Solar energy casting new rays of hope on Lebanon's power troubles
Producing electricity using solar energy is not a new concept, but what's getting old is the unending saga of Lebanon's defunct power sector, which was especially hard on citizens this past winter, with unprecedented outages, irregular distribution of service, unstable wattage, and other severe impacts on the public and the business environment alike.
ConnexEnergy, a French-based enterprise specializing in renewable energies, saw in Lebanon an opportunity to conduct an experiment with photovoltaic cells in an attempt to gage their effectiveness as compared to electricity provided by area generators. Following their study which stretched over several months, the quantitative results and resulting analysis were recently shared with the media in Beirut and now ConnexEnergy Lebanon is born.
Leading to their test project in Hazmieh, ConnexEnergy partners and GMs Jean-Gabriel Chelala and Jean-Christophe Duchier crunched some numbers regarding Lebanon's electricity sector.
They found that Lebanon has high energy dependence: 4% is locally produced while 96% of it is imported. The price of fuel for domestic consumption, aka Mazout, doubled over the last 2 years, which meant that with declining purchasing power and inflation carving a large portion of the liquidity in people's hands, no or little money meant no service for most end-users. Furthermore, the import of Brent Oil went up from $25 in recent years to $110 today, while from 2009 to 2011, photovoltaic pricing went down by half.
Meanwhile, demand for electricity in Lebanon in 2010 was around 2500 megawatts and in 2014 that figure will reach 4000 megawatts, but production is currently at 1300 megawatts and getting worse, not to mention that Electricite' Du Liban (EDL) has 1700 workers currently doing the job of 5000 needed to provide a good service. Despite the need for cash and manpower, not to mention new equipment, and big infrastructure investments, the price charged by EDL is 10 cents/kilowatt-hour (KWH), whereas in France it's16 cents/KWH and in Germany some 30 cents/KWH. The problem for consumers is not the price but rather the service, which is interrupted, unpredictable, variable, and frustrating to say the least. Enter the Lebanese generator at 50 cents/KWH on average but the consumer is also at the mercy and whim of the power distributor when it comes to both pricing and when the electricity is provided.
"We are planning to open a new company in Lebanon to respond to the renewable energy and energy problems in the country. We have extensive experience in France and we have prepared our analysis and business plan for the Middle East and Lebanon in particular," said Chelala during an interview with Capital magazine, on the sidelines of the ConnexEnergy presentation late January. "We performed a test on a photovoltaic to verify the calculations on the ground, and gauging its effectiveness in replacing a generator and how people will react and utilize energy. We were successful on all accounts."
ConnexEnergy is today looking for local know-how to associate, partner and invest in strategic projects around the country where the sun's energy can be taken full advantage of.
Sun in Lebanon is available for 3,000 hours per year, half of that in France and even less in Germany. If we add abundant wind to the mixture, renewable energy in Lebanon can reach 480 megawatts, from 60 megawatts existing today from mostly hydraulic systems. Those interested installing can get an interest free loan as guaranteed by a government initiative for all renewable energy projects. Any excess power produced can be sold back to EDL thanks to net metering, a reverse counter measuring electricity surplus output; a service available since December 22, 2011.
ConnexEnergy Vision
ConnexEnergy differentiates itself from the competition on the Lebanese market in the fact that it provides market expertise, consultancy and strategic installation, whereas the sellers of Photovoltaic technology focus mainly on advising which equipment is more efficient and pricing accordingly. ConnexEnergy has set a plan to sell some $600,000 worth of equipment in 2012 aiming for $2 million in sales in 2014. Its vision includes:
1) Produce renewable energy
2) Install highly efficient products at low budgets thanks to partners in China
3) Start Lebanon venture with equipment trade, and then move to consultancy and later international cooperation.
4) Provide clients with electricity 24/7
Lebanon passes the test
Hazmieh Project: $120/month (average cost), 10 amps, 8-11 hours supply
Photovoltaic: 10 amps (8 hours). Keep EDL and stop generator.
Installed in Oct 2011, achieving constant voltage and resulting in electricity 24/7, with budget control, $120 monthly, dimensioned for up to 11 hours supply. Space for installation and shade considerations were important factors before installation. Maintenance plus warranty for 9 years, including batteries. Photovoltaic cells have 30 years life span while batteries have 4 years. After the 10th year, customers pay $70 /month.
"ConnexEnergy gathered hypothetical data about the client over several months and installed a photovoltaic system that met those needs. The system functions very well despite a rainy winter season with scarce appearances of the sun. It will function better in the summer," said ConnexEnergy GM Jean-Gabriel Chelala.
The fact is that photovoltaic cells cannot be installed everywhere. They work best with sun and thus shade can be problematic. Additionally, roof space is important to make the project economically feasible. But when conditions are optimal, the results are fascinating: for a difference of $10 between the area generator and Photovoltaic cells per month, customers suddenly have no delay in electricity supply (when EDL stops and photocells kick in), total budget and comfort control and stable voltage. "We are not trying to change things dramatically, or step on anyone's territory. What we want is to give people the ability to control their comfort and budget," concluded Chelala.
© Capital ME 2012
