Lebanon Renewable Energy and System Reinforcement Project

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The Lebanon Renewable Energy and System Reinforcement Project (the Project) will lay the foundations for sector recovery, focusing on “no regret” investments needed to increase the supply of low-cost renewable energy and strengthen EDL network and systems. It will contribute to sector technical and financial readiness for large investments, notably in the renewable energy (RE) space, that macro-fiscal stabilization would unlock. The loan will finance: (1) the construction of the National Control Center (NCC), critically needed for EDL to manage its network with increasing intermittent RE capacity, (2) the enhancement of energy accounting, billing, and collection practices at EDL using Advanced Metering Infrastructure (AMI) and associated energy accounting systems, (3) the construction of a grid-connected solar PV plant under Engineering, Procurement and Construction (EPC) contracts and associated grid reinforcements, as the first phase for the development of larger scale solar parks subsequently by independent power producers (IPPs), and (4) the refurbishment of three hydropower plants on the Litani river (Markabi, Awali and Joun, totalizing 192MW), to improve operational efficiency and extend HPPs lifespan. It will also include technical assistance for project implementation, strengthened financial management and for advancing sector reform agenda. A Contingent Emergency Response Component (CERC) has been included to enhance emergency preparedness. The project will result in (i) an increase in the supply of grid connected RE to consumers, (ii) a reduction in failures on the transmission network, and (iii) streamlined billing and collection cycle.