8 LEVANT: WHERE POLITICS DEFEAT ALTERNATIVE …
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supported renewable energy systems in schools and for the lowestconsuming residential consumers, and is reported to be politicized,
requiring restructuring.
The Lebanese experience is different, but not less complex. LCEC
grew from a UNDP project in 2005 into the national sector’s umbrella
in 2011, becoming the technical arm of the MoEW, where is it lodged,
despite having financial and administrative autonomy. The center is registered as an NGO, although it is commonly treated by stakeholders as
a government entity, and is dealing with all renewable energy matters;
including national policies, technical implementation, procurement, and
playing a technical role in NEEREA financing, with insufficient institutional capacity. The NEEREA fund requires a lengthy process that has
become more difficult due to Lebanon’s escalating economic crisis and
liquidity shortage, thus disheartening end-users from tapping into the
fund, leaving only the share of consumers that can sustain themselves to
consider renewable energy. An assessment of the fund recipients shows
that the highest share of the fund went to green buildings.
One major issue limiting the implementation of renewable energy in
Lebanon has been the absence of an independent regulatory authority, in
charge of issuing licenses. The council of ministers has been granted the
authority to issue licenses for two to three-year periods, through different
laws: law 288 of 2014, law 54 of 2015, and law 129 of 2019. Upon
expiry of these laws, there would be no operating laws enabling private
developers to generate electricity, such as the period between the expiry
of law 54 in April 2018 and the enactment of law 129 in April 2019, and
which obstructed the award and licensing of the first utility-scale solar PV
farms.
In Palestine, several authorities share the mandate of supporting renewables: the Energy Authority (PEA), the Palestinian Energy and Environment Research Center (PEC), and the Palestinian Electricity Regulatory
Council (PERC).
As renewable energy is cross-sectorial, inconsistency in policies across
the value chains has negative repercussions on the sector. The three
countries suffer from the lack of taxation policy consistency. Jordan’s taxation policy is ever changing; from income taxes, to imports/exports and
customs, leaving businesses wary of the government. In Palestine, renewable energy technologies receive an exemption from import duties and
Value Added Tax, yet, the process is complicated as materials go through
Israeli ports. Renewable energy technologies in Lebanon should be tax
229
supported renewable energy systems in schools and for the lowestconsuming residential consumers, and is reported to be politicized,
requiring restructuring.
The Lebanese experience is different, but not less complex. LCEC
grew from a UNDP project in 2005 into the national sector’s umbrella
in 2011, becoming the technical arm of the MoEW, where is it lodged,
despite having financial and administrative autonomy. The center is registered as an NGO, although it is commonly treated by stakeholders as
a government entity, and is dealing with all renewable energy matters;
including national policies, technical implementation, procurement, and
playing a technical role in NEEREA financing, with insufficient institutional capacity. The NEEREA fund requires a lengthy process that has
become more difficult due to Lebanon’s escalating economic crisis and
liquidity shortage, thus disheartening end-users from tapping into the
fund, leaving only the share of consumers that can sustain themselves to
consider renewable energy. An assessment of the fund recipients shows
that the highest share of the fund went to green buildings.
One major issue limiting the implementation of renewable energy in
Lebanon has been the absence of an independent regulatory authority, in
charge of issuing licenses. The council of ministers has been granted the
authority to issue licenses for two to three-year periods, through different
laws: law 288 of 2014, law 54 of 2015, and law 129 of 2019. Upon
expiry of these laws, there would be no operating laws enabling private
developers to generate electricity, such as the period between the expiry
of law 54 in April 2018 and the enactment of law 129 in April 2019, and
which obstructed the award and licensing of the first utility-scale solar PV
farms.
In Palestine, several authorities share the mandate of supporting renewables: the Energy Authority (PEA), the Palestinian Energy and Environment Research Center (PEC), and the Palestinian Electricity Regulatory
Council (PERC).
As renewable energy is cross-sectorial, inconsistency in policies across
the value chains has negative repercussions on the sector. The three
countries suffer from the lack of taxation policy consistency. Jordan’s taxation policy is ever changing; from income taxes, to imports/exports and
customs, leaving businesses wary of the government. In Palestine, renewable energy technologies receive an exemption from import duties and
Value Added Tax, yet, the process is complicated as materials go through
Israeli ports. Renewable energy technologies in Lebanon should be tax