Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

MENA Regional Concentrated Solar Power Scale-up Program

Joint Workshop of the World Bank Group and the African Development Bank

Workshop Proceedings

11-12 June 2009 Hotel Tour Hassan Rabat,

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Energy Sector Management Assistance Program (ESMAP)

Purpose The Energy Sector Management Assistance Program is a global knowledge and technical assistance partnership administered by the World Bank and sponsored by bilateral official donors since 1983. ESMAP’s mission is to assist clients from low-income, emerging, and transition economies to secure energy requirements for equitable economic growth and poverty reduction in an environmentally sustainable way.

ESMAP follows a three-pronged approach to achieve its mission: think tank/horizon- scanning, operational leveraging, and knowledge clearinghouse (knowledge generation and dissemination, training and learning events, workshops and seminars, conferences and roundtables, website, newsletter, and publications) functions. ESMAP activities are executed by its clients and/or by World Bank staff.

ESMAP’s work focuses on three global thematic energy challenges:

- Expanding energy access for poverty reduction; - Enhancing energy efficiency for energy secure economic growth, and - Deploying renewable energy systems for a low carbon global economy.

Governance and Operations ESMAP is governed and funded by a Consultative Group (CG) composed of representatives of Australia, Austria, Denmark, France, Germany, Iceland, the Netherlands, Norway, Sweden, the United Kingdom, the U.N. Foundation, and the World Bank. The ESMAP CG is chaired by a World Bank Vice President and advised by a Technical Advisory Group of independent energy experts that reviews the Program’s strategic agenda, work plan, and achievements. ESMAP relies on a cadre of engineers, energy planners, and economists from the World Bank, and from the energy and development community at large, to conduct its activities.

Further Information For further information or copies of project reports, please visit www.esmap.org. ESMAP can also be reached by email at [email protected] or by mail at:

ESMAP c/o Energy, Transport, and Water Department The World Bank Group 1818 H Street, NW Washington, DC 20433, USA Tel.: 202-473-4594; Fax: 202-522-3018

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Copyright © 2009 The International Bank for Reconstruction and Development/THE WORLD BANK GROUP 1818 H Street NW Washington, DC 20433 USA

All rights reserved Manufactured in the United States of America First printing November 2008

ESMAP Reports are published to communicate the results of ESMAP’s work to the development community with the least possible delay. The typescript of the paper therefore has not been prepared in accordance with the procedures appropriate to formal documents. Some sources cited in this paper may be informal documents that are not readily available.

The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.

The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the ESMAP Manager at the address shown in the copyright notice above. ESMAP encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Acknowledgments

The organization of the Rabat Workshop was made possible with financial and technical support of World Bank MENA Energy Unit and ESMAP. The workshop would not have been possible without the tremendous efforts of Roger Coma-Cunill, Philippe Roos, Mohab Hallouda, Laila Kotb, and Khadija Sebbata, who helped with all the logistical and travel arrangements. The organization was led by Chandrasekar Govindarajalu and Silvia Pariente-David. The proceedings were prepared by Roger Coma-Cunill and Jonathan d’Entremont Coony, with inputs from Chandrasekar Govindarajalu. The organizers would like to express their gratitude to Jonathan Walters, Manager, World Bank MENA Energy and Transport Unit for his support and leadership and sincerely thank all the participants for attending the workshop and contributing to the discussions.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Table of Abbreviations

AfDB African Development Bank

CCGT Combined cycle gas turbine

CDM Clean Development Mechanism

CSP Concentrated Solar Power

CTF Clean Technology Fund

ELMED ELectricité MEDiterranéenne project

EPC Engineering, Procurement and Construction

EU European Union

GEF Global Environment Facility

GHG Greenhouse gas

GW Gigawatt

HFO Heavy Fuel Oil

ICO Instituto de Crédito Oficial

IP Investment Plan

MDB Multilateral Development Bank

MENA Middle East and North Africa

MW Megawatt

PPA Power Purchase Agreement

PV Photovoltaics

TWh Terawatt hour

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Table of Contents

ESMAP Presentation ...... 2

Acknowledgements ...... 4

Table of Abbreviations ...... 5

Table of Contents ...... 6

Introduction ...... 7

Presentations ...... 8

Key Issues ...... 15

Next Steps ...... 17

Annexes ...... 18

Annex 1 - Workshop Agenda ...... 18

Annex 2 - Participant List ...... 21

Annex 3 - Country Presentations ...... 23

Annex 4 - Concept Note on Regional CSP Scale-up program ...... 79

Annex 5 - Outline of Investment Plan to submit to CTF Trust Fund Committee ...... 80

Annex 6 - Workshop pictures ...... 82

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Introduction

The MENA region provides optimal conditions for the development of CSP technology at scale, e.g. plentiful of solar resources and existence of vasts amounts of unused flat land close to road networks and transmission grids. The World Bank Group and the African Development Bank, in collaboration with other donors, are launching a program to scale-up CSP in the region up to 1 GW over 6-8 years in 8-10 sizeable projects. CSP deployment on this scale would bring substantial advantages to participating countries: meet rapidly growing power demand, reduce dependence on fossil fuels for electricity generation, lower carbon footprint, and promote job creation and economic development through increased opportunities for local manufacturing and technology transfer in this area.

Concessional funds from the Clean Technology Fund (CTF) managed by the World Bank could be available to finance a significant part of future CSP projects in the region. On May 11th 2009, the Trust Fund Committee of the Clean Technology Fund (CTF) endorsed a Concept Note for a CSP scale-up program in the MENA region that estimated the cost at about US$ 4-6 billion including about $750 million of CTF soft loans.1

The World Bank Group and the African Development Bank invited Government stakeholders in the region at this workshop to review the opportunities and challenges for CSP scale-up in the region. 40 participants from 6 countries2 attended the workshop, including government officials and public utility representatives from the countries, independent experts, regional organizations3 and multilateral development banks.4 A list of potential beneficiary projects in the range of amount 965 MW-1015 MW was compiled based on government representatives’ workshop presentations and information gathered by independent experts.

These proceedings summarize the presentations made, main issues discussed and next steps to facilitate the scale-up of CSP projects in the MENA region.

1 The Concept Note endorsement is a first stage in the process of obtaining the requested funds. As the next step, an Investment Plan (IP) will be prepared and submitted to the CTF Trust Fund Committee by late 2009. Based on the IP, the Trust Fund Committee will endorse preparation of projects under the CSP Scale- up Program in the MENA region. 2 Morocco, Tunisia, Libya, Egypt, Jordan, and Malta 3 Arab Maghreb Union (UMA) 4 World Bank Group and African Development Bank 7

Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Presentations

Welcome Address – Françoise Clottes, Country Manager, World Bank; Hela Cheikhrouhou, Division Manager, African Development Bank.

Both speakers highlighted the CSP’s potential for countries in the region to provide much-needed electricity, reduce dependence on fossil fuels, foster economic development and promote job creation through local manufacturing, installation and operation of new CSP plants. Both Multilateral Development Banks (MDBs) also expressed a realistic assessment of the challenges to successful development, financing and construction of such plants. At the same time, they recognized the benefits of potential CTF funding as a catalyst for CSP in the region and strongly expressed their organizations’ desire to support scale-up efforts through assisting project development and, ultimately, co-financing of the plants.

The MENA Regional Scale-up Program – Chandrasekar Govindarajalu, Senior Energy Specialist, World Bank

There are several reasons that make the Regional CSP Scale-up Program attractive for the MENA region: unexploited economies of scale in technology production, optimal physical conditions for solar energy in terms of high direct normal solar radiation, utility friendly technology, growing importance of renewable energy in the region, and source of revenues due to export potential. The first CSP projects in the region are currently under implementation in Egypt, Morocco, and Algeria. High initial capital costs –between $4,000 and $6,000/kW are a significant barrier to investment. Costs are expected to be reduced significantly in the near future due to economies of scale. Investment can be financially attractive with the contribution of concessional financing, e.g. CTF. The Regional CSP Scale-up Program proposes to scale-up CSP in the region, with the contribution of CTF concessional financing, to 1 GW over 6-8 years in 8-10 sizeable projects of around 100 MW each.

Technical Aspects of Concentrated Solar Power (CSP) – Wolfgang Eichhammer, Fraunhofer Institute, Germany

There has been a renewed interest in CSP over the last decades driven primarily by feed-in tariffs and other support schemes in Spain and the United States, where new plants have been and continue to be constructed. There are four different versions of the technology: Parabolic Trough, Tower, Fresnel, and Dish-Stirling. Trough technology currently has the most attractive mix of cost and performance, and makes up the large majority of plants recently built or now under development. Several factors suggest that CSP can substantially reduce costs and improve performance in the coming years. One, technical improvements can be realized in certain components, notably the absorption tubes, the mirrors and the heat transfer fluid. Two, economies-of-scale in manufacturing responding to increased global demand can reduce costs. Three, increased demand could induce new entrants for all components systems, breaking up existing oligopolies (e.g., in

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absorption tubes and heat transfer fluid) with a resultant decrease in prices. At the same time, technical challenges remain. Very few commercial scale plants have been built and the hours of CSP operating performance are very low in comparison to fossil-based technologies, e.g. CCGTs as well as other renewables, e.g., wind turbines. In fact, no commercial-scale CSP plants have ever been built in the MENA region although there are two plants under construction in Morocco and Egypt with capacities of 20 MW, tied to much larger gas-fired combined cycle plants. A third plant of 25 MW is under development in Algeria.

