About RCREEE Energy Statistical Profile of the Region RE&EE Arabian Plans and Initiatives Barriers To Renewable Ener

2. Presentation Content: • About RCREEE • Energy Statistical Profile of the Region • RE&EE Arabian Plans and Initiatives • Barriers To Renewable Energy Deployment In the Member Countries • Oriented Recommendation to face existing Challenges

3. About RCREEE….. • RCREEE stands for « Regional Centre for Renewable Energies and Energy Efficiency » • RCREEE is an independent regional policy think tank, dedicated to the promotion of RE&EE in the MENA region, • RCREEE main fields of work: - Policy Framework - Research and Development - Public Private Partnership - Capacity Building • RCREEE is working to be a leading centre of excellence on the international level Who’s RCREEE?

4. About RCREEE….. RCREEE Member States: RCREEE has ten founding members from the MENA region. The set up is sponsored by Egypt (also the host country), Germany, the EU and Denmark.

5. About RCREEE….. Governance Structure Board of Trustees (“BoT”) Advisory Membres Representatives of 10 Member States Development partners (no voting rights) Emminent persons (no voting rights) Executive Committee 5 representatives (Maghreb/Mashreq/host country plus two from the private sector) Secretariat Director Two Deputies, composition to reflect the regional character of the centre (Maghreb/Mashreq/host country) and the required expertise (RE/EE, R&D, PPP) 10 Correspondents (One for each Member State) Staff

6. Energy Statistical Profile • of the Arab Region • Efficiency • - RE Potentials

7. Energy Statistical Profile Hydrocarbon Reserves and Production Key parameters for hydrocarbon reserves and production in oil producers countries among RCREEE member states Source: BP and EIA

8. Energy Statistical Profile Energy Independency Energy Independency is the percentage of energy imported compared to the total energy supply [(Domestic demand – Domestic supply) / Domestic demand]*100 = [net imports/ Domestic demand]*100 Energy Independency in some of RCREEE countries in 2008 Source: Plan Blue Project

9. Energy Statistical Profile…Efficiency Energy Efficiency Energy Intensity Energy per Capita Source: Energy Information Administration: International Energy Statistics Database Energy use (toe) per capita in comparator groups Energy intensities from other regions (kgoe/GDP ($US) at market prices in 2005 $)

10. Energy Statistical Profile…Efficiency Electricity Efficiency Electricity intensity in RECREEE and other regions (kWh/$1990) Source: Energy Information Administration: International Energy Statistics Database and UN Statistical Division Main Aggregates Data Base

11. Energy Statistical Profile…Efficiency Why Efficiency..? • The results of the analysis show that the levels of energy use in RCREEE countries are generally higher compared to GDP than in other regions. • High energy intensities will make industry in RCREEE countries uncompetitive and will expose the countries to potential oil price shocks and to large import bills for energy in some countries. • There is a clear case for adopting enhanced policies for energy efficiency.

12. Energy Statistical Profile…RE Potentials RE Opportunities • The Arab Region is endowed with: • Abundant solar radiation. • Long duration of sunshine. • Good to excellent wind speed. • Significant hydro power. • Reasonable quantities of biomass energy. • However, RE is still facing many barriers and constraints vis-à-vis large scale deployment in the region. • Thus, the objectives of this paper is to capture promising opportunities, to point out the prevailing challenges and to show the trends of RE sector.

13. Energy Statistical Profile…RE Potentials Solar Energy • The capacity of solar energy resources is excellent in all member Countries with an annual global solar radiation varying between 4 to 8 kWh/m2. • The region also enjoys high direct normal radiation and low average cloud cover. • Electricity production from both Concentrating Solar Thermal Power (CSP) and Photovoltaic (PV) has a good potential, due to the fact that the incident solar radiation on the region is higher than the required value of (1800 kWh/m2/year).

14. Energy Statistical Profile…RE Potentials Solar Energy Map

15. Energy Statistical Profile…RE Potentials Solar Energy for Thermal Power Plants

16. Energy Statistical Profile…RE Potentials Direct normal and global horizontal irradiant

17. Energy Statistical Profile…RE Potentials Wind Energy • MENA Countries have good potential of wind energy since most have an annual full load hours of over 1400 h/year, which is considered a long-term economic potential. • Several countries such as Egypt and Morocco have a very good wind resources (wind velocity range between 8-11 m/sec)

18. Energy Statistical Profile…RE Potentials Wind Energy Map

19. Energy Statistical Profile…RE Potentials Potential of wind energy Source: Al-Karaghouli A."Current Status of Renewable Energies in the Middle East – North African Region", UNEP/ROWA, June 2007. Capacity factor refers to the percentage of average annual full load hours to total annual number of hours (8760 h/y).

20. Energy Statistical Profile…RE Potentials Potential of wind energy

21. Energy Statistical Profile…RE Potentials Biomass Energy • Traditionally used widely in rural areas for small purposes. • MENA Region is arid/semi-arid in nature, thus small amount of forest and agriculture residues are available • The biomass energy potential is mainly available for most Countries from municipal waste.

