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

1. MENA Energized – Regional Challenges to Green the Power Sector
on 28 June 2009
a joint event of RCREEE and MED EMIP on occasion of the second Session of
the Preparatory Conference of IRENA in Sharm El Sheikh, Egypt
The Regional Center for Renewable Energy and Energy Efficiency (RCREEE), in
cooperation with the Euro Mediterranean Energy Market Integration Project (MED-
EMIP), convened a one day side event on green electricity production in the MENA
region on 28 June 2009 in Sharm El Sheikh. The event, which was attended by more
than 120 high level participants from Egypt, the MENA region and other countries,
took place on the day before the Second Session of the Preparatory Conference of the
International Renewable Energy Agency (IRENA).
HE Dr. Hassan Younes, the Minister of Electricity and Energy in Egypt, was the host
of the event. Ms Raffaella Iodice de Wolff, Head of Operations – First Counselor of
the Delegation of the European Commission, HE Christian Hoppe, the Danish
Ambassador to Egypt, and HE Bernd Erbel, the German Ambassador to Egypt,
represented the international development partners of RCREEE. In the opening
speeches it was highlighted that RCREEE had gone through a very positive
development since its foundation one year ago and that the centre now is recognized
as a regional policy platform in the region and beyond.
The event was organized in four sessions, dealing with renewable energy regulation,
the implementation of the Mediterranean Solar Plan, financing schemes as well as
local manufacturing and technology transfer. It was unique in bringing together policy
makers, representatives of government and international organizations, financial
institutions and business leaders, to discuss pressing issues of renewable energies.
RCREEE and its member countries wish IRENA a successful start of operations.
Beyond this side event RCREEE is looking forward to provide a regional perspective
to the larger scope of IRENA
Overview of sessions
Session 1 "The Emergence of a Regulatory Framework in the MENA Region"
Ashraf Kraidy, on secondment to RCREEE from NERC (Syria), highlighted the
absence of effective policies in the region. If this would be addressed, a fast scale up
in local manufacturing would be possible with multiple positive effects for the region.
Ms. Salha Abo Sabaa, Head of Renewable Energy Sector, League of Arab States,
encouraged cooperation among the Arab countries in this matter especially regarding
the financial barriers. Her statement was supported by Dr. Rafik Messaoui, renewable
energy expert from Tunis, who asked the government to put win-win financial
mechanisms in place. Dr. Anhar Hegazy, Head of Sustainable Development and
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2. Productivity Division, UN-ESCWA, emphasized to the audience that 20% of the
people in ESCWA member countries have no access to electricity. Decentralized
renewable energies, she argued, have the potential to change this effectively.
Session 2 "The Mediterranean Solar Plan"
Dr. Albrecht Kaupp, Team Leader of MED-EMIP, sees the way forward in
identifying and seriously negotiating one single pilot case under the EU Article 9 or
supporting one country willing to introduce cross subsidies for renewable energy.
Engineer Rafik Youssef, Consultant from Cairo, discussed whether a roadmap
approach would be more appropriate at this stage rather than a straightforward action
plan. Engineer Bothayna Rashid, National Renewable Energy Authority of Egypt, and
Ralf Christmann, Ministry of Environment of Germany, gave the audience an update
on the current developments and discussions regarding the Mediterranean Solar Plan.
After these presentations Dr. Paul Suding, director of the Egyptian German Joint
Committee on Renewable Energy, moderated a lively discussion among the audience
and the expert panel. Finally Engineer Samir Hassan, Technical Director of RCREEE,
presented the position paper of the RCREEE member countries regarding the MSP.
Session 3 "Financing Renewable Energy Projects"
Dr. Mohab Hallouda, Senior Energy Specialist at the Worldbank office in Cairo,
announced that the region has discovered a new source of fuel other than oil and gas.
The ultimate aim of the Worldbank activities in renewable energy is to pave the way
for the private sector. This idea was also supported by the presentation of Andreas
Holtkotte, Country Director of the KfW in Egypt, who also underlined that his agency
supports renewable energy not only due to the global challenge of climate change but
also to increase productivity and competitiveness within emerging economies.
Nobuhiro Ikuro, Chief Representative of the Japan Investment Cooperation Agency,
presented the new Japanese initiative "Cool Earth Partnership".
Session 4 "Technology Transfer and Local Production"
According to the experience of Christine Lins, General Secretary, European
Renewable Energy Council, the precondition for a renewable energy industry are
coherent and long term oriented policies in combination with ambitious targets.
Daniel Becker, MED-ENEC Senior Business Development Expert, emphasized that
even under insufficient framework conditions some companies are active in market
niches. These companies have a tough time but they also facilitate the creation of
effective policies by the governments. An impressive overview of such activities was
given by four representatives from the private sector. Khaled Sabawi, President of
MENA Geothermal, presented a very successful geothermal pilot project in Palestine
which has a simple payback time of only 4,2 years. Engineer Ahmed Elswedy, CEO,
explained to the audience that his company is now well on its way to set up the
manufacturing of tower, nacelle and blades in Egypt. According to Engineer Ihab
Mehawed, Commercial Director, Orascom Construction Industries decided to take
over the EPC responsibility for a CSP plant in El Kuraymat. The company took this
project as an opportunity to set up their own production of mirrors for CSP in Egypt
which is now fully operational. Engineer Emad El Ghaly, Siemens Middle East,
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3. pointed out that an effective feed in tariff with a guaranteed grid access attracts the
companies more than everything else.
The whole day demonstrated the Center's strength as a regional policy platform with
the capacity to bring experts from the government and the private sector together in
order to discuss topical issues in the field of renewable energy. It was a successful
demonstration of the vivid development of renewable energy in the region to a large
international audience.
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