RCREEE-enerMENA_renewable elec. development in arab region

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Renewable Energy for Project Planners and Managers:enerMENA Professional Training Course for CSP
19-23 August,2013
Cairo, Egypt.

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RCREEE-enerMENA_renewable elec. development in arab region

  1. 1. Renewable Electricity Development in the Arab Region Maged Mahmoud Senior Expert, RCREEE August 2013
  2. 2. 2 Who We Are  Independent not-for-profit center  Currently funded by Germany, Egypt, Denmark and EU  Legitimacy through regional governments  Native qualified experts  Headquartered in Cairo, Egypt  Strong global partners network Our Mission “To enable a sustainable growth in Arab states’ adoption of renewable energy and energy efficiency applications and initiatives through leading regional policy dialogues, learning, and research.”
  3. 3. 3 RCREEE in Numbers  12 Permanent staff  13 National focal points  13 BoT members  5 Executive committee members  €1 Million of annual total fund Our Mission 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 German Grants Danish Grants Egyptian Grant Fee-for-Service Contracts Funding Trends (2011-2012) (Amounts expressed in Egyptian pounds) 2011 2012
  4. 4. 4 Our Member States
  5. 5. 5 Our History Oct: Bahrain, Iraq, and Sudan Joined RCREEE bringing number of member states to 13. Dec: MoU signed with IRENA. 2009 2011 Jun: Strategic business plan (2013-2016) approved. 2012 Aug: Host Country Agreement with Egypt signed giving the center an international NFP status. Nov: Project Implementation Agreement between the goverments of Egypt and Germany enabling a start up funding for RCREEE of €4 million from Egypt and €6 million from Germany. Dec: Grant Agreement with GIZ providing €1,5 million to RCREEE as direct fund. 2010 Jun: Cairo Declaration signed to found RCREEE. 2008 Feb: Organizational Charta adopted by the founding member states. Jul: Strategic alliance with LAS. Dec: Grant agreement with DANIDA providing €12,75 million fund. Apr: MoU signed with Dii. Sep: Launching AFEX. 2013
  6. 6. 6 Principal Organizational Structure Board of Trustees 13 representatives (one of each Member State) Executive Committee 5 representatives (3 Gov. and 2 Private Sector) Secretariat Executive Director and staff (11 staff and 8 Interns) NationalFocalPoints GIZ Advisory Section
  7. 7. 7 Our Experts Dr. Tareq Emtairah , Executive Director 15+ Years of experience in sustainability, environmental socioeconomics, energy policies management, and transition management fields combining both corporation and public authority perspectives. Amal Mrad Bida, Program Manager – Research and Analysis Mrs. Amel Bida is a seasoned professional with 25 years of experience in renewable energy, energy efficiency, climate change, clean development mechanisms, and carbon finance fields. Eng. Maged K. Mahmoud, Program Manager – Capacity Development Engineer Maged K. Mahmoud is a renewable energy and energy efficiency, research, and development expert. His pioneering expertise focuses on solar and wind energy R&D, as well as planning on strategic and project levels. Eng. Ashraf Kraidy, Program Manager – Technical Assistance Engineer Ashraf Kraidy is a renewable energy and energy efficiency expert with 11 years of expertise in cost- effective policies design institution capabilities, technical assistance, and implementation strategies in the Arab region. Nurzat Myrsalieva, Policy Analyst
  8. 8. 8 Our Work Areas Research and Analysis • Data collection and analysis • Reports, indexes, and performance indicators • Maintaining a regional database • Monitoring and assessment • Specific studies • Publishing and dissemination • Research and development grants Capacity Development • Pricing and tariffs • Projects planning and management • Products and services certification and standardization • New technology orientation • Energy service providers regulations and certification • Statistics, research, and data analysis Technical Assistance • Certification and standardization schemes and guidelines • Policies and regulations design • Implementation planning • Compliance guidelines • Projects tendering processes design and guidelines • Research and development grants
  9. 9. 9 Awareness of Stakeholders National Policies & Regulations Our Results Framework A Significant Share of Renewable Resources and a Highly-Efficient Energy Consumption in the Arab Region Public & Private Investments Institutional Capacities & Technical Standards Facts & Figures Institutions People Policies Finance
  10. 10. 10 Examples of RCREEE Products Result Area Focus Policy ----------------------------------- Institutions ----------------------------------- People •Study on the impacts assessment of RE & EE policies in RCREEE MS •Arabian RE Strategy (with LAS) •National Energy Efficiency Actions Plans (with LAS) •Energy Efficiency Indicators study •New Perspectives for Carbon Trading for RE&EE Projects ----------------------------------------------------------------------------------------------------------- •Land use agreement models for RE projects •RE pricing systems, the Feed in Tariff systems •SWHs Certification and Standardization (with LAS) •Development of a Compliance Tool for Building Energy Efficiency Code --------------------------------------------------------------------------------------------------------- •Fundamentals of Wind Energy (planning and modeling / O&M of wind farms) •Energy Audit in the Building sector •Financing RE projects •EE measures and plans. •Solar-MED-Atlas •Solar Power Technologies •Carbon Trade for RE&EE projects •Labels & Standards for Home Appliances •NAMA potential in RCREEE member states RCREEE organized over 30 technical traning and expert workshops. Close to 700 participants from the Member States joined these events supported financially by RCREEE. At the same time RCREEE organized and supported 4 conferences in the region.
