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

1. This project is funded by the European Union
The role of successful pilot projects for RE business
development
The MED-ENEC experience
RCREEE/MED EMIP Joint side event
Sharm El Sheikh, 28 June 2009
Daniel Becker – Key Expert Business MED-ENEC
www.med-enec.com

2. The MED-ENEC experience
This project is funded by the European Union
• Most important for RE: legal framework
• But: implementation takes a while (some years,
often not successful in first round
• Can we wait until then with starting RE
activities? No!
• In order to create markets, interaction is needed
between companies and politics / administration
www.med-enec.com

3. RE pioneers
This project is funded by the European Union
• Good message: in most countries, even with
literally inappropriate framework, some RE
pioneers are active
• Their business is based on
– Niche markets
– Growing competitiveness of RE
– Growing customer interest & demand (!)
• But still: companies need & deserve support
www.med-enec.com

4. Lobbying & discussion
This project is funded by the European Union
Key role of RE businesses at early stage:
• Market preparation
• Develop business models
• Lobbying function
• Push for legislation
• Dialogue on details of regulations
In all countries which now have effective RE
support in place, pioneering companies have
been part of that process
www.med-enec.com

5. Measures of business support (1)
This project is funded by the European Union
MED-ENEC, EuropeAid project from 2006-2009, has
implemented good practice on business support:
• Main element: pilot projects
• Show technical and, even more important, economic
performance under respective local conditions
• 10 buildings in 10 countries
• Realised under local conditions with local
entrepreneurs (example: MENA Geothermal)
Good results
– 3 national Energy Globe Awards
– follow-up activities in the countries
– overall savings of 900 t/a or 45,000 t over lifetime
– high potential for large scale implementation
www.med-enec.com

6. R4: Residential Buildings
This project is funded by the European Union
Algeria Jordan Morocco
Palestine Syria
www.med-enec.com

7. R4: Non-residential Buildings
This project is funded by the European Union
Turkey Israel Egypt
Lebanon Tunisia
www.med-enec.com

8. Measures of business support (2)
This project is funded by the European Union
Further: Build networks among (often still isolated)
stakeholders
• Dedicated events established (e.g. on building trade
fairs), combining local companies, international
experts & representatives from administration
• Supporting exchange of knowledge & good practice
and facilitating match making (reported 3 Mio.
additional turnover generated)
www.med-enec.com

9. Measures of business support (3)
This project is funded by the European Union
• online help desks built up via website
partnerships between EU & MEDA countries
• Up to date & quality proven information made
available
• Business data base with virtual market place
Good overall success – why?
• Secret behind: listening to entrepreneurs for
understanding of actual needs
www.med-enec.com

10. Project Objective
This project is funded by the European Union
“To give a boost to energy efficiency measures and
to the use of solar energy in the construction sector,
in order to reduce both energy supply requirements
and the ever-growing impact on the environment of
air-conditioning installations.”
Indicator: MED-ENEC
Impact reports show positive and significant trends,
impacts of pilot measures are recognized by policy
makers and reflected in supporting regulations and
incentives.
www.med-enec.com

11. RE Technology Transfer
A success in Palestine
RCREEE/MED-EMIP 2nd IRENA PrepCon
June 28 2009
Khaled Al Sabawi
President
MENA Geothermal
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12. Identifying the Problem
Palestine:
Amongst highest energy prices in MENA region
$0.17/kWh (July 2008)
$1.98/L (July 2008)
No sources of natural energy; depending on neighbouring countries for
supply
Amongst worlds highest population growth rates
3.99% in Gaza
2.9% in West Bank
Building Loads – construction one of the main industries in Palestine
60% of energy consumption for building is for heating and cooling
Energy Efficiency a necessity
Such a scenario creates enormous potential
High energy prices provide incentive to save money
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13. First Geothermal System
First Geothermal Heating and Cooling system
in a residential villa in Palestine
West Bank, Ramallah
Floor Space: 392m2
Three story residential villa in a large building
block with 5 flats
Partnership between
MED-ENEC, EU-EI
Union Construction and Investment Corp.
Palestine Energy Authority
Objective
Demonstrate the technical and financial feasibility
of geothermal
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14. Brief Background
How Does it Work?
Earth stores 50% of the sun’s energy,
as clean renewable energy
Result: temp of Earth remains constant
throughout year
7-21oC
Heating Mode Cooling Mode
System Components
Geothermal Heat-pump (electrical)
Ground Loop (ground hx)
Distribution System o o
35 C
-2 C
o o
15 C 15 C
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15. First Geothermal System
Basic Measures
Reduction of heating and cooling load by 20%
due to enhanced insulation in building envelope
Improved airtight windows
High efficiency electrically powered geothermal
Heat-pump with vertical ground loop installed
at 70m deep
COP of heat-pump of 4.2 for heating and cooling
Conclusions
Expected to reduce annual operating costs from $8,100
to $2,700 (67% savings)
Simple payback period of 4.2 years
Reduced energy consumption by 28,000kWh/a and
eliminated 5,000kg of CO2
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16. First Geothermal System
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17. Aftermath
MENA Geothermal
Dedicated to advancing geothermal in MENA region
Installed 2 commercial geothermal systems,
one in 4,600m2 UCI Headquarters
260kW Cooling, 190kW Heating
Winner of 2008 National Energy Globe Award
Enormous regional interest, potential
10 RFP’s and counting
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18. Aftermath
Market Obstacles
Higher equipment cost (imported)
Import Duties and Customs
Higher design and installation cost (drilling)
High competition from established conventional market
No market education, awareness
How Can Government Help?
VAT exemptions to end user
No import duties on EE equipment
Direct financial incentives (e.g. Canada, $5000 to retrofit to geothermal)
Pilot Project Funding
Demonstrate technical and financial feasibility
Remove energy subsidies (socialize subsidies)
7.1% of regional GDP toward energy subsidies
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