NEEREA, the National Energy Efficiency and Renewable Energy Action, is a pioneering national financing mechanism in Lebanon, managed by the Central Bank and operational through all commercial banks. Established in 2010, it offers subsidized loans to private sector entities for energy efficiency, renewable energy, and green building projects. By January 2015, over 200 projects had been approved, totaling more than US$250 million USD. NEEREA, supported by the EU, aims to foster sustainable development by linking commercial banks with private companies, offering low-interest loans with a maximum ceiling of US$10 million USD and favorable repayment terms. LCEC provides technical support and capacity building, ensuring widespread knowledge dissemination and effective project implementation.
Clients interested in implementing green energy projects through NEEREA should follow the specific process:
1. Prepare a technical report (as per the reports’ templates prepared by the LCEC) either by the client himself or by the appointed energy company including a full feasibility study with full financial and technical analysis. The report should also include the total amount of the requested loan.
2. Pick a commercial bank where the loan is then studied.
a. Based on the Circular No. 545, projects and loan requests not exceeding 20,000 USD do not require the direct approval of BDL; hence, the report will be sent directly by the commercial banks to LCEC.
b. For loan amount exceeding 20,000 USD, the commercial bank first submits the technical report to BDL for approval and BDL, in turn; sends the official report to LCEC for technical verification.
3. The report, once studied by LCEC, is re-sent to the commercial bank or to BDL to review and send the results to the commercial bank.
4. The commercial bank informs the client whether the loan is granted or rejected. If granted, the client can then implement the technical solutions.
This process takes around three months based on the quantity of applications and availability of information. Disciplinary action will be taken if the final execution diverges from the original plans.
Download Center for NEEREA Templates, Guidelines, Memos and BDL Circulars. https://lcec.org.lb/our-work/partners/NEEREA
