Morocco: Energy and climate policy evaluation and recommendations

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This project evaluates climate and energy policies in non-EU countries and provides recommendations for policy opportunities in the country under study.

Following a framework methodology developed by Ecofys, Morocco's energy and climate policy was evaluated and opportunities to drive the implementation of renewable energy and energy efficiency are identified.

Policies covered:
- energy efficiency
- renewable energy sources
- low carbon

Sectors covered:
- Energy supply
- Industry
- Buildings
- Transport

A similar policy evaluation exists for Ukraine.

Published in: Technology, Economy & Finance
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  • Thank you for this methodology, it very simple and clear. A country commitment to a sustainable energy supply can quickly be determined as see in Morocco case. If a toolkit can be developed for this evaluation it will go a long way to help assessing other countries.
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  • Thanks for this great and simple methodology,
    I seen lots of advertisments re moroccan Renewable policy and how great it is, I should add that large scale tenders is not economically justified and will not develop local industry, actually this debate to select clean and feasible technology never took place.
    re buildings: despite the major barrier of fuel and nat gas subsidies, it make economic sense to invest in energy efficiency in Morocco, especially in electro intensive industry and large office buildings, hope investors will be be sometimes aware of that...
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Morocco: Energy and climate policy evaluation and recommendations

  1. 1. Country profile of Morocco Evaluation of energy and climate policies compared to EU By: Erika de Visser, Luis Janeiro, Yvonne de Bie, Niklas Höhne May 2013
  2. 2. © ECOFYS | | Table of content > Chapter 1 Introduction Slide 3 > Chapter 2 Methodology Slides 4-5 > Chapter 3 Results Slides 6 - 18 > Chapter 4 Conclusions Slides 19 - 28 > References Slides 29 - 30 > Annex 1 Overview of EU policies Slide 31 - 32 > Annex 2 Conclusions and recommendations per policy area Slides 32 - 36 21/08/20132
  3. 3. © ECOFYS | |21/08/2013 Name3 Chapter 1: Introduction Goal of the project: > to evaluate climate and energy policies in countries outside of the EU and to provide recommendations for policy opportunities for the transition to a sustainable energy supply in the respective country. Deliverables: > to develop a methodology to evaluate energy and climate policies in non EU countries. > to apply the methodology to two non-European countries, namely Morocco and Ukraine.
  4. 4. © ECOFYS | | Chapter 2: Methodology Segments The analysis is categorized in key economic sectors (rows), and policy areas (columns), which together determine the individual segments (dotted lines) of the analysis: 21/08/2013 Name4 General energy and climate strategy Energy supply Industry Buildings Transport EnergyEfficiency Renewableenergy Lowcarbonstrategies
  5. 5. © ECOFYS | | Chapter 2: Methodology Benchmark and scores Benchmark: > The (technical) mitigation potential is measured, which means the extent the implemented policy packages in each country are able to exploit the technical potential. > For each segment is identified which policies apply. To measure the effectiveness of policy packages, both indicators that have positive impact (incentives) and negative impact (barriers) are defined, which together form a coherent and consistent strategy to achieve a long-term low-carbon future. 21/08/2013 Name5 Barriers -4 -3 -2 -1 0 Incentives 0 1 2 3 4 Scores: > For each segment a segment score for the incentives on a scale of 0 to 4 is given as well for the barriers (-4 to 0) with a 4 for incentives meaning ‘fully effective at capturing mitigation potential in that segment’ and a -4 for barriers meaning ‘prevents policies from achieving reductions for this segment’.