One potential area for technical improvement is storage which would allow plants to store thermal energy during the daylight hours and thus continue to produce electricity during evening and night hours. This is particularly important for plants in the MENA region because peak demand is often in the evening hours – from 9:00 to 11:00 pm – when the sun has gone down. Storage is being used in some Spanish CSP plants with a capacity of 7 hours utilizing molten salt thermal storage tanks. However, as of now this technology has still not been widely deployed in existing plants and will increase both capital cost ($/kW) and, likely, levelized cost of generation ($/MWh).

Another area for potential technical improvement relates to lack of water availability. Preferably, an available source of water is needed for cooling in the steam loop and the water requirements are comparable to conventional plants. In areas with limited water resources, the steam can be air-cooled, lowering overall system water requirements by 90%. However, this can raise investment costs by 4-6% and, along with decreased efficiencies, increase total levelized cost of electricity by 10% compared to CSP plants that do have access to available water. Alternatively, for plants located near the ocean, needed fresh water could be produced through desalination. This can be achieved by using waste heat and some electricity in a Multiple Effect Desalination (MED) process or just through use of electricity in Reverse Osmosis (RO).

Policy and Financing aspects of CSP – Mario Ragwitz, Fraunhofer Institute, Germany

CSP is more expensive than conventional energy sources and other renewable sources on a $/MWh basis. There are a number of ways to address the issue of cost- competitiveness of CSP. One is to consider CSP as a technology on the cusp of true commercialization and resulting mass manufacture. Support for the first wave of plants would play a catalytic role in a cost reduction process, which would lead to greater competitiveness for CSP. Only by supporting technologies which show promise for cost reductions can more advanced options be developed that are both environmentally cleaner and economically competitive with fossil-based options that currently dominate nearly all power systems around the world.

Another issue to consider in regard to cost is the fallacy of using levelized cost (in $/MWh) as the sole point of cost comparison. Placing CSP within a complete utility generating portfolio can make it much more attractive than placing side-by-side with another technology in isolation. The portfolio of generating plants for any utility system

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must meet a demand profile that fluctuates throughout the day and throughout the year. In general, plants with high capital cost and low operating cost, e.g., coal or nuclear plants run more or less constantly to meet baseload demand while plants with low capital cost and high operating cost, e.g., simple-cycle gas turbines run much less frequently to meet peak demand. In addition, reliability and dispatchability of plants is a key concern, and plants without these traits require back-up power which adds to the overall system cost. The proper portfolio of plants is constructed to minimize overall cost to the system to meet a given demand profile, and thus comparing one plant to another strictly on levelized cost of generation can be misleading. CSP has the advantage of producing a generation profile that largely matches that of most demand profiles, except perhaps in systems characterized by a sharp evening peak. In other words, it generates during the day and early evening when demand is highest and therefore value of electricity is highest. In addition, CSP generation is substantially more predictable than that of many other renewables, such as wind and a great deal of hydro. This allows utility operators to dispatch CSP more or less when needed and thus reduces the cost of back-up power that more intermittent generation requires.

Given the support for CSP within potential host countries and the MDBs and the technology’s current high costs vis-à-vis alternatives, where will the financing come from for the first wave of plants in MENA? It is estimated that 50% of the financing package could come from traditional financing sources of the type used to construct conventional power plants and 50% would have to come as soft loans, grants or other support schemes motivated by CSP’s cleaner and less fossil-dependent traits.

Four sources were identified for the soft loans and grants. One, CTF funds or other low-cost financing from the MDBs or bilateral aid agencies. Certainly, CTF is a good possibility taking into account the CTF Trust Fund Committee endorsement of the Concept Note for Regional CSP Scale-up on May 11th 2009 (see document in Annex 4). However, the CTF can only provide part of the concessional funds required (say around 10-15% of the total program costs). Secondly, support schemes launched for CSP -and other renewables- by the host governments could be helpful. This could come in the form of feed-in tariffs, portfolio standards, direct financing or various tax incentives. Third, financing could be obtained through sale of CSP-generated power to countries in the European Union (EU). The MENA CSP scale-up has strong synergy with the Mediterranean Solar Plan (MSP) whose vision is to use the world-class solar resources in the southern Mediterranean region to meet growing electricity needs of the entire Mediterranean Basin. There are currently great opportunities to link large-scale CSP generation through reinforced transmission grids to demand centers of the Mediterranean region, both in the North and the South. Sales of electricity from CSP generation to EU countries through PPAs or other contractual means could be a key tool for attracting up- front financing from private or other sources. A final source of financing for the CSP plants could come from carbon financing. Generation of emission credits through CDM - or its successor mechanism- could be used as a reliable revenue source to attract financing.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

The MENA Regional Energy Market Integration – Silvia Pariente-David, Senior Energy Specialist, World Bank, Jonathan d’Entremont Coony, Senior Energy Specialist, ESMAP/World Bank; Youssef Arfaoui, Energy Expert, African Development Bank

There are several benefits for the MENA regional energy integration: enhanced energy security, export potential from natural resources, optimized use of infrastructure and more efficient dispatch of power plants, investment catalyst for generation and transmission, supply mix diversification, economies-of-scale on generating plants serving multiple markets, better framework to implement market competition leading to lower electricity supply costs, and facilitation of the development of regional scale energy companies that can compete on the biggest stage. The region’s strong yet untapped renewable resources, the heterogeneity of energy supply across the countries, and the moderate size of target countries all make increased integration a primary driver and enabler for CSP development. The development of new CSP plants must be seen in a regional, rather than country-by-country context. Enhanced interconnections with the EU market are an important factor taking into account the interest from EU countries in importing substantial amounts of CSP-generated electricity at attractive prices.

Libya country presentation – Eng. Fathi Mohamed Abugrad, Chairman, Renewable Energy Authority (REAOL)

Libya has a huge solar potential, around 140,000 TWh/year. The country’s forecasted power demand for 2020 is 109 TWh/year and expects to produce 22 TWh/year from CSP by 2050. From a domestic perspective, desalination of water using power from CSP plants is a priority. The government is currently considering several financing options for the interconnection between Libya and Italy and will take a decision after the feasibility study has been finalized. Libya has had preliminary talks with EU countries to explore possibilities for exporting power to the EU. However, this option will not be possible before 2016-2017 when the interconnections between Libya and Italy or between Tunisia and Italy are operational. Libya has developed a mid-term plan 2008- 2012 to promote renewable energies. Within this framework, Libya has carried out a feasibility study to select a site for a 50-100 MW CSP plant. The country will follow a 2- stage process: first, it will launch its first CSP Plant of 100 MW (joint venture with Abengoa Solar) by early 2010, and later on, it will consider its potential for exporting power to the EU.

Egypt country presentation– Eng. Laila Georgy Yoissef, Vice Chairman, New & Renewable Energy Authority (NREA)

The first CSP project is currently under implementation in Egypt. The project consists of a 140 MW plant, but the capacity of the solar portion is 20 MW. The project’s cost is $340 million and has received a $50 million GEF grant. Egypt’s long term plan is to install 100 MW of CSP by 2017. The main barriers for CSP scale-up in the country are: high capital upfront costs, lack of qualified staff, and the need to upgrade the national grid. However, there have been recent positive trends that have raised interest for CSP in

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

MENA countries, e.g. MSP, WB/CTF. Egypt will only consider support mechanisms such as feed-in tariffs or other financing options after the implementation of its first pilot CSP project, i.e. after 2010. For PV, for instance, the government provides direct support to investors to stimulate local manufacturing of components, i.e. government pays 25% of investment. Egypt is now going through its first experience with private sector participation in a 250 MW wind project, where the private sector would finance, implement and operate the plant and the government facilitates access to land and a guaranteed PPA. This model might be an option to explore for CSP projects.

Morocco country presentation – Mr. Saïd Mouline, Director-General, Centre de Dévéloppement des Energies Renouvelables (CDER); Mr. El Moussaoui, Head of Department, Office National de l’Electricité (ONE)

There is a strong high-level political support to develop renewable energies in Morocco, particularly solar and wind. By 2030, Morocco intends to obtain 2.6 Mtep/annum of savings in fossil fuels and create 25,000 jobs in the renewable energy sector, and 15,000 in CSP only. The main limit for the expansion of renewables has been the capacity of the network. Recently approved legislation on renewable energy allows private investors to export power to Europe and allows private sector to build a parallel network if required. Morocco excludes the use of feed-in-tariffs as a mechanism to promote renewable energy. The long-term CSP goal is to achieve 1,000 MW of installed capacity by 2030.

The Ain Beni Mathar project, currently under construction, is the first CSP project in the country. The project consists of a combined cycle plant of 125 MW with an integrated solar field of 20 MW and it is finance by AfDB, Spanish ICO funds, GEF and ONE. Abengoa solar holds a 5-year maintenance contract.

Morocco gives particular importance to the interconnections with Spain –the 3rd line is under consideration- and with neighboring countries because of its positive effects on the stability of the network and for the possibility to expand renewable energy in the country. CSP-based power is interesting for the country because its load curve’s complementarity with wind power. The financing gap between CSP and other cheaper sources of energy is high and cannot be borne only by MENA countries, other sources must be found to have financially sound projects.

