Incentivizing the Private Sector towards Clean Energy

The private sector has the potential to play a substantial role in the fight against climate change, and with the correct incentives and signaling from the government, its swift engagement can accelerate mitigation. 

The Ministry of Energy and Water has requested expression of interests from the private sector for several renewable energy projects:

- Three solar farms generating 70 to 100 MW each;
- 24 solar farms without storage generating 10 to 15 MW each equally spread along the Lebanese territories;
- 300 MW combined generation of several hydropower plants of 4 MW each;
- Wind power plants with 200 to 400 MW generation.

These initiatives are in line with the Ministry of Energy and Water's National Renewable Energy Action Plan (NREAP), and Lebanon's Nationally Determined Contribution targets: Lebanon intends to increase power and heat demand generation by renewable energy sources by 15% as an unconditional target, and 20% as a conditional target.

Moreover, Fransabank recently announced its issuance of green bonds amounting to 60 million USD for the private sector to finance renewable energy and energy efficiency projects. Green bonds are an effective tool to green financing, further merging the worlds of finance and sustainability.