. It's a

Wael Zmerly emphasized the importance of electricity in heat pumps, especially for

new layer on top of the internet, and a new concept of

the future. Heat pumps, he said, has a good advantage, and it is characterized by

trading or doing data management. It’s totally

high efficiency for saving and preserving clean energy, where it can be used in all

different from the conventional structure clout

sectors, with small spaces. Zmerly pointed out the importance of creating awareness

computing, or the conventional system where you

and promoting heat pumps in Lebanon since it is beneficial for energy demands. He

have a server. With blockchain, you don't have a

also appreciated the the heat pump project that is in process in Lebanon, with the

server. It allows us to exchange information and data,

support of the Italian government.

but it gives us a new thing that is not possible with the conventional infrastructure. So the World Wide Web can be described as the internet of information. You can exchange information; you go to a book side to read information. you can send emails and receive emails too. You can vote over blockchain, and you can exchange in the energy sector. You can exchange carbon credits, and this is one of the benefits of the blockchain. The way the blockchain network is constructed gives you more security cyber security. It allows new features like peer-to-peer trading, where you don't have to pass through party intermediaries. Block chain is peer-to-peer networking, so we don't have to go through intermediary levels. We can exchange directly lowering the cost of the transaction.

The Other Forest: A Nature-Based Solution for Ecological and Social Regeneration in Cities Adib Dada elaborated on the challenges we are facing in the environmental aspects, regarding water and air pollution, and extreme fatal heat, as an outcome of climate changes. He referred t"o a i r p o l l u t i o n a s t h e t o p m a t t e r i n t h e r e g i o n , e x p l a i n i n g t h e methods to reach a healthy environment. He gave beneficial examples to fight the dangerous consequences of climate change, like urban cars, water cycles, landscapes, and others. He also pointed out what Lebanon has done in this matter.

Strategies for cooperation The need for renewable energy is growing every day, and this needs good investment and finance. What are the challenges that face Lebanon in that matter? The next panel discussed this in a matter of regulations in the middle of unstable conditions. Mobarek spoke about financing renewable energy in Lebanon, where the key aspect lies in stable conditions, financially and economically, and politically. In addition to that, he emphasized the importance of strengthening the private sector, maintaining currency stability and security, in addition to other vital factors like renewable energy. He brought out concerns regarding industry and access to foreign exchange, especially during the latest crisis. Mobarek assured the necessity of improving the operation network & collection. He also stressed applying international standards. Souraya Machnouk revealed the factors required for investment in private sectors from legal perspectives. She said, there are many mentioned above factors that are missing in Lebanon. To financing any project, she added, investors must assure transparency in the entire process, and the agreement as well. She also stressed abiding by international standards. Jil Amine discussed Akkar project, and the role of renewable energy in Lebanon, explaining how the business there has improved up. He also revealed their work in Tunisia and Jordan, through supporting farmers, especially those in remote areas.

"The energy infrastructure is becoming more and more networked and digitized." What are the Cybersecurity measures that should be taken by companies in this field? With all the opportunities stated above related to digitization, Cybersecurity is becoming more and more crucial in protecting the data (IOT devices and customers data) and securing the continuity of the grid from hackers/state sponsored attacks as we have seen in neighboring countries (KSA Shamoon Virus in2012, Iran Stuxnet virus in 2009, Ukraine Blackenergy Virus in 2015) where hackers shutdown the whole system using a special customized virus. Thus measures are needed to name a few, like strategies, legislations, infrastructures protection acts, cybersecurity audits, updates to old infrastructure, Cybersecurity gap

What are the transformations that you are expecting from the public sector? (in

terms

legislation,

regulations,

frameworks, incentives) Different transformation could be adopted by the public sector if it went ahead with a full digital transformation to name a few Strategies, best practice

frameworks, for IOT usage, private public partnership in energy production, adoption of renewable energy legislation and incentives (Private companies and Residential with grid payback similar to Tesla innovations).

