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Session1 towards a pan arab renewable energy strategy  authored and_or presented by anhar hegazy
 

Session1 towards a pan arab renewable energy strategy authored and_or presented by anhar hegazy

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MENA Energized: Regional Challenges to "Green the Power" Sector July 28, 2009

MENA Energized: Regional Challenges to "Green the Power" Sector July 28, 2009

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  • Full Name Full Name Comment goes here.
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  • Dear Sirs!

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    Contact me by phone - 998712563590, Skype - marat19535. to Tashkent. Engineer Designer Babamuratov Marat. I am 59 years old and I'm not kidding. My older son Timur recently became an American citizen and well in Los Angeles, you can ask him to contact me by phone: 16262425232
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    Session1 towards a pan arab renewable energy strategy  authored and_or presented by anhar hegazy Session1 towards a pan arab renewable energy strategy authored and_or presented by anhar hegazy Presentation Transcript

    • Promoting Renewable Energy for Greeningthe Power Sector : The Role of Regulatory Framework in the Mashreq Countries By Anhar Hegazi Director, Sustainable Development and Productivity Division United Nations Economic and Social Commission for Western Asia The Meeting on Regional Challenges to Green The Power Sector, 28 June 2009, Sharm El Sheikh - EGYPT 1
    • Promoting Renewable Energy for Greening the Power Sector: The Role of Regulatory Framework in the Mashreq CountriesI. Greening the Power Sector; Key Figures, Options and BarriersII. Promoting Renewable Energy; the Regional Development Challenges, Opportunities and BarriersIII. Greening the Power Sector; the status of the regulatory frameworkIV. Spotlight on relevant UN system initiatives and programmesV. Conclusions and Recommended Actions 2
    • Promoting Renewable Energy for Greening the Power Sector: The Role of Regulatory Framework in the Mashreq Countries This paper focuses on: – The Regulatory Framework required to facilitate the promotion of Renewable Energy Applications in the Power Sector as an integral element for achieving national and regional Sustainable Development in Mashreq countries while facing the Global and Regional Development Challenges. 3
    • Promoting Renewable Energy for Greening the Power Sector: The Role of Regulatory Framework in the Mashreq CountriesThe Mashreq Countries, considered in this paper are the 14 Arab countries, members of UN ESCWA namely;Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, U.A.E. and Yemen 4
    • I. Greening The Power Sector in the Mashreq Countries; KEY Figures, Options and Barriers A- Key Figures • The total installed capacity in 2007 reached 123 GW, dominated by natural gas, oil and hydro (59.0, 33 and 7 %). • The region is marked by an exponential growth of demand on electricity, likely to increase by 2.6 between 2007 and 2020. • Capacity is expected to increase to 235 GW by 2020; i.e. additional capacity of about 110 GW is to be added • About 20% of the regions population in 2007 (49 millions), in poor areas do not have access to electricity, increasing energy accessability is crucial for the region’s development. 5
    • I. Greening The Power Sector in the Mashreq Countries; KEY Figures, Options and Barriers A- Key Figures (cont’d)• In 2007, The fossil resources (Oil and Gas) accounted for over 92% of the power CO2 Emissions by Sector sector consumption and a third of the Others Electricity 12% Generation regions primary energy Industry 28% 15%• New Renewables are still less than 1.0% of resources used in the sector, further actions Oil and Gas are needed. 6% Transport 39%• Nuclear option is under consideration in the region. It is expected in the fuel mix by Electricity Generation Oil and Gas Transport Industry Others 2015 through the Egyptian projects Transport, Electricity Generation, Industry and Building Sectors The emissions of the power sector accounted in 2007, for 28% of the total CO2 emissions. 6
    • I. Greening The Power Sector in the Mashreq Countries; KEY Figures, Options and Barriers B- Options Options for greening the power sector, can include: 1. Accelerating the shift to Natural Gas, whose combustion emits 1.2 times less of CO2 than that of Oil. The use of natural gas had already penetrated to the power sector and reached 59% of energy resources used in 2007 as against 3% in 1971 2. Using more efficient technologies including, rehabilitation of the old plants, larger generating units, combined cycle systems, etc., which is well considered by concerned authorities 3. Accelerating and strengthening grid interconnections and power exchanges to optimize the operation of the production plants and the needs for new production capacity, Remarkable Progress has been achieved in the region 7
    • I. Greening The Power Sector in the Mashreq Countries; KEY Figures, Options and Barriers B- Options (cont’d) 4. Promoting the Renewable Energy electricity generation • Large scale projects at local, national, intra-regional and inter- regional levels, few initiatives in the region • Distributed power systems in rural poor and remote areas. several pilot/field projects, but not sufficient 5. Promoting Demand Side Management measures (DSM), in particular in the major consumer sectors of generated electricity, Residential (56%), Industrial (26%). Progress achieved at different levels In bases of the Above, focus will be on: Promoting Renewable Energy; Challenges, Barriers, and the role of the Regulatory Frameworks 8
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers A- Development Challenges • Promoting Renewable Energy for greening the power sector can not take off by itself, it should be developed as an integral element of sustainable Development Strategies and Plans, taking into account the following regional and global development challenges: – The need to achieve sustainable development and MDGs in the region – The growing global demand for energy resources, and changes in oil prices – The increasing global trend regarding the importance of addressing climate change – The repercussions of the global financial crisis and the global food crisis 9
