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A presentation by Mongi Hamdi Chief, Science and Technology, UNCTAD

Energy Integration In North Africa. A presentation by Mongi Hamdi Chief, Science and Technology, UNCTAD 10th Africa Oil and Gas Conference Algiers. 2-5 April 2006. NOT AN OFFICIAL UNCTAD RECORD. Importance of Energy. Important growth of energy demand

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A presentation by Mongi Hamdi Chief, Science and Technology, UNCTAD

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  1. Energy Integration In North Africa A presentation by Mongi Hamdi Chief, Science and Technology, UNCTAD 10th Africa Oil and Gas Conference Algiers. 2-5 April 2006 NOT AN OFFICIAL UNCTAD RECORD

  2. Importance of Energy • Important growth of energy demand World’s energy needs would be more than 50% higher in 2030 than today Source: International Energy Agency, Key Energy Statistics, 2005

  3. Energy resources in Africa • Africa is rich in natural resources While African energy resources are abundant, the distribution of the various resources across the continent is uneven In 2004, Africa earned more than $30 billion more on oil exports than in 2003. Source: International Energy Agency, Overview of the World Energy Situation 2002-2003

  4. Energy Situation in North Africa • The distribution within the North African countries is uneven • Algeria, Libya and Egypt are major producers. Tunisia, Morocco and Mauritania are importers . Source: BP Statistical Review of World Energy,2004

  5. Need for Energy Integration • Individual country based planning has a number of limits: • Boundaries do not necessarily reflect the geography of energy supply options • Market size availability (e.g., European market) • energy investors are not often attracted for small national markets • integration as a way for strengthening individual countries to join the global economy

  6. Benefits of Energy Integration Energy integration and cooperation offer North African countries great opportunities to develop their energy sectors and gain social and economic benefits from a more efficient use of resources • Security of supply and flexibility: diversification of energy sources • Expansion of market size and promotion of economic integration and growth • Provision of incentives for private investment • Contribution to energy trade

  7. North African Experience • Long history of energy integration with a number of successful experiences especially in electricity and gas interconnections • Simplified by the geographic distribution (Population on Mediterranean coastline)

  8. North African Experience • Electricity: • Algeria and Tunisia first linked their electricity networks to exchange power in emergency cases in the early 1950s • A Libya-Egypt 220 kV connection came into operation in 1998. • The Libya-Tunisia 220kV link was completed in 2001. • The Tunisia-Algeria-Morocco 220 kV link has been in synchronous operation with the European system since October 1997 through a Morocco-Spain 400 kV submarine cable. • The 220kV links from Egypt to Morocco will be upgraded to 500kV/400kV to increase transfer capabilities by 2007

  9. North African Experience • Gas: Two major interconnections • Algerian gas pipeline to Italy via Tunisia, called Transmed formally inaugurated in 1983 • Maghreb-Europe Gas (MEG) line from Algeria to Spain via Morocco • While these are examples of advanced forms regional collaboration, they demonstrate that market availability is key driving force for energy integration. Source: World Energy Council, 2005

  10. Recommendations • Put in place a set of compatible policy frameworks to guide energy cooperation and development • Promote private-sector partnership • Develop joint energy companies, R&D facilities and energy projects • Exchange of information on national energy plans and data • Reinforce scientific and technological cooperation

  11. Thank you for your attention Mongi Hamdi Chief, Science and Technology Tel: 41-22-917-5069 Email: mongi.hamdi@unctad.org http://www.unctad.org/stdev

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