How do you think Covid-19 affected this field? What lessons have we learned or should have learned? The uncertainty surrounding public health, confinement measures and the economy, has directly affected the energy sector and lead to lowering energy needs thus lowering Global coal demand , Oil demand, gas demand and energy demand where some countries shutdown traditional coal systems and depended fully on renewable energy. That also helped achieving Paris climate agreement (COP 21), which is a big push of renewable energy and best available technology adoption. As a country we could depend less on heavy fuel HFO and petcoke dependency and start switching to renewables also start deploying decentralized Distributed energy systems (DESs) – in which power is generated and stored at or near where it will be consumed – are enhancing efficiency and transparency and making energy infrastructure more robust and secure continuity.

Considering the fast digitization of the industry and the energy sector, what challenges are we facing in Lebanon? Though billions of dollars have been invested so far in the national energy sector, yet one can say, that this latter is still not functioning properly. Its infrastructure is decaying, thus awaiting badly for a rehabilitation and reinforcement. With Hope that soon new power plants with the Best Available Technologies will be on the grid supported surely by alternative renewable energy sources such as the solar and wind power farms plants. In the recent years and especially during Covid-19, The Global adoption of Technology, has highlighted new risks, challenges and opportunities due to fast digitization and deployment of emerging technologies. The energy infrastructure is becoming more and more networked and digitized. For instance, the usage of IOT devices for smart energy reporting/metering; thus enabling a better efficiency, optimizing the network, boosting the performance, controlling the electricity abuse, lowering the maintenance cost and providing emissions readings (carbon emissions/footprint). By the day, the cost of this IOT technology is decreasing, encouraging its adoption. The full promise of a smart grid cannot be reached without embracing a full digital transformation strategy.

We should not forget the Cyber security challenges and threats. As, in the last couple of years, the world started including the energy sector as part of the infrastructure protection due to its importance and its outdated SCADA systems. For example, in 2017, EU published “Cyber Security in the Energy Sector” to guide the European countries on how to implement and think about the Cybersecurity emerging threats. In Lebanon, the current cyber security strategy that has been approved by the Council of Ministers (COM) in August 2019, has slightly addressed the energy sector. It was only from high level protection with no details.

Rudy Shoushany is a multidisciplinary technologist with 20 years in Information & Communication Technology field. Rudy has been aiding organizationsin strategic IT Governance, Cybersecurity and performance management in improving effective and efficient oversight of IT enterprise and becoming a strategic business partner while keeping Risk Optimized business value.

the-exclusive.digital

REESTART - Renewable Energy and Energy Efficiency for Sustainable Energy Transition and reinforced trust between SMEs (small and medium enterprises) and ESCOs (Energy Service Company) is a EU co-funded project and is part of the ENI (European Neighborhood Instrument) Program within the initiative to “Promote innovation and entrepreneurship in support of Lebanon’s clean energy transition”. REESTART is a country committed Project, so our goal is to reach different sectors and cover different areas of the country. The final pilot projects will be the successful best practices to be replicated in the future, so the selection will take in consideration the variability and the diversification of geographical area and Enterprises sectors.

REESTART

What is your outlook regarding the energy industry in Lebanon at this moment?

What are the greatest challenges that you faced since the beginning of the project?

"REACH DIFFERENT SECTORS AND COVER DIFFERENT AREAS OF THE COUNTRY"

My position as external observer may not be exhaustive, as I started to work in this sector in Lebanon in February 2020, but I will try to give an objective point of view. During the last months I had the opportunity to meet over than 33 Companies (most of them in the Energy Sector) and the three things that I have learned during these exchanges are: the passion and the expertise of the people that are running their business in energy field since years; the legal and the financial barriers that the Energy sector has (absence of legal framework to guarantee and minimize the investment risks, absence of trust between companies and financial institutions, disappointment versus the actual governmental frame to work on clean energy); the potential and the willingness to make a change with the right Strategies and the right People (opportunities).