22. Energy Statistical Profile…RE Potentials Hydro Energy • Several countries in the region particularly, Egypt, Lebanon, Syria, Tunisia, Morocco and Algeria have hydro resource. • The overall Share of hydro electricity is only 5.78% of the total electricity produced. This portion is very small compared to the available hydro potential in the Region.

23. Energy Statistical Profile…RE Potentials Economic potentials of renewable energies for electricity generation Economic potentials of renewable energies for electricity generation in RCREEE member states (TWh /a ) Source: German Aerospace Center DLR (2005)

24. EE&RE National Targets

25. RE&EE National Targets National Renewable Energy Targets P.E: Primary Energy E.E: Electrical Energy

26. RE&EE National Targets National Energy Efficiency Targets

27. RE&EE Arabian Plans and • Initiatives • Energy Efficiency Guideline • - RE Strategy

28. RE&EE Arabian Plans and Initiatives Arab Renewable Energy Strategy • LAS is preparing an Arabian Strategy for RE. • RE&EE Experts Committee assigned to e the mission, RCREEE is a member in this committee • The strategy includes five sections : • 1- Electricity in the Arab world • 2- Arabian Strategic Targets to develop RE • 3- Strategy activating procedures • 4- Expected Results • 5- Conclusion • RCREEE is a member of the team responsible of preparing the second section and is a leader of the team responsible for preparing the fourth section

29. RE&EE Arabian Plans and Initiatives Arab End Use Electrical Energy Efficiency Guideline • Set a 10 year EE target • Assign an existing or a new public entity to draw a 3 year National Energy Efficiency Action Plan (NEEAP) • Public sector to lead by example (exemplary role), • Utilities to provide services or contributing to a fund • 3 years progress report to be submittal to League of Arab states showing the achieved savings • RCREEE is a member of the team responsible of preparing the Arab EE guideline • And will play the watch role for implementing and evaluating the NEEAPs

30. Barriers To RE&EE Deployment • - Policies and Institutional • Barriers • - Economic Barriers • - SocialBarriers • - Market and Financial Barriers

31. Barriers To RE&EE Deployment Policies and Institutional Barriers • The absence of an effective policies, legislations and regulations in some cases, • Lack of favorable import for RE&EE products and components as well as conducive policies to promote RE&EE developments; • Limited scope for R&D institutions to interface with international bodies and to share expertise already existing within the sector; • Private Sector is heavily constrained by regulations • Regulatory measures are requested to stimulate market opportunities and needs support to introduce innovative methodologies, attractive schemes, investment capital, and flexible financial mechanisms

32. Barriers To RE&EE Deployment Economic Barriers • Generally high subsidies on oil and gas • Different level of taxation & customs for RE&EE equipment • Public sector RE&EE industry has no incentives to react to market demand • No special incentives to promote RE&EE investment, • Unavailability of financial mechanisms and instruments encouraging RE&EE manufacturing • The high cost of capital, and lack of access to capital & financial institutions.

33. Barriers To RE&EE Deployment Social Barriers • Lack of Information about technologies • Energy has been available cheaply - no need to explore other options • Lack of mainstream marketing of RE&EE options • Lack of priority for domestic R&D programs • Lack of training & education at university and professional or vocational level • Eroded consumer trust • Domestic expertise are not sufficiently considered

34. Barriers To RE&EE Deployment Market and Financial Barriers • Direct financial incentive for both users and investors in RE&EE do not existed; • Limited/No grants or attractive interest rate for loans allocated to the purchase of RE&EE systems and equipments. • The lack of a specific line of financing, in particular for the urban SWH market, no guarantee fund for investors. • Most RE&EE companies are small size with limited financial capacities. • Low competitiveness due to fossil fuels prices,. • No taxes reduction for RE&EE projects and importing.

35. Oriented Recommendation to face existing Challenges • Benchmarking of policy • - Policy-making • - Policy support to large scale RE developments • - A common policy for standards and labels

36. Oriented Recommendation Benchmarking of policy • Benchmarking of policies will enhance the regional work towards promotion of renewable energy and energy efficiency sector in the Arab region. • This will facilitate the future coordination to achieve the addressed targets and to deal with RE&EE issues as a region. • Benchmarking should be done by: • Annual benchmarking within the RCREEE member states. • Benchmarking against international experience.

37. Oriented Recommendation Policy-making • Policy making is one of the main important factor for the deployment of RE&EE. • This measure should take into consideration: • Structuring, compilation and processing of evidences • Development of indicators • Monitoring the development and the implementation • Evaluation of the results • Developing the policy-making if needed

38. Oriented Recommendation Policy support to large scale renewable developments • Large scale renewable energy projects need special support to be promoted and disseminated, this support will include: • Financial compensation mechanisms • Industrial modernization • Maximizing local content • Fostering R&D linkages

39. Oriented Recommendation A common policy for standards and labels • Adopting a common policy for standards and labels; even for home appliances or for building or any other sector; is one of the major instruments for future coordination in RE&EE as a regional issue. • Such goal to be implemented through: • Strengthening regulatory compliance • Sharing assets (e.g. certification entities) • Developing a common label in the long-term

40. Thanks for your attention