energy efficiency and renewable resources in the arab region ibrahim abdel gelil arabian gulf...
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Ibrahim Abdel GelilArabian Gulf University
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UNDP Regional Consultation Meeting
6-7 October 2010
Arabian Gulf University
UNDP Regional consultation meeting
6-7 October, 2010
Arabian Gulf University
Socio-economic Contexts Energy Situation Market Drivers for RE in the Arab
Region Positive Signs from the Region Policy Framework Institutions Major Barriers for Market Development Policy Recommendations Opportunities for Arab-Arab cooperation
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High demographic growth (1-3%) High economic development Urbanization (51% on average) Economically diverse region:
◦ oil-rich economies (Algeria, Egypt, and Syria)◦ oil-scarce (Jordan, Lebanon, Morocco, Palestine,
and Tunisia) Two major influencing factors for the past
few decades: ◦ price of oil◦ state controlled economies (especially in
managing the energy sector)
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High unemployment ratesHigh illiteracy ratesInadequate funding for scientific research
Weak ability to attract foreign direct investments
Weak regional economic integration,
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Energy resources unequally available Concerns about oil supply in oil importing
countries (volatility of oil prices) High energy and electricity demand
growth Access to electricity in rural areas Renewable Energy resources are abundant
but not yet significantly developed Environmental concerns due to heavy
reliance on fossil fuels.
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Drivers of energy demand:◦ Population growth◦ Rapid urbanization, and ◦ Economic growth
Energy demand is likely to expand by 70% in the next 20 years relying 87% on fossil fuels (study by IEA).
This is unsustainable scenario due to:◦ Increase dependence on depleted resources◦ Raise energy burden at the expense of economic
growth and development◦ Amplify the environmental impacts, in particular in
urban areas.
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Disparities across the region Per capita CO2 and carbon intensity
◦ High in the GCC◦ Low in the rest of the region
Average energy intensity (TPES per GDP) is higher than the world average
Average carbon intensity is higher than the world average
Oil and gas represent more than 90 % of the total primary energy supply
High rate of electrification (~ 100% in Lebanon, Kuwait)
Parts of the rural population still lack access to electricity, and use biomass to meet their energy needs (Yemen, Sudan).
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Securing energy supply for the oil importing countries
Securing access to modern energy services for rural population
Energy Diversification Reducing GHG emissions, and Creating enabling environment to
attract investment in the energy sector.
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contributing to energy supply security, reducing dependency on fossil fuels, Mitigating local environmental problems, and reducing GHG emissions
offering good opportunities for CDM finance
efficiency gains and cost reduction of the renewable technologies
vast potential of solar radiation
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(www.dlr.de/tt/med-csp)
Direct normal irradiance (kWh/m2/y): 2000-2800
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(www.dlr.de/tt/med-csp)
UNDP Regional consultation meeting
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Arabian Gulf University
Country Total capacity (MW)
Solar Capacity (MW)
Algeria 155 to be increased to
500
25
400 75
400 75
400 75
Egypt 127 31
Morocco 400 30
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Clear political commitments towards more sustainable energy sector as clearly reflected in many Declarations and policy documents.
Energy sector reform started gradually and took different shapes
Regional energy integration projects are planned or underway.
Several CSP projects in North Africa
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Commercialization of wind energy and introduction of CNG as a transport fuel in Egypt
Widespread use of solar heating in Palestine, Tunisia, Morocco.
Widespread dissemination of CFL in Egypt, Lebanon, Tunisia
Energy programs at King Abdullah University for Science and Technology in Saudi Arabia
MASDAR, the first zero-carbon city in Abu Dhabi
Introduction of economic incentives in Algeria, Jordan, and Lebanon
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Sub regional electricity grid interconnections are at different stages of implementation:◦ Interconnection of Egypt, Jordan, Syria,
Lebanon, and Turkey◦ Interconnection of Arab Maghreb countries
(including a connection with Europe) Cross-boarders natural gas projects:
◦ Arab Gas pipeline between Egypt, Jordan, Syria and Lebanon (with future prospect to Cyprus, turkey and Europe);
◦ Natural gas projects between North African countries, and between them and Europe.
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Restructuring activities of the energy sector are vital for:◦ improving sectors’ efficiency◦ encouraging private sector participation◦ attracting foreign direct investments (FDI),
and◦ promoting independent power producers of
solar thermal and other renewable energy technologies.
Sector reform has started in some countries and has taken different formats
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Historically, prices has been heavily subsidized in the region.
Prices are more heavily subsidized in resource-rich countries such as in the GCC, Egypt, Algeria, and Syria.
In net importers of fossil fuels (Lebanon, Jordan, Morocco, and Palestine) price distortions are less.
Governments are striving to phase out subsidies while alleviating its social impacts.◦ In 2007, Egypt announced a new plan to phase out
energy subsidies for industry.◦ Jordan eliminated fuel subsidy in 2004 over four years. ◦ Morocco phased out subsidies and is generating net
tax revenues of about 24 %.◦ Gasoline is not subsidized in the UAE
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Algeria is the only country in the region that has a feed-in-tariff.