I can summarize the greatest challenges in the following experiences: launching a cooperation Project in a new Country with new colleagues, new personal and professional dynamics to be discovered during an exceptional case as the COVID19 Pandemic era; second understanding the energy sector dynamics with all the barriers that a Country as Lebanon has; third the escalation of the economical and energy crisis that affected this country in 2020: Financial Default in March, Currency depreciation (80%) in April, Lockdown and Businesses Closing in May; Protest and Energetic crisis in June; food crisis and second lockdown in July, Beirut Blast in August. All these factors have been contribute to increase the level of challenges that I have faced to run and develop the project in an important and crucial sector as the green energy sector in Lebanon.

interview with Gabriella Esposito, ICU Institute for University Cooperation

GABRIELLA ESPOSITO Project Manager for REESTART in Energy and Environment Cooperation Development Sector

What criteria must a company meet to be eligible for funding?

Programme in order to improve your skills (Technical, Financial, Legal); spread REESTART Project within your network.

We can consider as selection criteria the following: Sector of activity, Geographic location; Geographic market coverage (importexport); Company Size; Energy mix; Energy flow diversification; Potential for replicability of EPC Contract; Energy Audit output; EE and RE measures proposed (Innovation, Feasibility, Payback period, Monitoring & Verification); Diversity and replicability of the EPC contract proposed; Operation, Maintenance & Customer Services; Project replicability and representativeness. If we consider the Energy Service Companies, as the ones that will implement the Pilot Projects and will follow the monitoring of the EE/RE measures I would like to suggest to follow the following process: Apply the ESCO Survey online in order to define the potential to became an ESCO; Participate the Capacity Building

What are the main benefits for companies to apply to the project, besides the financing? The main benefits for the companies who want to apply are intangible: be part of an energy network that has as main goals the development of mutual trust between companies and the creation of a more enabling environment for Energy Companies to operate and grow in order to increases levels of investment in Renewable Energy and Energy Efficiency. The Energy Companies that will apply to REESTART will benefit as well of a Capacity Training Program that aims to provide technical and financial assistance to the local experts and local companies that are running energy projects since years in Lebanon and Abroad and in order to scale up their business.

Smart Mobility - Leveraging technology, financing to accelerate implementation, and avoiding becoming obsolete

Lea Kai started the session by defining smart mobility as a network or a system that connects people to opportunities, such as services, healthcare, education, and others. Kai revealed smart mobility as combining too many things into one, like combining demands from energy perspectives, environment perspectives, cost perspectives, and time efficiency perspectives. Kai described that it is very important to create solutions in Lebanon, wondering if there is a will to activate the ecosystem in the country to venture into this and to start creating innovative technologies and solutions. Regarding electric vehicles, Kai brought out a major problem in Lebanon, that is not valid for electrical cars, implying the poor infrastructure that suffers from insufficient provision of developmental resources and needs repair and maintenance, to be able to receive the new technology.

Here, she addressed the ministry of energy and water to work on preparing the appropriate infrastructure to make things easier for the electrified vehicles to perform better. Maroun Charabati said there is a new opportunity for the coming decades, from an environmental perspective, for reducing carbon emissions, and decreasing the usage of all petrol, diesel, and pollution. As far as Lebanon is concerned, he declared that it is a consuming country that has always been driven by the private sector, and hence it will only witness and adopt electric vehicles since it is not the country that decides really how this technology works. He stated, “We, as Lebanese population is late adapters because we use a lot of second-hand cars.” Charabati believes that the secondhand electric vacant cars will increase in Lebanon after three or four years from now. And the country will witness a lot of cars in the market, he said. But “we will adopt these cars in a later stage than the European and Northern American countries.”