Malta country presentation – Eng. Filippa Micallef, Malta Resources Authority

Malta relies entirely on imported fossil fuels, HFO and Gas oil for electricity generation. Renewable energies represent a very small fraction –less than 1%- of the total. Malta expects to have the interconnection with Sicily commissioned by 2013 –the government will publish the tender by late 2009. The government provides incentives for the take off of several renewable energies: PV, Micro wind and Solar water heaters in the domestic sector and solar thermal applications in the industrial sector. Solar thermal energy has been developed mainly by solar water heater installations, where Malta is ahead of the EU average -64 kWh/1,000 inhabitants vs 21 kWh/1,000 inhabitants. Scale-

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

up of solar power in North Africa, particularly in Tunisia, could be attractive in the future for Malta to increase renewable energy sources in the supply.

Tunisia country presentation – Mr. Amor Ounalli, Director, Renewable Energies Department, Agence Nationale pour la Maîtrise de l’Energie (ANME) ; Eng. Belhassen Chiboub, Director, Ministère de l’Industrie de l’Energie et des PME

Tunisia aims at achieving 4% of total power consumption from renewable sources in 2011 –from less than 1% at present. Renewable energies can provide 20% of energy savings by 2030 –and 80% from energy efficiency measures. Tunisia has carried out a pre-feasibility study for CSP, which has shown the high solar potential in the south of the country (over 2,000 kWh/m²/year of direct normal irradiance). Solar energy is considered suitable to meet peak demand in summer and 5 sites for the development of CSP projects have been identified. A pilot project consisting of a 25 MW plant has been suggested and the plant is expected to be commissioned by 2012-2013. The investment required is estimated to be around €85 million and the production costs around €18.8 cents/kWh. Tunisia is considering several financing options to promote renewables: state subsidies, tax reductions, feed-in-tariffs, grants or concessional loans-the feasibility study for the pilot project is still to be finalized. In addition, the interconnection between Tunisia and Italy (ELMED project) will allow the export of 200 MW of renewable energy that could partially or fully come from CSP. The interconnection has reserved 800 MW of capacity for exporting power from the ELMED production pole to Italy. However, the energy source used by the ELMED production pole is still under consideration. The interconnection could provide access to the Italian and European markets of green certificates to promote CSP development in Tunisia. Tunisia expects to sign PPA contracts by 2011 and have the interconnection commissioned by 2015-2016.

Jordan country presentation – Eng. Ziad J. Sabra, Director, Ministry of Energy and Mineral Resources

Expanding the development of renewable energies is one of the tools to achieve the goals of the country’s Energy strategy 2007-2020: diversifying energy resources, increasing the share of local resources in the total energy mix, reduce dependency on imported oil, and enhancing environmental protection. Jordan aims at expanding the contribution of renewables in the energy mix from 1% in 2007 to 10% in 2020. Jordan has high potential for developing CSP: daily average solar radiation 5-7 kWh/m², and estimated potential of 6,400 GWh annually for CSP. The government plans to launch a CSP pilot demonstration project in the short and medium term –commissioning is expected by early 2012- and it intends to develop an installed capacity from 300-600 MW by 2020 of CSP, PV and hybrid power plants. Soft loans are a prerequisite for developing the first commercial CSP plant in the country.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

The Clean Technology Fund – Mr. Rohit Khanna, Senior Operations Officer, World Bank

CTF is a multi-donor trust fund –pledges of US$ 5 billion- that provides incentives for scaled-up deployment and transfer of low carbon technologies with significant potential for greenhouse gas emissions savings. CTF provides 2 types of concessional financing depending on the nature of the project: softer concessional -40 year maturity, 10 year grace period and 0.25% service charge- and harder concessional - 20 year maturity, 10 year grace period and 0.75% service charge-. CTF funding must be blended with sponsoring MDB, e.g. CTF financing was only 10-15% of total investment in Egypt and Morocco CTF Investment Plans. The investment plan provides a notional sense of the resource envelope. The concrete financing of individual projects is approved on a later stage. The investment plan needs to demonstrate: evidence of country ownership, additionality of CTF financing, co-benefits -especially related to sustainable development and regional impact, strong enabling environment and proposed regulatory/policy change, and strong role for private investment. The CTF Trust Fund Committee will use the following criteria for assessing the proposed CSP Scale-up program: potential for GHG emissions savings, cost-effectiveness, demonstration of potential at scale –replicability potential, development impact, implementation potential – appropriate institutional capacity to quickly move with projects, additional cost and risk premium to demonstrate that CTF is needed to close the financing gap.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Key Issues

This section summarizes the major issues addressed in regard to a successful CSP scale- up in the MENA region.

Participating Countries’ Long-term and Project-specific Plans for CSP

There is strong interest among countries in the region to develop renewable energy projects and in particular CSP projects. Six countries made presentations on how CSP figures into both their immediate and long-term energy strategies. They discussed how CSP helps them meet their energy objectives, including supply diversification and increased renewable use. In addition, pipeline projects were also presented. Table 1 below provides a list of pipeline projects presented at the workshop as well as information gathered from developers and experts. However, securing adequate concessional financing and suitable policy conditions for power exports to Europe is important to make CSP projects viable in the immediate term.

Table 1 - List of CSP Projects in pipeline

Country No. of Projects Location Capacity (MW) Morocco 3 Tan Tan 15 Ain Beni Mathar 125 Ourzazate 100 Algeria5 3 NA 75 75 75 Tunisia 2 ELMED- Hauoria 200+ (five sites identified) 50 Libya 1 NA 50-100 Egypt 1 TBD 100 Jordan6 1 Maan Province 100 Total 965-1,015 MW

The typical time for launching a project is 18 months and engineering, procurement and contracting (EPC) around 24 months. In total, from conception until commissioning, a CSP project can take between 36-44 months. In other words, in the best case scenario, it will take between 3-4 years for a CSP plant to begin operations from the moment of conception.

5 Algeria did not participate in the workshop. The data was gathered by World bank consultants during a visit to Algeria as part of joint mission with EC experts. 6 Jordan project is under early consideration by the private sector. 15

Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Job Creation and Technology Transfer

Participants agreed about the importance to put forward solid arguments on the net positive impacts of CSP investments on the local job markets in MENA countries. Existing studies on the impact of renewables energies on the European job market estimate that they could create around 400,000 net jobs by 2020. Participants from MENA governments urged Multilateral Development Banks to support tailor-made studies to assess the jobs created by CSP investments in MENA countries. Some participants also noted that the CSP scale-up program can contribute to transform local industries in the region by paving the way to the manufacture of CSP components in the region. Capacity building for local experts in CSP plant operations is perceived by some regional governments as a pre-requisite for CSP scale-up in the region.

Regional Energy Integration

Several presenters and participants discussed how the growing integration of countries’ energy systems would boost the prospects for CSP. By sharing reserve margins and creating larger portfolios of plants from which to dispatch, CSP can be more easily integrated into utility systems. Integration of MENA country systems with EU countries is also under serious consideration with numerous new transmission lines being explored at the feasibility study stage. It was also noted that Mauritania should be invited to be part of this initiative as it is a member of the Arab Maghreb Union.

State of Technology

Governments and industry are showing a renewed interest in CSP technology. Spain and the US, with suitable natural resources combined with substantial government support schemes, have been pioneers. CSP is now poised to achieve substantial cost reductions by the economies of scale obtained through increased production of its components required for the scale-up program. There are four types of CSP technology, with different advantages and disadvantages. Parabolic trough is the most expanded and mature technology, but requires high skill labor to produce some of its components. Instead, Linear Fresnel has the largest possibilities for cost reduction but it is not mature enough to develop at large scale. Storage options are generally in pre-commercialization stage and require further testing.

Water use

Water availability is a problem in several of the MENA countries. CSP is a technology that requires amounts of water comparable to any other fossil fuel power plant. It is estimated that a plant with Parabolic trough technology in Spain producing 180 GWh/year requires 620,000 cubic meters of water -3.4 liters/kWh-, whereas a conventional power plant –coal or natural gas- has an annual water consumption of 2.6 liters/kWh. Dry cooling systems reduce the water consumption down to 10 % of a wet cooling, but raise investment by 4-6 % and increases levelized electricity cost by up to 10

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

%. The impact of the CSP program on water resources is to be examined in further including possible role of water desalination as an option.

Cost-effectiveness and Financing Package

On a per unit basis ($/MWh), CSP is currently more expensive than fossil fuel options and many renewable resources, e.g. wind. However, expected cost reductions from scale-up will almost certainly narrow this gap. However, developing a robust financing package will be a challenge as about 50% of the capital cost would need to come from highly concessional financing sources such as the CTF and other sources of financing.

