Mediterranean Association of the National Agencies for Energy Conservation. Overview of policies and good practices

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1 Mediterranean Association of the National Agencies for Energy Conservation Energy efficiency in the Southern and Eastern Mediterranean countries Overview of policies and good practices

2 Published with the technical and financial support of OME

3 Foreword Energy constitutes a strong link between the two shores of the Mediterranean: the European Union depends on the South for 35% of its gas and 22% of its oil, which represents respectively around 85% and 50% of the South exporting volumes. With the persisting predominance of hydrocarbons in the energy mix, an increased interdependence is foreseen in the energy outlook in the years to come. This is also a focus of the Mediterranean Solar Plan under the Union for the Mediterranean framework. In the same time, a significant increase in primary energy demand is expected for the whole region, reaching more than 1.2 billion tons of oil equivalent (toe) in 2020 and 1.4 in 2030 compared to 1 in The share of South and East Mediterranean Countries (SEMC) would increase from 31% to 40% in 2020 an 47% in 2030, a three times energy consumption growth rate higher than in the North with a tripling of electricity consumption. Important impacts are foreseen from the point of greenhouse gas emissions. In this context, all the Mediterranean countries aspire to a sustainable energy development. Hence, the will to pursue ambitious goals at the regional level, as part of the Union for the Mediterranean in support of both national policies and approaches, and the implementation of energy and carbon efficient technologies and practices. The objectives of the Mediterranean Solar Plan (MSP) for 2020 in the SEMCs illustrate this ambition: an installed capacity of renewable electricity of 20 GW at the same time promoting energy efficiency projects with an indicative quantified savings target estimated at 60 Mtoe compared to a laissez-faire scenario. In this respect, since many years, a large variety of measures exists in the area of energy efficiency, both in North and South of the Mediterranean Basin. Sharing knowledge and policies that have proved particularly to be promising are elements to enhance the development of energy efficiency in the region. Wide dissemination must be made. With such exchanges, in fact everyone can learn from good practices of others to develop them, each according to its own context, while seeking innovative measures, adapted to the Mediterranean conditions. With this goal in mind, MEDENER, the Mediterranean network of national agencies for energy conservation created in 1997 and that brings together representatives from 12 countries, has decided to produce this brochure outlining the policies and actions of the South and East countries in the region. This work, a result of a close collaboration between members of MEDENER, is also the result of significant contributions of OME that has a great knowledge of energy issues in the region. Everyone can benefit from the achievements of its partners and be better prepared to meet the vast energy and environmental challenges of the 21 st century in the Mediterranean region. Saïd Mouline Director General of ADEREE President of MEDENER François Loos President of ADEME President of MEDENER 3

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5 Table of Contents FOREWARD 3 TABLE OF CONTENTS 5 INTRODUCTION 7 CHAPTER 1 ENERGY EFFICIENCY POLICIES AND OBJECTIVES IN THE MEDITERRANEAN 9 CHAPTER 2 THERMAL USES IN THE BUILDING 21 CHAPTER 3 EFFICIENT EQUIPMENTS IN THE BUILDING 27 CHAPTER 4 INDUSTRY 33 CHAPTER 5 TRANSPORT 37 CHAPTER 6 SUSTAINABLE CITIES IN THE MEDITERRANEAN 40 CHAPTER 7 CROSS-CUTTING MEASURES 44 ENERGY EFFICIENCY: RICHNESS AND DIVERSITY 47 REFERENCES 49 LIST OF BOXES 51 ACRONYMS 52 MEDENER 53 5

6 List of Figures Figure 1: Geographical coverage of the brochure 8 Figure 2: Final energy consumption by sector (SEMC 2008) 9 Figure 3: Final energy consumption by product (SEMC 2008) 9 Figure 4: Final energy consumption per capita (SEMC 2008) 10 Figure 5: Final energy intensity by country in Figure 6: Electricity production by product (SEMC 2008) 11 Figure 7: Electricity intensity since 1990 (SEMC EU) 12 Figure 8: Electricity intensity of SEMC in Figure 9: Potential negajoules in final energy consumption (SEMC 2008) 14 Figure 10: Costs of monthly electricity consumption in the residential sector, taxes included - SEMC 17 Figure 11: Share of buildings in final energy consumption in List of Tables Table 1: Legislative frameworks for energy efficiency in SEMCs Table 2: SEMC institutions contributing to the development and promotion of energy efficiency 20 Table 3: Surfaces of SWH per inhabitant in the SEMC in

7 Introduction A development of the Mediterranean region solely based on fossil fuels is unsustainable: 582 million inhabitants in 2030 will consume 40% more energy than today, from 80% of fossil fuels, 10% of nuclear and 10% of renewable energy. These figures are based on OME trend scenario considering that economic growth will follow on the same pattern that has prevailed so far. This increase in demand will come mainly from the South and East Mediterranean Countries (SEMC), whose energy intensity is constantly growing: energy consumption is, in fact, growing faster than the economy measured by the gross domestic product. There is also a great potential for energy savings in different consuming sectors (industry, building, transport, agriculture ). Such a trend scenario has adverse consequences on different plans: energy, economic, social or environmental. It is, therefore, necessary to lower these trends. Exploiting the tremendous potential of energy efficiency of the region seems to be a key element in energy strategy, as targeted by the Mediterranean Solar Plan along with its goal of an installed capacity of renewable electricity of 20 GW for The scope of work to be done has already led to the development of energy efficiency policies at the national level both in North and South: laws, regulations, institutional arrangements, training and awareness campaigns, decision aids, investment financial incentives, etc. All these mechanisms are integral parts of an energy policy that applies to both the system of production, transmission and distribution of energy- supply- and to all social and economic activities that constitute energy demand which are treated in this work. An overall perspective of policies is presented, especially implemented energy efficiency measures in the SEMCs. This overview reflects the diversity of available policy actions and strategic choices of different countries, focusing on the most innovative and significant measures. The feedback of experiences and know-how should lead states to harmonize increasingly their practices: the most promising measures at the national level may be adopted by other countries and sometimes extended to other neighboring countries. These exchanges of best practices and their development promote also the achievement of the region s objectives of energy efficiency and reduction of greenhouse gas emissions. To achieve these objectives, a reinforced regional cooperation is necessary: its foundations are based on knowledge sharing and technology transfer in the methods, programs and equipments, as energy conservation is an area that is particularly suitable. Similarly, an intensified South-South cooperation will further advance it faster. Indeed, the many available instruments are used differently according to the country, depending on the particularities of each. The economic structure may, for example, explain differences in the implementation of certain measures, with a concentration on the most greenhouse gas emitting sectors, which are not the same from one country to another. The energy - producing or totally dependent countries - and political - more or less liberal governments - situations may also have an influence on the instruments. Of course, this document does not intend to be exhaustive. To present the most illustrative measures, it is structured in meaningful economic sectors in terms of energy efficiency policies, resulting in a division into six themes, each corresponding to a chapter: building, efficient equipment, industry, transport, sustainable urban development and cross-cutting measures. They are preceded by a general chapter with the policies and key figures of energy efficiency in the Mediterranean. In addition, insights are provided on a specific ten of measures of particular interest, selected according to criteria such as 7

8 energy impact, the consistency of their implementation, their financing mode and their reproducibility where proper evaluation has been made. Geographical coverage of the brochure The Southern and Eastern Mediterranean Countries (SEMC) include eleven countries represented in the map below. Figure 1: Geographical coverage of the brochure Turkey Morocco Tunisia Syria Lebanon Israel Palestinian Territories Jordan Algeria Libya Egypt 8

9 Energy efficiency policies and objectives in the Mediterranean Key figures of energy efficiency of SEMC In 2008, the final 1 energy consumption of SEMC was 214 Mtoe for a population of 271 million. The average annual growth rate of final energy consumption of SEMC since 1990 is 3.8% and is expected to remain at 3.5% until as a result of several factors. High population growth (1.2% per year) combined with a rapid urbanization rate and important socio-economic development needs are key factors generating growth and new demand for services and energy infrastructure. FINAL ENERGY CONSUMPTION Fig. 2: Final energy consumption by sector (SEMC-2008) Fig. 3: Final energy consumption by product (SEMC-2008) 25 % 26 % 11 % 5 % 6 % 27 % Industry Transport Residential Tertiary Agriculture Non-energy use 51 % 6 % 2 % 18 % 19 % 4 % Coal Petroleum products Gas Biomass Electricity Geothermal, solar, wind Source: OME database, AIE Source: OME database, AIE By sector and by product The main consuming sectors are residential, transport and industry. The building sector, combining the residential and tertiary sectors, alone accounts for 33% of final energy consumption (Figure 2). The breakdown of final energy consumption by product (Figure 3) shows that petroleum products are highly dominant (51%), followed by gas (19%), and by electricity (18%) and ahead of coal (6%), biomass (4%) and other renewables (geothermal, solar, wind). If we include biomass in renewable energy sources, its share reaches 6%. It is important to note that Turkey, which represents 36% of consumption of the SEMC, strongly influences the distribution of the final energy by product. In fact, if we exclude Turkey, the use of coal and biomass is marginal (0.6% and 2.5% respectively) in favor of petroleum products (59%). Finally, the final energy consumption of the three major sectors is strongly correlated with the consumption of petroleum products for transport sector (96% of consumption in this sector) and that of electricity for the building (23%) and industry (22%) sectors. 1. The total final energy consumption is the sum of consumptions of the different end-use sectors. 2. According to the conservative scenario of OME, based on past trends, existing policies and ongoing projects, but integrating a cautious approach concerning the implementation of policies and planned projects. 9

10 Per capita and by country The level of final energy consumption per capita (Figure 4) varies significantly between the SEMC (over a factor of 4 regardless of range), and two countries are well above the average. The first, Israel, has a well-developed economic structure, a touristic activity and very dynamic and diversified industry (food, textiles, chemical products, diamonds, high tech, medical equipment, pharmaceutical chemicals, etc.). Having a less extended rail network, the bulk of domestic traffic of goods and passengers is by road. Figure 4: Final energy consumption per capita in 2008 UE-27 Israel Libya Mediterranean Turkey Jordan SEMC Lebanon Algeria Tunisia Syria Palestinian Territories Morocco Tonne of oil equivalent/capita (toe/cap) Source: OME database The second, Libya, is one of the richest States in Africa with a GDP/capita of about $ 10,000. It has large deposits of oil and gas (3% of world reserves). Exports of hydrocarbons are the engine of the Libyan economy and help fund a comprehensive plan of public investment in various infrastructures (telecommunications, roads, ports, health ). The construction sector is booming (20% of GDP), both for individuals and for large public infrastructures. It should be noted that the average consumption per capita of final energy in the SEMC is well below the average of the countries of the European Union (less than a third). ENERGY INTENSITIES Figure 5 shows the final energy intensities for each of the SEMC as well as the average for the European Union (EU-27). This ratio indicates the amount of final energy consumed per unit of Gross Domestic Product (GDP) at purchasing power parity (PPP) 3. The potential gains of energy efficiency is still high in half of the SEMC (Palestinian Territories, Syria, Lebanon, Egypt, Jordan, Libya), particularly in the energy exporting countries where petroleum products are cheap. If the average energy intensity of SEMC is comparable to that of the EU-27 (10% difference anyway), it will no doubt increase in SEMC and go down in the NMC. Indeed, the increasing energy needs and the absence of strong policies for energy conservation may lead to the deterioration of energy intensity in the South. On the contrary, policies implemented 3. Purchase power parity (PPP) is a currency conversion rates that can express a common unit in the purchasing power of different currencies. This rate represents the ratio of the amount of currency units required in different countries to get the same basket of goods and services. 10

