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The Current Initiatives in Renewable Energy and Energy Efficiency

across the Arab Region

Eng. Samir HassanExecutive Director

Regional Center for Renewable Energy and Energy Efficiencysamir.hassan@rcreee.org

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• About RCREEE• Energy Statistical Profile of the Region• RE&EE Arabian Plans and Initiatives• Barriers To Renewable Energy Deployment In the

Member Countries• Oriented Recommendation to face existing

Challenges

Presentation Content:

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• RCREEE stands for « Regional Centre for Renewable Energies and Energy Efficiency »

• RCREEE is an independent regional policy think tank, dedicated to the promotion of RE&EE in the MENA region,

• RCREEE main fields of work:

- Policy Framework

- Research and Development

- Public Private Partnership

- Capacity Building

• RCREEE is working to be a leading centre of excellence on the international level

Who’s RCREEE?

About RCREEE…..

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RCREEE has ten founding members from the MENA region. The set up is sponsored by Egypt (also the host country), Germany, the EU and Denmark.

RCREEE Member States:

About RCREEE…..

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Governance Structure

Representatives of 10 Member States

Executive Committee5 representatives (Maghreb/Mashreq/host country

plus two from the private sector)

SecretariatDirector

Two Deputies, composition to reflect the regional character of the centre

(Maghreb/Mashreq/host country) and the required expertise (RE/EE, R&D, PPP)

Staff

Board of Trustees (“BoT”)

Advisory Membres

10 Correspondents(One for each Member State)

Emminent persons (no voting rights)

Development partners (no voting rights)

About RCREEE…..

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Energy Statistical Profile of the Arab Region

- Efficiency - RE Potentials

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Energy Statistical Profile

Key parameters for hydrocarbon reserves and production in oil producers countries among RCREEE member states

Source: BP and EIA

Hydrocarbon Reserves and Production

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Energy Statistical Profile

Energy Independency is the percentage of energy imported compared to the total energy supply[(Domestic demand – Domestic supply) / Domestic demand]*100 = [net imports/ Domestic demand]*100

Energy Independency in some of RCREEE countries in 2008

Source: Plan Blue Project

Energy Independency

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Energy Efficiency

Energy Statistical Profile…Efficiency

Energy intensities from other regions (kgoe/GDP ($US) at market prices in 2005 $)

Energy Intensity

Energy use (toe) per capita in comparator groups

Energy per Capita

Source: Energy Information Administration: International Energy Statistics Database

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Electricity intensity in RECREEE and other regions (kWh/$1990)

Electricity Efficiency

Energy Statistical Profile…Efficiency

Source: Energy Information Administration: International Energy Statistics Database and UN Statistical Division Main Aggregates Data Base

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Why Efficiency..?

Energy Statistical Profile…Efficiency

• The results of the analysis show that the levels of energy use in RCREEE countries are generally higher compared to GDP than in other regions.

• High energy intensities will make industry in RCREEE countries uncompetitive and will expose the countries to potential oil price shocks and to large import bills for energy in some countries.

• There is a clear case for adopting enhanced policies for energy efficiency.

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RE Opportunities• The Arab Region is endowed with:

• Abundant solar radiation.

• Long duration of sunshine.

• Good to excellent wind speed.

• Significant hydro power.

• Reasonable quantities of biomass energy.

• However, RE is still facing many barriers and constraints vis-à-vis large scale deployment in the region.

• Thus, the objectives of this paper is to capture promising opportunities, to point out the prevailing challenges and to show the trends of RE sector.

Energy Statistical Profile…RE Potentials

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Solar Energy• The capacity of solar energy resources is excellent in all member

Countries with an annual global solar radiation varying between 4 to 8

kWh/m2.

• The region also enjoys high direct normal radiation and low average

cloud cover.

• Electricity production from both Concentrating Solar Thermal Power

(CSP) and Photovoltaic (PV) has a good potential, due to the fact that the

incident solar radiation on the region is higher than the required value of

(1800 kWh/m2/year).

