Abstract:
The Copenhagen conference on climate change in 2009 and the Paris Agreement signed in 2016 have incentivised the Lebanese government to move towards the energy transition and the decarbonisation of the energy mix. Specifically, Lebanon pledged in 2009 at reducing domestic fossil fuel usage by achieving a target of 12% renewables in the energy mix by 2020. This pledge was amended to reach a target of 30% of its energy consumption from renewables by 2030. Characterised by a significant energy supply-demand imbalance, as well as the negative repercussions of the several crises the country has and is witnessing, the Lebanese state has formulated in early 2019 that renewables and energy efficiency should be key to the country’s recovery plans.
One way the private sector could contribute to this plan is through the implementation of distributed renewable energy technologies. With the American University of Beirut being considered one of the most notable universities across the region aiming to build a better and brighter future for the upcoming Arab generation, it is essential that AUB takes the lead on the energy transition. Through a conscious and well planned program, AUB’s can reduce its reliance on the Lebanese electricity grid and on the local diesel generators.. This paper aims to provide a realistic and practical assessment of what AUB can achieve if it amplified its reliance on renewable energy and, in specific, its reliance on solar photovoltaic power. A case study will be performed on the AUB institution which might later benefit other corporations with similar contexts. In-depth research has been applied by interviewing the AUB's Facility Management unit in order to gather data related to monthly (and yearly) electricity consumptions at AUB, in addition to the electricity bills for both EDL's power and diesel generators. Separate cases were studied to try to make AUB a powerful example in its community for renewable energy powered institution.
Two cases were studied; On-site and Off-site solar PV generation and under each of these two cases three different strategies were estimated: AUB being the sole owner of the investment for a 20-years period, a Power Purchase Agreement (PPA) contract with a third part company for a 10 year period, and finally a PPA for the first 7-years after which AUB will own the solar PV system. The proposed plan has an initial investment cost estimated at 1.36 million USD for case one and 9 million USD for case two, while the annual operation and maintenance costs are estimated at 40,800USD and 270,000 USD for case one and two, respectively. To assess the financial feasibility of the plant, benefits were estimated under two different cases as follows: 400,300 USD for on-site installations and 3 million USD for off-site installations. The results indicate that the project will make the most benefits when the price of electricity is sold at 0.05 USD/ kWh in the on-site case or if the price of electricity is sold at 0.722 USD/ kWh in the off-site case.