Roadmap for the promotion of PV electricity in Lebanon

Electricity subsidies are a heavy burden on the Lebanese public budget (18% of government expenditures in 2012). Subsidy to EdL (Electricity of Lebanon) electricity raised 20.7 USC/kWh in 2012. Electricity subsidies from 2006 to 2013 were around S13.3 billion without interest, equivalent to the cost of construction of 2500-3000 MW renewable energy electricity plants and equivalent to the double of the existing operational electricity generation capacity. If we consider the interest, EdL deficit represents near 1/3 of the total public debts. Actual annual subsidy to EdL represents 54% of the annual public debts. Lebanon has many favorable solar resources for a variety of solar energy technologies and applications. A Power Purchase Agreement (PPA) tariff from 14 to 23 USC/kWh would give an internal rate return (IRR) of 16% for a solar electricity mature market and a payback period of 6 years. Therefore, a transition to alternative energy resources, including renewable, will be a matter of necessity sooner or later. This paper describes to a big extent the actual and potential contribution of proposed solar energy, namely PV cells, to the country electricity supply by 2020.