  6. 6. © ECOFYS | | Chapter 3: Results Overview of Policies 21/08/2013 Name6 Energy Efficiency Renewables Low Carbon ENERGYSUPPLY • There is no relevant policy instrument in place to incentivise /support energy efficiency in energy supply. • Fuels for electricity production highly subsidised. I B • Ambitious targets for 2020 • Public investments and tendering process. No fiscal incentives such as tax or duty/exemptions on equipment. • Low guarantee of regulatory stability. I B • No relevant policies in place I INDUSTRY • There has been public funding for a limited number of energy audits. • Fuels for industrial use highly subsidised. I B • Introduction of a net metering scheme is under discussion. • Fuels for industrial use highly subsidised. I B • No relevant policies in place I BUILDINGS • Introduction of a building code is under discussion • Fiscal incentives for the purchase of efficient light bulbs • Fuels are highly subsidised. I B • Programme 'Shemsi' for solar water heaters. • Introduction of a building code is under discussion. • Fuels are highly subsidised. I B • No relevant policies in place TRANSPORT • No relevant policies in place • Fuels for transport are highly subsidised. I B • No relevant policies in place • Fuels for transport are highly subsidised. I B • No relevant policies in place I
  7. 7. © ECOFYS | | Chapter 3: Results General energy and climate policy 21/08/2013 Name7 EFFICIENCY/RENEWABLES/LOW-CARBON Assessment Score Morocco Score EU GENERAL CLIMATE STRATEGY • There is a renewable energy and energy efficiency target, but not a GHG target. • Targets are set for 2020 and 2030, but not for 2050. However, the National Energy Strategy does not provide a comprehensive framework to achieve the targets. • There is more attention for renewables than for energy efficiency, while energy use is expected to rise with 6-8% yearly.
  8. 8. © ECOFYS | | Chapter 3: Results Energy efficiency in electricity and heat supply 21/08/2013 Name8 ENERGY EFFICIENCY Assessment Score Morocco Score EU ELECTRICITY AND HEAT SUPPLY Incentives • There are a few incentives to improve the energy efficiency of fossil fuel power plants. One is a fund from FED (Fonds de Développement Energétique) covering the rehabilitation of assets of ONE (Office National de l’Electricité). • In 2009 ONE has submitted a grant proposal to the African development bank asking for more than US$ 120 million to finance a major work-over of the national energy distribution network. The work-over is expected to reduce transmission losses from 4,7% to 3.5%. Barriers • Fuel oil for electricity production is highly subsidized. Price is in the order of 2600 DH/tonne while prices of fuel for industrial uses - which are already subsidized - are at 4666 DH/tonne.
  9. 9. © ECOFYS | | Chapter 3: Results Renewable energy in electricity and heat supply 21/08/20139 RENEWABLE ENERGY Assessment Score Morocco Score EU ELECTRICITY AND HEAT SUPPLY Incentives • By 2020, Morocco aims to produce 20% of all electricity from renewable energy sources. To achieve this objective, the country seeks to have a total installed renewable energy capacity of 6 GW (or 42% of the total installed capacity). • The 20%-/42%-target by 2020 is ambitious, particularly considering the current share of renewables, which predominantly consists of long existing hydropower plants. • SIE (Societé d'Investissement Energétique) was created in 2009 with a fund to support renewables. • The main policy instrument is public tendering of large-scale wind and solar power projects. No fiscal incentives such as tax or duty/exemptions on equipment exist. Barriers • Overall attractiveness for domestic and foreign renewable energy investors is low, especially due to the absence of an effective regulatory support scheme. • Grid connection agreement has to be negotiated with ONE on a project basis, creating big uncertainty about the connection costs. • Another important technical barrier to renewable energy deployment in Morocco is the grid infrastructure. While in the northern part of the country the construction of wind power plants has triggered a technical adaption of the grid, the southern part is still not prepared for the integration of fluctuating renewable energy power.
  10. 10. © ECOFYS | | Chapter 3: results Low carbon technologies in electricity and heat supply 21/08/2013 Name10 LOW CARBON Assessment Score Morocco Score EU ELECTRICITY AND HEAT SUPPLY Incentives • No policy instruments to support fuel switch to low- carbon fuels in place. • No policy instruments to support CCS in place. • Nuclear power is discussed as a long-term option. Barriers N.A N.A. N.A.