11 in the North would improve energy efficiency. Therefore, there is a widening gap risk between the two shores should nothing is done to reverse the current trends. Figure 5: Final energy intensity by country in 2008 Palestinian Territories Syria Egypt Jordan Lebanon Libya Algeria SEMC EU-27 Turkey Tunisia Israel Morocco Tonne of oil equivalent/unit of Million $ 2000PPP GDP (toe/m$ 2000) Source: OME database. AIE, international sources EXPLOSION OF ELECTRICITY USES Electricity accounts for 18% of final energy consumption of the SEMC and the growth of its consumption is expected to remain at 4.8% per year until 2030 (OME, 2011). It is one of the reasons why the majority of energy efficiency measures are designed to directly impact its consumption. Since electricity is an energy carrier, it is generally the result of the transformation of primary energy, which is given in the distribution for the SEMC in the figure below. Fossil fuels account for 89.5% in 2008 of electricity generation in the SEMC. Gas has become the most primary energy used with more than 53%. Renewable energy (excluding hydro) is still very marginal with 0.5% of electricity generation. Its future development with a large existing potential could, however, help ease the energy strain and reduce CO 2 emissions related to power consumption. Figure 6: Electricity production by product (SEMC-2008) 10 % 0.5 % 19 % 18 % Coal Oil Gas Hydro Renewable 53.5 % Source: OME database 11

12 Electricity intensity The electricity intensity is quantified by using a statistical indicator defined as the ratio between the final amount of electricity energy consumption (kwh) per unit of Gross Domestic Product (GDP in $ in 2000 prices). The figure below compares the evolution of the electricity intensity of the SEMC and Europe since Figure 7: Electricity intensity since 1990 (SEMC EU) 0.55 KWh/$ EUROPE kwh/$ 2005 SEMC kwh/$ Source: OME database. AIE 12

13 We note that since 1990 the electricity intensity of the SEMC (EI-SEMC) increases almost linearly with an average annual growth rate of 2.3% per year over 18 years, while for Europe the trend is downward (-0.5%/year). This rapid increase in the use of electricity energy compared to GDP in SEM countries shows no slowing sign despite the completion of most of the rural electrification programs. The decoupling between energy consumption and GDP does not seem yet feasible at this time. The electricity intensity of the SEMC in 2008 is 1.5 times higher than that of Europe (0.49 kwh/$ for the SEMC against 0.31 for kwh/$ for Europe). The overall trend of EI-SEMC can be explained by the influence of demographic and socio-economic growth as well as by electrification efforts made in the region in recent years. However, it should be added that the majority of energy pricing policies of SEMC are not adapted with energy efficiency policies (subsidies) for the sake of social imperatives. These policies combined with the increase in living standards boost demand and in some cases make the production capacity insufficient. Electricity intensities by country Figure 8: Electricity intensity of SEMC in 2008 Syria Palestinian Territories Jordan Egypt SEMC Tunisia Turkey Lebanon Algeria Morocco Libya EU-27 Israel KWh/$ 2005 Source: OME database, AIE, National sources This figure 8 illustrates the use of electricity per unit of GDP (in $ 2005) in the different SEMCs. The variations are very important (more than a factor of 2, excluding the extremes). Syria, the Palestinian Territories, Jordan and Egypt have high above average electricity intensities (between 0.77 and 0.97kWh/$). Israel has the lowest value with a substantially identical number to that of Europe (EI 0.3kWh/$, EU kWh/$). The rest of the SEM countries is a group whose values are close to the average and vary slightly (between 0.38 and 0.46kWh/$). 13

14 ENERGY CONSERVATION AT HAND: THE POTENTIAL NEGAJOULES The energy efficiency gains correspond to the energy savings of each year that can be expressed in potential negajoules. These potential negajoules are calculated here as the difference between the final energy consumption in the conservative 4 scenario and the final energy consumption of the proactive 5 scenario developed by OME. In 2030, the values of potential negajoules could reach 72 Mtoe. Figure 9: Potential negajoules in final energy consumption (SEMC-2008) Negajoules potential Mtoe Final energy comsuption Source: OME databases Whatever the scenario is, the growth of final energy demand (3.5% or 2.6% annually by 2030 based on the scenario) will worsen the situation of dependence of SEMC vis-a-vis fossil fuels, making them much more vulnerable. Countries currently exporting energy such as Egypt or Algeria will see their capacity to export and thus to finance national economic activity reduced to meet their domestic demand. As for energy-importing countries such as Tunisia, Morocco or Lebanon, their dependence is expected to increase and their energy bills likely to rise due to the large increase in supply costs related to depletion. The social and economic risks linked to rising supply costs and their impact on the energy bill of countries, households and businesses make the establishment of a demand monitoring imperative to consume better and less. In an energy context marked by both the need to meet growing energy demand and low availability of oil resources, implementing energy efficiency measures and developing renewable energy constitute a priority and future challenges for Southern and Eastern Mediterranean Countries. 4. The conservative scenario is based on past trends, existing policies and ongoing projects, but incorporates a more cautious approach on the implementation of policy measures and planned projects. 5. The proactive scenario is based on a radical energy efficiency program and a more diversified mix of energy supply. 14

15 1.2 Various energy efficiency policies in SEMC Energy efficiency has been gradually developed in the SEMC to become one of the priorities of energy development plans in countries around the Mediterranean. Regulatory frameworks for the majority of SEMCs have evolved considerably over the last 5 years and now allow for the deployment of energysaving policies. The lack of common policies, however, shows that the commitment of the SEMC in energy efficiency is very different from one country to another. Tunisia or Turkey, for example are much more advanced, while energy-producing countries such as Libya and Egypt are much less. In general, the institutional and legal frameworks needed to develop a real market for energy conservation are in progress, although some can still be completed to be at once more visible, more sustainable and more efficient. The table below provides an overview of the scope of the legal frameworks of each country in terms of energy efficiency. Table 1: Legislative frameworks for energy efficiency in SEMCs Algeria The legal framework is consistent and covers all aspects of regulation, financing and implementation of energy efficiency policy. Framework Law No of 29/07/1999 on the energy conservation was completed in 2000 and 2004 by two decrees on thermal regulation in new buildings (No ) and on the procedures of elaboration of the national program of energy conservation PNME (No ). Two other decrees followed in 2005, laying down specific energy efficiency requirements for equipment powered by electricity, gas and petroleum products (No ) as well as on the energy audit of major energy consuming institutions-egce (No ). Since 2008, three ministerial orders determine the types of domestic appliances and define their energy classifications and the general provisions relating to methods of organization and exercise of their energy efficiency control. Since 2009, three ministerial orders define the labeling of household refrigerators, freezers and their combinations, lamps and air-conditioners. Egypt The country has no real legislation specific to energy efficiency. The electricity draft law contains a chapter on improving the efficiency of energy use with items that relate to cogeneration, standards and labeling. The Egyptian Housing and Building Research Centre has nonetheless developed a building code on energy efficiency for residential and commercial buildings. It also developed a code of energy efficiency for administrative buildings. The Ministry of Housing and Urban Development has issued in 2005 a decree (482/2005) concerning the implementation of energy efficiency code for residential buildings. Israel Ambitious targets have been defined in a national energy efficiency program, but the operational measures deployed cover very few areas. The only measures introduced to reduce electricity consumption relate to public institutions, ministries and local authorities. It lacks references to other economic sectors such as industry and buildings. The main laws in this area are: Law No on energy regulation Law No on energy labeling and monitoring of consumption Law No on energy efficiency of air conditioning, heating and electrical appliances systems 15

16 Jordan A new law on renewable energy and energy efficiency was adopted in 2010 to improve energy efficiency in various sectors. Several energy efficiency codes have been developed in the building and solar energy as well as a system of tax exemptions to promote the use of energy efficient products. However, the legal framework is still to be completed. Lebanon There is still no specific law on energy efficiency. A legislative framework on efficiency is planned in the national energy efficiency plan recently presented to Cabinet. However, the time needed for review, approval and adoption by the parliament is uncertain. Libya There is no specific law on energy efficiency. Morocco A law on energy efficiency is being developed and it is expected to contain provisions for mandatory energy standards for buildings, mandatory audits and energy impact analysis for all new major projects. The final draft was delayed because of resistance from the industry against the mandatory audits. Palestinian Territories There is no specific law on energy efficiency. The Palestinian Centre for Energy and Environmental Research is working on a bill on energy efficiency. Syria Law No. 3 on the energy conservation came out in February 2009 provides a statutory basis to adjust the energy efficiency and renewable energy to national economic sectors. Since 2008 Law No. 18 makes energy labeling of household appliances mandatory. It is also to mention the regulation of the thermal performance of buildings that came into force in 2007 and Law No. 32 on electricity adopted in Tunisia There is a strong regulatory framework consisting of laws and decrees promoting energy conservation. It includes among others, provisions relating to fiscal incentives for RE and EE projects (Decree ); cogeneration (Decree No ); financing of EE (Law No , Law No , Decree modified by Decree ), mandatory audits (Decree No , Decree no ); energy services companies in the labeling of materials, electrical appliances and equipment, regulation of the thermal performance of buildings, to examination of engines and transportation planning (Law No of 2 August 2004 and as modified by Law No. 7 of 9 February 2009). Turkey The legal framework for energy sector is generally aligned with that of the European Union and allows for funding for a national energy efficiency program covering the sectors of industry, power plants, transmission and distribution systems, building, tertiary and transportation. All of the principles and procedures on improving energy efficiency are combined in the 2008 official newspapers no , no , no , no (elaborated from Article 2 of Law No. 2819, articles 2 and 28 of Law No. 3154, Law No. 4628, Law No. 5627). 16