Except in Algeria, there are no specific laws for promoting renewable energy technologies in the region.
Tax, fiscal measures and other incentives are adopted in some countries.
Laws to promote RE are being prepared in Egypt, Morocco, Jordan, and Lebanon.
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Existing national institutions mandated with renewable energy development are:◦ CDER (Algeria), NREA (Egypt), CDER (Morocco),
ANME (Tunis) and NERC (Jordan). Regional cooperation projects supported
by the EU are:◦ Mediterranean Association of the National
Agencies for Energy Conservation (MEDENER)◦ Mediterranean Renewable Energy Center
(MEDREC) in Tunisa for North African Countries. Regional UN and other bilateral and
multilateral organizations promoting renewable energy in the region include UNESCWA, UNEP, UNDP, GEF, EU, GTZ, USAID, and others
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Source: REN 21, 2010
UNDP Regional consultation meeting
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The region has sufficient local manufacturing capacities to produce solar water heaters..
Local manufacturers are lacking national schemes for standardization, testing and certification.
Few number of industry associations to promote local industries
High potential of expanding local manufacturing of solar thermal technologies in some countries (Egypt, Tunisia)
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Third Party Financing◦ ESCO and RESCO undertake fully the project financing,
design development and operation.◦ Investment is reimbursed by payments related to the
performance of the technology installed.◦ The concept of Energy service company (ESCO) has been
implemented in Egypt and Tunisia. ◦ The RESCO concept has not been applied yet in the region
Build-Operate-Transfer (BOT)◦ BOT has taken different shapes and it is implemented in
financing some projects in Algeria, Egypt, Tunisia, and Morocco
Venture Capital◦ This financial mechanism has been rarely used in the
region.◦ MASDAR new initiatives
Clean Development Mechanism
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CDM offers opportunities to promote sustainable development through investment and clean technology transfer.
Worldwide there are a growing number of financing options for CDM projects.◦ World bank Carbon Funds◦ Government Carbon funds (e.g. Italian, Spanish,)◦ Private carbon funds (e.g. EU carbon fund, KfW
carbon fund) Only Egypt, Morocco, Qatar, Syria, UAE, and
Tunisia have registered projects in the CDM since its inception in 2005
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Source: CDM projects database, 2010
UNDP Regional consultation meeting
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Arabian Gulf University
Policy Barriers◦ Lack of / or weak political will both at the
government and private sector levels.◦ Lack of national targets and / or strategies
for promoting renewable energy resources.◦ Lack of / or weak legal and institutional
framework.◦ Slow and incomplete liberalization process
of the energy and electricity markets.◦ Weak or Lack of domestic R&D programs
and low government expenditures in R&D.
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Market Barriers◦ Week capacity of information flow.◦ Low level of consumer awareness.◦ Difficulties to change consumers behaviors and
attitudes ◦ Lack of national standards, testing and certification
schemes.◦ Weak capacity of local assembly / manufacturing
distribution, installation and maintenance.◦ Lack of training programs for renewable energy
professionals.◦ Low level of awareness of local financing sector.◦ Lack of innovative financing schemes.◦ Social implications of the energy subsidies.
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Benefit from international experience such as “cities for climate protection campaign” of the I.C.L.E.I
Create a platform for Arab-Arab cooperation in this field
Test and demonstrate a range of policies and measures to build climate change resilience in the Arab cities
Disseminate lessons learned, successes and failures Resilient city action plan would include activities
such as:◦ Research and education ◦ Disaster management policies and measures◦ Promotion of “green building”◦ Public Education
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Economic Barriers◦ Heavy subsidies provided by governments
for oil, gas, and electricity.◦ High custom duties on renewable energy
technologies.◦ High initial costs of solar thermal
technologies.◦ Lack of internalizing external costs to
societies due to heavy reliance on fossil fuels.
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Ibrahim Abdel [email protected]
UNDP Regional consultation meeting
6-7 October, 2010
Arabian Gulf University
Remove key barriers Establish national targets for EE and RE
Integrate energy efficiency into energy, economic, and environmental planning
Strengthen legislative and institutional framework
Improve overall investment climate Develop proper financing schemes.
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UNDP Regional consultation meeting
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Harness the potential for carbon finance in the region
Provide financial incentives Attract private sector investments Develop standards, testing, and
certification schemes Facilitate technology transfer Develop Institutional Capacity Develop capacity of research and
development Raise public awareness
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Regulatory and Institutional reform (Algeria, Tunisia)
Energy price Reform (Jordan, Morocco, UAE)
Energy Audits (Algeria, Tunisia) Economic incentives (Algeria, Tunisia,
Morocco) Energy efficiency codes and standards
(Egypt, Tunisia) Public awareness (Morocco, Lebanon)
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