  11. 11. 11 Selected Publications Renewable Energy Country Profiles 2012 Energy Efficiency Country Profiles 2012 Latest Electricity Price Schemes in RCREEE Member States CDM in RCREEE Member States Wind of Change in Arab and International Energy Systems: Electricity from Wind (Arabic) Energy Efficiency Indicators in the Southern and Eastern Mediterranean Countries The Annual Progress Report of NEEAPs (Arabic) Land Use Agreement Model Power Purchase Agreement Model RCREEE Member States among the First Movers to the NAMAs Energy Efficiency Labels and Standards for Home Appliances in RCREEE Member States (Arabic) SHAMCI Certification Rules
  12. 12. 12 Native Arab and international experts network Regional knowledge exchange and integration Dedicated local and offshore capacity development programs Dedicated technical assistance to local institutional and policies design initiatives Legitimate voice of true and accurate data from local sources The RCREEE Advantage Covered offshore internship opportunities Dedicated local focal points Chair in the center’s steering committee 13 Arab sates are already members
  13. 13. Our Partners Network UNESCWA RCREEE successfully developed a substantial network of cooperation partners. These partnership constitute an important relational capital for achieving our objectives. Founders Cooperation Partners
  14. 14. 14 “The best way to predict your future … is to create it.” Peter Drucker Renewable Electricity in the Arab Region
  15. 15. Electricity Generated in RCREEE Countries In 2011, the generated electricity from RE reached about 0.6% in RCREEE states. The highest share was in Morocco with 2.9% In the same year , the share of Hydropower was more than 7%. The highest percentage reached was in Sudan with 76.3% RCREEE 2012.
  16. 16. Electricity Markets
  17. 17. Electricity Markets
  18. 18. 0 5 10 15 20 Syria Bahrain Iraq Libya Egypt Yemen Lebanon 2010 Sudan Jordan Tunis Morocco Palestine Price ($cent/kWh) Country Average price of Electricity at Average household Consumption Electricity Markets 0 5000 10000 15000 Yemen Sudan Morocco Palestine Algeria Tunis Iraq Egypt Syria Lebanon Jordan Libya Bahrain kWh Country Consumption per capita (kWh) in 2010 RCREEE 2012. RCREEE 2012. The countries considered are those members in the Regional Center of Renewable Energy and Energy Efficiency (RCREEE), i.e. the southern and eastern Mediterranean Arab Countries plus Bahrain, Iraq, Sudan and Yemen.
  19. 19. Share of RE (installed capacity MW) RCREEE 2013
  20. 20. RE in RCREEE Countries RCREEE 2012. Realized, under construction, awarded and tendered RE projects in RCREEE Countries The countries considered are those members in the Regional Center of Renewable Energy and Energy Efficiency (RCREEE), i.e. the southern and eastern Mediterranean Arab Countries plus Bahrain, Iraq, Sudan and Yemen. The capacities include the awarded and under construction projects, e.g. the 60MW wind under construction in Libya and the recently awarded PV projects in Bahrain are taken into consideration, the total capacity of wind in Egypt includes the operational 550MW plus the recently awarded 200MW, similarly, the Moroccan CSP capacity includes the operational 20MW plus 160MW recently awarded, and so on. RCREEE 2012.