Energy Statistical Profile…RE Potentials

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Solar Energy Map

Energy Statistical Profile…RE Potentials

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Solar Energy for Thermal Power Plants

Energy Statistical Profile…RE Potentials

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Direct normal and global horizontal irradiant

CountryGlobal horizontal

irradiancekWh/m2/y (for PV)

Direct normal irradiancekWh/m2/y (for CSP)

Jordan 2,310 2,700

Lebanon 1,920 2,000

Syria 2,360 2,200

Yemen 2,250 2,200

Algeria 1,970 2,700

Egypt 2,450 2,800

Libya 1,940 2,700

Morocco 2,000 2,600

Tunisia 1,980 2,400

Palestine 2,200 2,100

Energy Statistical Profile…RE Potentials

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Wind Energy

• MENA Countries have good potential of wind energy since most have an annual full load hours of over 1400 h/year, which is considered a long-term economic potential.

• Several countries such as Egypt and Morocco have a very good wind resources (wind velocity range between 8-11 m/sec)

Energy Statistical Profile…RE Potentials

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Wind Energy Map

Energy Statistical Profile…RE Potentials

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Potential of wind energy

Energy Statistical Profile…RE Potentials

Country Full load hours per year (h/y)

Capacity Factor(%)

Algeria 1,789 20Bahrain 1,360 16Egypt 3,015 34Iraq 1,789 20

Jordan 1,483 17Kuwait 1,605 18

Lebanon 1,176 13Libya 1,912 22

Morocco 2,708 31Oman 2,463 28Qatar 1,421 16

Saudi Arabia 1,789 20Syria 1,789 20

Tunisia 1,789 20UAE 1,176 13

Yemen 1,483 17Source: Al-Karaghouli A."Current Status of Renewable Energies in the Middle East – North African Region", UNEP/ROWA, June 2007. Capacity factor refers to the percentage of average annual full load hours to total annual number of hours (8760 h/y).

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Potential of wind energy

Energy Statistical Profile…RE Potentials

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Biomass Energy• Traditionally used widely in rural areas for small

purposes.

• MENA Region is arid/semi-arid in nature, thus small amount of forest and agriculture residues are available

• The biomass energy potential is mainly available for most Countries from municipal waste.

Energy Statistical Profile…RE Potentials

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Hydro Energy

• Several countries in the region particularly, Egypt, Lebanon, Syria, Tunisia, Morocco and Algeria have hydro resource.

• The overall Share of hydro electricity is only 5.78% of the total electricity produced. This portion is very small compared to the available hydro potential in the Region.

Energy Statistical Profile…RE Potentials

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Energy Statistical Profile…RE Potentials

Economic potentials of renewable energies for electricity generation in RCREEE member states (TWh /a )

Economic potentials of renewable energies for electricity generation

Source: German Aerospace Center DLR (2005)

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EE&RE National Targets

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RE&EE National Targets

National Renewable Energy TargetsCountry Date of Achieving Targets

Jordan 2020 10% (of P.E)

UAE 2030 7% (of E.E)

Tunisia 2014 4% (of P.E)

Algeria 2030 10% (of E.E)

Sudan 2011 1% (of E.E)

Syria 2030 4.3% (of P.E)

Kuwait 2020 5% (of E.E)

Lebanon 2020 12% (of E.E)

Libya2020

2030

10% (of E.E)

25% (of E.E)

Egypt 2020 20% (of E.E)

Morocco 2020 42% (of E.E)

P.E: Primary Energy E.E: Electrical Energy

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National Energy Efficiency TargetsNorth Africa Countries Date of Achieving Middle East Countries

Algeria (2007-2011) 1% per year

Morocco (2020 )(2030 )

12% 15%

Tunisia (2011 ) 20%

Egypt (2022 )

8.3%

Jordan (2020) 20%

Yemen (2025) 15% in Power sector

RE&EE National Targets

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RE&EE Arabian Plans and Initiatives

- Energy Efficiency Guideline - RE Strategy

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RE&EE Arabian Plans and Initiatives

- LAS is preparing an Arabian Strategy for RE.