Both the World Bank Group (WBG) and the African Development Bank (AfDB) expressed their strong commitment with this program. While recognizing the technical, regulatory and financial challenges, they offered their support in overcoming obstacles to CSP development in MENA countries and ultimately the provision of financing for plant construction

Next steps

Participants agreed on the following road map:

- MENA countries’ focal points will prepare 2-page summaries of their CSP projects under development. These summaries will inform the overall CSP Investment Plan (IP) to be submitted to the CTF Trust Fund Committee for its endorsement. - The AfDB and the WBG will work together to develop the body of the Investment Plan. - AfDB and Tunisian authorities will organize a follow-up stakeholder meeting in Tunis in September-October 2009 to: a) assess the progress of the CTF Investment Plan, b) update parties on the development of each country’s CSP projects and progress in the 2-page summaries, c) be informed about any update on the CSP industry or technology, and d) agree on a timeline for finalizing the IP and submitting to the CTF Trust Fund Committee. - The Investment Plan will be submitted to the CTF Trust Fund Committee for its endorsement after the stakeholder meeting.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Annex 1 – Workshop Agenda

MENA Regional Concentrating Solar Power Scale-Up Program Joint Launch Workshop of the African Development Bank and the World Bank Group

June 11-12 2009 Hotel Tour Hassan, Rabat, Morocco AGENDA

Thursday, June 11

Registration of Participants 8:15

Welcome Françoise Clottes, World Bank 9:00

Hela Cheikhrouhou, AfDB 9:10

The MENA Regional Scale-up Program Chandrasekar Govindarajalu, World Bank 9:20

Questions and Answers 9:40

Technical Aspects of Concentrating Solar Power (CSP) Wolfgang Eichhammer, Fraunhofer Institute, Germany 10:00

Questions and Answers 10:25

Coffee Break 10:45

Policy and Financing Aspects of CSP 11:00 Mario Ragwitz, Fraunhofer Institute, Germany Chandrasekar Govindarajalu, World Bank

Questions and Answers 11:30 18

Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Link to the MENA Regional Energy Market Integration 11:45 Silvia Pariente-David, World Bank Jonathan d’Entremont Coony, World Bank

- Interconnection issues, Youssef Arfaoui, AfDB

Questions and Answers 12:15

Lunch 12:30

Libya Country Presentation on CSP 1:15 Eng. Fathi Mohamed Abugrad, Chairman, Renewable Energy Authority (REAOL)

Discussion 1:30

Egypt Country Presentation on CSP 2:00 Eng. Laila Georgy, Vice Chairman for Studies Researches &Technical Affairs, New & Renewable Energy Authority, Ministry of Electricity and Energy

Discussion 2.15

Jordan Country Presentation on CSP 2:45 Eng. Ziad J. Sabra, Director of Alternative Energy and Energy Efficiency, Department Ministry of Energy and Mineral Resources

Discussion 3:00

Coffee Break 3:30

Malta Country Presentation on CSP 3:45 Eng. Filippa Micallef, Malta Resources Authority

Discussion 4:00

Morocco Country Presentation on CSP 4:30 Saïd Mouline, Director-General, Centre de Développement des Energies Renouvelables (CDER)

- Pilot project presentation : Ain Beni Mathar, M. El Moussaoui, Head of Department, Office National de l’Electricité (ONE)

Discussion 4:45

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Tunisia Country Presentation on CSP 5:15 Amor Ounalli, Director, Renewable Energies Department, Agence Nationale pour la Maîtrise de l’Energie (ANME)

- Pilot project presentation : ELMED project, Eng. Belhassen Chiboub, Director, Ministère de l’Industrie de l’Energie et des PME

Discussion 5:30

Session Summaries 5:45 Jonathan d’Entremont Coony, Roger Coma-Cunill, World Bank (Morning) Youssef Arfaoui, AfDB (Afternoon- Tunisia, Malta, Morocco) Mohab Hallouda, World Bank ( Afternoon- Egypt, Jordan, Libya)

Day 1 conclusions and Program for Day 2 6:15 Silvia Pariente-David/Chandrasekar Govindarajalu, World Bank

Friday, June 12

CSP Industry Survey Results 9:00 Wolfgang Eichhammer, Fraunhofer Institute, Germany Mario Ragwitz, Fraunhofer Institute, Germany

The Clean Technology Fund Investment Plan 9:45 Rohit Khanna, CTF Secretariat

Outline of the MENA Regional CTF Investment Plan 10:00 Silvia Pariente-David, World Bank Youssef Arfaoui, AfDB

- Presentation and Discussion of each section of the IP

Coffee Break 11:00

Next Steps in preparation of IP and Time Line 11:30 Chandrasekar Govindarajalu, World Bank

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Annex 2 – Participant List

Fathi Mohamed Abugrad, Renewable Energy Authority (REAOL), Chairman, Libya Dr. Albashur Abdulsalam Aburwen, Ministry of Planning & Finance, Libya Abdelouahad Acharai, CDER, Chef de Division, Morocco Dr. Khairy Aglu, Solar Studies & Research Centre, Libya Youssef Arfaoui, AfDB Zineb Benhabiba, Ministry of Transport, Chef Division, Morocco Hervé-Marie Cariou, AfDB Boubker Chatre, Ministry of Energy, Chef de Service Energies Renouvelables, Morocco Hela Cheikhrouhou, AfDB Eng. Belhassen Chiboub, Ministère de l'Industrie de l'Energie et des PME, Tunisia Roger Coma-Cunill, World Bank Jonathan d'Entremont Coony, World Bank Wolfgang Eichhammer, ISI Fraunhofer, Germany Dr. Hisham El Agamawy, Environmental Affairs Agency, General Manager, Egypt Abdelkrim El Amrani, Ministry of Economic and General Affairs, Morocco Mr. El Guerrouj, Ministry of Finances, Morocco Yara El Morsy, Ministry of International Cooperation, Egypt Abdelhaquim El Moussaoui, ONE, Head of Department, Morocco Said El Yacoubi, Ministry of Finances, Morocco Youssef Eshaimi, MET, Chef de Service, Morocco Zohra Ettaik, Ministry of Energy, Chef de Division, Morocco Eng. Laila Georgy Yoissef, New & Renewable Energy Authority, Vice Chairman, Egypt Chandrasekar Govindarajalu, World Bank Mr. Guerrouj, Ministère des Affaires Économiques et Générales, DEPP, Morocco Mohab Awad Mokhtar Hallouda, World Bank Rime Jedidi, Ministère Affaires Économiques et Générales, Chargée d’Etudes, Morocco Rohit Khanna, CTF/World Bank Abdelhamid Khalfallah, Ministère de l'Industrie de l'Energie et des PME, Tunisia Aicha Laabdaoui, Ministry of Energy, Chef de Service, Morocco

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Fatiha Machkori, Ministry of Energy, Chef de Service, Morocco Moheddine Mejri, STEG, Chef de Département, Tunisia Saida Mendili, UMA Iain Menzies, World Bank Eng. Filippa Micallef, Malta Resources Authority, Malta Saïd Mouline, Director-General, CDER, Morocco Zahraa Ouacifi, Chef de Division, MET, Morocco Amor Ounalli, ANME, Directeur Energies Renouvelables, Tunisia Silvia Pariente-David, World Bank Mario Ragwitz, ISI Fraunhofer, Germany Philippe Roos, World Bank Eng. Ziad J. Sabra, Ministry of Energy and Mineral Resources, Director, Jordan Hayat Sabri, Ministère de l’Habitat, Directrice Adjointe, Morocco Khadija Sebbata, World Bank Mrs. Slimani, Ministry of Finances, Morocco Youssef Zidi, Ministère de l’Environnement et du Développement Durable, Tunisia Abdelillah Zkiou, Ministry of Energy, Chef de Service, Morocco

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Annex 3 – Country Presentations

Libya Country Presentation on CSP - Eng. Fathi Mohamed Abugrad, Chairman, Renewable Energy Authority (REAOL)

Renewable Energy in Libya: Present Situation & Future Initiatives

Electricity Main Key Figures (2/4)

Electrical Energy Generation mix (2007)

Renew able energy Natural gas 0% 41% Heavy fuel oil 26%

Light fuel oil 33%

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

RE DEVELOPMENT

 Although, Libya enjoys important potential of RE especially solar and wind but the role of these sources in the energy mix is negligible;

 In the past several initiatives & steps where undertaken to develop RE in the country:

Photovoltaic (PV) to supply small remote loads (300 systems - 210 kWp)

PV Rural electrification Sites

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Meteorological research in support of comprehensive wind atlas for Libya (10 stations) .

Wind Atlas, based on satellite & measurement meteorological stations data has been achieved.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

 Libya like other countries in the world is increasingly concerned by high conventional energy prices and environment issues, combined with rapid demand growth.

 Accordingly, the Renewable energy authority of Libya (REAOL) founded recently to promote the development of renewable energies

MED-TERM PLAN 2008-2012 (1/3)  To achieve the above mentioned goals and objectives REAOL prepared a mid-term plan (2008-2012) to promote RE application in Libya. This plan consist of the following: - Several wind farms with total capacity around 500 MW (within an overall initiative of 1000MW by 2015) . 1. DERNAH wind farm 1st stage 60 MW. 2. AL MQRUN wind farm 120 MW 1st stage. 3. MESLATA & TRHUNA wind farm 50 MW each. 4. DERNAH wind farm 2nd stage 60 MW. 5. AL MQRUN wind farm 120 MW 2nd stage.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

MED-TERM PLAN 2008-2012 (2/3)

 Large scale PV plant grid connected in different locations about (6-10 MW).  Expanding the use of PV technologies to feed remote areas about (2 MW).  PV roof top systems to supply certain residential areas about (500 systems).  Construct the first CSP in Libya (50 – 100 MW).