  21. 21. Operational Capacities and Targets Solar Energy 2800 MW CSP + 700MW PV by 2027 2800MW PV+7200MW CSP by 2030 2000 MW by 2020 ~ 1700 MW by 2030 400 MW CSP+800MW PV by 2025 200 MW by 2020 20MWPV+40 MW CSP by 2016 1750MWPV+ 250MW CSP by 2030 40MW PV+20MW CSP by 2020 Existing end 2011: ~75MW PV+ 65 CSP 100MW PV+ 500MW CSP 150MW by 2020 Only for RCREEE MS
  22. 22. Operational Capacities and Targets 114 MW Wind Energy 550 MW >7200 MW by 2020 ~1750 MW by 2030 2000 MW by 2020 ~ 2700 MW by 2030 1000 MW by 2025 1.4 MW 2000MW by 2030 200 MW by 2020 ~ 350 MW by 2016 400MW by 2016 18MW by 2020 Existing end 2011: ~957 MW 1200 MW by 2020 400 MW by 2025 Only for RCREEE MS 291MW
  23. 23. Capacities 0 200 400 600 800 1000 1200 Iraq Lebanon Palestine Bahrain Algeria Jordan Syria Libya Yemen Sudan Tunis Morocco Egypt Capacity (MW) Realized, under construction, awarded and tendered RE projects (MW) - end 2011 Wind CSP PV RCREEE 2012. The countries considered are those members in the Regional Center of Renewable Energy and Energy Efficiency (RCREEE), i.e. the southern and eastern Mediterranean Arab Countries plus Bahrain, Iraq, Sudan and Yemen. The capacities include the awarded and under construction projects, e.g. the 60MW wind under construction in Libya and the recently awarded PV projects in Bahrain are taken into consideration, the total capacity of wind in Egypt includes the operational 550MW plus the recently awarded 200MW, similarly, the Moroccan CSP capacity includes the operational 20MW plus 160MW recently awarded, and so on.
  24. 24. Investments 0 200 400 600 800 1000 1200 Iraq Lebanon Palestine Bahrain Algeria Jordan Syria Libya Yemen Sudan Tunis Morocco Egypt Investments ($ million) Accumulated investments for realized, under construction, awarded and tendered RE projects ($ Million) 2011 2008 RCREEE 2012. The countries considered are those members in the Regional Center of Renewable Energy and Energy Efficiency (RCREEE), i.e. the southern and eastern Mediterranean Arab Countries plus Bahrain, Iraq, Sudan and Yemen. The capacities include the awarded and under construction projects, e.g. the 60MW wind under construction in Libya and the recently awarded PV projects in Bahrain are taken into consideration, the total capacity of wind in Egypt includes the operational 550MW plus the recently awarded 200MW, similarly, the Moroccan CSP capacity includes the operational 20MW plus 160MW recently awarded, and so on. Some investments for projects were not disclosed , and accordingly estimations based on average regional market prices were used for different technologies , taking into account the year of operation for relevant project and the corresponding cost trends , e.g. PV off grid systems prices used were $ 8,7,6, and 5/kWp for the years 2008, 2009,2010, and 2011 respectively
  25. 25. 0% 2% 4% 10% 10% 10% 12% 15% 20% 25% 40% 40% 42% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Bahrain Iraq Syria Jordan Libya Sudan Lebanon Yemen Egypt Palestine Algeria Tunis Morocco RE Share (%) Renewable Energy Targets in RCREEE Countries RCREEE 2012. The countries considered are those members in the Regional Center of Renewable Energy and Energy Efficiency (RCREEE), i.e. the southern and eastern Mediterranean Arab Countries plus Bahrain, Iraq, Sudan and Yemen. The capacities include the awarded and under construction projects, e.g. the 60MW wind under construction in Libya and the recently awarded PV projects in Bahrain are taken into consideration, the total capacity of wind in Egypt includes the operational 550MW plus the recently awarded 200MW, similarly, the by 2020 (electricity) by 2030 (electricity) by 2030 (electricity) by 2020 (energy) by 2020 (electricity) by 2025 (electricity) by 2020 (electricity) by 2016 (electricity) by 2025 (electricity) by 2020 (P.E.) by 2030 (P.E.) by 2030 (electricity) Targets
  26. 26. RE Policies Landscape in Arab Countries RE projects development approaches Public EPC PPP Private Competitive bids FiT Net metering Auto- producers (self or 3rd party) Most of operational RE projects !!!!! Preferred (backup and wheeling agreements !) New but promising !! Emerging trend !!!!! Mainly for small to medium scale projects
  27. 27. Markets Net-meteringFiT Public Competitive Bidding Country PPALegal basis ●●●Algeria Bahrain ●●●Egypt Iraq ●●●Jordan ●Lebanon Libya ●●Morocco ●●Palestine ●●●Syria Sudan Tunisia Yemen RCREEE 2013
  28. 28. Several positive measures are being taken by some governments to ensure financiers’ interest: Taxes exemptions. Availing land, Financial contributions for investments and grid infrastructure. Grid connection permission, priority in access/dispatching RE Fund Long term PPA/financial guarantees Public projects Most of operational projects !!!!! RE Policies Landscape in Arab Countries