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities • The currently prevailing challenges at the regional and global levels constitute a supporting opportunity for promoting renewable energy in the Mashreq Countries, in a way that contributes in meeting the needs of sustainable development in general and the power sector in particular, creates job opportunities for youth, contributes to the mitigation of climate change, and achieves national and regional interests. • The following are highlights of these opportunities and the possibilities relevant to each development challenge; 10
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d)1- The need to achieve sustainable development and the MDGs,Create opportunities for promoting Renewable Energy:Goal 1 : Eradicate Extreme Poverty and HungerEnergy inputs are essential for promoting productive activities, foodsecurity and all domestic activities; as well as industrial, agriculture,transportation, and commerce micro-enterprises activities that generatejobs and income.Goad 7 : Ensure Environmental SustainabilityEnergy production and consumption has many adverse effects onenvironment including indoor, local and regional air pollution, landdegradation, acidification of land and water, and climate change.Renewable energy, energy efficiency and cleaner energy systems canhelp reduce all of these effects and to contribute to environmentalsustainability. 11
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d)2 - The growing global demand for energy resources, along with the increase of the world’s political and security instability, oil prices registered in 2008 significant fluctuations during which it reached the threshold of 160 dollars/barrel before declining to fluctuate between 40- 75 dollars/barrel, resulting in a tendency towards:• Increasingly tendency to rely on national energy resources, especially renewable sources and to stimulate action to developing them in many countries of the world• A steady growth in the size of the market available for renewable energy systems worldwide, and the emergence of the economic viability of their projects. 12
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d)3. The increasing global trend regarding the importance of addressing climate change, As 2012, the year marking the end of the first phase of the Kyoto commitments, is drawing nearer, a new phase in negotiations for defining the commitments beyond the 2012 would be finalized in Copenhagen (Dec, 2009) associated with around five main directions: 1 – Actions to mitigate greenhouse gas emissions 2 - Measures for adaptation to climate change 3 - Development of appropriate technologies to reduce the impact of climate change 13
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d) 4 - Financing relevant activities and projects 5- Project implementation in developing countries through the Clean Development Mechanism Renewable energy emerged as one of the most important technologies to mitigate the effects of climate change. Various initiatives and projects were adopted in order to expand its uses especially in view of the development of its technologies 14
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d) 4. The Impacts of the Global Financial Crises • All Mashreq countries have been seriously affected by the global financial crisis, but in different ways; – The crisis has resulted in a dramatic drop in the world oil prices which has reduced the income of oil producers in the region and many firms downsize their projects. – FDI in the region was estimated to fall by no less than 21 percent in 2008 – largely as a result of the steep decline in resource-oriented FDI, – The diversified economy countries will probably have less capacity to support largely publicly funded pension, social insurance and social protection schemes. 15
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d) – Moreover, the crisis is likely to increase unemployment. Across the region, since many firms have already signaled layoffs or downsized their projects – Export and tourism activities are expected to decline sharply, increasing unemployment and reducing national income There is a need to expand Renewable Energy Projects in a way to support the development of small businesses and creating new jobs to reduce unemployment 16
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d)5. Outcome of the The regional experience;• Countries in the region have devoted efforts at different degrees for promoting renewable energy applications, the several projects implemented and the experiences of countries in the region , reveal that renewable energy is credible, appropriate and advantageous( Egypt, Jordan, Syria, Yemen and Palestine for instance). This has resulted on: (a) Political Will regarding Energy resource diversification considered The Abu Dhabi Declaration on Environment and Energy - 2003 expressed the political will of the countries in the region towards increasing access to affordable, reliable energy services particularly to rural and remote areas using a mix of available conventional and renewable energy resources. 17
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d) (b). Available expertise and cooperation mechanisms Efforts devoted to renewable energy development in the region have not been sufficient, however it created reasonable human expertise and local capabilities in the fields of R&D, systems manufacture and it set the basis for the private sector contribution in this field. Regional and sub-regional mechanisms in relevant areas are available such as RCREEE and the ESCWA Regional Mechanisms for Developing Energy Uses for Sustainable Development, (c) Initiative for Large scale applications exists such as • Egypt wind farm projects •Masdar Initiative Which enhance the national and regional capacities and database available for promoting the large scale Renewable Energy generation.
