Mediterranean Platform for Renewable Energy and Energy ... - … › it › seguici › events ›...
Transcript of Mediterranean Platform for Renewable Energy and Energy ... - … › it › seguici › events ›...
ENEA Roma, 22 settembre 2015
Mediterranean Platform for Renewable Energy and Energy Efficiency
Renewable Energy Solutions for the Mediterranean is a not for profit
association created in 2012:
Leading platform for public-private dialogue on renewable energy issues in the Mediterranean
Advisor and facilitator to regional institutions, local governments and regulatory bodies
Network of 23 international leading utilities, industries, TSO, agencies, technical service providers and academia, actively engaged in the Southern and Eastern Mediterranean countries (SEMCs)
RES4MED Association Who we are
Academia – Honorary Members
Supporter members
Ordinary Members
Associated Partners
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Equipment manufacturers
Project developers
Financing EPC
Contractors IPP/
Investors
O&M Asset
management
Advisory – Consulting – Engineering services
• Airlight (CSP) • MegaCell (PV
module) • Carraro
Group (Inverter)
• Friem (Inverter)
• Terni Energia
PwC - Poyry - Althesys - CESI
Regulatory – TSO – Industry association
GSE - Terna - assoRinnovabili
Academia – R&D
Politecnico di Milano - Politecnico di Torino - Bocconi University - RSE - FUB
• Hfv • Terni
Energia
• EGP • Edison • Italgen • Asja • IREN
• EGP • Edison • Italgen • Asja
RES4MED membership snapshot Members’ core business in the value chain
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Wind
PV
CSP
• Energy demand growth and population boom • Energy security and diversification strong drivers for RE in importing countries
(e.g. Morocco, Jordan) or to face in the short time relevant issues (e.g. Egypt, chronic power shortages, new capacity on time)
• Combination of outstanding RE resources and RE technology costs falling • Cost of capital is the key driver to compete with GCC players • Socio-economic impacts and capacity building, Morocco and Egypt candidate as
strategic hub for Africa and Middle East
Source: Dii map Q2/2014 RES4MED elaboration
59 $/MWh
41 $/MWh
New benchmarks for RE in MENA region (1/2)
61 $/MWh
140-145 $/MWh
250 MW 20 years PPA
200 + 150 MW 25 years PPA
4 x 50 MW 20 years PPA
200 MW 25 years PPA
Main dynamics
Source: IRENA, Renewable Energy and Gas: Implications for the GCC power sector, 2015
Egypt: 250 MW Wind bid (April 2015) won by GDF/ Toyota/ Orascom at 4.1 cents $/kWh is the lowest ever in the world – and the competitors offered in the range of 4.5 and 4.99 cents $/kWh
UAE: the DEWA bid (January 2015) for 200 MW of PV at 5.98 cents $/kWh is the lowest ever in the world, the lowest six bidders were below 9 cents$
Jordan's Round 2 (May 2015) - PV IPP Tender (4X50 MW projects)- the bidders confirmed this new disruptive trend: a revenue of $ 6-8 cents $/kWh is the new benchmark for utility-scale solar projects in the stable markets within the Middle East
Solar in GCC can compete with gas even if the price is as low as 4.5 $/MMBtu or oil as low as 25 $/barrel
Gas can’t compete with $0.06/kWh even with 4$/ MMBtu
The bidding process for the 200 MW PV project in Dubai, 4x50 MW PV in Jordan and the competitive bidding for 250 MW Wind in Egypt send clear signals of how cheap RE can be delivered representing a new benchmark in the MENA
New benchmarks for RE in MENA region (2/2)
169
61
PPA
$/M
Wh
Round 2 Round 1
-64%
Jordan PV R1-R2 analysis
2014 2015
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The Euro-Mediterranean cooperation The new context
The Italian Presidency of the European Union and the European Commission organized on 19 November 2014 a Ministerial Conference on "Building a Euro-Mediterranean energy bridge: the strategic importance of Euromed gas and electricity networks in the context of energy security"
Three Thematic Platforms to provide a permanent high level forum for discussing energy policy objectives and measures, with a view to identifying specific and concrete partnership
actions and following up on their implementation
The overall objective of the Platform is to carry out a structured policy dialogue on firm ground between the Euro-Med partners to address the challenges and opportunities facing the Euro-Mediterranean gas market
The overall objective of the Platform is to promote the gradual integration of the electricity systems and markets in the Euro-Mediterranean region
The overall objective of the platform is to support the development of an RE/EE legislative and institutional environment enabling investments and of RE/EE technologies and practices
Platform on Gas Platform on Regional
Electricity Market Platform on Renewable
Energy and Energy Efficiency
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• During the preparatory meeting with UfM Member States (27 April 2015), the UfM co-Presidency invited RCREEE in partnership with RES4MED to be animator of the RE Working Group of the Platform, and to draw up a working program for the Platform activities
• A scoping document was jointly prepared by RCREEE and RES4MED setting out the common vision and approach of the platform, the state of the play in the region, and recommended areas of action for Platform activities
• Based on the preliminary analysis, RCREEE and RES4MED set out the priorities for recommended areas of action that will shape a bi-annual working program for the Platform. A draft work program is to be presented in future meetings with the co-Presidency on June 15 2015 and to the UfM Member States on 23 July 2015 in Barcelona
• These processes will shape the final work program in preparation for the launch of the Platform on RE/EE in Cairo
The Euro-Med Platform on RE/EE Background and mandate
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Platform objective