MED-TERM PLAN 2008-2012 (3/3)

 Construct a joint venture with local and foreign investors a Solar Heaters Factory to satisfy local needs and exporting to international market.  Construct a PV modules Factory as a joint venture with some investors.  Executing national program for using solar heating in the residential sector.  Encourage & promote local & foreign

investment in this field.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Solar Radiation Resource Assessment

CSP Potential

Libya in the heart of sun belt

 Hugh solar potential;

 The solar radiation reaches 7.5 KWh/m2/day;

 (3000-3500) sunshine hours yearly;

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Solar Radiation Availability

Large flat area

Large potential for

development

Technical and Economic CSP Potential in Libya

Technical Potential: 139,600 TWh/y Economic Potential: 139,470 TWh/y Power Demand 2008: 29 TWh/y Power Demand 2020: 109 TWh/y Tentative CSP 2050: 22 TWh/y Coastal Potential: 498 TWh/y Water Demand 2050: 25 TWh/y (Power for Desalination )

- According to several international studies such as ( MED-CSP By DLR )

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

The Possibility

Stage 1 : 1st CSP plant in Libya ( 100 MW)

StageStage 2 2: :Potential Potential Development Development to to CoverCover National National Demand Demand and and Transfer Transfer SolarSolar Power Power to to Europe Europe Several (Several GWs GWs)

The plan • Joint company with specialized partner • PPA to be signed with the local

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Egypt Country Presentation on CSP - Eng. Laila Georgy, Vice Chairman for Studies Researches &Technical Affairs, New & Renewable Energy Authority, Ministry of Electricity and Energy

Eng. Laila Georgy Yoissef Vise Chairman New & Renewable Energy Authority (NREA) Jun, 2009

Institutional framework: Establishing NREA (1986)

The national focal point in charge of developing, introducing and promoting renewable energy technologies to Egypt on a commercial scale together with implementation of related energy conservation programs

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

National Strategy up to 2020

The Sector Policy Depends on 3 Main Pillars:  Diversifying energy resources.  Improving Energy efficiency and energy conservation programs.  Maximizing the share of (RE) in the energy mix.

In February 2008, the Supreme Council of Energy approved an ambitious plan to:

Satisfy 20% of the generated electricity by NREA renewable energies by 2020, including 12% from wind energy, 33% 67%

i.e., reaching more than 7200 MW grid- Private connected wind farms (about 600 MW wind Developers farms annually).

Policies

The polices to foster increasing wind contribution consist of two phases: Phase 1, Will adopt Competitive Bids approach: • Guaranteed long PPA, • Carbon Credit, • flexible land lease; • RE Fund.

Phase 2, • Will increase the chances to the market forces through the implementation of feed-in-tariff taking into consideration the prices achieved in phase 1.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

New Electricity Act

• A new electricity act has been developed by the Ministry of Electricity & Energy and it is subject to the constitutional approvals.

• The act has been designed to reflect the ongoing market reform as well as to strengthen the regulatory agency.

• It includes articles supporting REs, through encouraging private investments in renewables.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Wind Resource Assessment

Egypt Wind Map, Wind Atlas of Gulf of Wind Atlas of Egypt, 1987 Suez, 1996 - 2003 2005

In cooperation with USAID In cooperation with Risoe In cooperation with Risoe (Denmark) & EMA (Denmark) & EMA

Large Scale Wind Farms

- Since 2001, series of large scale wind farms, totaling about 430 MW in cooperation with Germany, Denmark, Spain and Japan.

- Key Indicators: - Generated Electricity: ~ 3.5 Billion kWh, - Fuel Saving: ~ 900,000 T.O.E.,

- Emissions Reduction: ~2 Million T.CO2.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Solar Atlas

The Solar Atlas was issued, indicating that Egypt as one of the sun belt countries is endowed with high intensity of direct solar radiation ranging between 2000 – 3000 kWh/m2/year from North to South.

The sun shine duration ranges between 9-11 h/day from North to South, with very few cloudy days.

Photovoltaic (PV) Applications

Currently, the total installed capacity is about 5 MW (7 local companies).

Solar Thermal Energy Applications

500,000 m2 of domestic solar water heating systems have been installed since the 1980s (14 local companies).

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Concentrated Solar Power (CSP)

140 MW Solar thermal power . The 1st CSP project of 140 MW including solar field of 20 Mwe is under implementation . The total investments cost is about 340 Mio $, including GEF grant of about 50 mio $. Stack Exhaust 100 C 395 C Steam 540 C, 100bar

Solar HX HRSG Air and . JBIC covers the finance of the vapour Steam G Cooling turbine Combined Cycle island (about 17 ~ Tower Billion JPY.). Air Air

Condenser

Parabolic 295295 C Trough Field 600 C . The contracts of both CC & solar

G Electricity islands were signed in Sept. 30th and ~ to the grid Gas turbine(s) Oct.21st 2007 respectively. SolarSolar Island CC Island . The project is expected to be operational at the mid of 2010.

Concentrated Solar Power (CSP)

140 MW Solar thermal power

Summary of Technical Parameters Capacity of solar portion (MW) 20 Solar collectors area (1000 m2) 131 Solar field area incl. power block (1000 m2) 590 Nameplate capacity of gas turbine (MW) 79 Nameplate capacity of steam turbine (MW) 76.5 Net electric energy (GWh/a) 852 Solar electric energy (GWh/a) 33 Solar share(%) 4% Fuel saving due to the solar portion (T.O.E / a) 10000 CO reduction (T/a) 20000 2

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Concentrated Solar Power (CSP)

140 MW Solar thermal power: Construction

The project starts construction in Jan. 2008 and it is estimated to operate commercially in year 2010

Concentrated Solar Power (CSP)

140 MW Solar thermal power: Construction

The first parabolic trough unit was installed on 11 Jan. 2009. Currently

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Concentrated Solar Power (CSP)

NREA Vision

The vision focuses on :  Increasing the contribution of RE in the electric energy mix to meet the growing demand (7-8% annually).  Saving the fossil fuels (Oil &NG) for export and for future generations needs.

 Exporting clean energy generated from Wind & CSP to Europe via regional interconnection links.  Trading the emission reductions.  Enhancing the local industrial capabilities through technology transfer.  Creating national and regional market for RE equipment.  Creating new job opportunities.

NREA’s long term plan up to 2017 is to implement 100 Mw CSP project

Egypt’s Point of View for CSP Deployment in MENA

National Potentials  High Solar Intensity.  Arid flat desert.  Growing electricity demand.  Local industrial capabilities and manpower skills.

Barriers  High up front costs.  CSP know-how technologies are limited to North Side of the Mediterranean .  Lack of qualified national capacity.  Necessity of upgrading the grid infrastructure for importing green energy.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Egypt’s Point of View for CSP Deployment in MENA(cont)

Pre-requisites

 Availability of flexible financing schemes(grants, soft loans,…)  Plans for upgrading the grid infrastructure  Issues of conventional energy subsidy and market reforms in the South  Programs for know-how and technology transfer.  National capacity building.  Developing Joint R&D.  Cooperation between South and South( industries, markets,…)  Continuous dialogue between North and South

Egypt’s Point of View for CSP Deployment in MENA(cont)

Positive Trends

 Mediterranean Solar Plan (MSP) intiative. 20 GW of new renewable energy capacities by 2020 in the region, mainly by CSP, wind and PV .

 WB/CTF – CSP Scale-up program for MENA. 1 Gw , 750 million US$ and technical assistance

 Growing interest of CSP in the MENA countries. Projects in Morocco, Algeria and Egypt. Plans in Tunisia, Libya, Jordan,………

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Jordan Country Presentation on CSP - Eng. Ziad J. Sabra, Director of Alternative Energy and Energy Efficiency, Department Ministry of Energy and Mineral Resources

______Ministry of Energy and Mineral Resources

MENA Regional Concentrating Solar Power Scale-Up Program

“Opportunities for CSP Projects in Jordan”

Eng. Ziad Jibril Sabra Director/ Alternative Energy Department MEMR

June 11-12 - 2009, Rabat, Morocco

______Ministry of Energy and Mineral Resources Energy Strategy ( 2007-2020) MAIN GOALS : • Diversifying the energy resources • Increasing the share of local energy resources in the total energy mix . • Reducing the dependency on imported oil • Enhancing environment protection

This will be achieved through : • Expanding the development of renewable energy resources • Promoting energy conservation and awareness • Maximizing the utilization of domestic energy resources (oil shale, natural gas, etc.) • Generating electricity from nuclear energy.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

The Energy Mix in Jordan (2007 – 2020) 2007

Imported Electricity 7% Renewable 1%

N. Gas 26% Oil Products 66%

Domestic Resources 4%, Imported 96% 2015 2020 Imported Imported Electricity 2% Renewable 10% Oil Renewable7% Electricity 1% Nuclear 6% Shale 11% Oil Shale 14%

Oil Products 51% Oil Products 40% N. Gas 29% N. Gas 29%

Domestic Resources 25%, Imported 75% Domestic Resources 39%, Imported 61%

______Ministry of Energy and Mineral Resources Renewable Energy Strategy Framework

• Maximize the utilization of renewable energy resources. • Continue to conduct resource assessment and identify development priorities. • Promote private investments in renewable energy projects. • Provide incentives, increase the awareness and strengthen the capacity of renewable energy stakeholders. • Promote the local manufacture of RE technologies. • Enhance access to energy services in remote communities. • Introduce Renewable Energy Legislation. • Establish Renewable Energy and Energy Efficiency Fund

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

______Ministry of Energy and Mineral Resources

Renewable Energy Resources

At Present Target

The contribution of The government the renewable aims for a 10% energy is around share in the 1% from the primary energy mix primary energy in 2020. mix.