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers The Abu Dhabi government has allocated 15 Billion US$ for renewable energy projects that can support sustainable development, GHG reductions as well as associated R&D and industrial development, several projects are considered.
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers B- Opportunities (Cont’d)6. USA to take part in the climate negotiationsand promote Renewable Energy• President Obama announced that USA will help in leading the world toward a new area of international cooperation on climate change (Nov. 2008).• Launching of the US Energy Plan: Injecting a flow of investments 150 billion dollars over 10 years in alternative energy to address climate change and create millions of new jobs. (Jan 2009)• The appointment of alternative energy and climate change experts in President Obama Administration, including: Coordinator of Energy and the Environment, Ms. Carol Browner and Special Envoy on Climate Change, Mr. Todd Stern 20
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers C- BarriersRenewable Energy technologies face a number of barriers that havedelayed scaling-up their production and use in the region. Most of thesebarriers are common in countries of the region and are mainly:1- The institutional and legal framework, major weaknesses have : • Lack of integration into national planning processes • The issue of the financial and administrative terms of connection to the power distribution network for independent RE producers, and • The lack of institutional coordination or the absence of an institution in charge of energy efficiency. • Lack of information and of visibility concerning possible economic and financial gains.
    • II. Promoting Renewable Energy; The RegionalDevelopment Challenges, Opportunities and Barriers C- Barriers 2- Economic and Financial Barrier • Lack of information on RE visibility concerning possible economic and financial gains • The exploitation of RE potential is still hampered by economic impediments: subsidies to fossil fuel • Low efficiency of economic and financial incentives provided for RE and REU. • Lack of attractive environment for foreign direct investment • Limited Allocated public funds for renewable energy • Limited involvement of the private sector 3- Lack of Awareness and Capacity on the RE development status and means for technology development, industry, marketing mechanisms. There is a crucial need for: • Developing of a regional capacity building hub on relevant issues • Initiating technology transfer programmes 22 • Capacity building programs and local marketing mechanism
    • III. Greening the Power Sector; the status of the regulatory framework• In spite of the efforts devoted by countries to promote RE use, progress achieved in promoting RE is much below expectation and plans.• Countries in the region have also devoted efforts for the formulation of policies and regulations to accelerate RE development, however;• Such policies and regulations were either inadequate or were not fully enforced which represents the top priority barrier to be tackled and plans have to be implemented. The following are examples of policies and regulations adopted by some countries in the region. 23
    • III. Greening the Power Sector; the status of the regulatory framework A. In EgyptThe new electricity law being considered by the cabinet devotes a Section to be considered within national plans for “Renewable Energies and Energy Efficiencies) which facilitate :• Building new power generation systems from clean energies• Adapting the competitive bidding methodology to get better power generation prices from renewable energies through private sectors investment as the Egyptian company for electricity transmission will be committed to buy the generated electricity at the agreed price for 15 years.• Allowing the investors to construct, own and operate power generation stations from the renewable energy• Establishing a renewable energy development fund which can finance RE electricity.The new law attracts international and national participation in the first electricity generation from win 250 MW in Jabal Zait region through the competitive bidding 24
    • III. Greening the Power Sector; the status of the regulatory framework B. In Jordan• The Jordanian government has set a target of 10% renewable energies in 2020 and initiated a number of activities to achieve it.• The Government has issued an exemption, for the energy saving equipments and renewable energy devices from the customs and sales taxes.• A section for the legal framework for the promotion of renewable energy has been drafted as part of the new energy law• The law also provides: a Renewable Energy subsidy window, a RE and EE guarantee window, a studies and technical cooperation window, a RE and EE interest rate subsidy window and an equity window to support such fields. 25
    • III. Greening the Power Sector; the status of the regulatory framework B. In Jordan (Cont’d)• The RE subsidy window provides a per-kWh subsidy to buy down the cost of RE power generated by privately built, owned and operated facilities About US$ 3.7 million is earmarked for this window in the first three years of operation.• Moreover, the GOJ committed to provide resources from the general budget in the amount of JD 5 million over the Jordan REEF’s first three years (2008-2010) and• The GOJ has succeeded in attracting international funding for the development of renewable energy 26
