Assessment of the Renewable Energy Sector

• Country: Lebanon
• Summary: Assessment of the Renewable Energy Sector
• LBT Ref No: 64636814
• Deadline: 04 Apr 2022
• Financier: Swedish International Development Cooperation Agency (SIDA)
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
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• Description:
• Request for proposals are invited for EXCOL Contract: Assessment of the Renewable Energy Sector in Lebanon. Deadline Monday, 04. Apr 2022 Intervention Sector(s): Environment, Human Rights & Protection, Infrastructure & Services Rehabilitation OVERALL OBJECTIVE AND SCOPE OF WORK Lebanon-s electricity sector is facing severe threats, and is at risk of complete collapse. Since the start of the financial crisis, and the country-s default over its debt, the sector was among the first services to reflect the collapse of the economy. At the centre of this collapse lies Lebanon-s public utility, Électricité du Liban (EDL). The latter has been suffering from political, financial, and administrative burdens over decades, which made it a lossmaking public utility and the second most costly public utility in the MENA region, with operational costs way above the regional median. Effective generation Capacities of EDL (over 80% in 2018) are mostly derived by combined cycle power plant and thermal power plants alimented with Heavy Fuel Oil or Diesel. Effective capacity of Hydro Power plants is extremely limited due to lack of investment and maintenance. The gap between electricity supply and demand is covered by expensive, polluting, and noisy diesel generators that are dispersed almost everywhere in the country. Over the years, these created a complex informal economy that has been resistant to regulations and government oversight, but have also been a conventional off-grid power solution, because of their relatively low upfront capital costs. In this context, an urgent need exists to develop the renewable energy sector. With sunshine being abundant in Lebanon (around 300 sunny days in a year with over 8- 9 hours of daily sunshine), solar power systems can be a viable alternative, particularly for individual households as well as enterprises including farms to decrease dependence on increasingly unreliable public and private electricity provision through generators. Consequently, demand for solar panels and power systems has been soaring, with local providers noting that sales of the technologies jumped 200 percent this year. Yet, local providers rely exclusively on imported material and face a multitude of challenges including lack of access to credits, unreliable import and transport systems, unfavourable business environment and erratic red tape measures. Furthermore, a need exists to support and develop enterprises offering affordable and reliable complementary services such as installation and maintenance. Additional to bottlenecks on the supply side, the demand for solar energy and renewable energy systems is hampered by declining purchasing power and a lack of access to credits needed to invest in renewable energy systems. Both households and enterprises have been hard-hit by the ongoing crises in Lebanon and will find it difficult to obtain the hard currency needed to invest in renewable energy systems. The ongoing financial crisis and breakdown of the banking system in Lebanon means that no credit is available to facilitate investments into renewable energy systems for either households or enterprises.
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