The Mediterranean Solar Plan Union for the Mediterranean

The Mediterranean Solar Plan Union for the Mediterranean Union for the mediterranean Towards a mediterranean solar plan Philippe Lorec : philippe. lorec@developpement-durable. gouv. fr

The Mediterranean Solar Plan Framework of the Uf. M Union for the Mediterranean • The Union for the Mediterranean was launched officially during the summit of July 13 th 2008 in Paris by the 43 Uf. M head of states. • The French-Egyptian Co-presidency of Uf. M aims at opening a new balanced North-South relationship based on concrete projects implementation • MSP is one of the six projects launched officially during the summit. • The MSP has the strong support of UE and will integrate existing UE policies, notably in the field of renewable energies and grid infrastructure.

The Mediterranean Solar Plan Union for the Mediterranean Strategy • A project-based approach: While aiming at helping regulatory frameworks evolution, the MSP is centered on the actual implementation of concrete projects. • A comprehensive answer to: § Climate change § Growth of electricity demand in the Mediterranean region • Tackling both supply and demand sides: § Supply side: production § Demand side: energy efficiency => 20 GW by 2020 using a mix of technologies : PV, CSP, Wind power …

The Mediterranean Solar Plan Union for the Mediterranean Energy production: Technologies Photovoltaic • Mono-crystalline • Thin-film • Concentrated PV Concentrated Solar Power • Parabolic troughs • Power tower • Linear Fresnel + biomass, geothermal, etc. Wind

The Mediterranean Solar Plan Union for the Mediterranean Timeline & Action plans CTF /CSP Preparation 2008 Immediate Action Plans 2009 2010 Deployment Master Plan 2014 2020 Production : 20 GW by 2020 • 20 GW of additional renewable electricity production by 2020 using a mix of technologies : PV, CSP, Wind power. • Contribution to the convergence of national energy policies and emergence of a regulatory environment enabling the massive scaling up of renewables in the region. Transport Infrastructures Energy Efficiency Capacity building

The Mediterranean Solar Plan Union for the Mediterranean Projects Overview Electricity production : 10 GW projects

The Mediterranean Solar Plan Union for the Mediterranean Répartition géographique (en nombre de projets) Algeria; 6 Cyprus; 2 Egypt; 20 Turkey; 29 Israel; 1 Tunisia; 29 Jordan; 20 Syria; 12 Lebanon; 4 Palestinian Territories; 3 Morocco; 33 7

The Mediterranean Solar Plan Union for the Mediterranean Plan Solaire Méditerranéen : 165 projets Public / Privé (en nombre de projets) Private Public 26% Technologies (en nombre de projets) Biomass 2% Wind 26% CSP 25% Hydro 1% 74% PV 45% 8

The Mediterranean Solar Plan Union for the Mediterranean The concrete Projects (October 2009) Ø 4 Announced projets during the conference of Paris (june 25 2009) Ø 5 -10 projects realized before the end 2010 Ø 5 -10 Faisability studies (CSP projects) Ø ~10 national calls of tender 9

The Mediterranean Solar Plan Union for the Mediterranean but also Infrastructure Turkey-UCTE Recent developments 11 Turkey-Syria 6 years delay in Syrian side 1997 Connectio n of Morocco. Tunusia. Algeria to UCTE Tunusia-Libya Trial operation with UCTE, on 21 November 2005 1998 Egypt-Libya connection 10

The Mediterranean Solar Plan Union for the Mediterranean Bridging the financial gap • Renewable technology costs are still quite far from the grid parity => it requires innovative tools to bridge the financial gap • MSP can facilitate access to : – Carbon funds – Concessional loans – European market RE prices • MSP can also accelerate the development of new public policies to address non economic barriers (policy framework and capacity building)

The Mediterranean Solar Plan Union for the Mediterranean Bridging the financial gap Private Investors (Promoters, private and sovereign funds). European states and utilities (buyers) Equity Financial Institutions (Multilateral and Bilateral) Concessional debts Grants Risk guarantee PPA (exports) States and local utilities (buyers) PPA (local) Commercial banks Debt Financing MSP projects Concessional debts Grants Risk guarantee CO 2 Funds (GEF, FFEM, FEM)

The Mediterranean Solar Plan Union for the Mediterranean Bridging the financial gap Sovereign and private funds European and National Funds Multilateral Funds ROE = 8%-15% => 25 c€/k. Wh Private Investors Insurance Risks Debt Subsidies Carbon Funds IAP Portfolio Local Purchaser 18 c€/k. Wh European Purchaser 30 c€/k. Wh 13

The Mediterranean Solar Plan Union for the Mediterranean A new management is necessary… The plan (2 GW/year) will require : – A specific project’s management (20 -30 projects / year) – Development of new technological and industrial capacities; – Changes in domestic energy policies; – Coordinated support of all stakeholders; – Optimization of CO² process. The solution = permanent call for tender ?

The Mediterranean Solar Plan Union for the Mediterranean MSP’s Facilitations • MSP’s permanent call of tender allows to dispose to a list of projects in all Mediterranean countries • MSP can facilitate access to : – Carbon funds – “Special MSP” Concessional loans of multilateral banks (CTF(1), BEI+AFD+KFW(2), …. ) – European market renewable energy prices – Coordinated support of all stakeholders; – Optimization of CO² and article N° 9 process. • MSP can also accelerate the development of new public policies to address non economic barriers (policy framework and capacity building) (1) 750 M$ for MSP-CSP (2) 5 G€ for MSP projects

The Mediterranean Solar Plan Union for the Mediterranean Thank You.