  11. 11. © ECOFYS | | Chapter 3: Results Energy efficiency in industry 21/08/201311 ENERGY EFFICIENCY Assessment Score Morocco Score EU INDUSTRY Incentives • Morocco is currently elaborating a National Program of Energy Efficiency in Industry, with the aim of developing the institutional and regulatory framework, provide support for energy audits and investments and training of professionals. • The program’s objectives (2014-2020) are: • Energy savings: 600.000 TOE in 2014, 1.950.245 TOE-eq in 2020 • Carbon emission avoidance: 2 MtCO2-eq (2014), 7.5 MtCO2-eq (2020) • Companies to be audited: 360 (2014), 1855 (2020) • Some energy audits have been carried out with the financial support of the African Development Bank. The electric and thermal energy consumption characterization in 3 industrial zones (Casablanca, Agadir and Tanger) is in process. • Despite these developments no policy instrument providing sufficient incentive for energy efficiency investments in industry (e.g. support schemes, voluntary agreements, emissions trading, energy and/or CO2 taxes) is in place. Barriers • Fuel oil for industrial use is subsidized. Even after the latest price raise in June 2012, the government subsidy is in the range of 2000 DH/tonne. Regulated price is 4666 DH/tonne.
  12. 12. © ECOFYS | | Chapter 3: Results Renewable energy in industry 21/08/2013 Name12 RENEWABLE ENERGY Assessment Score Morocco Score EU INDUSTRY Incentives • The option for RE auto production is given under the Renewable Energy Development Law 13.09 of 2009. • No specific policy instruments to incentivize an increase of RES in industry have been found. • Introduction of a net metering scheme is under discussion. Barriers • Fuel oil for industrial use is highly subsidised. Even after the latest price raise in June 2012, the government subsidy is in the range of 2000 DH/tonne. Regulated price is 4666 DH/tonne.
  13. 13. © ECOFYS | | Chapter 3: Results Low carbon technologies in industry 21/08/2013 Name13 LOW CARBON Assessment Score Morocco Score EU INDUSTRY Incentives • There are no policy instruments to support CCS. Barriers N.A. N.A N.A
  14. 14. © ECOFYS | | Chapter 3: Results Energy efficiency in buildings 21/08/2013 Name14 ENERGY EFFICIENCY Assessment Score Morocco Score EU BUILDINGS Incentives • Morocco is currently in the process of implementing a new building code. • There are some fiscal incentives in place e.g. for compact fluorescent lamps (WEC, 2008) Barriers • Fuels are subsidized e.g. the real market price of a 12 liter cooking gas bottles — a widespread product — is more than DH 100 (US$14) while the standard retail price is DH 40 (US$5.6) (Worldbank, 2012)
  15. 15. © ECOFYS | | Chapter 3: Results Renewable energy in buildings 21/08/2013 Name15 RENEWABLE ENERGY Assessment Score Morocco Score EU BUILDINGS Incentives • Programe Shemsi for solar water heaters. Depending on customer types, the program is available under the form of a financial assistance through the support of studies and experts funds, loans and regulatory requirements. (Aderee, 2012) Barriers • Fuels are subsidized e.g. the real market price of a 12 liter cooking gas bottles — a widespread product — is more than DH 100 (US$14) while the standard retail price is DH 40 (US$5.6) (Worldbank, 2012)
  16. 16. © ECOFYS | | Chapter 3: Results Energy efficiency in transport 21/08/2013 Name16 ENERGY EFFICIENCY Assessment Score Morocco Score EU TRANSPORT Incentives • No policy instrument incentivising energy efficiency in the transport sector in place. • The reduction of the energy intensity of transport and the conversion of transport modes to less carbon-intensive fuels in Casablanca was cited in the Moroccan submission to the Clean Technology Development Programme as a possible application of funds under the programme. Barriers • Transportation fuels are subsidised. Even after the latest price raise in June 2012, the government subsidises 3.35 DH/litre of gasoil. Regulated price is 8.15 DH/liter.
  17. 17. © ECOFYS | | Chapter 3: Results Renewable energy in transport 21/08/2013 Name17 RENEWABLE ENERGY Assessment Score Morocco Score EU TRANSPORT Incentives • No specific policy incentivising renewables in the transport sector in place. Barriers • Transportation fuels are subsidised. Even after the latest price raise in June 2012, the government subsidises 3.35 DH/litre of gasoil. Regulated price is 8.15 DH/litre.