17 The difficulty of the development of energy efficiency in the SEMC is also related to energy policies, often unfavorable permitting disproportionally the subsidization of fossil fuels. These aids are translated into relatively low energy prices for the end consumer, discouraging the development of EE and RE. This pricing policy is well illustrated by the case of electricity in the residential sector, which can generally be said that the tariffs are very below the average production cost. For the low consumption, in particular, they can be close to a euro cent, taxes included, per kwh, such as in Syria or in Egypt. There are certainly differences, as shown in the graph below, between countries with lowest tariffs (Morocco, Tunisia, Jordan) and the countries with very low social tariffs, ranging from 3 to 4 ratio, but this context explains well the difficulty of disseminating actions for energy management in the building. Figure 10: Costs of monthly electricity consumption in the residential sector, taxes included - SEMC 80 Costs in euros/month (February 2012) Morocco Tunisia Jordan Lebanon Algeria Syria Egypt Consumption of a residential customer kwh/month Source : ADEME 17

18 Potential of energy efficiency clearly identified in several countries The energy savings are clearly identified in the National Programs of Energy Conservation developed by some SEMCs such as Morocco, Tunisia, Algeria, Israel (see Box 1), Jordan, and Turkey. The estimated sectoral potential of energy savings and their conversion into production costs and avoided investment are the first actions of awareness of consumers and stakeholders in the energy sector vis-à-vis the importance of energy efficiency. Box Nº 1: Potential energy saving in Israel The following table presents the issues related to the implementation of sectoral and transversal actions in terms of energy efficiency in Israel (GWh). Target sectors Households Industry Commercial and public Local authorities Energy awareness in homes Agriculture Water saving Total decrease in demand (GWh/ year) Reduction of emissions (1000 tons of CO 2 /year) The potential of total accumulated energy savings through 2020 in Israel could reach 96.4 GWh. The reduction in purchase costs of electricity by 2020 due to implementation of efficiency measures in Israel represents a total value of about 5 billion. With an average kwh emitting 0.75 kg of CO 2 (Israeli estimate), the CO 2 savings by 2020 could reach 72.3 million tons. Assuming a cost of approximately 15 per ton of CO 2, Israel could save about 1.1 billion by The expected decline in demand for electricity for households in 2020 will be equivalent to the production capacity of a plant of 3,400 MW. The cost per installed kilowatt is estimated at around 880. Therefore, the avoided investment cost (additional means of production) originating from households savings alone represents 2.99 billion. Source: National Energy Efficiency Program, Reducing Electricity Consumption For more information: 18

19 1.3 Programs and strategies of energy efficiency in SEMC Most SEMC have set targets for energy savings in the short to medium term under the framework of their programs of energy conservation. These objectives are highly variable and most often indicative, and the means of action deployed rarely target all sectors. Objectives and targets of energy efficiency programs and strategies of SEMC Algeria The potential of energy savings has been identified but no target figure has actually been set in the Programme National de Maîtrise de l Energie (PNME)-National Program for Energy Conservation 2007/2011. The targets for energy savings in 2011 are relatively modest and the strategy focused only on the short term. Algeria has approved in early 2011 a new national program for renewable energy and energy efficiency by 2030, with a three-year initial phase from 2011 to 2013 for energy efficiency. Energy savings by 2030 are about 0.5 million toe per year and the management of the electricity demand of 7 million toe, representing 30% of electricity consumption under laissez-faire scenario. Egypt The stated objective is to reduce national energy consumption by 8.3% in 2022, which equates to 20% of energy consumption for the 2007/2008 period. However, very few measures are deployed to achieve this goal, and there is currently no specific law on energy efficiency. Israel The development program of the electricity sector , led by the Ministry of National Infrastructures, sets a goal of reducing electricity consumption by 20% in In fact, few measures have been taken to achieve this goal. Jordan According to the Jordanian National Energy Plan, the target is a 20% reduction in energy consumption in the country by Lebanon The Ministry of Energy and Water has submitted to the Cabinet a national energy efficiency plan that has yet to be approved. In addition to activities by ALMEE, some energy efficiency measures are deployed by the Lebanese Center for Energy Conservation (LCEC) on the basis of an action plan concerning energy saving lamps, solar water heaters, energy audits and public lighting. No official target is really fixed or quantified. Libya No target is set for the reduction of energy consumption. The potential of energy savings has not yet been identified nationally. Morocco The objective set for 2020 is a 12% reduction in consumption of fossil fuels, a reduction of annual oil consumption of 150,000 toe. This percentage is based on the expected demand in the absence of energy efficiency initiatives. 19

20 Palestinian Territories There is no explicit target in terms of energy efficiency, which is mentioned only as a component of energy policy. Syria Syria has set an objective of 12.5% reduction in its primary energy consumption by This energy saving relates to fossil energy consumption of the country. Tunisia The objectives of the quadrennial plan consist of a reduction in energy intensity by 3% per year between 2008 and These goals, combined with those of the three-year program, should allow for a 20% reduction in primary energy consumption in 2011 compared to the energy intensity level of The national program targets an improvement in energy efficiency with the objective of energy intensity value of 268toe/1,000 dinars of GDP at constant prices in 2016 (against 286 toe/1,000 dinars in 2011). Turkey Turkey has set a target to reduce its primary energy intensity by 10% in 2015 and by 20% by 2023 compared to 2008 (EI-08= 282 kgoe/$1,000 of 2,000). The potential of energy savings identified in national studies represent 30% for the residential, 20% in industry and 15% in transport. The total potential of energy savings is estimated at 14 million toe per year or about $3 billion dollars/year. In general, the set up objectives of energy savings could be more precise (reduction compared to an unknown reference value) and clearer (referring to a hypothetical future energy level). The most appropriate way to formulate such levels of ambitions is energy intensity, as is done in Tunisia and Turkey. Moreover, there is an absence of a text equivalent to binding Community Directive (ex: Directive ESD 2006/32/EC Energy efficiency in end uses and energy services). As a result, institutional and legal frameworks and measures relating to the EE in SEMC are not influential enough to lift all obstacles to the efficient end use of energy. Many countries have established a specialized institution (EE Agency most used) in charge of the elaboration of initiatives and regulatory initiatives to monitor progress, ensure compliance and manage the funds. Strengthening these organizations, their capabilities and their ability to implement systems for monitoring policies is to be emphasized to ensure compliance with commitments. Table 2: SEMC institutions contributing to the development and promotion of energy efficiency Algeria Egypt Israel Jordan Lebanon Libya Morocco Palestinian Authority Syria Tunisia Turkey L Agence Nationale pour la Promotion et la Rationalisation de l Utilisation de l Energie (APRUE) Ministry of Electricity and Energy. There is no dedicated agency Ministry of National Infrastructures. There is no dedicated agency National Energy Research Center (NERC) L Association libanaise pour la maîtrise de l énergie (ALMEE) and Lebanese Center for Energy Conservation (LCEC) There is no dedicated agency L Agence Nationale pour le Développement des Energies Renouvelables et de l Efficacité Energétique (ADEREE) The Palestinian Energy and environment research Centre (PEC) The National Energy Research Centre (NERC) L Agence Nationale pour la Maîtrise de l Energie (ANME) Electrical Power Resources Survey and Development Administration (Elektrik Isleri Etüt, EIE) 20

21 Thermal uses in the building The building: priority target for energy efficiency policy Figure 11: Share of buildings in final energy consumption in % 40% 43% 41% 40% 30% 36% 36% 33% 32% 29% 29% 20% 25% 25% 24% 17% 10% 0% Algeria Turkey Syria Israel EU-27 SEMC Jordan Lebanon Tunisia Morocco Libya Egypt Palestinian Territories* Source: OME databases, National sources * estimation In 2008, the building sector accounted for the largest share with 33% of total final energy consumption in the SEMC (27% for residential and 6% for tertiary). It represents about one quarter (Egypt, Libya and Morocco), about a third (Lebanon, Jordan, Israel and Tunisia) and in some cases more than 40% (Algeria, Syria and Turkey) of the final energy consumption of these countries. The potential for energy savings and thus saving on state budget becomes even more important. Final energy consumption of the SEMC and Europe in the building sector is similar (33% and 36% respectively); however the uses of energy and the level of equipment of European households are much more important. Very recent changes in regulations in this area are beginning to be adopted by most SEM countries (Algeria, Egypt 6, Turkey, Tunisia, Jordan, Palestinian Territories 7, Syria and Lebanon 8 ). The set of guidelines is generally compiled as a code of energy efficiency of the building, whose main provisions are: - The mandatory minimum standards for energy efficiency in new buildings. These are generally adapted to the climate zoning. - The definition of minimum standards of energy performance for boilers, central heating and household appliances (the list of affected devices is highly variable from one country to another). - A system of certification and monitoring of compliance with the standards of energy efficiency and energy savings. 6. In Egypt the implementation of energy efficiency standards in the tertiary sector is on a voluntary basis. 7. In the Palestinian Territories the implementation of energy efficiency standards in the building is done on a voluntary basis. In practice they are widely adopted. 8. In Lebanon the implementation of energy efficiency standards is done on a voluntary basis in all sectors. 21

22 However, in reality, the level of operation capability of these measures differs significantly from one country to another. The two countries where thermal regulation is relatively well implemented are Turkey and Tunisia. Indeed, in both countries, regulation was developed through a comprehensive process based on broad consultation with all stakeholders and associated support programs and building designers, operators and suppliers of insulation materials. In general, the feedback from these countries shows the importance of the quality of the process of regulation as a key factor in its real applicability. Morocco, Libya and Israel have not yet set up a thermal regulation in the building. However, a bill on energy efficiency in Morocco is currently being validated. It contains provisions for mandatory energy standards for buildings, mandatory audits and energy impact analysis for all new major real estate projects. Programs dedicated to energy efficiency in buildings Thermal regulation alone cannot induce a change of practices in the design of building insulation. For assuring training and integration of thermal regulations by all stakeholders of the building, some countries are launching extensive pilot projects. This is the case of Tunisia with the RTEBNT project (see Box 2) and Algeria with ECOBAT project that engages starting from 2011 OPGI (Office de Promotion et de Gestion Immobilière) and APRUE for the realization of 600 energy efficient homes. The objectives of these programs are broadly similar and include: - The improvement of thermal comfort in homes and the reduction of energy consumption for heating and cooling. - The mobilization of actors of the building around the issue of energy efficiency. - The realization of demonstrative actions across the country, demonstrating the feasibility of high performance energy projects. - Triggering a ripple effect of practices taking into consideration the aspects of energy conservation in architectural design. Locally, multiple demonstration operations were performed in the SEMC during the past 10 years. These include the AFD- ADEME-ALMEE project developed in Lebanon with five real estate projects whose energy consumption is from 30 to 40% lower than a standard building for an additional cost of 5 to 10%. The MED-ENEC 9 project is also under a regional cooperation among the SEMC and the European Union. It allowed for the implementation of several activities, including awareness and information campaigns of both public institutions and the private sector and the funding of 10 pilot projects in the Mediterranean (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestinian Territories, Syria, Tunisia and Turkey). 9. MED-ENEC is a regional project funded by the European Union. It aims at improving measures for energy efficiency and renewable energy systems in buildings in southern and eastern countries of the Mediterranean. Improving framework conditions, business development, and support for major national construction programs are the main activities of the project. 22

