A Lebanese initiative for energy savings

With total energy expenses rising from 400 million US dollars in 1992 to around 1.6 billion in 2004, Lebanon still imports 96% of its energy consumption. A better management of energy resources seems to be a must, especially with the increasing cost of energy and its impact on the environment.

Julien Théron - Beirut, Eurojar

The Lebanese Association for Energy Saving and for Environment (ALMEE) was created in 1992. It gathers scientific experts hosted by the Notre Dame University (NDU) and professionals in energy.

ALMEE works on the development of renewable energies, not only in Lebanon, but in Europe as well through regional programs such as MED-ENEC, and in North African and Middle Eastern countries through networks such as MEDENER (Mediterranean Association of the National Agencies for Energy Conservation).

Director of the association Said Chehab considers that ALMEE is an apolitical and non-profit association. “It is rather a citizen’s initiative.” The main objective of the association is not to develop a radical militancy, but to encourage development: “Unlike Greenpeace or other environmental organizations, we focus our work on projects and studies rather than on public initiatives. We constitute the interface between science and development.”

The European Union brings an active support to the association’s projects. Furnishing the hospital of Zgharta with energy-saving equipment, in the framework of MED-ENEC program, was one of the cooperation examples that allowed a total saving of 55,000 Euros. ALMEE also participated in RAMses project (Renewable Energy Multipurpose electric vehicle for farming), and in REACt (Reston Environmental Action), which both worked on electricity generation from renewable energies.

An undeniable reality
Firm and convinced, Said Chehab regrets the fact that renewable energies suffer from inadequate support. He explains that “EDL (Électricité du Liban) has a horizontal and vertical monopoly in Lebanon, which means a monopoly in the entire country and in the entire phases of production, transportation and distribution of electricity.” Yet, for reasons of efficiency and profitability, “the government has to react. Something needs to be done. EDL is in a state of chronic bankruptcy: it loses every year 1 billion Euros due to bad management of electricity sources and an inappropriate ratemaking that does not reflect the cost.”

The debate on restructuring EDL is a complex matter due to the fact that the government has a “word to say” in it for financial reasons. “The law voted for in 2002, in which the importance of restructuring EDL was stipulated, remains a dead-letter and nothing has been done for 5 years now. The reasons behind EDL’s chronic deficit are problems in its infrastructure as well as in the gap between market’s prices (from which Lebanon buys its energy) and consumers’ prices. “The current electricity ratemaking in Lebanon was established in the year 1997, when the price of an oil barrel was $25. It did not change since then, notes Said Chehab. The price of the barrel went up to $150, and then dropped to $80, yet we still pay an inadequate bill for each KW/h we consume. How can we develop renewable energies that are not expensive, but that are more expensive than EDL prices?”

The management of this public enterprise is not much appreciated by the association, which is intrigued by the quality of service that EDL is giving: it cuts electricity at random, it is not accountable towards anybody, it can provide electricity at unacceptable frequencies or voltages, and it does not pay the costs of damages…” The quality of service is not the only matter to be criticized in this enterprise: “EDL does not even post its balance sheet to the public. In fact, like any autonomous organism in Lebanon, EDL should post its financial balance sheet and production report in newspapers. This is what we call total transparency.”

For an energetic sector
ALMEE’s intention is not to express harsh critics and be unproductive; it rather intends to exert efforts to enhance the sector of energy for the benefit of all: the citizens, the country and EDL itself. For this purpose, ALMEE counts on two major advantages: the country’s size and the structure of the electrical network.

Based on this reality, ALMEE hopes to open the electrical network to the private sector. In fact, if energy comes from two different sources, generators with acceptable norms can build with the electrical network a relation of feed-in/feed-out. Moreover, once people have photovoltaic boards on the roof of their houses, or a wind turbine, they can feed the electrical network, as is the situation today in France.

Despite the fact that ALMEE is harshly criticizing EDL, it does not mean to beat it. On the contrary, it aims at joining the efforts of the private and public sectors for a better quality of service and to lead the country to its independence on the energetic level. “We do not mean to eliminate EDL, says Said Chehab, we mean to decentralize the sector”. Chehab is strongly convinced “that all existing power stations should remain as is. We need them. We are now theoretically at 2200 MW. Practically, we are producing 1600 MW. The remaining 600 MW are either damaged or in a state of maintenance. We need more than 3000 MW. This is why we need the generators installed in local districts.”

According to ALMEE, the solution should be global and with multiple facets: “Generating competition, encouraging renewable energies by imposing carbon taxes for example, in an effort to create a fair competition.” In order to protect EDL from this tax, “billing should be revised. Also, to protect the consumer, an energy control policy should be introduced. We should advise the citizens; isolate your buildings; install efficient equipment; your electrical consumption will gradually diminish. Your electrical bill will not increase despite the fact that the price per kWh is increasing.”

Two political obstacles
Obstacles that ALMEE initiative is facing are mainly political. “Things are not transparent and the feedback is not always clear.” Basically, “some people wish to privatize EDL, while others wish to clean it up. They do not agree on one policy.” On the other hand, “some wish to buy diesel groups operating at 600 MW. […] all these are instant solutions. We signed Kyoto, we are combating CO2 and are installing at the same time power stations that produce it and consume imported fuel. They say that this is a temporary solution so that we could think calmly. I fear that they do this, and stop thinking...”

Refer to the projects fact sheets:
Renewable Energy Agricultural Multi-purpose System for Farmers (RAMseS) (Lebanon)
MED-ENEC: Energy Efficiency and Renewable Energies in Buildings (Lebanon)