-RE&EE Experts Committee assigned to e the mission, RCREEE is a member

in this committee

The strategy includes five sections :

1- Electricity in the Arab world

2- Arabian Strategic Targets to develop RE

3- Strategy activating procedures

4- Expected Results

5- Conclusion

RCREEE is a member of the team responsible of preparing the second section

and is a leader of the team responsible for preparing the fourth section

Arab Renewable Energy Strategy

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RE&EE Arabian Plans and Initiatives

Arab End Use Electrical Energy Efficiency Guideline • Set a 10 year EE target

• Assign an existing or a new public entity to draw a 3 year National Energy

Efficiency Action Plan (NEEAP)

• Public sector to lead by example (exemplary role),

• Utilities to provide services or contributing to a fund

• 3 years progress report to be submittal to League of Arab states showing

the achieved savings

RCREEE is a member of the team responsible of preparing the Arab EE guideline

And will play the watch role for implementing and evaluating the NEEAPs

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Barriers To RE&EE Deployment - Policies and Institutional

Barriers- Economic Barriers- SocialBarriers- Market and Financial Barriers

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Barriers To RE&EE Deployment

Policies and Institutional Barriers• The absence of an effective policies, legislations and regulations in

some cases,• Lack of favorable import for RE&EE products and components as well

as conducive policies to promote RE&EE developments; • Limited scope for R&D institutions to interface with international

bodies and to share expertise already existing within the sector; • Private Sector is heavily constrained by regulations• Regulatory measures are requested to stimulate market opportunities

and needs support to introduce innovative methodologies, attractive schemes, investment capital, and flexible financial mechanisms

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Economic Barriers• Generally high subsidies on oil and gas• Different level of taxation & customs for RE&EE equipment• Public sector RE&EE industry has no incentives to react to

market demand• No special incentives to promote RE&EE investment, • Unavailability of financial mechanisms and instruments

encouraging RE&EE manufacturing• The high cost of capital, and lack of access to capital &

financial institutions.

Barriers To RE&EE Deployment

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Social Barriers• Lack of Information about technologies • Energy has been available cheaply - no need to explore other

options• Lack of mainstream marketing of RE&EE options• Lack of priority for domestic R&D programs• Lack of training & education at university and professional or

vocational level • Eroded consumer trust• Domestic expertise are not sufficiently considered

Barriers To RE&EE Deployment

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Market and Financial Barriers

• Direct financial incentive for both users and investors in RE&EE do not existed;

• Limited/No grants or attractive interest rate for loans allocated to the purchase of RE&EE systems and equipments.

• The lack of a specific line of financing, in particular for the urban SWH market, no guarantee fund for investors.

• Most RE&EE companies are small size with limited financial capacities.

• Low competitiveness due to fossil fuels prices,.• No taxes reduction for RE&EE projects and importing.

Barriers To RE&EE Deployment

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Oriented Recommendation to face existing Challenges

-Benchmarking of policy - Policy-making- Policy support to large scale RE developments - A common policy for standards and labels

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Oriented Recommendation

Benchmarking of policy

• Benchmarking of policies will enhance the regional work towards promotion

of renewable energy and energy efficiency sector in the Arab region.

• This will facilitate the future coordination to achieve the addressed targets

and to deal with RE&EE issues as a region.

• Benchmarking should be done by:

Annual benchmarking within the RCREEE member states.

Benchmarking against international experience.

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Policy-makingPolicy making is one of the main important factor for the deployment of RE&EE.

This measure should take into consideration:

Structuring, compilation and processing of evidences

Development of indicators

Monitoring the development and the implementation

Evaluation of the results

Developing the policy-making if needed

Oriented Recommendation

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Policy support to large scale renewable developments

Large scale renewable energy projects need special support to be promoted

and disseminated, this support will include:

• Financial compensation mechanisms

• Industrial modernization

• Maximizing local content

• Fostering R&D linkages

Oriented Recommendation

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A common policy for standards and labels

Adopting a common policy for standards and labels; even for home appliances or

for building or any other sector; is one of the major instruments for future

coordination in RE&EE as a regional issue.

Such goal to be implemented through:

Strengthening regulatory compliance

Sharing assets (e.g. certification entities)

Developing a common label in the long-term

 

Oriented Recommendation

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Thanks for your attention