______Ministry of Energy and Mineral Resources The Potential of Renewable Energy

1. Wind Energy Resources: . Wind Measurement Network at several locations in the Kingdom is ongoing . . Wind speed exceeds 7 m/s at selected sites.

. Two wind Pilot projects (1125 Open Plain Hills Kw) at Hofa and Ibrahimiah. >7.5 m/s >11.5 m/s 6.5-7.5m/s 10-11.5m/s 5.5-6.5m/s 8.6-10m/s . Resources are significant. 4.6-5.5m/s 7-8.6 m/s < 4.5 m/s < 7.0 m/s

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

______Ministry of Energy and Mineral Resources Development Target: Wind Power

• Jordan has an ambitious program in wind energy development, where about 600 MW of wind turbines to be installed by the year 2015, to be doubled by 2020.

• A bid process for the Al Kamshah 30-40 MW wind project was launched in 2008 and is now under negotiation with the preferred bidder and planned to be in operation during the year 2010. • Jordan would like to see more rapid development of wind sites and so a series of new wind farms are planned, these include :

______Ministry of Energy and Mineral Resources

• Al Fujeij, Shoubak (80-90 MW) on BOO basis will be tendered for prequalification by mid April 2009 in coordination with the World Bank. The project commercial operation date expected in 2011.

• Wind Pooling: a study is ongoing to pool the potential wind park sites Southern of Jordan at Harir, Wadi Araba and Ma’an with a capacity (300-400) MW in one international bidding process to attract wind park developers, to be launched in the second half of 2009.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

______Ministry of Energy and Mineral Resources

2. Solar Energy Resources:- . Daily Average Solar Radiation between 5-7 Kwh/m2 . Potential : 6400 GWh annually for concentrating Solar power. . Resources are extremely high.

______Ministry of Energy and Mineral Resources

Direct Solar Irradiation at Quwairah, Naqb and Kharana:

Quwairah, and Ra’s En Naqb are located in the southwest of the country, where Direct Irradiation is very high and comparative to good sites like Barstow, California, USA. Kharana is situated in the north of Jordan, 60 kilometers southeast of the capital Amman.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Solar System characteristics, Quwairah

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

______Ministry of Energy and Mineral Resources Past and on-going activities in Solar Energy

. Decentralized photovoltaic units in rural and remote villages for lighting, water pumping and other social services (500 kW of peak capacity). . 15% of all households are equipped with Solar water heating systems. . Solar pond for potash production

______Ministry of Energy and Mineral Resources

Development Target: Solar Power

. 50% of households to be equipped with Solar water heating by the year 2020. . Aim for a Concentrating Solar Power, CSP pilot demonstration project in the short to medium run. . Prominent area for development: Aqaba and South-East region. . Planned Installed capacity: 300 to 600 MW (CSP, PV and hybrid power plants) by 2020.

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

______Ministry of Energy and Mineral Resources Road Map for the first commercial CSP plant in Jordan . Solid financial conditions are important prerequisites for the development of a CSP market.

. Soft loan with low interest rates, long repayment period and grace period is a key element of these conditions.

. The actual costs for electricity generation for CSP technology are above the market level.

. This might of course change with increasing prices for gas and oil, but for a stable initial market situation, soft loans are required.

______Ministry of Energy and Mineral Resources Road map

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Malta Country Presentation on CSP - Eng. Filippa Micallef, Malta Resources Authority

Energy Situation in Malta

MENA Regional Concentration Solar Power Scale-up Program

Malta Resources Authority Inġ Phyllis Micallef 2 June 2009

1

MRA Organizational Set Up

• Chairman, Deputy Chairman and 5 other members of the Authority;

• Chief Executive Officer; • Three Directorates – Energy, Water and Mineral Resources Regulation.

• Total employees = 35 . 18 of which are professionals . Engineers . Lawyers . Economists

2

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Malta Background Information

• Maltese Archipelago - Malta, Gozo & other small uninhabited islands; . Area: 316 km2; . Population: 400,000 ; . High population density: 1,261 inhabitants/km2 . Urban Fabric – 23 % . Agriculture – 49% . Industrial and commercial uses – 2%

3

Malta Climate

• There are really only two seasons in Malta: the dry summer season, and the mild winter season.

• Average summer temperature is 26oC(max .

• Average winter temperature is 12oC.

• Average rainfall is 558.2 mm (22 ins). Rain rarely, if ever, falls during the summer months.

4

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Malta Energy Situation

• Malta relies entirely on imported fossil fuels – HFO and Gas oil for electricity generation; • Electricity system is small and isolated (no interconnections) : . Two power stations with total installed capacity = 571 MW; . Total generated units (2008) = 2.3 TWh; . Distribution voltage . 132kV . 33kV . 11kV . 400/230V • Electricity consumption by sector: . Domestic 36 %; Commercial 33 %; Industrial 29 %; Street lighting 2% • Penetration of RES: . Very small contribution from RES < 1%; . Increasing uptake of SWH and PV with Government support schemes;

5

Malta Energy Balance

Other uses Domestic :heating cooking industry/commercial use

6

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Fuel Consumption by Type (2008)

0.004%

0.01%

5.46%

0.05%

4.00%

0.73%

0.06%

0.06%

5.19% 1.18%

16.52% 0.02%

66.71%

Diesel Biodiesel Unleaded LRP Kerosene LHO LPG Propane Fuel Oil Gas oil Jet A1 Avgas Petrol 7

Electricity Generation

Annual Electricity Generation

2500 Electricity Generation 2000 1500 2002 - 2008 1000 500

Generation (MWh) Generation 0 2002 2003 2004 2005 2006 2007 2008 Calendar Year

Marsa PS Delimara PS

Dispatched Electricity Projections Projected Electricity 3,500 3,000 (Dispatched) 2,500 2,000 2009 - 2020 1,500

1,000 Power (GWh) Power 500

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Dispatch Business as Usual 2,625 2,693 2,781 2,859 2,937 3,015 3,093 3,133 3,173 3,213 3,253 8 Year

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Seasonal electricity demand profiles

•DAILY LOAD CHARTS

•Spring •Summer •Autumn •Winter

•430 •420 •410 •400 •390 •380 •370 •360 •350 •340 •330 •320 •310 •300 •290 •280 •270 •260 •250 •240 •230 •220 •210 •200 •190 •180 •170 •160 •150 •140 •130

•120

11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 22:00 23:00

10:00

21:00

19:00 20:00

9:00

0:00

2:00 3:00 4:00 5:00 6:00 8:00

7:00

1:00

• • • • • • • • • •

• •

• • • • • • • •

•TIME

9

Conventional Electricity Projects

• Expansion of local generation capacity: • 2011 around 100 – 150 MW • 2014 around 100 – 150 MW

• 2013 interconnection with Sicily

• By 2020 natural gas infrastructure

10

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Malta Renewable Energy Potential

• Technically Malta can exploit renewable energy through: . large scale wind farms (onshore, offshore), . medium and small scale wind farms (medium scale . 20kW- 500 kW and small- scale < 20 kW), . solar - photovoltaic and thermal, . energy from waste, . landfill gas, . sewage treatment plant gas, . biogases and . heat pumps for heating and cooling.

11

Average sunshine hours

Monthly Mean Bright Sunshine 1990-2005

14.00

12.00

10.00

8.00 Hours 6.00

4.00

2.00

0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month

Source: National Statistics Office, 2006

12

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Wind speed map (interpolated data)

13

MRA Role vis-à-vis RES

Preparation of a national educational campaign on sustainable energy use, including information dissemination and awareness raising on: •Energy efficiency •Energy conservation •Renewable Energy Sources

14

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

MRA Role vis-à-vis RES

• Promotion and regulation of RES – • Government support schemes for promotion of :

. solar water heaters; . photovoltaic systems; . microwind installations; . roof insulation; . energy efficiency appliances. . CFL’s

15

MRA Role vis-à-vis RES

• Studies on RES potential and establishing national indicative targets;

• Advise to Government of national energy and renewable energy policy formulation;

• Authorisation and licensing of RES installations.

16

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Registration of RES installations

• RES generators with a capacity less than 10 kW and less than 16Amps on each phase; i.e. . Require only to notification to the MRA • Larger capacity RES generators . Require an Authorisation to construct a generation capacity issued by the MRA and a licence/licenses . May require a development permit

• Connection to the grid require the submission of an application to Enemalta( DSO)

17

RES incentives

• Net Metering system is currently being used for the electrical power generated. • Spill-off electricity is credited at 6.99 €cents/kWh • Domestic sector • 50% grant up to €3000 on PV • 30% grant up to €750 on Micro wind • 66% grant up to €465 on SWH • Industry(current ERDF Scheme) • 50% on investment on Solar thermal applications and RES generators • Investment capped to €200,000

18

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Rabat Workshop June 11-12, 2009 - MENA Regional Concentrated Solar Power Scale-up Program

Promotion of RES in the Domestic Sector

Areas and amount of support

• Photovoltaic – up to 1,200kWp in a 3 year period

• Micro-wind – up to 300kWp in a 3 year period

• Solar Water Heaters – up to 4,000 units per year

19

PV Penetration in Malta

• Sept 2004 to March 2009 – MRA received: . 56 notifications for PV installations . 7 applications for authorisation

PV Installed Capacity Trend (March09).

