The document discusses the need for MENA region countries to develop a position on the Mediterranean Solar Plan in order to promote cooperation that can achieve the MSP's ambitious goals of renewable energy development and integration between the EU and MENA regions. Key issues include the need for peer-to-peer relations and electricity market integration between the regions to ensure mutual benefits. Financial means of cooperation include creating enabling environments for private investment, support from international banks, and initial grants and subsidies. Technical cooperation should support renewable technology development and address interconnections between the regions through projects and infrastructure sharing costs. Barriers to renewable electricity exports from MENA to the EU need to be removed through policies like trade in green certificates and emissions credits. The long term goal

1. RCREE Countries Position
Towards MSP
Now with the rapid development of the Mediterranean Solar Plan and in view of the
growing expectations about anticipated results of EU-MENA cooperation in the RE&RE
field, it has become very important that MENA region countries develop their position
towards the MSP in order to promote cooperation that can cope with MSP ambitious goals.
- Issues of MENA-EU cooperation are:
• The need for peer-to-peer relations and integration between both regions to ensure a
Win-Win situation which should secure extended long run outcomes.
• The need for electricity markets integration between MENA and EU to pave the
road for expanded cooperation with sustainable outcomes yielding mutual benefits.
• Complementary energy roles should encourage sound and economic RE&RE
projects development and justify the need for rapid interconnection of regional
networks stemming from the fact that :-
- Abundant RE resources are available in the MENA region, specially solar
- EU is being the largest electricity consumer worldwide.
This paper will very briefly present financial and technical means of cooperation,
indicate the importance of barriers removal and end by a short recommendation.
Means on the Financial Side can be summarized as follows:
• Creating an enabling environment for private sector investment in RE electricity
which is indispensable for long term evolution, to be achieved particularly through:
- Encouraging compatible and harmonized regulatory frameworks
- Energy markets liberalization
• The need for support of international and regional banks to secure needed funds
through:
- Innovative financing regimes and mechanisms, e. g ., GEEREF
- Soft loans along with favorable payment and interest conditions
• Grants and subsidies are essential and crucial at least for the first stages, particularly
to cover the cost of needed interconnection between electric networks in the EU and
MENA region countries; and needs to strengthen the electricity network within
countries;
;
• Financing Schemes should allow:
- Private sector to develop and construct RE projects for electricity generation.

2. - Adequate full cost recovery tariffs for investors
- Development of Energy Effciency issues at the supply and demand side.
- Green KWH exports from the MENA region to benefit from the tariffs applied in
the EU.
- Diminishing financial support and grants along with costs reduction as forecasted
as a result of expanded markets as well as directed R&D efforts.
The ultimate goal is to enable RE projects evolving to be bankable projects
Means on the Techno-economic Side are summarized as follows:
• Need to support R&D through, e.g., FP-7, to foster technology development and
hence cost reductions
• Need to properly address interconnections between MENA and EU where:
- Special attention should be given to HVDC interconnections between EU and
MENA region.
- Each RES-E project in MENA and south Mediterranean should bear a cost share
premium for interconnections in order to achieve cost burden distribution
- Reconsider interconnections costs as potential grants where they may be viewed
as necessary infrastructure cost needed once at the beginning
Barriers Removal
Barriers conforming export to EU of RE electricity produced in MENA region should
be removed while concurrently taking advantage of favorable EU support to such RE
electricity, particularly barriers in the following areas :-
• TGC trade between MENA & EU
- Reconsider constraints of the need for actual and physical RES-E transmission to
EU.
- Reconsider timing constraints, e.g., 2016 for construction start and 2022 for
operation start of RES-E projects, for effecting TGC trade as soon as possible, or
at least extend time frames until interconnections are realized.
• Emission Trading
- Reconsider constraints of CERs use by EU from RE-CDM projects in MENA, or
at least extend time frames
Recommendation
• RES- E produced in MENA region should allow considerable export to EU along
with covering part of local MENA countries needs particularly for potential water
desalination expected to grow in the coming decades and even exacerbate in view of
climate change threats and consequent fresh water potential scarcity in MENA.

3. • While we are working to produce very expensive electricity, Energy conservation
will be a major need for MENA countries
• The ultimate long term goal is to create EURO-MED wide electricity market
allowing the application of feed- in tariff different schemes or similar incentives
among the whole market through:
- Gradual removal of barriers confronting these objectives
- Planned progressive steps actively and positively approaching agreed targets
with the support of indicated technical and economic means
- Additional innovative tools and mechanism should be sought, evaluated and are
welcome.