23 Box Nº 2: The Tunisian RTEBNT Program The energy efficiency policy in the Tunisian construction sector is perhaps the most elaborate of SEMC. It is based on an evolving regulatory framework that was developed since 2004 (Article 10 of law no of 2 August 2004 on the energy management as amended by law no of 9 February 2009). In 2008, the implementing regulations relating to the type of building for office use was enacted, followed in 2009 by one of the residential buildings and in 2012, those provided by the building for health and tourism. The program led by the Tunisian RTEBNT ANME (National Agency for Energy Conservation) and supported by the GEF (Global Environment Fund) through the UNDP (United Nations Development Program) and FFEM (French Fund for Global Environment) through the AFD (French Development Agency) has achieved 40 pilot projects (33 in the residential and tertiary sector in 7) fostering the emergence of sustainable practices in energy efficiency building design. Particular attention was given in the implementation of these projects, interventions engenders a surcharge of up to 10% of the initial construction. This program has enabled the development of a zoning climate of Tunisia and the technical tools to professionals. An extensive information campaign and awareness on energy efficiency in buildings has been launched via television, radio, newspapers and communications media (handbooks, posters, etc). A website is dedicated to the RTEBNT project ( and offers the public all information relating to the application of thermal regulation in the building (guides, tools for the design, etc.). Over time, the RTEBNT program has several objectives: - Improving the capacity of various stakeholders in the field of construction (administration, construction managers, designers, developers) - Training and awareness of various construction actors of thermal and energy regulations for new buildings - Evaluation of demonstration operations - Implementation of energy efficiency standards in construction - The establishment of an interface structure between research and development and the different actors of the construction. For more information: 23

24 2.2 Regulation: from theory to practice Required performance standard for new buildings: in theory The application of thermal regulation in new buildings is dependent on the effectiveness of the monitoring-sanctions mechanism, which is dependent on the political will of policy makers. The housing shortage in most SEM countries makes of speed and low cost as priority criteria for construction more than energy efficiency. Moreover, the excess energy in some countries (Algeria, Libya, Egypt and Syria) does nothing for the development and implementation of an energy efficiency policy at homes. With relatively low energy prices in these countries, energy saving does not necessarily seem as a priority. In general, the agencies responsible for energy efficiency do not always have the influence nor the resources to bring energy efficiency as the axis of the main energy policy in homes. Diagnosis and certification of buildings to encourage compliance Currently, Turkey and Tunisia have a functional monitoring-sanction system vis-a-vis thermal standards. Tunisia has deployed solutions to monitor the implementation of such standards, especially at homes. For example, obtaining a building permit is coupled with a form that accounts for thermal performance to be achieved by referring to the requirements set by regulations. This form, completed and signed by the architects, designers, consulting engineers or engineering firms that specialize in thermal building, on the one hand, allows for checking the standards and also monitoring the market for insulation to optimize its orientation by the use of subsidies. In Turkey, the regulation imposes in large buildings (commercial, public sector, industrial enterprises) managers in charge of energy certification and optimization of energy performance of buildings (see Box 3). 24

25 Box Nº 3: Energy Managers in Turkey The energy managers are appointed from among certified organizations authorized to carry out energy audits and can offer solutions for improving energy efficiency of buildings. This measure applies to all new operations beginning after May 2, This applies to commercial, industrial and public sector buildings that meet certain characteristics in terms of area and energy consumption. The energy managers can be appointed within companies in the industry when they show a proof of electrical or mechanical engineering in industry. All audit findings must be made available to the Directorate General of Electricity for review. The priority tasks for energy managers target the evaluation and improvement of specific points, namely: - Improve the efficiency of combustion, heating and air conditioning as well as the heat transfer systems, - Reinforce thermal insulation to the standards of reference in the climate zone and identify energy losses or heat sources; - Promote the double glazing systems; maximize heat recovery; - Prevent losses in electricity generation; - Increase the efficiency of converting electrical energy into thermal or mechanical energy; - Facilitate the integration of renewable energy, heat pumps and cogeneration practices; - Promote the use of energy saving lamps, electronic ballasts and automated control systems of lighting; - Identify and promote measures and procedures to improve consumption habits, organizing necessary training programs; - Define and coordinate the implementation of possible changes in energy-consuming, processes or equipment systems; - Monitor the efficiency of energy-consuming equipments and coordinate the timely execution of maintenance and calibration; - Monitor and evaluate energy consumption and produce periodic reports; - Prepare and submit to the direction cost benefit analyses of energy efficiency actions. The energy manager is the main actor responsible for improvement and control of the energy performance of large buildings. For more information: The emergence of information dissemination and consulting in energy efficiency The means of awareness and advice on energy efficiency Beyond regulatory information, the SEMCs begin to develop measures to provide information and advice to final consumers. Several countries like Algeria, Lebanon, Tunisia and Turkey have launched information campaigns to promote energy saving practices, the use of renewable energy, reinforcement of building 25

26 insulation levels or use of efficient household appliances. These campaigns are largely conducted in isolation from the institutions in charge of energy management. The means of communication used are very diverse (newspaper articles, posters, spots in radio and television, raising awareness of students) in order to reach a large number of consumers. The Lebanese Center for Energy Conservation (LCEC) diffuses particularly multi-media advertising aimed at school children and adults (see Box 4). Box Nº 4: Information Campaigns of the Lebanese Center for Energy Conservation (LCEC) Information materials used by the LCEC are very diverse and target different audiences. Two recent advertising campaigns broadcast on television, radio and an advertising poster helped increase the Lebanese public awareness of energy saving issues (Image 1 and 2). An information campaign on energy conservation practices was also launched in Lebanese schools (Image 3). 1 Awareness of energy wastefulness 2 Awareness of energy efficiency in lightnig 3 Dissemination of energy conservation practices at home For more information: Energy audits for households Energy audits are a useful way to inform consumers about possible actions to improve the energy efficiency of their homes. Mainly developed in the industry and the tertiary sector, they could soon be offered to households in Tunisia. In Algeria, APRUE and BDL (Banque de Développement Local) also plan to soon launch a subsidized loan to finance the retrofitting of buildings and offer attractive financial aid to individuals who would like to improve the energy efficiency of their homes. 26

27 Efficient equipments in the building Influence the uses of electricity in buildings In an attempt to limit the increasing electricity consumption of household appliances, various measures are implemented throughout the life cycle of the product. At the design time, there are standards, aid for research and development as well as voluntary agreements with manufacturers that dominate. At the stage of commercialization of efficient products, the process of bidding for high-performance technologies consists of, for applicants of products, requiring manufacturers to achieve certain energy criteria that conventional products do not meet. Purchase of high-performance products by households is promoted by information campaigns, proper labeling and possibly financial aid. These actions target designers, manufacturers, importers, distributers and vendors and ultimately consumers, and they aim at steering the market to optimize products performance. 3.2 Energy certification of household appliances Several SEMCs (Algeria, Tunisia, Turkey, Syria and Israel) have adopted systems of standards and labeling requirements on different household appliances. The list of affected devices differs from country to country but the refrigeration and air conditioning are always concerned. Indeed, the very hot climate of the SEMCs generates strong needs for refrigeration, which accounts for up to 40% of electricity consumption in some countries (number of Tunisian households in 2007). The most developed labeling systems are refrigerators, air conditioners, washing machines, low energy- consuming bulbs, water heater and extend also to some vehicles. Lebanon and Egypt apply efficiency standards on a voluntary basis; their influence on maximizing returns on electrical appliances is therefore very low. Jordan, Libya and Morocco have not yet developed performance standards for appliances. However, the Moroccan Bill on energy efficiency plans to incorporate a labeling system. In the Palestinian Territories labels and measurement procedures were submitted to the legislative council but no action has been taken in the interest of not limiting the range of imported products. The introduction of a labeling program has an impact on consumers only if it is sensitive to the price per kwh. The price signal then leads the user to integrate the level of consumption of devices in its purchasing criteria. If the price of electricity is low (subsidized in most cases), the impact of labeling, like other instruments based on market needs, is very limited. 3.3 Promotion of efficient products Energy-saving lamps: Compact Fluorescent Lamps (CFL) Programs promoting the use of CFL are widely diffused in the SEMC (see box 5) and serve two objectives: the total elimination of the market for incandescent light bulbs and reducing the electricity bill of households. Based on the commitments of countries, the promotion of CFL is made on more or less large scale. In Syria, the Ministry of Electricity distributed around 10,000 CFL free of charge in several activities to disseminate the use of such bulbs at a larger scale. The Ministry envisages also distributing 3 million bulbs freely to households. To date, Jordan and Libya have not yet put in place arrangements for the dissemination of efficient lighting. 27

28 Some difficulties related to the characteristics of CFL are not yet considered by the SEMC. Indeed, the CFL contains a gas containing mercury vapor, potentially hazardous to health and the environment. Information on usage precautions in case of breakage of lamp is very little diffused in the information campaigns. In general, the programs of market development for CFL should all include the recycling and public health issues associated with these lamps. Box Nº 5: The ECO-LUMIERE Algerian Program As part of PNME and with the support of the National Fund for Energy Conservation- Fonds National pour le Maîtrise de l Energie (FNME), APRUE launched a program called Eco-Lumière that consists of distributing in households of one million energy-saving lamps (CFL) at a reduced price. In Algeria, the household electricity consumption accounts for 35% of the national electricity consumption. The domestic lighting is 32% of the total household consumption and represents approximately 1,330 MW or 26% of the national power demand at peak times (source APRUE). The Eco-LUMIERE program is expected to reduce the power demand of the national network of 55 MW and to prevent the emission of at least 71,000 tons of CO 2 /year. The operation of distributing one million of CFL was launched on April 26, 2009 by APRUE with the support of Sonelgaz (incumbent supplier of electricity and gas in Algeria). This pilot operation was supported by an information and awareness campaign for the general public. The project builds on an attractive price and a strong information campaign The lamps are distributed at competitive prices, i.e. 250 AD a lamp (instead of AD and more), first, in the central provinces of Algiers, Blida, Boumerdes, Tipaza and Tizi Ouzou. A local information campaign warning consumers about the availability of CFL within sale outlets of Sonelgaz agencies. Communication means (brochures, posters, spots) are as well developed by the APRUE to support the operation. Sonelgaz Services also distribute flyers and invitations along with energy bills to its clients. During the course of the communication campaign, APRUE outlets, the Ministry of Energy and Mines and that of Sonelgaz, are involved in relaying information about this operation. A mobile display (36 vehicles) is also planned. Pour en savoir plus: 28