300000 250000 200000 150000 100000 50000

0

Cumulative Capacity (W) Capacity Cumulative

22/09/2004 22/02/2005 22/07/2005 22/12/2005 22/05/2006 22/10/2006 22/03/2007 22/08/2007 22/01/2008 22/06/2008 22/11/2008 Date of installation •Total installed capacity approximately 254kWp

•Annual Electricity Generation estimated to be 381MWh 20

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PV Penetration in Malta by Sector • PV installations is Malta have not yet picked up due to the existing barriers. • Most installations are in the Public Sector as a promotion to this technology.

PV Capacity by Sector (March 09)

100000 30

80000 25 20 60000 15 40000 10

Capacity (Watts) Capacity 20000

5 No. InstallationsOf

0 0 Commercial Public Domestic Industrial Sectors

Capacity per Category No. Of Installations

21

Micro Wind Penetration in Malta

• Total number of notified micro wind turbines installed 3, adding up to 4.8kWp installed

22

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SWH Penetration in Malta

• Capacity of total installations in Malta in 2008 ~ 25,451 kWth Malta approx. 64kWth/1,000 capita in 2008 EU average 21 kWth/1,000 capita Cyprus – leader in solar thermal

Total capacity estimated to reach 85kWth/1,000 capita by 2010

23

PV potential

• Estimated annual yield is 1500kWh per kWp • Considerable potential for installation of PV on industrial, commercial and public buildings • Domestic sector potential less favourable- • available space mainly owned by non-favourable age group • less terraced houses more multi storey buildings • General public still has misconceptions on this technology • High capital investment required • Roofs have alternative use

24

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Wind exploitation status

Goverment has proposed three sites for wind farm developement, these are:

. Offshore site of Sikka l-Bajda (around 95) • 95MW – estimated cost €280 - €320 million

. Onshore sites of Hal Far and Wied Rini • Hal-Far (4.2 MW ) estimated cost - €5.5 – €7.5 million. • Wied Rieni (10.2MW ) estimated cost - €5.5 – €7.5 million.

25

Wind developments status • Grid stability study – isolated system issues • Application for a development permit for the three chosen sites submited to MEPA • A call for tenders for the building of the wind farms will follow. • Electricity generated from RES to be purchased by Enemalta (sole supplier to final customers) • Estimated yield from the 3 wind farms around 4.8% of the 10% of Malta Renewable Energy target by 2020.

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Morocco Country Presentation on CSP - Saïd Mouline, Director-General, Centre de Développement des Energies Renouvelables (CDER)

MENA Regional Concentrating Solar Power Scale-Up Program

La stratégie pour les centrales thermosolaires à concentration au Royaume du Maroc

Saïd Mouline Directeur Général CDER

Rabat, les 11 et 12 juin 2009

1

Sommaire

• Contexte • Historique • Projets programmés • Approche industrielle • Conclusion

2

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Contexte

Extraits de la Lettre Royale de SM Mohammed VI aux premières assises nationales de l’Energie, Rabat, le 6 mars 2009

Eu égard à Notre volonté de sécuriser notre approvisionnement énergétique, Nous insistons sur la nécessité de diversifier nos sources d’énergie, de mobiliser nos ressources renouvelables,….

Afin de traduire dans les faits Notre volonté de soutenir les programmes d’efficacité énergétique et de de développement des énergies renouvelables, Nous avons créé le Fonds de Développement Energétique,….

3

Contexte

La montée en puissance de la part des énergies renouvelables dans le mix énergétique.

 Développement de l’éolien. . la puissance électrique cumulée à partir de l’éolien atteindra 1554 MW en 2012, 2200 en 2020, et 5500 en 2030, à réaliser par l’ONE, les autoproducteurs et les opérateurs sous concession

 Croissance pour l’énergie solaire avec la réalisation d’ici à 2030 de: . 1000 MW en solaire à concentration (SEGS, Fresnel, Stirling, Tour) . 400 MW en photovoltaïque (PV, CPV); . 3 000 000 m2 en solaire thermique. 4

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ContexteContexte

La montée en puissance de la part des énergies renouvelables dans le mix énergétique

 L’émergence de la biomasse avec une puissance installée de 400 MW de puissance installée d’ici 2030

 La mobilisation du potentiel hydroélectrique par: . L’optimisation des centrales existantes; . La recherche et la construction de nouvelles STEP pour gérer les pointes de la demande; . La régulation des turbinages par l’installation de bassins de rétention; . L’équipement des sites identifiés de micro centrales hydroélectriques. 5

Contexte

La montée en puissance de la part des énergies renouvelables dans le mix énergétique

A l’horizon 2030 les énergies renouvelables devront permettre une économie en énergie fossile de 2,6 Mtep/an et contribuer à la création de 25 000 emplois

Tous les projets se feront en tenant compte des mécanismes financiers liés aux Mécanismes de Développement Propre et tout autres financements liés à la problématique des changements climatiques

6

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Contexte

La création d’une Agence dédiée aux énergies renouvelables et à l’efficacité énergétique

La mise en place d’une nouvelle législation concernant les énergies renouvelables

La mise en place d’un fonds dédié

7

Contexte

SOLAIRE: Potentiel réalisable à partir:

• PV 1 080 MWc • CES 3 000 000 M² • CSP 1000 MW

• 4,2 Mio tonnes/an CO2 évités

• 600 Mille Tep/an économisées

•15.000 Emplois créés

8

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HistoriqueContexte CSP

Le CSP au Maroc 1993

Etude de préfaisabilité pour la réalisation d’une centrale de type SEGS au Maroc et en Espagne

Etude approfondie sur le site de Ouarzazate et de Taroudant

Publication dans la revue Politique d’efficacité de l’énergie et environnement (Editions Economica, Banque Mondiale)

9

ContexteProjets CSP

Les projets PV et CSP au Maroc Sites projetés Aîn Beni Mathar : 20 MW (en construction) Ain Beni Mathar: 125 MW CSP Ouarzazate: 100 MW CSP Tan Tan: 15 MW CSP Figuig: 10 MW PV Boujdour: 10 MW PV Villes vertes: 50 MW PV

10

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InterconnexionsContexte

Contribution des importations d'électricité dans la satisfaction de la demande

20% 17% 16%

15%

9% Maroc- Espagne :les interconnexions 10% qui lient le réseau électrique Nord du Maroc au réseau 4,50% électrique Sud d’Espagne à travers le détroit de 5% Gibraltar se caractérisent par les spécifications

techniques suivantes: 0% Les réseaux marocain et espagnol, interconnectés 2005 2006 2007 2008 depuis 1997, sont raccordés par : Deux lignes 400 KV de 26 km de long Profondeur maximale de 615 m; Capacité de transit : 1400 MW; ème ESPAGNE Projet de réalisation d’une 3 ligne 400 PINAR DEL REY KV. TARIFA FARDIOUA MEDITERRANNEE PARC EOLIEN TANGER 140 MW MELLOUSSA Maroc – Algérie : les réseaux marocain er TETOUAN 1 CC TAHADDART et algérien, interconnectés depuis 1988, sont 400 MW LOUKKOS IMZOURNEN + + GHAZAOUATH.AMEUR + raccordés par deux lignes : ATLANTIQUE SONASID + TELEMCEN + • liaison -GHAZAOUET d’une longueur de AL WAHDA + FOUARAT OUJDA+ Cle KENITRA BOURDIM + 46 kilomètres, mise en service en Juillet 1988. + OUALILI Elle porte sur une capacité de 200 MW; A.FASSI RIAD DOUYET TOULAL • liaison OUJDA-TLEMCEN de même capacité EL OUALI ZAER TAZA

avec une longueur de 67 km mise en service en SEHOUL ALGERIE février 1992.

La tension de service des deux lignes est de 225 KV.

Une troisième liaison en 400 KV est en cours d’achèvement pour porter la capacité d’échange à 11 1200 MW

ContexteIndustrie CSP

Les projets PV et CSP au Maroc Sites projetés

Technopole d’Oujda

Site dédié aux industries des ENR Kyoto Park

12

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Conclusion

STRATEGIE CSP

Volonté politique Agence dédiée Réglementation Financements Carbone Interconnexion Industrie

13

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Tunisia Country Presentation on CSP - Amor Ounalli, Director, Renewable Energies Department, Agence Nationale pour la Maîtrise de l’Energie (ANME)

Atelier organisé par le Comité Exécutif du Fonds pour les Technologies Propres (FTP) Programme pour le développement à grande échelle de l’énergie thermosolaire (CSP)

Rabat, les 11 et 12 juin 2009

Perspectives du développement de l’énergie thermosolaire en Tunisie

Amor OUNALLI Directeur des Energies Renouvelables à l’ANME

Plan de la présentation

 Situation énergétique de la Tunisie

 Résultats de l’étude de préfaisabilité CSP:

 Potentiel du rayonnement solaire en Tunisie;

 Recherche et choix des sites;

 Choix de la technologie solaire CSP en Tunisie;

 Analyse économique;

 Financement;

 Proposition pour l’étude de faisabilité.

