What are Non-Standard Loans?
Non-Standard loans are for investments non-LET based starting from EUR 40,000 up to EUR 15 million and in very exceptional cases for investments up to EUR 25 million. Non-Standard loans typically address
Non-Standard loans typically address investments are more complex and require more detailed technical and financial eligibility assessment by the LEEREFF consultant, which is free-of-charge to investors. Examples of Non-Standard Investments include:
- Renewable Energy
- General Energy Efficiency Projects for industrial and commercial machinery and processes
- Energy Efficiency improvements in existing commercial buildings
- Green Buildings (Commercial only)
For Energy Efficiency and Renewable Energy investments, LEEREFF can finance up to 80% of your equipment/project cost.
For investments to be eligible for LEEREFF financing, the project should meet certain technical and financial eligibility criteria:
For production machinery, processes and existing commercial buildings
- Project generates >20% energy savings, OR
- Energy savings cover 50% of investment costs over the project lifetime, using a 5% discounted rate.
- Industrial Energy Efficiency investments have to comply with the previously mentioned 50% coverage ratio.
- For EE investment loans to optimize production facilities, the production capacity is limited to an increase up to 50%.
All new Commercial Buildings must be LEED or equivalent certified to be eligible for LEEREFF financing. The financing threshold depends on the standard level:
- LEED Platinum assessment or equivalent (e.g. BREEAM): LEEREFF loans are limited to 36% of the real building costs.
- LEED Gold assessment or equivalent: LEEREFF loans are limited to 28% of the real building costs.
The investor must provide reasonable access to the Project Consultants team and to other relevant entities to assess the LEED certification process and to produce a Verification Report if required
Must comply with EU Directive 2004/8/EC methodology, specifically:
- Total annual electricity production of the investment project has to fulfill criterion “electricity production from cogeneration” (Annex II paragraph (a) setting minimum thresholds for annual overall efficiency of 75%and 80% according to the co-generation technology employed by the investment project) and,
- Primary Energy Savings (PES) according to Annex III, leading to at least 10% primary energy savingsusing efficiency reference values given in Council Decision C(2006) 6817.
- Technology must be proven solutions
- For PV schemes > 0.5 MWp: a site specific solar irradiation yield assessment must be performed
- For Solar Water Heaters, certified technology/suppliers in line with acceptable standards
- Projects designed primarily for sales to third parties cannot be financed under LEEREFF
- Solar water heating schemes should demonstrate competitivenesswith fossil fuel alternatives
- The amortisation period for Solar PV investment is taken as 20
- Refurbishment/retrofitting of existing hydropower plants and irrigation dams.
- Small and mini- run-of-river hydropower.
- Electricity generation cost base load <120 EUR/MWh, based on 5% real discount rate and 20 years economic lifespan. Cost of “Electricity Generation” in €/MWh is defined as (B+C) / A where:
- A = the present value of the expected annual production of the Investment in MWh calculated over the Amortisation Period using a discount rate of 5% in real terms;
- B = the present value of the real Relevant Capital Expenditure in Euro calculated using a discount rate of 5% in real terms; and
- C = the present value of the real annual Operating Costs in Euro of the Investment calculated over the Amortisation period using a discount rate of 5%.
- Note: The value of EUR 120 MWh applies for all renewable energy subsectors in Lebanon (excluding solar electricity generation)
- Large-scale hydropower plants according to the definition of the World Commission on Dams (those having a height of 15 meters or more from the foundation or, if the height is between 5 and 15 meters, having a reservoir capacity of more than 3 million cubic meters) are excluded
- Biomass: from sustainable resources, preferably agricultural waste or residues for CHP or heat only
- Electricity generation cost <120 EUR/MWh, based on 5%real discount rate and 15years economic lifespan. Opex is estimated to be around 3% of CAPEX/year
- Treatment of biomass waste for environmental reasons is not subject to this cost limit. Biomass from waste should be value at 0 EUR/TJ
- Biomass to produce heat should demonstrate competitiveness with fossil fuel alternatives
Biofuels: projects producing or using biofuels for grid connected electricity production are excluded
- Resource to beproven by test drilling programme
- Nodrilling risk can be accepted
- Electricity generation cost < 120 EUR/MWh, based on 5% real discount rate and 20 years economic lifespan
- Geothermal to produce heat should demonstrate competitiveness with fossil fuel alternatives
- At least one year of on-site wind measurements, preferably at hub height
- Proven, modular solutions, onshore only
- Electricity generation cost < EUR 120 MWh, based on 5%real discount rate and 15years economic lifespan
Which documents do you need for your Application?
- Application Form
- Pro-forma Invoices/ Offers which contain Make/Model
- Datasheets/ brochures/ technical documentation of products
- Energy Audits or other technical studies for EE project
- Resource modeling for RE projects
- Permits, if relevant
- Technical designs
- Supplier contract with technical specifications
- Photo documentation
- Equipment brochures
- Proof of Green Building Certification Application
- Supplier/ Installer agreements
- Commitment letter (liability to reach a certification level)
Submit your application and support project decuments to the LEEREFF Partner bank of your choice
The LEEREFF Team will receive the application and will carry out the project assessment. LCEC will review the assessment and confirm eligibility
The LEEREFF Partner Bank will submit your Application and Project Assessment to BDL with request for funding
This is part of the free-of-charge Technical Assistance.
The following documentation will be required for Project Verification:
- Technical designs
- Brochures with specifications
- Equipment certificates
- Commissioning tests
- Acceptance certificates
- Service/Maintenance contracts
- Evidence about provision of training to staff
- Cost evidence according to the cost categories as per Loan Agreement
- Evidence of payments according to invoice
- Photo documentation