    • III. Greening the Power Sector; the status of the regulatory framework C. In SudanThe government of Sudan adopted policies for (Developing the Renewable energy resources) including: – Implement rural areas electrification by solar energy in the field of cooling, lighting, water pumping for irrigation, training and do surveys • Complete the solar and wind energy map (atlas) in cooperation with international agencies, solar energy application in rural electrification. • Economical policies and awareness raising • Set Environmental and Regulatory measures and • Custom exemption for the equipments and for strategic industry, giving incentives. • The move towards production of ethanol from sugar factories in Kanana Region 27
    • III. Greening the Power Sector; the status of the regulatory framework D. In Syria• Currently the work is ongoing for the preparation new electricity law which will encourage the investors from the private, local and international levels to invest in the new and renewable energy power generation systems.• A national strategy was developed including renewable energy targets for the power sector together with support measures to overcome the existing barriers. 28
    • III. Greening the Power Sector; the status of the regulatory framework E. In Yemen• A national strategy was developed including renewable energy targets for the power sector together with support measures to overcome the existing barriers. 29
    • IV. Spotlight on relevant UN agency initiatives and programmesESCWA activities planned for 2009-2011 addressing climate change mitigation in the energy/power sector include the following:• “Report on Promoting Large Scale Renewable Energy Applications in the Arab Region, an Approach for Climate Change Mitigation” (2009)• Regional Programme on “Capacity building on renewable energy technology applications for poverty alleviation in rural areas in the ESCWA member countries” (Continuous)• PV village electrification project in Ka’awa Village, Adan, Yemen (2009)• Report on “Energy policies and measures for promoting climate change mitigation in ESCWA countries” (2010)
    • IV. Spotlight on relevant UN agency initiatives and programmes (Cont’d)• EGM on promoting private sector participation in implementing EE/RE through the development of Energy Service Companies (ESCOs)• ESCWA Regional Mechanism on “Energy for sustainable development” was established in 2002 to promote intra-regional cooperation among its MC’s in the field.• Several regional programmes have been implemented through the mechanism ESC W A S e c r e ta r ia t N FP N FP ESC W A R PM SES C o o r d in a tio n U n it N E N E F u n c tio n a l O p e r a tio n s 31 C o u n tr y r e q u e s ts a n d /o r s e r v ic e s T o th e C o o r d in a tio n U n it
    • IV. Spotlight on relevant UN agency initiatives and programmes (Cont’d) • The World Bank and UNDP have vast energy portfolios which are largely aimed at improving access to energy and promoting pro-poor growth strategies, while mitigating the risk of climate change; Renewable energy is an important part of the programme • World Bank also developed the Clean Energy Investment Framework to finance Renewable Energy and Energy Efficiency. • UNICEF is supporting renewable energy solutions for schools and health centers in many countries and UNHCR encourages its beneficiaries to use alternative fuels • UNDP & Fortis Bank have initiated the MDG carbon facility offering prospective emission reduction projects. UNDP providing project development services and Fortis Purchasing and Marketing Carbon Credits. 32
    • V. Conclusion and Recommendation A. Conclusion• The current regional and global environment represents an real opportunity to join hands to Accelerate the Greening of the Power Sector in the region, through enhancing the contribution of Renewable Energy to the sector fuel supply mix.• Renewable Energy Development should be managed as an integral element of the sector’s development and national and regional sustainable development policies and plans. 33
    • V. Conclusion and Recommendation A. Conclusion (Cont’d)• The Development and Enforcement of an appropriate regulatory framework is a milestone for Renewable Energy Promotion in the power sector.• In spite of the value of the existing policies and regulatory framework in the region, however these are fragmented and need to be further developed to match the level of current needs 34
    • V. Conclusion and Recommendation B. RecommendationsIn order to utilize , build on the existing capacity in the Arab countries and maximize the benefits from efforts directed to the development of the required regulatory framework it is recommended that: 35
    • V. Conclusion and Recommendation B. Recommendations (Cont’d)• The council of Arab Ministers Responsible for Electricity initiate a task force of concerned Arab experts to: – Conduct a detailed assessment and evaluation of existing regulatory framework in the region, and experience gained from its implementation. – Collect information on similar regulations in other regions, in particular Europe – Draft a regional Guidelines for National/regional Regulatory Framework Regional organizations can support such efforts in particular LAS, UN-ESCWA and RCREEE and MED-36 EMIP
    • Finally,Let all join hands to promote Renewable Energy for Greening the Power Sector 37