He also revealed the fear of losing battery storage, where Lebanon won’t be able to charge it, knowing that the country suffers from the economic crisis. Hence, he recommended the installation of an electric network charger before buying any electrical vehicle. Michel Ange Medlej, a senior policy advisor for energy that has been providing his expertise to the Lebanese minister of energy and workers cabinet since 2010. He specifically gives advice on sustainable development in the oil and gas sectors while leading the development of energy transition strategies, mainly in the transport sector. Medlej has been urging the Lebanese government for 10 years from now to create a strategic plan for energy, so as to be able to integrate transport and communication, in order to apply the smart mobility features. Dr. Charbel Mansour defined smart mobility as a need and a solution to tackle the problems of mobility but in a smart different way. He explained: “We need to understand what is the current trend and solve problems from the supply side”, revealing that where there is high traffic, there is a need for more mobility. Hence, the increase in mobility demands providing more space for roads, and this is the supply-side approach. He stated that this step brings the solution for a very short period, “and after that, you see again that there is more congestion, more pollution, and other externalities; So instead of thinking of the supply side, now you have to think of the demand side.” He added, technology means passengers, cars, bicycles, airplanes, and all other means that require transport. Thus, this requires evolved systems to move from one point to another or, where we use all of those modes and all people making all the trips all the time, to ditch the destinations and improve the technology which improves the efficiency. Mansour revealed an example to justify his point, saying: let’s assume that someone would like to go and buy some goods. The first question he should ask himself, whether he can avoid making this trip or at least reduce the mileage, or substitute this by staying home and buying online. Gilbert Tegho defined Smart mobility as the “way people combine multiple modes of transport into a journey and divert from the usual way of using a single mode of transport, like the car for example going from point A to point B.”He added, “smart mobility is about planning and breaking this journey into multiple modes that are more efficient, less expensive, with the ability of a person to arrive faster and have a better impact on the planet.” Tegho stated that the world is tending towards smart mobility, for a long time, in the middle of many challenges and problems, like in Herb Hackathon which theme was to reduce pollution in the city, while all the youth that participated in this program focused on one thing, that is finding parking in the city. He called on to a smarter way of thinking, like using smart devices such as our smart TV, and phones. As far as Lebanon is concerned, as it lacks public services, he stated that we have seen examples of solutions given to avoid traffic, for example in the center of the city, through electric scooters, that are also being used by university students, especially that many cannot afford buying cars. Thus, Tegho considered the above example as a way to introduce electric mobility by planning the journey properly.

Electric vehicles effect on infrastructure

As the adoption rate of electric vehicles increases, charging is becoming a concern for traditional grids. With an estimated 1 billion electric vehicles to hit on the road by 2050, how will the increase in power demand for

Rabih Medawar is an energy and electric utility consultant, trainer and a part time instructor at the Lebanese University. With

more than 10 years of

charging the huge number of cars impact the electrical

experience in the field, Rabih worked on major electrical infrastructure

power grid?

projects especially in the power distribution sector. He is specialized in

The way power grids were traditionally sized was essentially to meet peak load demands. Whether on the

operation & maintenance, electrical assets testing and energy efficiency. Also assisted in research and implementation of several e-mobility initiatives. Rabih is an electrical engineer and holds an MBA in management. He is a certified

local distribution level, the medium to low voltage

energy manager, carbon reduction manager and certified water efficiency

transformers level, the medium voltage distribution grid

professional efficiency professional.

or primary substations taking power from the transport loop, an uncontrolled simultaneous charging trend will pose a serious challenge to the power system, causing it to fail and requiring huge investment costs in case the mitigation plan doesn’t account for out of the box thinking.

The way a vehicle is used often dictates the charging regime e.g., in the case of a mass rollout for electric buses in a certain region, the majority of buses will have the whole night to charge, whereas in the case of a

areas load profiles… These are only two examples of the different scenarios that will be faced when mass emobility is adopted. Depending on the type of charging being used, how, when and where EV charging is occurring, the impact on the grid is both for the short term and long term. From different control strategies and regulatory priorities to the future

expansion,

digitalization

and

renewables

typical nine to five white collars, drivers will plug their

integration plans, the mass rollout of electric vehicles can

cars after returning home from work, this will coincide

be a mixed blessing, especially for already congested

with the peak demand load time for typical residential

grids like our own.

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