29 Solar water heaters (SWH) SWHs are used to complete the types of water heating using other energy sources (electricity, fossil fuels, biomass), and under certain conditions it allows for complete replacement. Being completely renewable, this replacement with solar energy is effective in limiting greenhouse gas emissions. Table 3 compares the state of the market of SWHs in the SEMC. Table 3: Surfaces of SWH per inhabitant in SEMC in 2009 Israel Palestinian Territories Jordan Turkey Lebanon Syria Tunisia Egypt Morocco Algeria Libya m²/1000 inhabitants Source: OME, based on national sources Regarding the use of this technology, Israel is a leader among the SEMC (823 m 2 /1000 inhabitant). Indeed, 90% of Israel households are currently equipped with SWH. This massive use of SWH began almost 30 years ago due to legislation requiring their installation in all new buildings. Israel s Ministry of National Infrastructures estimates that currently all-solar water heaters can save 2 million tons of oil per year. The Palestinian Territories, Jordan and Turkey have a highly developed market of SWH covering mainly the residential sector (up to 80%). These three countries were able to impose this solution without any specific legislation or tax advantages. Lebanon and Tunisia have a real expanding market for SWH (82,000 and 40,000 m 2 /year respectively) supported by subsidies and easiness of credit (Prosol program in Tunisia). Lebanon is also developing partnerships with Chinese manufacturers and benefits from donations (1,100 units since 2005) to support its SWH market. In Syria, many pilot projects have been done in the past few years by the National Energy Research Center in many sectors (public hospitals, public buildings, etc) to disseminate SWH systems and also installing several PV systems for public lighting or water pumping. In other countries (Egypt, Morocco, Algeria and Libya) the rate of SWH equipment is very low and the market still seems in its infancy. This is particularly the case for Syria, Egypt and Libya where the lack of financial support to purchase this technology makes it very uncompetitive compared to extensively subsidized electricity prices. For Morocco and Algeria the situation is changing thanks to programs supporting the development of SWH market (PROMASOL since 2002 and Alsol since 2009) by the introduction of subsidies, credit easiness and reduction in VAT. In both countries, a real industrial and commercial fabric of the SWH begins to emerge which is accompanied by a dynamic growth of this market (about 70,000 m 2 /year since 2008 for Morocco). Solar air-conditioning The increase in living standards in the SEMC may accelerate the popularity of air conditioning systems, uncommon so far. The cooling requirements, particularly for air conditioning of buildings, are entirely consistent with the intensity of sunlight. Therefore, the development of solar air-conditioning is now a 29

30 very promising solution for the Mediterranean. This technology, still relatively unknown, is supported by international research programs such as the Solar Heating & Cooling program of the International Energy Agency or the REACT project (see box 6). The process is composed of solar thermal collectors that supply an absorption cooling system. This device should be able to cover all energy needs of a building: air conditioning, heating and hot water. Significant challenges remain, however, such as the risk of malfunction related to the complexity of the technology and its high cost still limits the demand for this product. Box Nº 6: The REACT project The REACT project aims at promoting technological innovation systems for water heating and air conditioning from solar energy. Many partners of northern and southern Mediterranean countries are involved in this project (DLR, SOLETEM, ADEREE, NERC, ALMEE), allowing in particular for strengthening the links between research centers. Two test sites were selected: a public hospital in Casablanca (Morocco) and a tourist resort in the Aqaba city (Jordan). The system is composed of parabolic troughs that generate heat input and a set of desorber/ condenser/expander/evaporator/absorber in which circulates the refrigerant (ammonia) and a fluid called absorber (water). The cooling part of the system is generated by the evaporation of ammonia at low temperature (step 4). The portion of hot water production is done via the condenser (step 2). The pilot installation of Aqaba (Jordan) came to replace gas heaters of the hotel, reducing emissions of the site by tons per year. The majority of avoided emissions are done in the winter (187.2 tons of CO 2 ) in the heating mode. For more information:

31 3.4 Future solutions in the field of energy efficiency Lighting of tomorrow The evolution of technologies in lighting allows now the development of new solutions like LED (Light Emitting Diode, diode diffusing light). This technology has the advantage of being more environmental and sustainable than incandescent or compact fluorescent bulbs: they are illuminated thanks to a movement of electrons in a semiconductor material, LEDs have a lifespan of 25 years, they do not heat and do not use any hazardous substance (mercury for example). Compared to incandescent bulbs LEDs performance is 8 times higher (a 3W LED produces as many lumens as a 25W incandescent bulb). The cost of LED technology is nevertheless still very important with a price of 66 euro cents for 10 lumens, against about 2 euro cents for an incandescent bulb. Effective management of electricity in the building Smart Grid and Smart Products The smart grid is defined as a communicating electrical network, whose different elements are physically connected by high, medium and low voltage lines, but also virtually through meters and other communicating devices. It will profoundly transform the architecture of power systems and our relationship with electricity. The revolution brought by the smart grid means initially the deployment of communicating electric meters. These meters will transmit data for remote reading, but can also receive control commands (start-up installation, change of power). The diagram below shows data exchange contributing to energy optimization in homes. The communicating electric meter generates counted data that are displayed on a remote display in home and operated by an Energy Box installed in the house and connected, on the one hand, to the internet via ADSL and, on the other hand, to electrical equipments to be controlled. This technology should lead consumers to a genuine control of their energy costs because they can monitor their consumption in real time directly on the screen of the meter, a remote display or even their smart phone. For the electricity distributor, the analysis of consumption patterns and the possibility of action should allow for better management of peak demand. The possibilities of power cuts through specific agreements on certain devices (refrigerators) could be considered. 31

32 Research: A perequisite for a sustainable future Further progress is possible in all uses and on all the plans (technical, institutional). Similarly, innovative financial mechanisms are yet to be invented. Research and regional cooperation in this area should be intensified in the coming years to benefit the entire region. Without waiting these advancements, significant gains could be realized in terms of energy and environment with measures already known and existing and proven technologies, as illustrated in Box 7. Box Noº 7: ALMEE promotes household energy-saving in Lebanon ALMEE recently evaluated the energy impact as well as the technical and economic feasibility of energy efficient housing in Lebanon. The study was based on the comparison of two types of construction: the first does not comply with energy regulation and reflects most of the buildings in Lebanon, the other is a high-energy-performance building. The latter was equipped with several enhancements available in the domestic market (insulation, glazing, efficient equipment, solar energy ). For each efficient equipment, the different impacts on energy consumption and CO 2 emissions as well as the return on investment was calculated. Calculations of ALMEE showed a difference in consumption by 63% between the current and the improved constructions (122 kwh/m 2 against 45 kwh/m 2 ), or a saving of 202 kg of CO 2 per m 2. The table below shows energy savings and cost effectiveness of each device. Improvement Electricity savings in KWh per year Net present value* Washing machine 842 kwh $ Compact fluorescent 1,308 kwh 506 $ Double glazing 1,486 kwh $ Refrigerator class A 1,600 kwh $ Solar water heater 2,336 kwh $ Insulation 3,436 kwh $ *Assuming a discount rate of 5% we get present cumulative profit for the various improvements. The energy-saving lamps have the lowest additional cost. It is therefore essential to accelerate their deployment given the savings they can generate. Similarly, solar water heaters are a bit cheap and are easy to integrate into the buildings sanitation system. For appliances, the consumer must get used to consult the energy labels before buying electrical appliances and favor class A. Insulation is the most important improvement from the point of view of energysaving and should move towards a mandatory application. All equipments allow for significant energy savings, however, not all are profitable. Indeed, the high cost of double glazing compared to energy saved is not justified in Beirut; it nevertheless has the advantage of providing some sound insulation that is beneficial in town. ALMEE in this study demonstrates that it is economically possible to design low-energy consuming housing in Lebanon. For more information: 32

33 Industry Specific programs in the industry sector Algeria and Tunisia are the only countries to have developed a number of measures to mobilize the potential of energy savings that exists within their industries. Beyond the mandatory energy audit programs, it is a reinforcement of the council and skills of market participants (technical centers, consulting offices, energy agency and banks) that favored the emergence of energy efficiency projects in this sector. In Tunisia, energy efficiency policies in the industry are based on three types of complementary and mutually consistent instruments: institutional, regulatory and incentives instruments. In addition, technical support programs allow being operational through technical assistance to manufacturers, monitoring of their projects, thematic studies and communication. The institutional instrument is essentially represented by the National Agency for Energy Management, which has a dedicated department for energy efficiency in industry. Its role is to assist public authorities in setting energy efficiency policy in this sector and to ensure its implementation. The National Fund for Energy Management is the financial arm of the institutional framework whose role is to provide long-term funding for the incentive system for energy management. Finally, the Upgrading Program is also involved in the implementation of this policy since investment in this area would be eligible. Technical Assistance Incentives instruments Subsidies FNME Fiscal advantages Financing tools ESE Regulatory tools Mandatory and periodic audit Prior compulsory comsultation Outils institutionnels ANME (Unité de l Efficacité Energétique dans l Industrie) National Fund for Energy Conservation National Upgrading Program The regulatory tools are defined as part of a set of legal texts that regulate, first, the conditions for securing of periodic industrial energy audits (now fixed at 800 toe per year). Similarly, new energyintensive projects are subject to prior authorization of the Ministry responsible for energy and are also subject to the obligation of the energy audit of the plan (prior consultation). The auditors are accredited by ANME under defined conditions in the prescribed regulatory manner. 33

