US Ambassador to Lebanon Dorothy Shea confirmed on Friday during the launch of the Solar & Renewable Energy Fund that the US Agency for International Development had contributed $4 million to the initial capital for this Fund, saying "we are working to secure an additional $16 million from private sector investors and other donors.”
“It is my great pleasure; I am really delighted to be with you today for this launch of the Solar and Renewable Energy Fund. This initiative, managed by USAID, is the first of its kind in Lebanon,” Shea stressed.
The Ambassador went on to say that this is not the US Government’s first response to Lebanon’s energy crisis, nor will it be our last.
She explained that since 2012, the US Government, through USAID, has been providing affordable and renewable back-up electricity to homes and businesses.
“In fact, we recently launched the $30 million dollar INARA project to provide reliable and safe renewable electricity; USAID Administrator Samantha Power announced 22 new renewable energy projects across Lebanon during her visit here last November,” Shea stated.
She also underlined that Lebanese businesses are struggling in this current economic crisis, as they have limited access to financing and their capital accounts, like those of all depositors, are trapped in Lebanese banks.
Moreover, she indicated that for years, Lebanese enterprises relied on unsustainable and costly energy sources harmful to the environment, saying dependence on diesel-powered electrical generators (diesel) and intermittent government delivery of power has been taking a toll on finances, productivity, and competitiveness.
“To offset high energy costs, the US government, through USAID, put together this $20 million Solar & Renewable Energy Fund to finance the purchase and installation of solar systems, primarily solar,” Shea mentioned.
Additionally, Shea noted that the fund will lend capital to enterprises at commercial rates, anticipating that the loans will be repaid within two to three years, saying this will come from savings on reduced reliance on diesel generators.
“USAID has contributed $4 million in seed capital to the Solar & Renewable Energy Fund, and we are working to secure an additional $16 million from private investors and other donors.”
“I am thrilled that we have some of those potential other donors here with us tonight as well, and I urge all of the investors who are present here today to consider investing in the Solar and Renewable Energy Fund to sustain Lebanese enterprises while earning commercial returns on your investment. Sounds like a win-win deal to me. Through your investments and USAID’s expertise, we can help local businesses reduce operating costs to sustain their operations and their employment levels,” Shea pointed out.
She then explained that this fund will support the purchase and installation of solar generation systems for at least 25 businesses, expecting that these businesses will cut their operating costs by at least 20 percent, reducing their expenditures on electricity, and thereby boosting productivity and protecting Lebanese jobs.
Furthermore, she stated that they are confident that Lebanese businesses and investors will seize this opportunity to capitalize on the Solar and Renewable Energy Fund to support Lebanon’s economy, support the viability of Lebanese businesses, and protect Lebanese jobs, noting that "together, we can build a cleaner, more productive tomorrow."