• To support and foster the sustainable energy transition in the SEMC’s by fostering the development of an RE/EE legislative and institutional environment enabling investments and of RE/EE technologies and practices in the SEMC’s through the engagement of relevant stakeholders and the fostering of market transformations in the region
Platform perspective
• To contribute with an inclusive and bottom-up approach building on:
– Local SEMC’s contexts & needs
– Lessons learned from previous cooperation experiences
– Integrating potential inter-regional synergies and linkages in existing cooperation mechanisms
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The Euro-Med Platform on RE/EE Main principles
• The Platform will focus strategically on applying fostering cohesive policies, regulations, and market enabling measures that accelerate deployment of cost effective RES solution in SEMCs
• The Platform will do so by:
– Generating comprehensive and bottom-up situational energy knowledge that will help identify challenges and design targeted recommended opportunities for action in SEMC’s
– Building on existing work of partners and UfM energy working groups, and synergizing with other MED energy platforms and existing initiatives in the region
– Pursuing active and wide public-private partnerships involving governments, private sector, academia and civil society to pursue action in SEMC’s through Mediterranean-wide network of member states and stakeholders for regional impact
– Including the industry’s perspective given their market and financing requirements expertise for deployment of successful RES practices in SEMC’s
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Our vision for the MED Platform on RE/EE An inclusive and bottom-up approach
Considering the ambitious targets, many SEMC’s have recognized the significant role of the private sector in implementing RES programs and plans
Regulatory barrier
Proper legal and regulatory frameworks aiming to support the private sector involvement are needed. There is a lack of incentives for private sector participation and competition
Market barrier
Market structures. Although power sector reforms have been initiated in almost all countries, electricity system reforms and market opening to private sector participation is lagging. Most of today’s electricity generation remains state-owned.
Policy makers to provide public-private partnerships instruments through which industry and business actors may be engaged in cooperation processes
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Our vision for the MED Platform on RE/EE Involvement of industry
RES Investments in SEMC’s mainly financed by governments or through development assistance and regional development banks. SEMCs have established renewable energy funds to finance investments through a mix of financing schemes, but efforts remain inadequate compared to the scale of ambition and set targets
Access to finance barrier
High upfront costs for RES development. Further efforts to design proper domestic financial schemes, increasing financial solutions
Share of private investments
barrier
So far investments allocated to renewable energy in SMCs have been mainly financed by governments. The setting up of public-private instruments supported by regulatory incentives is recommended
MED RES/EE Platform to support and strengthen the efforts in engaging financial actors and development partners, by providing an engagement
process for presenting and testing of various business models and financing schemes
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Our vision for the MED Platform on RE/EE Financing issues
= 3x3 Matrix Rationale
= 9 Work Packages
Policy&Regulatory
Environment
BusinessModels&
Financing
Environmental&
Socio-economic
Benefits
WP1 WP2 WP3 WP1 WP2 WP3 WP1 WP2 WP3Po
licy
Asse
ssm
ent&
Mon
itorin
g
Stre
amlin
ing
Regu
lato
ry&
Adm
inist
rativ
e
Proc
edur
es
Qual
ityA
ssur
ance
of
RES
yste
ms&
Inst
alle
rs
Impr
ovin
gFin
anci
ng
ofR
Epr
ojec
ts
Mar
ketP
oten
tialf
or
Dece
ntra
lized
RE
Appl
icat
ions
Desig
ning
Bus
ines
s
Mod
els
Unde
rsta
ndin
gVal
ued
RES
ocio
-Eco
nom
ic
Com
pone
nts
Soci
o-Ec
onom
ic
Impa
ctA
sses
smen
t
Optim
izin
gLoc
al
Valu
eCre
atio
n
Research&
Analysis
Technical
Assistance
CapacityBuilding
Common
Knowledge
Management
SystemandE-
WorkSpace
Our programme for the MED Platform on RE/EE A comprehensive proposal by RCREEE and RES4MED
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Unlocking the renewable energy investment opportunities in the Mediterranean: a Regional Perspective
Cairo, XX/XX/2016
Concept
Southern and Eastern Mediterranean Countries (SEMCs) have embarked on ambitious programs to rely on renewable energy to cover a substantial part of the growing domestic demand. Most countries have set quantitative renewable energy targets and consistent deployment plans to cover their increasing energy demand, improve energy security of supply, while promoting jobs and industrial development. The priority is to attract investments in order to have the necessary power facilities built in time. The Conference will gather public and private energy stakeholders coming from both SEMCs and Europe fostering the dialogue between the two shores to trigger investments in the clean technology sector
Topics sessions (tbc)
RES in the Region: challenges and opportunities
The Mediterranean energy transition: how to get investments right?
How to rise competitiveness of RES in the Region, a multi perspective view: the road to overcome financial and technical challenges (Round table)
Launch of Platform on RE/EE RES4EMED proposed support to the industry side event
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Contacts
Roberto Vigotti Secretary General, RES4MED [email protected] Silvia Dovidio Senior policy analyst [email protected]
Thanks for your attention!