34 The incentives tools are composed of several types of complementary measures: The regulatory incentives consist, in part, of the subsidy for energy audit cost and, on the other hand, direct payments to intangible investments and energy efficiency equipments as part of program contracts between industry and ANME. These grants come from a sustainable source funding, the National Fund for Energy Management. In addition to these direct payments, tax benefits are for equipments for the implementation of energy efficiency actions. Direct benefits for energy efficiency - Energy audit: 70% capped at 30,000 DT - Intangible investment: 70% capped at 70,000 DT - Material investment : 20% capped according to the annual consumption of 100 KDT (less than 4 ktoe) KDT 200 (4-7 ktoe) or 250 KDT (over 7 ktoe) - Cogeneration: 20% of the investment capped at 500 KDT Tax benefits: Exemption from VAT and minimum customs duties Funding mechanisms are very important instruments to support the market development of energy efficiency. In this context, credit lines distributed by local banks to provide financing for their industrial energy efficiency projects on favorable terms in the form of interest rates, length of maturity and grace period. AFD credit line: - Amount: 40 million - Duration of loan: 8 to 12 years - Grace period: 2 to 3 years - Subsidized interest rate - Technical assistance to projects: free World Bank credit line: - Amount: $55 million - Duration of loans: max 15 years - Grace period: up to 5 years - Subsidized interest rate - Technical assistance to projects: free Energy Services Companies constitute a very interesting tool for the development of energy efficiency market through technical and financial facilities they could bring along energy efficiency projects. The establishment and operation of these structures are regulated by the minimum requirements to ensure the quality of services to industry. ESE mission in Tunisia - Conduct studies aimed at achieving energy savings - Develop projects that would deliver energy savings and ensure their implementation, management, monitoring and possibly funding - Ensure the results in terms of energy conservation In Algeria, the Top-Industry program has focused on decision support and assistance to investment in energy efficiency. The decision aid was realized by carrying out feasibility studies (4 techno-economic studies) for projects to improve energy efficiency in industry: restart of a gas turbine generator of 14 MW; thermal energy recovery of a zinc furnace to heat pretreatment baths; and commissioning of the existing two turbine generators of 2.1 MW. The investment aid took the form of grants of up to 30% of the project (driving force replacement and optimization of thermal process). It is worth noting that the low cost of energy reduces the impact of the program, and the long time for return on investment often makes the company to postpone its investment program. 34

35 Box Nº 8: Testimony of an industrial company in Tunisia: ETS SLAMA FRERES COMPANY-Nejma Huiles: Cogeneration with gas engines Presentation: Date of creation: 1972 Activity: ICH Products: Refining and packaging of vegetable oil and fats and the manufacturing of laundry soap. Number of jobs: 366 of whom 53 Cadres Turnover in 2009: 90 MDT HT. Annual production in 2010: 78,705 tons Energy Issues: Primary energy consumption in 2010: 7,122 Toe divided into: Electric consumption: 2,294 toe Thermal consumption: 4,828 toe Energy expenditures: 2,657 kdt/y. Action Plan for Energy Efficiency Insulation of grease reservoirs. Acquisition of a condensates recycling system. Acquisition of steam flow meters. Insulation of boilers sheeting. Recovery of condensates flash steam. Acquisition of steam traps in the boiler room. Replacing the exchange oil/oil heat at the level of deodorization. Optimization of plant lighting. Cogeneration with gas engine project. Impact of the program: Overall energy savings Financial gain Global investment (kdt) Avoided GHG (TE-CO 2 ) toe/year % energy consumption kdt/year % bill 2,257 32% % 2, ,186 Payback time of the investment 2 years 10 months Action: Cogeneration project The Nejma oil plant is equipped with a cogeneration system, with a nominal rate capacity of 1,131 MW (ISO) that uses natural gas to meet part of its electrical and thermal needs (hot water and steam). The cogeneration system consists of: - A gas engine with a capacity of 1,131 kw - A steam generator of 4 bars abs. - A system for recovering hot water at 90 C working on water cooling of the engine and gas output of steam generator Overall energy savings Financial gain Global investment (kdt) toe/year % energy consumption kdt/year % bill % % 2,351 Avoided GHG (TE-CO 2 ) Payback time of the investment 3,085 3 years 7 months 35

36 4.2 Energy audit, a leading tool for improving energy performance Whether voluntary or mandatory, energy audits aim at identifying the sources of energy savings while offering solutions to improve the energy performance of companies. Algeria, Tunisia and Turkey are the only countries to impose them on energy intensive facilities in different sectors (industry, transport and tertiary). Only Tunisian and Turkish systems require periodic monitoring of these institutions. Other countries such as Lebanon, Syria, Israel and Egypt (see box 9) have launched campaigns of energy audits for free or heavily subsidized without imposing this measure later. Box Nº 9: Energy audits program of OEP (Organization for Energy Planning) As part of this program, the Egyptian OEP created a mobile laboratory for energy audit. A specially dedicated truck to this task was equipped with a multitude of measuring instruments, combustion analyzers, flow meters, purge vapor controllers, water analyzers, volt meters, light meters and emission meters, etc. Since the late 1980s OEP carried out over 50 partially subsidized energy audits in the industry. These audits were mainly in the energy intensive industries (cement, metallurgy, petrochemical, foundry). The potential energy savings identified in these audits have been estimated at 600,000 toe per year with a repayment period of less than two years. 36

37 Transport Transport: a fast-growing and difficult to control energy consumption Transport accounts for 26% of final consumption of SEMCs and depends 96% on oil. According to the conservative scenario of OME (2011), the consumption of this sector should continue to grow by 3% per year over the next 20 years. This steady growth is mainly due to the expansion of the fleet. The characteristics of this fleet reinforce the difficulties associated with the introduction of energy efficiency measures. Indeed, the low capacity of household debt in these countries makes the rate of fleet renewal very low. About 70% of the fleet has over 10 years and the majority of vehicles purchased are imported used cars. This feature severely limits any action to improve vehicle fuel consumption by accelerating the renewal of the fleet with more efficient models. However, technological conversions are possible in some contexts (see box 10). The other achievable actions concern the organization of transport of passengers and goods related to the development of transport networks. 5.2 Improve the consumption of private cars Monitor and improve vehicles performance Tunisia, with its installation program of 180 engine diagnostic Benches that systematically monitor and adjust the engines. The purpose of this project is to reduce fuel consumption and vehicle emissions. These controls and settings are held in conjunction with the mandatory periodic technical inspection in accordance with the road code in Tunisia. This is accompanied by an awareness campaign to benefit motorists. Inform the consumer The majority of new vehicles sold in the SEMC are imported from Europe. Consumers benefit also from information on fuel consumption and CO 2 emissions when purchasing a new vehicle. Tunisia is the only country to develop an awareness program for efficient driving through a program for the promotion of training and of recycling of the economic driving techniques. This program envisages the training of driving schools instructors (around 3,500 beneficiaries), examiners of driving and 160,000 drivers belonging to public and transport enterprises. ANME expects to generate through this program a saving of 14 ktoe/year. Rejuvenate the fleet The new generation of vehicles displays consumptions of up to 50% less than the models of over 10 years. To limit the purchase of old vehicles, Algeria, Morocco and Tunisia have banned the import of used vehicles of more than 3 or 5 years old depending on the country. 37

38 Box Nº 10: Algerian PROP-Air Program Algeria has large reserves of gas and oil which allows it to consider a partial substitute of fuel by the liquefied petroleum gas (LPG/c) in the transport sector. Such a substitution across the country would reduce pressure on other fuels (diesel, gasoline) and reduce the impact of transport pollution in urban areas (LPG is cleaner in terms of emissions). It is with this objective that APRUE launched in 2009 the Prop-Air program. Support for the development of LPG/c was evidenced by the introduction of a funding mechanism allowing individuals to convert their vehicles to LPG/c. Those who wish can benefit from an interest-free loan from the local development bank. The financial impact of this measure is thus charged to the National Fund for Energy Conservation. The program also includes: - Select accredited installers, distributed throughout the country to ensure the conversion of vehicles - Launch a communication campaign directed to motorists (posters, advertising spots) - Organize information actions and upgrade of installers This program envisages the conversion to LPG/c of more than 4,000 private cars per year. By 2020, Algeria expects a 20% increase in market share of LPG/c in the fleet. In parallel, the Sonelgaz company equips a fleet of ten buses that operate in the city of Algiers with LPG/c in early The Algerian State has recently strengthened its support to this program by exempting all the new vehicles running on LPG/c from the sticker. For more information:

39 5.3 Promoting public transport The rapid growth of urban population since the 1980s has not been followed by a significant development of urban transport networks in major cities in the SEMC (excluding Israel). Transporting people and goods has been done mainly on the roads; the share of rail transport is less than 10% for most countries. To address this problem of urban mobility within and outside, several countries are developing strategies for organizing urban transport, taking into account energy efficiency. This is the case in Morocco and Tunisia, where the municipalities of major cities should develop strategies for urban transport, investment planning and coordinating projects with operators. In general, large cities in Algeria, Egypt, Israel, Jordan, Morocco, Tunisia and Turkey are making urban transportation master plans. Their goal is to improve infrastructure and transport organization in the city. The most supported projects include: Expansion and renovation of public transport systems (subway, bus, tram, rapid rail) Rehabilitation of the main roads of cities Promoting the use of buses and taxis running on LPG/c Improving the supply of public transport has been increasingly through projects involving low-carbon technology solutions (LPG/c buses or hybrid). In Tunisia, the law on energy conservation has introduced the concept of urban transport plans (PDU) and integrated it as an act of energy conservation. Its development is intended to facilitate travel, to rationalize energy consumption and protect the environment by laying down general rules for organizing the transport of people and goods, traffic and parking in urban areas as defined by law

40 6 Sustainable Cities in the Mediterranean The Mediterranean countries are now experiencing among the highest urban growth in the world, marked by both a growing population (more than 82 million people extra by 2030) but also by coastal urbanization movements and a surge in tourism. These dynamics of growth and urban sprawl have negative impacts on the Mediterranean environment. Global warming will also impact these areas and make the least industrialized of the Basin even more vulnerable- regions that have contributed little to greenhouse gas emissions. Beyond a consuming sector approach, the subject of this paper, a light on the broader theme of sustainable city which requires coordination of complementary activities in many areas - including energy conservation- is therefore particularly interesting. The development of this concept is one of the priorities of the initiatives launched as part of the Union for the Mediterranean (UfM) at the Paris summit of July 13, To realize this concept, certified econeighborhoods with HEQ (High Environmental Quality) pilot projects are expected to be realized, which will give the first sketch of the sustainable Mediterranean city. So this is an emerging but important issue for the UfM, and efforts are made to make progress in this domain in view of the big issues related to cities in the region. Beyond the energy sector, the impacts of the sustainable city are important on several other areas: (social, environmental, sanitary, etc). For example, Tunisia has included an eco-village project in its national Solar Plan (see Box 11). On the energy plan in particular, consumption of cities is closely linked to spatial and architectural characteristics as well as to the growth of public transport. The energy efficiency of sustainable cities of SEMC will depend in part on urban density, the sobriety of the housing and management of urban sprawl over time. The latter issue is strongly influenced by the rural exodus phenomenon that could cause the development of a periphery urbanization of precarious housing type. All major cities of the SEMC are facing this problem, which constitutes a major obstacle in the process of moving towards a sustainable model. The new model of land management will have to address multiple issues: reduction of greenhouse gas emissions, adaptation to climate change, energy and natural resources conservation while providing a pleasant living environment for its citizens. 40

