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GEFF loan is helping a Lebanese steel stockholder reduce its dependence on diesel by installing a solar PV system.
Founded in 1922, the Demco Steel has grown from a local steel stockholder to a globally geared source for steel-related services. Demco Steelis currently a local market leader handling a turnover of over 400,000 tons of steel per year.
To decrease its energy bills and its dependence on diesel generators the company decided to install a solar PV system. They approached the GEFF team who analysed the investment and the potential energy savings, the financial-technical parameters of the project and its risks.
The project included the purchase and installation of a rooftop solar PV plant with a total capacity of 1,017 kWp. The system will help Demco Steel reduce its carbon footprint.
The US$ 1,000,000 investment allowed the company to reduce the electricity consumption by 1,291 MWh per year, resulting in the annual costs savings of US$ 196,225. This means the investment will be repaid out of energy savings in 5.7 years, continuing to generate profit for many years to follow.
The PV system will lead to a reduction of the CO2 emissions by 1,155 tonnes per year, making a valuable input towards climate change mitigation.
The Green Economy Financing Facility in Lebanon was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by International Cooperation and Development Fund – (TaiwanICDF)