Effective Frameworks for Renewable Energy Deployment: A Regional Overview

Oman Energy & Water ConferenceMay 19, 2015

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About RCREEE

Independent regional inter-governmental organization

In operation since 2008

Headquartered in Cairo, Egypt

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Our Member States

16 member statesBoT members from every stateNational focal point in every state

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Awareness of Stakeholders

National Policies &

Regulations

Our Results Framework

A Significant Share of Renewable Resources and a Highly Efficient Use of

Energy

Public & Private

Investments

Institutional Capacities &

Technical Standards

Facts & Figures Institutions People Policies Finance

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t

RenewableEnergy

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Energy Prices: Electricity Residential

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Energy Prices: Electricity Industrial

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Energy Prices: Diesel (USD/litre)

Saudi Arabia

Libya

Iraq

Algeria

Kuwait

Egypt

Bahrain

Sudan

Qatar

Syria

Tunisia

Yemen

Lebanon

UAE

Jordan

Morocco

Palestine

Global average

0.07

0.12

0.13

0.18

0.19

0.26

0.27

0.37

0.41

0.42

0.73

0.89

0.89

0.94

0.97

1.04

1.81

0.97

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Energy Subsidy Reforms 2014

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Renewable Energy Targets

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

Total RE targets

Current Installed Capacity

RE Projects under Con-struction

by 2020

by 2030

by 2020

by 2030

by 2020

by 2020

by 2020

by 2030

by 2031

by 2020

by 2025

by 2020

by 2020

by 2030

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Renewable Energy Installed Capacity, 2014

Non-Renewable94.78%

0.15%

0.79%4.25%

0.02%

Solar

Wind

Hydro

Other

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Supporting Policies for Large-scale Projects

1. IPP Public Competitive Bidding:Wind Target: 1,000 MWWind Tendered: 1,000 MWSolar Target: 1,000 MW Solar Tendered: 510 MW

2. Law 13-09: Third-Party Supply

Feed-in Tariffs IPP Public Competitive Bidding

Direct Proposal Submission: Round 1: 13 PPAs concluded at $0.17 per kWh for 210MW aggregate PV capacity

Round 2: 34 proposal received (50MW each), totaling 1700 MW. Only 4 proposals will be selected (200 MW)

1. Feed-in Tariffs 2. IPP Public Competitive Bidding:

Wind target: 2,500 MW Tendered: 250 MW

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RE Supporting Policies

•At least 5 countries IPP Public Competitive Bidding

• 2 countriesDirect Proposal Submission

•3 countries Feed-in Tariffs

•4 countriesNet Metering

•More than 15 countries EPC Contracting

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Supporting Policies for Small-scale Projects

Net-metering and high retail electricity prices• PV installation for self-

consumption already at grid parity, today more than 15 MW have been installed

Net-metering combined with grant and bank loan15 MW of PV installed

National Energy Efficiency and Renewable Energy Action (NEEREA) • offers low-interest loans as low as 0.6% with a

repayment period of as long as 14 years for decentralized PV systems

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Trends in Developers Market

EgyptDiverse pool:

foreign & local investors

JordanDiverse pool:

foreign & local investors

Morocco

Algeria Mostly Algerian investors (SKTM)

Diversity of Developers’ Pool

RE market is dominated by few big

investors

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Trends in Developers’ Market

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ALG

BAH

EGY

IRA

J OR

KUWLEB

LIB

MOR

PAL

QATSAU SUD

SYR

TUN

UAE

YEM

0.0

0.2

0.4

0.6

0.8

1.0

0.0 0.2 0.4 0.6 0.8 1.0

ENERGY PRICING

Market Structure

Energy Markets and Pricing

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Policy Framework & Institutional Capacity

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www.rcreee.org