41 Box Nº 11: Zarzis-Djerba Solar Eco-Village in Tunisia The construction of the first eco-solar village promoted by Solartech should start soon. Covering an area of 160 H and an estimated cost between 130 million and 160 million dinars, the project s main objectives are: Make renewable energy, particularly solar energy, a lever for sustainable development of south-east Tunisia. Develop areas of expertise: renewable energy (particularly solar), desalination of water (especially seawater) and organic farming. Enhance synergies between education, research and production in the specialties of the village (renewable energy and organic farming). The Djerba Zarzis eco-village project revolves around four main components as part of an integrated approach: the technological component, training, farming and eco-industrial component. These main activities revolve around training, research and innovation, eco-industry and experimentation, Bio-agriculture and the center of life (services, housing, recreation area, restaurant, etc.) and production of primary resources. This project is fully integrated within the framework of national priorities and is part of the Tunisian Solar Plan (TSP). It will support and promote the Tunisian policy in the field of energy management and sustainable development. Timeline of achievements: 2011: - Completion of feasibility studies and presentation of a case to government to benefit from accompanying measures and support given to such projects, including acquiring the land at symbolic dinar. - Increase in capital of Solartech-Sud up to 40-50% of the invested amount. - Completion of technical studies and implementation of land development. - Launch of technical studies of implementation of various components. 2012: - Launch of tendering of works and site development and beginning of work. - Commencement of the construction of project components. End of 2013: - Effective start of the project through: The installation of the first core of the project The installation of the first operational units For more information: 41

42 Some countries in the region have already launched programs to deal with this phenomenon. Morocco, for example, has launched a social housing program to eradicate slums surrounding urban areas of its large cities (see box 12). Box Nº 12: The Moroccan program: Cities without Slums Like many other countries in advanced economic transition, Morocco has witnessed a strong rural-urban migration since Today, the urban population is estimated to represent 57% against 29% in This development was too fast to be perfectly controlled, which generated agglomerations of unhealthy and illegal housing as well as slums on the outskirts of major cities (Casablanca, Agadir, Marrakech, Rabat ). In Morocco nearly 240,000 people migrate from rural to urban areas each year. Launched in July 2004, the Cities without Slums program is intended to provide housing to nearly 300,000 households living in slums by This national program concerns 85 cities with a budget of 20 billion D i r h a m s. I n , t h e r a t e o f p r o g r e s s o f t h e program has reached 70% (according to the Ministry of Housing, Urbanism and Spatial Planning). Currently 167,700 families benefited from this program; 23,000 others are waiting to be resettled in the units completed and 39,300 families are affected by the units under construction. Of the 85 cities covered by this program, 42 of which do not have slums anymore and the rate of progress in the remaining 43 cities reached from 90% to 95%. To reduce the deficit of housing, a royal order was proclaimed in early 2011 for the construction of 1.5 million units by 2015 at a rate of 300,000 units per year. Despite a major social housing development in Morocco, unhealthy housing niches could again grow as a result of extreme droughts causing a massive rural exodus. For more information: 42

43 Box Nº 13: An innovative project of Boughezoul city in Algeria The Algerian government, as part of the new organization in terms of land management, has launched an innovative project with the new city of Boughezoul, a modern city with low carbon emissions, with the financial support of the Global Environment Fund (GEF) and UNEP s technical assistance. This environmental objective is to be achieved through the use of best practices in sustainable urban development, the use of renewable energy and widespread promotion of energy efficiency, particularly in the residential, agriculture and transport areas. For more information: Portail.cder.dz/spip.php?article

44 7 Cross-cutting measures Transversal policies and measures are those that target several or all sectors. Two categories are differentiated in this work: informative measures (awareness campaigns) and financial incentives measures (allowing the creation of dedicated funds of energy efficiency/renewables). 7.1 information campaigns: practices, targets and treated topics Some countries are beginning to implement information campaigns that help increase awareness among population and economic actors vis-à-vis energy and climate issues. These campaigns are also a good way to disseminate knowledge on the available alternatives. Conducted solely by the agencies responsible for energy conservation, they have a range of targets ever wider. They use various media outlets (television, radio, internet, press, etc.) to develop more personalized messages. Algeria, Lebanon, Syria and Tunisia broadcast multiple commercials on the simple things in terms of energy efficiency. The Lebanese Center for Energy Conservation produces specifically diverse advertising products (solar water heating, CFL) and energy efficiency practices (energy use in building). The will of awareness and education on energy is marked in these three countries through the dissemination of complete educational materials (via internet, distribution of leaflets in schools). Tunisia organizes such days of energy and environment, of which one in schools. 7.2 Funds for energy efficiency Financing of energy conservation operations comes from specific funds for energy conservation (Algeria, Israel, Jordan, Lebanon, Morocco, Tunisia and Turkey). Algeria and Jordan, which fund themselves, have very limited funds (less than 8 million/year). Algerian funding comes from such taxes on energy, taxes and fines on heavy energy consuming equipment and interest of certain funds. The funds of other countries are supplied mainly by international donors (UNDP, AFD, EIB, etc) or by state banks (the Central Bank of Lebanon for example). Private funds are both sectoral and transversal according to each country. Tunisia is also financing a portion of its activities through the National Fund for Energy Conservation (FNM), funded by two taxes related to new vehicle registrations and to import and production of air conditioners, lamps and tubes with the exception of low consuming energy materials or destined for vehicles. As part of its partnership with many SEM countries, the European Union is supporting key reforms in the energy sector through various actions and financial instruments. This is, for example, the case in Egypt and Morocco with the FREEME project (see box no. 14) which strengthens the sectoral programs for energy efficiency and assistance for development of renewable energy. 44

45 Box Nº 14: FREEME Project FREEME project, launched in 2010, supports the development, access and sustainable use of renewable energy and energy efficiency in Morocco and Egypt. The aim is to allow smallentrepreneurs access to products of EE & RE through micro-credit particularly in rural areas. The project also includes training sessions and awareness of some of the more disadvantaged population. The PlaNet Finance and its partners* are planning to involve in both countries 12,500 different stakeholders (public and private) for three years. The types of targeted products in this project are for example: gas oven, energy-saving lamps, solar water heater, efficient refrigerator and freezer, sewing machines, etc. Expected results - Synergies will be developed between all stakeholders and actions tailored to the national energy policies will be offered to target groups small businesses will be trained and be able to market more efficient equipments and to provide energy services nearby. - Patterns of micro-finance and financial services will be designed and 800 recipients (TPE and modest households) will have access to microcredit to finance their equipment. - 4,800 recipients of micro-finance services will be made aware of the socio-economic and environmental development of EE & ER. Financing mechanisms will be disseminated and published in the MENA region. *ADEME, DBACD, GERERE, ADEREE, EACD, ARDI Fondation, GERES, AFD, ALSTOM, FEM, GDF Suez, PNUD Maroc, SGP, European Union. For more information: tomcatlocal pdf 45

46 7.3 Energy management, pillar of the fighting climate change strategy SEMCs face, in a global context of relief of their energy dependence and the fight against climate change, two challenges: reducing energy intensity and diversifying their energy mix. Energy efficiency is, then, the most promising way to optimize the energy efficiency of goods and services and reduce emissions of greenhouse gases in the short term. In addition to the actions of sobriety and efficiency, it is necessary that the SEMC balance sustainably their energy needs with the help of renewable energy (solar, hydro, wind, biomass, geothermal). According to the conservative scenario of OME, in 2020 the share of renewable energies (excluding hydro) in the production of electricity in SEMCs should reach 4.6% instead of only 0.5% in The alternative scenario, more proactive but realistic foresees more than doubling the share of renewable energy by 2020 compared to the conservative scenario, or a share of 9.5%. On the climate level, the Mediterranean region would be exposed to a strong warming by the end of the century: according to the IPCC, the average rise in temperatures in the region could reach 4 to 5.5 C and the volume of rainfall would decrease by 20%. SEMCs would then face an increase in climate extremes (heat waves, continental droughts), increasing rural-urban migration and weakening of the agricultural sector. It is now established that the impacts of climate change can no longer be completely avoided. The region s vulnerability to climate hazards makes imperative the adoption of policies to increase the adaptability of the territories. Such a strategy would aim at adjusting the local natural and human systems to limit the negative impacts of climate change. This could take the form of climate-energy plans by combining the goals of mitigation and adaptation to climate change, in which the sobriety and energy efficiency should take the lion s share. 46

47 Energy efficiency: richness and diversity This brochure presents the most illustrative measures of national policies for energy efficiency in five themes, each introduced by a brief presentation of data and policies of the sector. This overview is certainly far from being comprehensive: in addition to partial information, the goal is mainly to give the reader food for thought as well as references for more information. The richness of such a document is in the range of selected examples that show that EE is running well in the SEMCs and also highlights how different countries have developed innovative approaches; many of which could be generalized, although much remains to be done. But beyond this inventory, such an exercise allows drawing methodological lessons particularly interesting, from which we can retain the most important. - There is not a preferred instrument or measure. The success of a policy results from the implementation of a number of properly articulated instruments. Successful programs reflect indeed the need for a solid architecture and a coherent and complete set of measures, using of incentives that have already been tested in tandem with innovative actions. - Countries use a large variety of means: one finds in many countries the importance of regulation as a powerful tool; there is also the establishment of dedicated institutions to energy conservation, even if their status and skills vary from one country to another. - There is a diversification of public incentives, mainly financial, for energy conservation, which has been accelerated in recent years. There is indeed a growing reliance on partnerships and the use of specific funds to support, under various forms, investments. In addition to traditional instruments, there are funding formulas giving a greater share of intervention to private operators. - The most successful programs are those combining the following characteristics: consistency (good definition of the target group and good articulation of these measures), well distributed cost among stakeholders and the State, flexibility, administrative simplicity, quality of information and awareness, participation and motivation of different actors, continuity (introduction of structural, planned and sustainable policy) and substantial environmental benefits. - The energy efficiency efforts to date have focused primarily on the sectors of industry and buildings. Very generally, too little progress has been made in the transport sector, despite its almost total dependence vis-à-vis petroleum products, growth in energy consumption and pollution it causes (including emissions of greenhouse gases). Finally, three aspects of a general nature must be emphasized, which are essential for the strengthening and effectiveness of energy conservation policies. These are partnerships with all stakeholders, the development of specific mechanisms for financing investments and strengthening of international and regional cooperations. - Energy efficiency concerns all economic and social activities. Its implementation can be successful only through the involvement of all economic actors: firms, local authorities, governments and households. Public institutions responsible for the rational use of energy, national, regional or local agencies, have essentially functions of facilitation, promotion and incentives vis-à-vis economic agents to carry out operations in their fields of activity. These institutions do not carry out those tasks themselves; they insure that others do. The key to success is the establishment of a systematic and permanent partnership between the responsible institutions (agencies, administrations), the energy-consuming sectors, equipment suppliers and funding agencies, public or private. The regional cooperation has also a fundamental role to play. 47