  18. 18. © ECOFYS | | Chapter 3: Results Low carbon technologies in transport 21/08/2013 Name18 LOW CARBON Assessment Score Morocco Score EU TRANSPORT Incentives • No specific policy incentivising low-carbon technologies in the transport sector in place. Barriers N.A. N.A. N.A.
  19. 19. © ECOFYS | | Chapter 4: Conclusions Electricity and heat supply Sector assessment ‘electricity and heat supply’ > No policy instruments in place to incentivise efficiency of energy supply. > Despite having set very ambitious renewables targets, Morocco is still lacking a comprehensive renewable energy strategy, which would address support for renewable energy in the long-term. Apart from public tendering for large-scale wind and solar power projects, there is no effective support scheme that would provide a strong incentive for investments in small-scale projects. > Grid connection agreement has to be negotiated with ONE on a project basis, creating big uncertainty about the connection costs. > Fuel oil for electricity production is highly subsidised. Price is in the order of 2600 DH/tonne while fuel for industrial uses - which is already subsidised - prices at 4666 DH/tonne. 21/08/2013 Name19
  20. 20. © ECOFYS | | Chapter 4: Conclusions Electricity and heat supply 21/08/2013 Name20 Policy Recommendations ‘electricity and heat supply’ > Progressive and socially compatible phase-out of fossil fuel subsidies > Implementation of policy incentives for the adoption of energy efficiency measures e.g. energy or carbon taxes, market mechanisms such as emissions trade or white certificates and/or standards. > Implementation of a long term framework for the support of renewables. > Providing a clearer regulatory framework for the connection of renewables to the grid.
  21. 21. © ECOFYS | | Chapter 4: Conclusions Industry Sector assessment ‘industry’ > No policy instrument providing sufficient incentive for energy efficiency investments in industry (e.g. support schemes, voluntary agreements, white certificates, emissions trading, energy and/or CO2 taxes) is in place. > There are, however, some developments in this area: – Elaboration of the National Program of Energy Efficiency in Industry, with the aim of developing the institutional and regulatory framework, provide support for energy audits and investments and training of professionals. – Some energy audits have been carried out with the financial support of the African Development Bank and the characterization of industrial energy consumption in Casablanca, Agadir and Tanger is in process. 21/08/201321
  22. 22. © ECOFYS | | Chapter 4: Conclusions Industry > Apart from discussions on the implementation of a net metering scheme, there is no specific policy instrument to incentivize the uptake of renewable energies in the industrial sector is in place. > Fuel oil for industrial use is highly subsidised. Even after the latest price raise in June 2012, the government subsidy is in the range of 2000 DH/tonne. Regulated price is 4666 DH/tonne. 21/08/2013 Name22
  23. 23. © ECOFYS | | Chapter 4: Conclusions Industry 21/08/2013 Name23 Policy recommendations ‘industry’ > Progressive and socially compatible phase-out of fossil fuel subsidies > Implementation of policy incentives for the adoption of energy efficiency measures e.g. energy or carbon taxes, market mechanisms such as emissions trade or white certificates and/or standards. > Implementation of a net metering scheme to incentivise investments in on-site renewable energy.
  24. 24. © ECOFYS | | Chapter 4: Conclusions Buildings Sector assessment ‘buildings’ > In 2009 Morocco launched a programme to develop an energy efficiency code for the built environment. This code, which is still to be approved, will target hospitals, hotels, national education and residential buildings. > Programme 'Shemsi' was established to spread the use of solar water heaters. The programme aims at increasing the installed surface to 1.7 million m2 by 2020. Depending on customer types, the program is available under the form of a financial assistance through the support of studies and experts funds, loans or regulatory requirements. Source: ADEREE www.aderee.ma > Fuels are still highly subsidised e.g. the real market price of a 12 liter cooking gas bottles—a widespread product —is more than DH 100 (US$14) while the standard retail price is DH 40 (US$5.6) (Worldbank, 2012) 21/08/2013 Name24
  25. 25. © ECOFYS | | Chapter 4: Conclusions Buildings 21/08/2013 Name25 Policy recommendations ‘buildings’ > Progressive and socially compatible phase-out of fossil fuel subsidies. > Implementation of the building code. > Adoption of minimum efficiency standards for household appliances. > Implementation of a net metering scheme to incentivise investments in on-site renewable energy.