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Million (Tep)

10 Demande

8 Ressources

6

4 Equilibre déficit 2 Excédent

0 1987 1993 1999 2005 2008

CONSOMMATION D’ÉNERGIE FINALE PAR SECTEUR

2007

Industrie Transport 36% 31%

16% 7% 10% I9%

Agriculture Tertiaire Résidentiel Consommation Totale : 5,8 Mtep

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Potentiel d’économie d’énergie à l’horizon 2030

Mtep 100

90 Energies Renouvelables 80 20% 70

60 50 Efficacité Energétique 40 30 80% 20

10

0 2003 2010 2020 2030

Energies renouvelables : Objectifs . Atteindre une part des énergies renouvelables de 4% en 2011 par rapport à la consommation totale et ce, sans tenir compte de la consommation de bois et de l’hydraulique.

2007 2011

Sans la biomasse et l’hydraulique % % 4 Avec la biomasse et l’hydraulique % 2 % 3

. Atteindre une part des énergies renouvelables de 10% en 2011 par rapport à la puissance totale électrique installée.

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Résultats de l’étude de préfaisabilité CSP Potentiel du rayonnement solaire

 Bon potentiel du rayonnement solaire au sud du pays

 DNI > 2 000 Wh/m².an

Potentiel du rayonnement solaire

L’énergie solaire est très favorable pour couvrir la demande de pointe en été et vers midi.

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Recherche et choix des sites

 Cinq (5) sites ont été identifiés;

 D’autres sites sont possibles.

Conception technique de la centrale CSP proposée

Une centrale CSP d’une puissance de 25 MWe avec combustion supplémentaire  Production de l’électricité: 66 GWh;  Consommation de gaz naturel: 4 338 t/an;  Emission de CO2 : 19 800 t/an;  Contribution solaire : 70 %;  Terrain nécessaire : 75 ha;  Mise en service : 2012 – 2013.

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Analyse économique

 Centrale CSP d’une puissance de 25

MWe

 Investissement : ~ 85 Millions €;

 Coûts de production : ~ 18,8 ct € /kWh

Possibilités offertes pour le financement

 Soutien de l’Etat : à travers des subventions accordées au prix de l’énergie électrique (kWh) ou à l’investissement;  Réduction des taxes;  Fixation d’un tarif de l’électricité (feed- in-tariff);  Dons et / ou crédits bonifiés.

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Développement des énergies renouvelables dans le cadre de la coopération euro-méditerranéenne Plan Solaire Méditerranéen - Centrale électrique à concentration (STEG) :50 MW; - Photovoltaïque dispersé connecté au réseau électrique (Bâtiments solaires) : 10 MW; - Photovoltaïque non connecté au réseau électrique (Milieu rural) : 1 MW; - Centrale Electrique Photovoltaïque (Photovoltaïque concentré) : 50 MW; - Interconnexion (Câble sous marin reliant le réseau électrique tunisien au réseau électrique italien (400 kV – 1 000 MW)); - Centrale électrique thermique de 1 200 MW intégrant une composante renouvelable (800 MW pour l’Italie et 400 MW pour la Tunisie) : 1 200 MW; - Solaire thermique hors production d’électricité (Développement du Froid Solaire (Développement du chauffage solaire de l'eau dans les résidences collectives);

- Centrale Electrique à Concentration Solaire (Avec une 2ème ligne d’interconnexion avec l’Italie) : 1 000 MW ; - Eolien privé : 60 MW ; - Efficacité énergétique (Programme de démonstration de bâtiment à haute performance énergétique - Diffusion de réfrigérateurs performants par certificats d'économies d'énergie - Diffusion des Lampes Basse Consommation et suppression des ampoules à incandescences - Bâtiment à Energie Positive).

Perspectives pour l’étude de faisabilité détaillée de la centrale CSP 25 MW

 Evaluation approfondie des ressources d’énergie solaire;  Evaluation du site sélectionné;  Lancement Programme de mesurage;  Etude de la conception de base de la centrale CSP;  Evaluation des coûts;  Etablissement du cahier des charges.

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Tunisia Pilot project presentation : ELMED project - Eng. Belhassen Chiboub, Director, Ministère de l’Industrie de l’Energie et des PME

Projet ELMED Workshop The preparation of a regional investment plan for Concentrated Solar Power (CSP) Scale-up in the Middle East and North Africa Region (MENA)

Rabat, 11 et 12 Juin 2009

Hôtel La Tour Hassan 1 ELMED Etudes SARL

SCHÉMA

TUNISIE (Cap Bon) Méditerranée Italie (Sicile)

Station de Station de conversion conversion Réseau Tunisien Réseau Italien 400 kV 400 kV alternatif alternatif 400 kV Continu 400 kV Continu

Câble sous marin (environ 200 km) Centrale Électrique

2 ELMED Etudes SARL

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COMPOSANTES DU PROJET

 Une interconnexion en câble sous marin  Technologie HVDC (400 kV continu)  Capacité de transit : 1 000 MW  Longueur approximative : 200 km

 Un pôle de production électrique de 1 200 MW en Tunisie  400 MW pour la STEG, 800 MW pour le marché italien  Combustible gaz ou charbon  Intégration de sources renouvelables jusqu’à 600 MW

3 ELMED Etudes SARL

RÉPARTITION DE LA CAPACITÉ DE L’INTERCONNEXION  200 MW à accès public, disponibles pour les énergies renouvelables  800 MW pour le pôle de production ELMED (intégration de sources renouvelables jusqu’à 600 MW)

Afrique du Nord 800 MW renouvelables

Europe 4 ELMED Etudes SARL

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L’INTERCONNEXION UNE OPPORTUNITÉ POUR LES SOURCES RENOUVELABLES

• Valorisation des sources renouvelables d’Afrique du Nord • Accès aux marchés italien et européen des certificats verts

5 ELMED Etudes SARL

PLAN D’ACTION

Manifestation Accord de Constitution Lancement AOP d’intérêt Partenariat d’ELMED Études Terna -Steg SARL

2008 2009

Années suivantes

2010 2011

Adjudication droits Constitution Signature des de production d’ELMED S.A. contrats (PPA, Début de la contrat de construction transport)

2015 – 2016 : Mise en service 6 ELMED Etudes SARL

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Annex 4 – Concept Note on CSP Scale-up Program endorsed by CTF Trust Fund Committee on May 11th 2009

Please, refer to the working document CTF/TFC.3/7 ―Clean Technology Fund: Concept Note for a Concentrated Solar Power Scale-up Program in the Middle East and North Africa Region‖ that you can find in here: http://go.worldbank.org/363MIR3DO0

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Annex 5 – Outline of Investment Plan to submit to CTF Trust Fund Committee (12-15 pages excluding Annexes)

Section 1 Global and Regional Context (2-3 pages)

- Solar potential in the region - Brief summary of the national existing development plans or programs that include low carbon objectives - Description of the fuel mix for power generation in each country and of trends in GHG emissions from the power sector. Drivers for GHG emissions - Role given to CSP in low carbon path in the countries of the region - EU new legislation for renewable and resulting opportunities for MENA to export green electricity to EU - Regional energy market integration status and trends (among MENA countries, but also with EU)

Figure 1 Global Direct Normal Solar Radiation (kWh/m2/day)

Source: Ummel, Kevin and Wheeler, David, Desert Power: The Economics of Solar Thermal Electricity for Europe, North Africa and the Middle East, Center for Global Development, 2008.

Section 2 Technology and Market Status (2 pages)

- Experience with CSP plants around the world - Cost data, and scope for cost decline - Players - Barriers to CSP development (technical, infrastructure, economic, institutional) - with and without regional integration

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Section 3 Rationale for CTF co-financing (4 pages) - Transformation potential: potential market size for different scenarios of exports and local demand for green electricity - Potential for GHG emissions savings - Cost Effectiveness: at current cost levels and with cost reduction resulting from improved efficiencies, learning effects due to volume production, and economies of scale due to larger units - Replicability: contribution of proposed IP to worldwide cost reduction, the role of MENA as a CSP technology leader - Development Impact : economic implications, opportunities for local manufacturing, job creation, contribution to regional integration, etc..

Section 4 Enabling Policy and Regulatory Environment (2-3 pages) - Existing policy frameworks to promote renewable in each country and expected developments (summary table with details in Annexes) - Existing pricing schemes for conventional energies, and expected changes - Need for some harmonization in the region and with the EU, to support intra-regional trade and with EU

Section 5 Implementation Potential (2-3 pages) - Environmental impact assessment - Social impact - Infrastructure bottlenecks - Institutional capacity - Regional integration as an enabler for implementation - Assessment of overall implementation potential taking into account technology barriers, enabling framework and institutional environment—with and without regional integration - Risk assessment

Section 6 Financing Plan and Instruments (1 page) - CTF financing - Potential sources of public and private financing (including carbon finance, bilateral development banks and agencies, as well as non-traditional financiers)

Annexes - Annex by country with policy/regulatory background, and details on power sector - Annex on status and plans for regional integration ( Maghreb, Mashreq) - Annex by project: 1. Description (1-2 paragraphs) 2. Implementation Readiness (1-2 paragraphs) 3. Rationale for CTF Financing (1-2 paragraphs) 4. Financing Plan 5. Project Preparation Timetable

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Annex 6 – Workshop Pictures

Ms. Françoise Clottes, World Bank, Country Manager Ms. Hela Cheikhrouhou, AfDB, Division Manager

Mr. Chandrasekar Govindarajalu, World Bank Ms. Silvia Pariente-David, World Bank

Mr. Jonathan d’Entremont Coony, ESMAP/World Bank Tour Hassan, Rabat, Morocco

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