48 - The issue of investment financing remains in most states the weak point of the implementation of policies. The encountered difficulties show that whatever the general guidelines for economic policies are, all countries have used systems of financial incentives for investment. They appear in forms more or less sophisticated, in the direction of either consumers or producers of equipment, or energy companies. When the incentive policy is reflected by grants from the state budget, they are necessarily limited and subject to budget fluctuations. A more appropriate method is to make a levy on energy bills of consumers in order to create a fund or funds for energy efficiency, whose stability is better ensured and allow investment support. A milestone in this field will be the generalization of public-private partnership to mobilize banking organizations with much more important leverage for public assistance. But if one wants to reach as many consumers, especially in disperse areas of housing, the service sector and small and medium enterprises, one of the most effective methods is the intervention of energy service companies that take the technical and financial responsibility of the investment and pay themselves through energy savings. This mechanism works satisfactorily in many countries and deserves special attention for its generalization to the south and east of the Mediterranean. - Strengthening of international and regional cooperation and coordination is a key factor in identifying policies and measures to meet the future needs of Europe and SEMC, and ensure their sustainable development while minimizing costs. In this context, MEDENER can help bring together key stakeholders, decision makers, the scientific community, civil society and the private sector in the Mediterranean region, to jointly identify priorities and define policy orientations. Sharing information on establishing these priorities and the implementation of specific activities dedicated to enhancing energy efficiency and renewable energy in the Mediterranean region will help solve specific problems in one country, but also those of a global nature, based on the mutual interests and benefits. Throughout this document, the list of policies, analysis of results and description of the measures taken by countries show that even if the targets are ambitious, they are nevertheless achievable. The exchange of experiences is among the actions to be taken to move towards a more sustainable world. The authors of this brochure express their wish that its distribution will contribute meaningfully in this necessary effort for knowledge sharing. 48

49 References DOCUMENTS ADEME, L efficacité énergétique dans l Union européenne : panorama des politiques et des bonnes pratiques; novembre ADEREE; Programme national d efficacité énergétique dans le bâtiment; A. Hilbig, Short compendium on solar thermal applications and the solar water heaters industry in the Middle East, Solar Thermal Application in Egypt, Jordan, Lebanon, Palestinian Territories, Syria and Tunisia: Technical Aspects, Framework Conditions and Private Sector Needs; Deutsche Gesellschaft für Technische Zusallenarbeit (GTZ), March ALMEE; SPECIFIC TARGETED RESEARCH OR INNOVATION PROJECT, The REACt project; May ANME, PNUD; Projet d appui à la mise en œuvre du programme quadriennal de maitrise de l énergie en Tunisie; juillet APRUE; Programme des énergies renouvelables et de l efficacité énergétique; mars Banque Mondiale, Programme «Villes sans bidonvilles» du Maroc Rapport de l analyse d impact social et sur la pauvreté; Gebran Bassil, Ministère de l Energie et de l Eau (Liban); Plan stratégique national pour le secteur de l électricité; Juin Ministry of Electricity and Energy; Annual Report of Egyptian Electricity Holding Company; Ministry of Energy and Natural Resources, Strategy development unit; Republic of Turkey 2009 annual report; April Ministry of National Infrastructures (Israel); National Energy Efficiency Program; Observatoire Méditerranéen de l Energie (OME), Initial Market Assessment Report, Solar Water Heating Market Transformation and Strengthening Initiative; January Observatoire Méditerranéen de l Energie (OME), Mediterranean Energy Perspective, Observatoire Méditerranéen de l Energie (OME), Mediterranean Energy Perspectives - EGYPT - Chapter 7 Renewable Energy And Energy Efficiency; June RCREEE; Policies for Energy Efficiency and Renewable Energy in the RCREEE Group of Countries; April The Jordanian Government; Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects PEEREA; Regular Review of Energy Efficiency Policies; International Energy Agency; Solar Heating & Cooling program; Solar Update; July

50 WEBSITES The Israeli Ministry of Infrastures. The Lebanese Centre for Energy Conservation. The Lebanese Association for Energy Conservation and Environment. website containing all the concrete actions in the areas of energy efficiency and renewable energy. The Tunisian Agency for Energy Conservation. Turkish website for the promotion of energy efficiency and renewable energy. Algerian portal of renewable energy. The National Agency for the Promotion and Rational Use of Energy (APRUE). The National Center for Research & Development of Jordan. The National Agency for the Development of Renewable Energy and Energy Efficiency (ADEREE), covering the National Program of Energy Efficiency in the Building Sector. The National Energy Research Centre of Syria. website diffusing energy newsletters in Tunisia. 50

51 LIST OF BOXES N Sector Title Page 1 Multiples Potential energy saving in Israel 18 2 Building The Tunisian RTEBNT Program 23 3 Building Energy managers in Turkey 25 4 Building Information campaigns of the Lebanese Center for Energy Conservation (LCEC) 26 5 Efficient Equipments 6 Efficient Equipments The ECO-LUMIERE Algerian Program 28 The REACt project 30 7 Building ALMEE promotes energy-saving housing in Lebanon 32 8 Industry Testimony of an industrial company in Tunisia 35 9 Industry Energy audits program of OEP (Organization for Energy Planning) Transport Algerian PROP-Air program Sustainable Cities Zarzis-Djerba Solar Eco-Village in Tunisia Building The Moroccan Program: Cities without Slums Sustainable Cities 14 Cross-Cutting Measures An innovative project of Boughezoul city in Algeria 43 FREEME project 45 51

52 Acronyms ADEME Agence de l'environnement et de la Maîtrise de l'energie GEF GWh Global Environment Fund Gigawatt-hour ADEREE ADSL Agence nationale pour le Développement des Energies Renouvelables et de l Efficacité Energétique Asymmetric Digital Subscriber Line HEQ IEA IPCC High Environmental Quality International Energy Agency Intergovernmental Panel on Climate Change AFD Agence Française de Développement kgoe kwh Kilogram oil equivalent Kilowatt-hour AIE ALMEE APRUE BDL CDER CFL CPG DA Agence Internationale de l'energie l Association Libanaise pour la Maîtrise de l Energie et pour l Environnement Agence Nationale pour la Promotion et la Rationalisation de l Utilisation de l Energie Banque de Développement Local Centre de Développement des Energies Renouvelables Compact Fluorescent Lamps Compagnie des Phosphates de Gafsa Dinar LCEC LED LPG MSP NERC OEP OME OPGI PEC Lebanese Center for Energy Conservation Light Emitting Diode Liquified Petroleum Gas Mediterranean Solar Plan National Energy Research Center Organization for Energy Planning Observatoire Méditerranéen de l'energie Office de Promotion et de Gestion Immobilière Palestinian Energy and Environment Research Centre DLR EE EIE EI-SEMC Deutsches zentrum für Luft und Raumfahrt. German Aerospace Center Energy Efficiency Energy Intensity of South and East Mediterranean Countries PNME PPP RE SEMC SWH Programme National de Maîtrise de l Energie Purchase Power Parity Renewable Energy South and East Mediterranean Countries Solar Water Heating EU European Union Toe Tons of oil of equivalent FFEM Fonds Français pour l Environnement Mondial UNDP United Nations Development Program FNME Fond National de Maitrise de l Energie UNEP United Nations Environment Program GDP Gross Domestic Product USD United States Dollar GDP/cap Gross Domestic Product per Capita VAT Value Added Tax 52

53 MEDENER Mediterranean Association of the National Agencies for Energy Conservation The Mediterranean Association of National Agencies of Energy Conservation MEDENER brings together 12 organizations from both shores of the Mediterranean in charge of energy efficiency and renewable energy development policies. Founded in 1997 as an international non-profit organization, it aims at exchanging experiences, know-how and best practices. The Development of synergies between its members allows for strengthening the regional partnership on issues of energy conservation specific to the Mediterranean. Exchanges within MEDENER have contributed to significant achievements realized in national policies for rational use of energy, energy efficiency, development of renewable energy and the fight against climate change, both locally and globally. MEDENER was asked to provide assistance as part of work done to develop the Mediterranean Strategy for Sustainable Development (MSSD). MEDENER has also invested in several joint projects, particularly in the field of solar and energy efficiency. The measures implemented have involved both regulatory and technical areas as well as the development of knowledge, training and communication. They have facilitated the networking of market actors, promoting public/private partnerships and the establishment of financing mechanisms. They have also led to capacity building of all stakeholders and the development of solar technologies in response to the needs of electricity and energy, fit for the entire region. In the regional context of the Union for the Mediterranean, MEDENER intends to contribute actively to the implementation of projects related to its activities and in particular the Mediterranean Solar Plan. MEDENER established in 2011 an action plan in five areas with the aim of: - Promoting the strengthening of energy efficiency policies and measures - Identifying and implementing flagship projects in the areas of energy efficiency and renewable energy - Establishing an observatory for energy conservation - Developing a dynamic communication - Mobilizing fundings These axes are broken down into projects, which include pilot actions in energy efficiency in buildings, publications, benchmarking exercises, or the updating of databases on the themes of energy. Members of MEDENER are: - ADEME, Agency for Environment and Energy management - France - ADENE, Energy Agency - Portugal - ADEREE, National Agency for Renewable Energy and Energy Efficiency Development - Morocco - ALMEE, Lebanese Association for Energy Management and Environment - Lebanon 53

54 - ANME, National Agency for Energy Management Tunisia - APRUE, National Agency for Rational Use of Energy Promotion - Algeria - CRES, Centre for Renewable Energy and Energy Efficiency Greece - ENEA, National Agency for New technologies, Energy and sustainable economic development - Italy - IDAE, Institut for Diversification and energy savings - Spain - NERC, National Energy Research Center - Jordan - NERC, National Energy Research Center - Syria - PEC, Palestinian Energy and Environment Research Centre Palestinian Authority For more information: 54

55 Editorial coordination: Scientific coordination: Writing: Edition: Pho t o cr edi t s: ADEME - Nicolas Dyèvre ENEA - Anna Maria Sàlama ANME - Hassen Agrebi OME - Houda Ben Jannet Allal OME - Houda Ben Jannet Allal, Thibaut Taussat ADEME - Nicolas Dyèvre HAVAS DESIGN PLUS Picture Library ADEME and OME, Christophe Losberger Laurent Colonna, Julie Feminist, Mustsu 55

56 Mediterranean Association of the National Agencies for Energy Conservation 56