General overview of renewable energy and in Southern and Eastern Mediterranean countries

1. German-Italian Cooperation for the Development of Renewable Energies in the Mediterranean Berlin, 28 March 2008 General overview of renewable energy and in Southern and Eastern Mediterranean countries Dr Houda BEN JANNET ALLAL, OME

2. OME • Context • Present situation and prospects • Example of ongoing projects • Conclusion

3. OME essentials The OME is a unique association, gathering today 34 leading energy operators from the North and from the South, from producing and consuming countries, from emerging economy and industrialized countries with the aim to: (i) promote regional cooperation based on concrete projects, -(ii) promote dialogue (iii) carry out joint and shared analysis on issues related to long term energy supply and demand, infrastructure needs, financing, institutional framework, regulation, renewable energy and sustainable development, economic development and environmental protection

5. Missions & Objectives Objectives Think Tank - Reference on Mediterranean Energy Issues - Expertise - Studies and Publications - Mediterranean Energy Database & Scenarios • Promoting Cooperation & Partnership • - Mutual Technical Assistance between Members - Capacity building - Communication and Events Consulting & Advice Monitoring & Scenarios Cooperation & Partnership

6. Strategy of OME - 1 OME member companies have agreed that: : • Based on their long experience in project implementation in the region, at all levels of the energy supply chain, they continue to commit to the development of energy projects in the Mediterranean, thereby helping the creation of the Mediterranean energy market; • The energy infrastructure in the Mediterranean basin should be developed with the goal of providing access to affordable energy for the local populations and allowing the reinforcement of energy trade which will enhance solidarities among the different Mediterranean countries;

7. Strategy of OME - 2 • Energy projects must be implemented on a commercial basis to take full advantage of the financing capabilities of the companies and existing institutions.The need remains, however, to provide financing resources to those activities which would not be undertaken autonomously by the enterprises; • The realization of energy projects needs the utmost attention from policy makers as it constitutes an important field of cooperation. In order to promote energy projects, the appropriate policies and instruments should be introduced. National Governments and the European Union should increase their commitment to energy-related initiatives in the Mediterranean region.

8. 400 350 SEMCs 300 250 200 millions inhabitants NMCs 150 100 50 0 1950 1970 1980 1990 2000 2010 2020 Source: Plan Bleu, OME Demography in the Mediterranean Basin

9. Urban Population (share of the total) Urbanization rate in the MCs increased from 50.5% to 51.9% between 2000 & 2006. Currently, the urban rate varies from about 43% in Egypt to 65.3 % in Tunisia (63.3 % in Algeria & 55.5 % in Morocco).

10. 2005-2020 SEMCs 7000 Average growth per year: NMCs Total MED. 3.0% NMCs 2.5%; SEMCs 4.9% 2000-2005 6000 23% Avg. growth per year: Total MED. 2.1% NMCs 1.7%; SEMCs 3.8% 5000 19% 1971-2000 Avg. growth per year Total MED. 2.9% 4000 17% GDP using exchange rates (billion $2000) NMCs 2.7%; SEMCs 3.7% 16% 3000 14% 13% 81% 77% 2000 12% 83% 84% 86% 1000 87% 88% 0 1971 1980 1990 2000 2005 2010 2020 Economic Development in the Mediterranean

11. Energy sources in the South Med countries The SMCs are unequally endowed with hydrocarbon resources Range between large exporters to totally importers Two countries (Algeria & Egypt) are high energy exporters and two countries (Tunisia & Morocco) are net energy importers It is nowadays widely recognised that energy will continue to play an important role in all the MCs, importers or exporters of energy. The national energy policies are largely linked to the energy resources available in each of these countries

12. Total Oil Reserves = 6145 Mt Total Gas Reserves = 8340 bcm 4580 400 370 1870 1500 1400 3900 445 Oil Reserves Gas Reserves Source: Reserves from BP & CEDIGAZ Oil (Mt) & Gas (bcm) Reserves

14. Primary energy consumption The 145-million population in MCs is consuming 112 Mtoe of primary energy (of wh. 53 Mtoe of gas, 52 Mtoe oil & 6 Mtoe coal) & 154 TWh of electricity. Number of customers in residential sector is 26.6 million for electricity and 2.5 million for natural gas. Although the global electrification rate reached 96.6%, about 6-10 million of persons still have no access to electricity. Efforts are deployed in the renewable energy sector in the MCs particularly in wind and solar energy and PV installations for electrification of remote villages, isolated rural households and rural schools.

15. Electricity generation in the MCs (175 TWh in 2006)

16. Electricity today and in 2020 Share of energy sources in power generation for SEMCs

17. Rural electrification rate

18. Installed capacity and production of electricity 2005 18 Source: Observatoire Méditerranéen de l’Énergie

19. Electricity networks and links

20. Electricity med ring

21. Energy indicators

22. RE in SEMCs: high potential but relatively modest present situation Source: OME

23. PV applications

24. Wind Capacity Installed (MW)

25. Wind Generation (GWh)

26. Hydro Generation (in GWh)

27. Energy dependency is increasing …

28. CO2 Emissions from Energy Consumption in the Mediterranean Source: OME

29. Key energy messages valid also for SEM “On current trends, we are on course for an unstable, dirty & expensive energy future” quote from IEA Executive Director • A more sustainable future is needed • A more sustainable future is possible • High potential for energy efficiency • Renewable energy have also an important role to play • OME is working on these issues through its RESDC

30. Barriers need to be removed • Institutional and legal barriers: in most of the countries, there is no institutional and regulatory framework specific to RE • Competing resources: RE are competing with conventional energies relatively abundant, widely deployed and subsidised in several countries of the region.

31. Regional and international context is favourable • Regional: EC, EIB, MEDREP, MEDENER, MEDITEP, OME • Kyoto Protocol: the Clean Development Mechanism, an opportunity not yet fully exploited • The Mediterranean Strategy for Sustainable Development: a framework in favour to RE and EE • RE perspectives are encouraging

32. RE perspectives are encouraging in the SEMCs Source: OME

33. Several ongoing projects • Regional projects supported by the EC (6th FP, 7th FP) • Euro-Mediterranean consortium • Projects coordinated by OME: • MEDRES (RE in rural and peri-urban areas; Algeria, Egypt, Morocco & Tunisia) • REMAP (CSP and wind; Algeria, Jordan, Tunisia & Turkey) • MED-CSD (CSP and water desalination; Algeria, Egypt, Jordan, Morocco, PNA)

34. Thank you Contact allal@ome.org