  26. 26. © ECOFYS | | Chapter 4: Conclusions Sector Conclusions – Transport Sector assessment ‘transport’ > No policies to incentivise energy efficiency, renewable energies or low carbon technologies in the transport sector are in place. > Transportation fuels are subsidised. Even after the latest price raise in June 2012, the government subsidises 3.35 DH/litre of gasoil. Regulated price is 8.15 DH/litre. 21/08/2013 Name26
  27. 27. © ECOFYS | | Chapter 4: Conclusions Transport 21/08/2013 Name27 Policy recommendations ‘transport’ > Progressive and socially compatible phase-out of fossil fuel subsidies. > Adoption of minimum emission standards for cars and trucks. > Adoption of minimum biofuels blending requirements for road transport fuels.
  28. 28. © ECOFYS | | Chapter 5: Overall conclusions > Morocco has great potential for: – Renewable energy (solar and wind) – Energy efficiency (expected energy use growth ~6% per year) > Ambitious first steps made, establishing national renewable and energy efficiency targets > Detailed policies to implement the targets are largely lacking > Major barriers are fuel subsidies in all sectors 21/08/2013 Name28
  29. 29. © ECOFYS | | References 21/08/2013 Name29 • Ecofys, 2011. EU Climate Policy Tracker. Published in November 2011 by WWF. • Ministère de l'Aménagement du Territoìre, du l'Urbanisme, de l'Habitat et de l'Environnement, 2010. Seconde Communication Nationale a la Convention Cadre des Nations Unies sur les changements climatiques. Available from: http://unfccc.int/resource/docs/natc/mornc2f.pdf • World Energy Council, 2008. Energy Efficiency Policies around the World: Review and Evaluation. ISBN: 0 946121 30 3 • Royaume du Maroc. Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement, 2010. La nouvelle Stratégie Energétique Nationale. September 2010. • Royaume du Maroc. Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement,2010. Loi 13-09 relative aux énergies renouvelables. June 2010 • Regional Center for Renewable Energy and Energy Efficiency (RCREEE), 2010. Provision of Technical Support/Services for an Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for Renewable Energy and Energy Efficiency. Country Report Morocco (DRAFT). January 2010.
  30. 30. © ECOFYS | | References 21/08/2013 Name30 • Regional Center for Renewable Energy and Energy Efficiency (RCREEE), 2010. Provision of Technical Support/Services for an Economical, Technological and Environmental Impact Assessment of National Regulations and Incentives for Renewable Energy and Energy Efficiency. Policies for Energy Efficiency and Renewable Energy in the RCREEE Group of Countries. April 2010 • Worldbank, 2012. The real cost of fossil fuel subsidies. Available from http://go.worldbank.org/EBQRS9K7H0 • Royaume du Maroc. Ministère de l’Energie, des Mines, de l’Eau et de l’Environnement, 2011. Stratégie Energétique: Bilan d’Etape. May 2011.