  29. 29. Public ownership model for the first large scale RE projects Rationale: Public utilities/agencies could take advantage of : • Grants and soft loans availed through international cooperation • lower cost debt compared to private developers, • longer debt payment periods • loan sovereign guarantees. • Public utilities/agency would also require very low ROE compared to private developers. Public projects Most of operational projects !!!!! RE Policies Landscape in Arab Countries
  30. 30. Competitive bids Emerging trend !!!!! Competitive bidding  IPP – BOO approach (already adopted in some countries) Rationale: Countries could take advantage of : • Controlling the increase in RE capacities with reference to the capacity of transmission system and capacity of the market to absorb. • Increasing local manufacturing. • Increasing private investments. • Achieving the lowest possible prices. • Providing the investors with guarantees through long term power purchase agreements •Sometimes designed as a fast track for private investments to be followed by FiT •Mostly targeting large-scale projects. • Innovative resource risk mitigation approach (joint campaign for qualified developers) RE Policies Landscape in Arab Countries
  31. 31. Markets IPP option PPA FiT Public bidding Auto-producer option Net-metering Grid access & dispatch priority Grid interconnections with neighboring countries Grid connection rules (grid code) RE Target Fossil Fuel / Energy Subsidies RE Agency Institutional Support Land allocation Tax incentives Grants, subsidies, loans Carbon/green credits Risk mitigation supports ….. Several elements to consider
  32. 32. Key Challenges Grid Expansion and Stability Integrating RE projects into power systems is manageable, but not costless. National grids need to be expanded and/or strengthened to connect remote windy and sunny area with load centers. The variability of RE and the needed balancing capacities are a major concern for grid operators in Arab countries. Unlike EU countries, Arab planners and grid operators have very limited experiences in accommodating increased RE penetration (distributed generation systems, codes, forecasting systems, or RE control Centers!!) Grid s !!!!
  33. 33. Eight Countries Interconnection Project EG LY JO SY IQ lebenon Iraq Palestine Turkey Libya Egypt Jordan Syria The network in south Mediterranean is linked as “chain”, not as a “spider- net” like the UCTE.
  34. 34. Key Challenges Interconnection & Export of Electricity Source : http://www.auptde.org/ Interconnection between Arab Countries is still isolated and the transmission capacities are limited. The EU directions set conditions on renewable electricity produced in third countries, that such RE electricity is physically transferred to EU Member states. MSP, Desertec !!!!!!!!
  35. 35. "One hour of planning will save ten hours of doing.“ Don Whetmore
  36. 36. 36 Annual Progress Report National Renewable Energy Action Plan (NREAP) Arab Renewable Energy Framework (AREF) Arab Renewable Energy Strategy
  37. 37. Article 1: Scope Article 2: NREAP Article 3: Joint Projects Article 4: Admin. Procedures Article 5: Training Article 6: Grid Access Article 7: Reporting Article 8: Information Platform AREF Arab Renewable Energy Framework Albrecht Kaupp 37
  38. 38. National Renewable Energy Action Plans The purpose of the template is to ensure that NREAPs are : - covering all essential elements, and - comparable with future periodical reports issued by the country or other Arab Countries willing to use the template. Arab National Renewable Energy Action Plans
  39. 39. Arab National Renewable Energy Action Plans 1. Summary of national renewable energy policy 2. Expected Final Energy Consumption up to 2020 & 2030 3. Renewable energy targets and trajectories 4. Measures for achieving the targets 5. Assessments Arab NREAP
  40. 40. “Speed is irrelevant if you are going in the wrong direction.” Mahatma Gandhi
  41. 41. Good ideas will linger on shelves, unless we support them ourselves Thank you Maged Mahmoud Senior Expert Regional Centre for Renewable Energy and Energy Efficiency (RCREEE) Building of the Hydro Power Plants Execution Authority, 7th floor, Ministry of Electricity and Energy , Melsa District – Ardh El Golf Nasr City - Cairo, Egypt maged.mahmoud@rcreee.org T. +2-02-24154691 M.+2-01005269400 F. +2-02-24154661 w. www.rcreee.org

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