Unlike large Chinese solar projects in the United Arab Emirates or Saudi Arabia, which were partially driven by the governments’ interest in renewable energy, Chinese PV sales in Lebanon were mostly driven by the market demand through small projects and private companies like CWorth Energy and Al Mukhtar Company, according to Bazzoun.
The Lebanese Center for Energy Conservation has received offers from Chinese companies to build large stations that generate more than 500 megawatts, said Al Khoury, but he found the rooftop market most ideal for Lebanon. “Whenever projects become bigger, they become more attractive to corruption,” Al Khoury said, ”So we try to keep it at a low level since the whole market is booming.“ In addition to the fuel shortage, Al Khoury attributed the surge to government policies in the past decade that prepared the market and, more recently, stopped subsidizing conventional fuel.
Bazzoun was skeptical, to say the least. “If the government could still supply us electricity like before, they wouldn’t let us have solar energy,” he said, “because they were making a lot of money.”
For Bazzoun, rather than any Lebanese policy, it was an American one that catalyzed the solar boom: the Caesar Syria Civilian Protection Act of 2019. Through the act, the US aimed to hold the Assad regime accountable by sanctioning those related to the conflict in Syria, but the American policy quickly had an effect on Lebanon.
Diesel, while becoming scarce in Syria, was still subsidized in Lebanon. When the price difference met the poorly regulated market in Lebanon, where some political parties had vested interests in Assad’s regime, smugglers transported diesel in truckloads across the border, raising the price inside Lebanon. When the diesel price doubled, Abu Ali decided to go solar.
Miari found the cause and effect ironic. “This is why Americans are dumb. They do something that gives the advantage to China,” Miari said.
On his latest trip to China in April, US Secretary of State Anthony Blinken again complained about Chinese overcapacity in industries including solar energy. As the US tries to build its domestic capacity, China’s dominance has become an obstacle. On May 14, Biden announced a series of China tariffs “across strategic sectors” to “protect American workers and businesses”, a White House statement said. The tariffs on Chinese solar cells will increase to 50% in 2024.
“No matter how the EU and the US tried to impose tariffs on Chinese PV products, they all ended up giving up, because they realized that ‘wool comes from the sheep’s back’, that we are really just exporting competitive product with high quality,” an executive from a major Chinese PV company who asked not to be named commented, denying that the industry is selling its excess capacity. Rather, he pointed out, that the products could remain competitive because of a well-established supply chain with complementary of Research & Development, intellectual property as well as economies of scale.
Bazzoun said that the Chinese solar panels that he sells are affordable and on par with European standards, but Miari’s view about Chinese products fell short of “good and cheap.”
“We say Chinese product is very bad. Don’t get it,” he recalled the common sentiment at his engineering school, “Right now, I can say, okay, these products are pragmatic for countries that can’t afford European equipment.”
A Gift From the East
Another important aspect of China’s PV industry, Wong said, lies in its grand strategy in the international arena: creating a community with a shared future for mankind. “I trust that Xi genuinely cares about the environment, about tackling pollution, about also — as he says — the issues that would plague and afflict ‘the community with a shared future for mankind’,” Wong commented. According to him, “symbolic pride” and “goodwill” for the global south, which will be most affected by climate change, is one of the reasons behind the strategy.
On Jan. 18, China showed its latest goodwill to Lebanon, announcing a donation of solar equipment to Ogero — Lebanon’s state-owned telecommunication operator. The equipment, which amounts to $8.5 million, will power 365 out of the 420 Ogero centers once installed, said the company CEO Imad Kreidieh. Although Ogero still needs to raise funds for installing and maintaining the equipment, which will arrive in summer 2024, the expected impact is significant. Since 2019, due to the fuel shortage, Ogero has seen more outages as local centers shut down. After partially transitioning from diesel to solar through the donation, Kreidieh expects to see a 40% cost reduction, or around $8 million.
Kreidieh said he had hedged against any overdependence of Ogero on one country by keeping a diverse pool of suppliers, but he pointed out the company’s “very strong relation” with Huawei. “Huawei played a huge role in facilitating this engagement of the Chinese government with the Lebanese one,” Kreidieh said, “and we’re glad that it materialized in that way.” Following the announcement, China will procure the equipment through a tendering process, in which Kreidieh was sure that Huawei will participate.
While other countries, including Germany and the US, had shown interest in Ogero’s transition to green energy, none had materialized, Kreidieh said. After the announcement, the US Embassy asked him for a meeting. “I felt during the meeting that there is support for the telecommunications sector and for Lebanon, but it could not exceed this understanding,” Kreidieh said, commenting on what he saw as a cautious approach by the US toward the Lebanese public sector, “since there is involvement of Hezbollah in the political side of Lebanon, the US doesn’t want to initiate any kind of action that could be understood as support — if we can say that — to Hezbollah.” In comparison, he found the flexibility of the Chinese government and companies in commercial dealings “much more comforting”.
Najat Saliba, an atmospheric chemist turned parliamentarian, is skeptical about foreign donations like these after decades of what she saw as abuse of foreign funds by corrupt Lebanese politicians. “We just finished a study showing how the government has cashed in 1.1 billion dollars to build wastewater treatment plants since 2012, and still there is nothing to show for,” Saliba commented, citing her work on accountability and environmental protection, “Of course foreign support from the international community is welcome, but I would like to know if the Chinese government has designed a mechanism of accountability that will ensure that taxpayers money will go to good use beyond the acceptance of the aid.”
In addition to the “good will,” Wong sees that “in Xi’s estimation in 50 years time, the industries that really will dominate foreign policy discussions and drive forward international partnerships are industries that are needed for a post-climate change world, given the fact of irreversible climate change.”
In Lebanon, the environmental effect of diesel generators was visceral. New research indicates a 50% higher chance of cancer for Beirut residents because of the diesel fumes.
Although diesel generators are not going away anytime soon, the solar energy boom has brought Lebanon much closer to its goal for renewable energy to make up 30% of the country’s energy sector by 2030. In 2020, it was trailing behind its national target with renewables making up only 12% of the national demand. Four years later, the country has reached between 20-25% and Al Khoury expects it to meet the 2030 goal well ahead of the deadline.