  31. 31. © ECOFYS | | Annexes > Annex I: Assessment of EU policies > Annex II: Conclusions and recommendations per policy area 21/08/2013 Name31
  32. 32. © ECOFYS | | Annex I – Overview of EU Policies Energy Efficiency Renewables Low carbon General Climate Strategy Energy supply Energy Efficiency Directive (2012/27/EU) Effort Sharing Decision (2009/406/EC) European Emissions Trading System (ETS) (2009/29/EC) Energy Taxation Directive (2003/96/EC) Renewable Energy Directive (2009/28/EC) Internal electricity market Directive (2009/72/EC) Security of electricity supply and infrastructure investment Directive (2005/89/EC) Effort Sharing Decision (2009/406/EC) Carbon Capture and Storage (CCS) Directive (2011/92/EU) Industry Eco-design Directive (2009/125/EC) Energy Labelling Directive (2010/30/EU) Energy Efficiency Directive (2012/27/EU) European Emissions Trading System (ETS) (2009/29/EC) • Energy Taxation Directive (2003/96/EC) • Renewable Energy Directive (2009/28/EC) Carbon Capture and Storage (CCS) Directive (2009/31/EC) Industrial Emissions Directive (IED) (2010/75/EU) Landfill Directive (1999/31/EC) Buildings • Energy Performance of Buildings Directive (EPBD) (2010/31/EU) • Energy Efficiency Directive (2012/27/EU) • Eco-design Directive (2009/125/EC) • Energy Labeling Directive (2010/30/EU) • Energy Taxation Directive (2003/96/EC) • Renewable Energy Directive (2009/28/EC) Transport • Regulation on Energy Efficiency for passenger cars (443/2009) • European Emissions Trading System (ETS) (2009/29/EC) • Energy Taxation Directive (2003/96/EC) • Renewable Energy Directive (2009/28/EC)
  33. 33. © ECOFYS | | Annex II Policy Area Conclusions – Energy Efficiency 21/08/2013 Name33 ENERGY EFFICIENCY POLICYAREACONCLUSIONS AreaAssessment • Morocco has set targets for energy efficiency of 12% reduction in energy use by 2020 and 15% reduction by 2030. These percentages are related to the expected energy demand at those dates in the absence of the energy efficiency initiatives. The priorities for the short-term are contained within the Plan Nationale des Actions Prioritaires (PNAP) (RCREEE, 2010) • The National Agency for the Development of Renewable Energies and Energy Efficiency was established in 2010 • Apart from public funding for a limited number of energy audits, there is no policy instrument in place to promote the adoption of efficiency measures in industry. • The building code is yet to be approved. • No relevant policies to promote energy efficiency in the transport sector. • The adoption of energy efficiency measures is disincentivised by highly subsidised fossil fuels in all sectors.
  34. 34. © ECOFYS | | Annex II Recommendations Policy Area Energy Efficiency 21/08/2013 Name34 > Progressive and socially compatible phase-out of fossil fuel subsidies > Implementation of policy instruments e.g. energy or carbon taxes, market mechanisms such as emissions trade or white certificates to incentivise efficiency in the energy supply and industrial sectors. > Implementation of the building code. > Adoption of minimum efficiency standards for household appliances. > Adoption of minimum emission standards for cars and trucks.
  35. 35. © ECOFYS | | Annex II Policy Area Conclusions – Renewable Energy 21/08/2013 Name35 RENEWABLE ENERGY POLICYAREACONCLUSIONS AreaAssessment • The National Energy Strategy of Morocco and the related National Priority Action Plan (PNAP), both launched in 2008, set a target to meet 10–12% of the country’s primary energy demand by 2020 and 15–20% by 2030 with renewable energy sources. • By 2020, Morocco aims to produce 20 % of all electricity from renewable energy sources. To achieve this objective, the country seeks to have a total installed renewable energy capacity of 6 GW (or 42 % of the total installed capacity). The 20 % / 42 %-target by 2020 is ambitious, particularly considering the current share of renewables, which predominantly consists of long existing hydropower plants. • The National Agency for the Development of Renewable Energies and Energy Efficiency was established in 2010. • Despite these developments, Morocco is still lacking a comprehensive renewable energy strategy, which would address support for renewable energy in the long-term. Apart from public tendering for large-scale wind and solar power projects, there is no effective support scheme that would provide a strong incentive for investments in small-scale projects . No specific policy instruments to incentivise an increase of renewable energy in industry have been found. • Fossil fuels are highly subsidised in all sectors. This creates a strong disincentive for the adoption of renewables.
  36. 36. © ECOFYS | | Annex II Recommendations Policy Area Renewable Energy 21/08/2013 Name36 > Progressive and socially compatible phase-out of fossil fuel subsidies > Implementation of a long term framework for the economic support of renewables. > Providing a clearer regulatory framework for the connection of renewables to the grid. > Implementation of a net metering scheme to incentivise investments in on-site renewable power in industry as well as residential and commercial buildings. > Adoption of minimum biofuels blending requirements for road transport fuels.
  37. 37. © ECOFYS | |21/08/2013 Name37
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